Real Estate

Vancouver housing bubble?

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  • Aug 19th, 2019 8:43 pm
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Deal Addict
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Dec 13, 2016
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charlesd79 wrote:
Jun 4th, 2019 2:07 am
Why would you want to buy in such a shitty city? It's better to invest in Bangkok, trust me... Face With Tears Of Joy
I have just rented a condo in Bangkok..... from a lady from HK who owns about a dozen condos here.

Certainly even with expats leaving in droves due to Western currency crash, overseas investors seem to prefer third world country dictatorships instead of Nazi BC government.

Personally, I am sick and tired of observing Canada which is full of natural resources do fail after fail. I am completely changing my stance about this country ruled by a bunch of commies.

Yeah, we got Toronto... boo-hoo! One city that is only doing well.

What an embarrassment of epic proportions. I will be watching country deteriorate from the far,

Honestly, I am royally pissed off. Everything handed on a silver platter, resources, land....and wait for this.... a neighboring country that is basically the most powerful country in the world offering us free protection.

Canada- a country of losers... or rather pathetic government. The only thing government is doing relatively well is importing immigrants.... but how long is this going to last?
Deal Addict
Dec 4, 2016
1262 posts
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adamtheman wrote:
Jun 4th, 2019 6:34 am
Early numbers are out for May from a realtor newsletter. Here is the YoY comparison:

May 2019
2,645 sales
15,067 active listings
$1,014,000 average sold price

May 2018
2,808 sales
12,256 active listings
$1,107,500 average sold price

----------

Quite the difference a year makes. Condo inventory is up 60% YoY, while detached inventory is actually down 2% YoY. So if you are in the market for a condo, you're about to see a lot more inventory out there.
MOI still below 6. Nowhere near a bloodbath yet. The sentiment has changed, but don't expect market wide price collapse yet. I think prices in Calgary held for a long time even with double digit MOI. (That's my perception on internet. Too lazy to find actual data.)
Deal Addict
Oct 7, 2007
4765 posts
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orianna wrote:
Jun 3rd, 2019 6:29 pm
Because renting is a nightmare? I am looking to buy because i never want to move again. Rent is always rising. People sell their rentals.. you have to move, ect.

With a mortgage, I know my payments are locked in. If people in this thread would prefer to rent, why are you in here?
I agree with you about wanting control over your life and not having to rent BUT FYI my property taxes went up 15% this year over last and it wasn't a small increase. I think these kind of property tax increases make the cost of housing excessive for everyone (renters AND owners) and may explain why landlords pass along rent increases to their tenants. It is time for people to demand that governments get their budgets under control. Why do they keep giving themselves raises and funding programs that are not part of their mandate. We can't afford it anymore.
Deal Addict
Jan 17, 2006
1561 posts
1384 upvotes
Toronto
BiegeToyota wrote:
Jun 4th, 2019 9:35 am
I have just rented a condo in Bangkok..... from a lady from HK who owns about a dozen condos here.

Certainly even with expats leaving in droves due to Western currency crash, overseas investors seem to prefer third world country dictatorships instead of Nazi BC government.

Personally, I am sick and tired of observing Canada which is full of natural resources do fail after fail. I am completely changing my stance about this country ruled by a bunch of commies.

Yeah, we got Toronto... boo-hoo! One city that is only doing well.

What an embarrassment of epic proportions. I will be watching country deteriorate from the far,

Honestly, I am royally pissed off. Everything handed on a silver platter, resources, land....and wait for this.... a neighboring country that is basically the most powerful country in the world offering us free protection.

Canada- a country of losers... or rather pathetic government. The only thing government is doing relatively well is importing immigrants.... but how long is this going to last?
Canada doing quite well, lots of room for improvement but lots of positive as well.
I guess you are suffering from inferiority complex as you had to leave Canada to live in shithole 3d world country.
Enjoy it, but you wont find much support to your rant about Canada here and you will be waiting forever for Canada to fail.
Deal Addict
Dec 27, 2006
1932 posts
905 upvotes
https://www.theglobeandmail.com/busines ... continues/

Vancouver home sales hit 19-year low as price decline continues
Published 52 minutes ago

A for sale sign is pictured outside of a detached home in Vancouver, British Columbia on March 4, 2019.
BEN NELMS/The Globe and Mail
Housing sales have dropped to a 19-year low in Greater Vancouver as the market extends a streak of declining prices.

Sales volume in May fell 6.9 per cent compared with the same month in 2018, and slumped 22.9 per cent beneath the 10-year average for May, the Real Estate Board of Greater Vancouver said on Tuesday.

Last month’s 2,638 sales in the region for various housing types were the lowest for May since 2000, when only 2,059 properties changed hands in that month.

Story continues below advertisement

The residential benchmark price, an industry representation of the typical home sold in an area, in Greater Vancouver has declined for 12 consecutive months, hitting $1,006,400 last month, compared with a record-high of $1,094,000 in May 2018.

On Vancouver’s west side, the benchmark price for detached houses sold has tumbled $502,900 over the past year to $2,927,600.

Greater Vancouver’s condo segment began softening in mid-2018, including in the less-expensive suburbs. In Tsawwassen, for instance, the benchmark price for condos sold has fallen 8.5 per cent over the past year to $464,300.

The federal banking regulator implemented a stress test on January 1, 2018, making it tougher to qualify for mortgages.

“High home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today,” board president Ashley Smith said in a statement on Tuesday.

The previous BC Liberal government introduced a 15-per-cent tax on foreign buyers in August 2016. The BC NDP government raised the foreign-buyers tax to 20 per cent in February 2018, while expanding that tax beyond the initial target of the Vancouver area.

