Real Estate

Vancouver housing bubble?

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  • Mar 26th, 2024 5:10 pm
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May 10, 2008
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zakarydoks wrote: https://www.zealty.ca/mls-R2714266/607- ... couver-BC/
Price DROP!
______________________________________________
2022-Aug-03 Listed $2,488,000 R2714266
Macdonald Realty Westmar

2022-Jul-25 Listed $2,800,000 R2711966
Macdonald Realty Westmar
______________________________________________
Which one is better in everyone’s opinion? Would you rather choose the above Fraserhood Van special or this house east of Main that isn’t fixed up? I remember seeing this listed and thought it was seriously overpriced at $2.9M but it actually sold. Peak pricing back in January I guess…

225 E 36th Ave. Vancouver BC
https://www.zealty.ca/mls-R2645789/225- ... couver-BC/
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Jul 25, 2015
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zakarydoks wrote: https://www.zealty.ca/mls-R2714266/607- ... couver-BC/
Price DROP!
______________________________________________
2022-Aug-03 Listed $2,488,000 R2714266
Macdonald Realty Westmar

2022-Jul-25 Listed $2,800,000 R2711966
Macdonald Realty Westmar
______________________________________________
Assessment is a killer. Almost 9K taxes a year. That laneway house will be working 4 months for taxes alone. The price is good though for today's market.
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Angel Girl wrote: Which one is better in everyone’s opinion? Would you rather choose the above Fraserhood Van special or this house east of Main that isn’t fixed up? I remember seeing this listed and thought it was seriously overpriced at $2.9M but it actually sold. Peak pricing back in January I guess…

225 E 36th Ave. Vancouver BC
https://www.zealty.ca/mls-R2645789/225- ... couver-BC/
That's a tough one because they are so similar. The Main Street house is bigger but Fraser house has the bigger lot and I like its location slightly better. With the laneway and possible lower price, I give a slight edge to the Fraser House.

See you guys at the OPEN HOUSE!
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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Hearing through friends that someone recently sold 2 detached homes in east van to blackrock.
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Alpine84 wrote: Hearing through friends that someone recently sold 2 detached homes in east van to blackrock.
The XGRO guys?
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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zakarydoks wrote: The XGRO guys?
Yup. I know we've seen a ton of articles over the past year about institutions/investment firms buying up detached properties, but I now have confirmation that it is happening here.
Great time to buy too. ~15% discount from peak and no competition from working class/individuals since affordability hasn't improved.
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Alpine84 wrote: Yup. I know we've seen a ton of articles over the past year about institutions/investment firms buying up detached properties, but I now have confirmation that it is happening here.
Great time to buy too. ~15% discount from peak and no competition from working class/individuals since affordability hasn't improved.
Are you sure it's not Blackstone?
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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zakarydoks wrote: Are you sure it's not Blackstone?
I heard Blackrock but maybe it was Rockstone?
lol it was a blend of two of these words.
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Alpine84 wrote: I heard Blackrock but maybe it was Rockstone?
lol it was a blend of two of these words.
Or it could be both Rock and Stone lol.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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Jan 25, 2021
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Alpine84 wrote: Hearing through friends that someone recently sold 2 detached homes in east van to blackrock.
That's very interesting, I always thought these big institutional companies invested more in multiunit or condos. Were these homes newer with laneway + 2 basment rentals or older teardodwns?
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Alpine84 wrote: Yup. I know we've seen a ton of articles over the past year about institutions/investment firms buying up detached properties, but I now have confirmation that it is happening here.
Great time to buy too. ~15% discount from peak and no competition from working class/individuals since affordability hasn't improved.
All these measures put in to make it harder for the middle-class to buy investment properties….All this hate against mom-and-pop landlords with their cheap basement rentals….Well, it paved the way for developers and investment firms to swoop in and buy up our houses, trade amongst themselves, develop rental-only buildings (that won’t sell individual units to the public), and ultimately own all of Vancouver. I hope the housecels are happy now as it is clearer than ever that they will never own and will be renting back from these companies forever for top dollar. If they thought it was hard to buy before, they should try bidding against these companies with unlimited money now. It’s the beginning of the end.
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zakarydoks wrote: That's a tough one because they are so similar. The Main Street house is bigger but Fraser house has the bigger lot and I like its location slightly better. With the laneway and possible lower price, I give a slight edge to the Fraser House.

See you guys at the OPEN HOUSE!
Haha, I won’t be going to the open house, but the price is very reasonable especially with the laneway. I think these 2 houses are similar in size, location, and age but with very different layouts, so I thought they would make a good discussion.

I’d also choose the Fraserhood one mainly due to the layout. This is the perfect example of why I hate the 3-level style with all the bedrooms upstairs. The rooms aren’t that much bigger and only 1 ensuite. I think they were going for the luxury feel with the fancy master bathroom but most people don’t use it all and it becomes wasted space. And maybe it’s because i’m not adversed to small bedrooms on the same floor as the kitchen and living room, but I love how efficient the 1-suite per floor is. The laneway of the Fraserhood house is the cherry on top.
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6174 BRUCE STREET
Vancouver BC
(Killarney VE) V5P 3M7
FOR SALE
⬆$488,000 Aug 4
$1,688,000

Seller is a schizo or something. Dude, just accept your house kinda sucks lol.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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Angel Girl wrote: All these measures put in to make it harder for the middle-class to buy investment properties….All this hate against mom-and-pop landlords with their cheap basement rentals….Well, it paved the way for developers and investment firms to swoop in and buy up our houses, trade amongst themselves, develop rental-only buildings (that won’t sell individual units to the public), and ultimately own all of Vancouver. I hope the housecels are happy now as it is clearer than ever that they will never own and will be renting back from these companies forever for top dollar. If they thought it was hard to buy before, they should try bidding against these companies with unlimited money now. It’s the beginning of the end.
Well said. Most housecels that I've come across lack any sort of financial education, so they think that it's a positive that prices are decreasing in today's economic climate. However, they don't understand that housing was actually more affordable for income earners 6 months ago lol.
I don't think they understand that they will never own property because they don't understand how to calculate affordability.
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Oct 13, 2011
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Alpine84 wrote: Well said. Most housecels that I've come across lack any sort of financial education, so they think that it's a positive that prices are decreasing in today's economic climate. However, they don't understand that housing was actually more affordable for income earners 6 months ago lol.
I don't think they understand that they will never own property because they don't understand how to calculate affordability.
Lower prices and higher interest rates favor first time home buyers compared to higher prices and lower interest rates. This has been explained many times before on this board.
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emdubya wrote: Lower prices and higher interest rates favor first time home buyers compared to higher prices and lower interest rates. This has been explained many times before on this board.
In theory and in a textbook yes, but that's not the case in today's reality. Plug the peak values & current values into a mortgage calculator and you will find that the price decrease has been offset by a corresponding decrease in how much one can borrow.
Factor in inflation and housing is less affordable today than it was 6 months ago.
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emdubya wrote: Lower prices and higher interest rates favor first time home buyers compared to higher prices and lower interest rates. This has been explained many times before on this board.
It has? FTHBs are about to get spanked (even more) in Vancouver.
If you buy vgro for a thousand years Vancouver homes will still be out of reach.
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Oct 13, 2011
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Alpine84 wrote: In theory and in a textbook yes, but that's not the case in today's reality. Plug the peak values & current values into a mortgage calculator and you will find that the price decrease has been offset by a corresponding decrease in how much one can borrow.
Factor in inflation and housing is less affordable today than it was 6 months ago.
Down payment goes farther, more favorable to buy at a low price with high interest rate as moving forward you are likely to renew into lower rates every 5 years. All the FTHB that paid huge prices in low interest rate environment are going to find out why having a massive mortgage but low interest rate for 5 years over the life of 25 or 30 year mortgage is a disaster. The true winners are those that bought in 2020 into low prices from COVID panic sellers and got low rates. Those that paid 2021 and early 2022 prices are going to be in a world of pain.
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emdubya wrote: Down payment goes farther, more favorable to buy at a low price with high interest rate as moving forward you are likely to renew into lower rates every 5 years. All the FTHB that paid huge prices in low interest rate environment are going to find out why having a massive mortgage but low interest rate for 5 years over the life of 25 or 30 year mortgage is a disaster. The true winners are those that bought in 2020 into low prices from COVID panic sellers and got low rates. Those that paid 2021 and early 2022 prices are going to be in a world of pain.
My argument was housing was more affordable 6 months ago for income earners when rates were lower and prices were higher. Do you have a real world example where this is not true?
What are your FTHB assumptions for their down payment and HH income?
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Oct 13, 2011
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Alpine84 wrote: My argument was housing was more affordable 6 months ago for income earners when rates were lower and prices were higher. Do you have a real world example where this is not true?
What are your FTHB assumptions for their down payment and HH income?
I think it’s pretty self explanatory.

Couple 1 and 2 both have 200K DP

Couple 1 is buying in low interest rate environment. 1m property 800K mortgage. 2% mortgage = 3400 a month.

Couple 2 is buying after rates have risen to 5%. 1m property has now declined 20% in value and now costs 800K. 600K mortgage @ 5% = just under $3500 a month.

In 5 years rates have dropped and are at 4%. Couple 1 is now renewing into a 4% rate seeing their mortgage cost increase significantly while couple 2 is renewing into lower rates seeing theirs decline.

Overall higher rates and lower prices are more advantageous for FTHB that can amass a large downpayment. Lower rates are advantageous for investors who can leverage existing equity at low rates to buy additional properties that are cash flow neural as long as rates stay low. The biggest losers are those that paid high prices during low rates and will have to renew into higher rates with negative equity.

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