International purchases of real estate in the Vancouver region have decreased from about 13 per cent of the total in the seven weeks before the tax’s adoption to less than 3 per cent in March 2019.

Story continues below advertisement

Other provincial factors include what B.C. Finance Minister Carole James calls a speculation tax, targeted primarily at out-of-province residents, and B.C. taxes aimed at higher-end properties.
Deal Guru
Jan 27, 2006
11091 posts
4492 upvotes
Vancouver, BC
BlueSolstice wrote:
Jun 4th, 2019 10:21 am
MOI still below 6. Nowhere near a bloodbath yet. The sentiment has changed, but don't expect market wide price collapse yet. I think prices in Calgary held for a long time even with double digit MOI. (That's my perception on internet. Too lazy to find actual data.)
A one month snapshot doesn't say much about the longer term trend as the trend is what really matters in real estate. It would be interesting to see how many of those listings are recycled - ie relisted within the past 6 months - and how many of them are net new. Still, with the average price coming down, the buyer's market has been given more fuel for those who want to wait it out. I don't see the market turning around anytime soon unless the average sold price starts to level off in the various categories.
Deal Guru
Jan 27, 2006
11091 posts
4492 upvotes
Vancouver, BC
Motoss wrote:
Jun 4th, 2019 12:39 pm
https://www.theglobeandmail.com/busines ... continues/

The residential benchmark price, an industry representation of the typical home sold in an area, in Greater Vancouver has declined for 12 consecutive months, hitting $1,006,400 last month, compared with a record-high of $1,094,000 in May 2018.
Hmmm.... numbers like these make me wonder how much the industry is messing around with the benchmark price if they are stating that the market's record high was back in May 2018...
Sr. Member
Dec 30, 2012
851 posts
910 upvotes
Toronto
Notice how they managed to hold the average JUST above $1 million for the second month in a row. Hmm.
Deal Guru
Jan 27, 2006
11091 posts
4492 upvotes
Vancouver, BC
civiclease wrote:
Jun 4th, 2019 2:08 pm
Notice how they managed to hold the average JUST above $1 million for the second month in a row. Hmm.
And how they seem to be pushing, on some media outlets, that sales are actually UP 44% M/M! The actual truth is that sales are down Y/Y as that would adjust for seasonal changes in demand. Hmmm.... anyone who knows anything about monthly statistics like these knows that you need to adjust seasonally as demand traditionally/typically changes from one month to the next as the Summer selling season kicks into full swing.
[OP]
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Dec 3, 2004
5030 posts
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Vancouver
BlueSolstice wrote:
Jun 4th, 2019 10:21 am
MOI still below 6. Nowhere near a bloodbath yet. The sentiment has changed, but don't expect market wide price collapse yet. I think prices in Calgary held for a long time even with double digit MOI. (That's my perception on internet. Too lazy to find actual data.)
Comparing BC to Calgary of the past is not a fair comparison. Calgary did not have all of the money laundering and illicit funds pouring in that BC did.

Nowhere near a bloodbath yet... fully agree... and yet, prices are already down about 10% from highs overall. In some areas this is much more, some areas are down 20%. Imagine buying a house last year for $1 million and having it be worth $800k now, and yet someone is telling you that the real bloodbath hasn't started yet.
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Jan 17, 2006
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adamtheman wrote:
Jun 4th, 2019 7:25 pm
Comparing BC to Calgary of the past is not a fair comparison. Calgary did not have all of the money laundering and illicit funds pouring in that BC did.

Nowhere near a bloodbath yet... fully agree... and yet, prices are already down about 10% from highs overall. In some areas this is much more, some areas are down 20%. Imagine buying a house last year for $1 million and having it be worth $800k now, and yet someone is telling you that the real bloodbath hasn't started yet.
But someone else is telling that illusive bloodbath will never happen and prices will start climbing soon.
Imagine those who wait for that crash and miss the opportunity again.
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May 22, 2003
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Vancouver
It's painful if you bought at the peak, but if you had bought in the years prior, you're still ahead. 10% is not that bad, but if it continues to go down and people start bailing, it will really start snowballing.
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Dec 26, 2005
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If you dont plan on moving anytime soon who cares, just wait it out.
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Dec 13, 2016
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ilim wrote:
Jun 4th, 2019 12:26 pm
Canada doing quite well, lots of room for improvement but lots of positive as well.
I guess you are suffering from inferiority complex as you had to leave Canada to live in shithole 3d world country.
Enjoy it, but you wont find much support to your rant about Canada here and you will be waiting forever for Canada to fail.
I didn't "have to leave" anything.

And it's not nice to call a country a a shithole. There are real people living here with with some part of the population going through unimaginable struggles.

My rant about Canada was about the government. Imagine if Swiss bank accounts changed every 3-4 years depending on who wanted the votes. That's third world.

There is a witch hunt in BC and this forum towards foreigners buying real estate, something that is perfectly legal in this country. If there's a money laundering going on then how about upholding the existing laws and doing the f job you are very well paid to do in this "first world country" instead of going after honest foreign and domestic buyers. That is a definition of a shithole third world country.

It's a joke and you are to blind to see it
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Feb 29, 2008
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notenoughsleep wrote:
Jun 4th, 2019 8:48 pm
It's painful if you bought at the peak, but if you had bought in the years prior, you're still ahead. 10% is not that bad, but if it continues to go down and people start bailing, it will really start snowballing.
And if this does happen and things really fall off a cliff, who will be held accountable? You can fix the problem without tanking the market and alienating well meaning foreigners. The same people begging the government to drop values 80% are the same who will be begging for help when the market craters, they can't find a job and a place to live. Some people will always beg for help while stepping over others.

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ilim