Real Estate

Vancouver housing bubble?

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  • Oct 27th, 2020 2:12 pm
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Deal Addict
Jun 29, 2007
4698 posts
1385 upvotes
I have been seriously researching the Vanc area real estate market for the past 5 weeks.

I do see increased risk of a market correction. I am not sure if it will happen in 3 months or 12 months but there is increased risk. IMO, it has gone up too much too fast.

Nothing goes up forever and there are always dips. You know the old adage about real estate? Location, location, location. Some experts think it's more like timing, timing, timing.

Certain segments of the market have just gone crazy.

Having said above, I just put in my 3rd offer on a house. :D
Deal Fanatic
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Apr 20, 2011
5310 posts
481 upvotes
Vancouver
A few weeks ago(forgot where I saw it) an article stated that Vancouver has only 40,000 or so single family homes. Thats not a lot.
Deal Addict
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Apr 12, 2005
1283 posts
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Not sure why Toronto is ranked 4th. I have lived in both cities and Toronto is hot garbage (no offence to anyone who lives there) compared to Vancouver. The winter in Toronto is just ridiculous.
Deal Fanatic
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Apr 20, 2011
5310 posts
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Vancouver
Aug 18 2015
http://www.vancitybuzz.com/2015/08/bc-h ... cord-high/
"B.C. home sales are expected to hit 100,000 units this year for only the third time since the Multiple Listings Service started keeping records.

The British Columbia Real Estate Association said it’s the first time since 2007 that home sales in the province have surpassed the 10 year average.

The BCREA largely attributes this to a strong economy, which strengthens consumer confidence."
Newbie
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May 6, 2014
95 posts
5 upvotes
Hi, Was hoping to get some advice. I am likely to put in an offer for a condo in a suburb of Vancouver. It's a new construction which was finished back in March 2015. 40% of the units are STILL vacant as of now. The developer has dropped the prices about 5% a few months ago to entice new offers, but I don't think it's low enough. The location is decent but not awesome (5 min drive to the nearest SkyTrain station) although there are local buses nearby. From what I can tell, offers come in rarely. I could see the unit I'm interested in being vacant for another 3 months. QUESTION: Would offering 90% of the listed price (the price after the 5% drop) be considered a low ball in today's real estate climate?
Deal Fanatic
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Apr 20, 2011
5310 posts
481 upvotes
Vancouver
if it has to be a condo, then it would be better to pickup a second hand unit that is within 10 minutes walking distance to the skytrain
Deal Addict
Jun 29, 2007
4698 posts
1385 upvotes
flatblack wrote: Hi, Was hoping to get some advice. I am likely to put in an offer for a condo in a suburb of Vancouver. It's a new construction which was finished back in March 2015. 40% of the units are STILL vacant as of now. The developer has dropped the prices about 5% a few months ago to entice new offers, but I don't think it's low enough. The location is decent but not awesome (5 min drive to the nearest SkyTrain station) although there are local buses nearby. From what I can tell, offers come in rarely. I could see the unit I'm interested in being vacant for another 3 months. QUESTION: Would offering 90% of the listed price (the price after the 5% drop) be considered a low ball in today's real estate climate?
Of course not.
Member
Apr 27, 2015
441 posts
255 upvotes
popbottle wrote: $500,000 1800 square foot detached home in Vancouver, and people say there's an affordability issue? This isn't a duplex.
http://www.realtylink.org/prop_search/D ... l&From=MLS
A 65 year old home sitting on only 2400 square feet of land for half a million dollars (lol) isn't exactly doing your affordability argument any favors. Just because homes are much more overpriced in other areas of Vancouver it does'nt mean people should get themselves into huge debt over leftover junk.
Deal Fanatic
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Apr 20, 2011
5310 posts
481 upvotes
Vancouver
Its not related to the act of planning to argue. There is plenty of affordable housing in both metro vancouver and the gta. its good debt
Deal Addict
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Apr 12, 2005
1283 posts
71 upvotes
flatblack wrote: Hi, Was hoping to get some advice. I am likely to put in an offer for a condo in a suburb of Vancouver. It's a new construction which was finished back in March 2015. 40% of the units are STILL vacant as of now. The developer has dropped the prices about 5% a few months ago to entice new offers, but I don't think it's low enough. The location is decent but not awesome (5 min drive to the nearest SkyTrain station) although there are local buses nearby. From what I can tell, offers come in rarely. I could see the unit I'm interested in being vacant for another 3 months. QUESTION: Would offering 90% of the listed price (the price after the 5% drop) be considered a low ball in today's real estate climate?

No. Not a lowball.

Condos in the suburbs are dime a dozen.

I hope this is not for investment.
Deal Addict
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Apr 12, 2005
1283 posts
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popbottle wrote: $500,000 1800 square foot detached home in Vancouver, and people say there's an affordability issue? This isn't a duplex.
http://www.realtylink.org/prop_search/D ... l&From=MLS
Have you been there? My friend who's in the market actually went over to see it.

The reason this house is selling for so cheap is because it's literally in someone's else back yard.
Even the cheapest lot with a shack in Vancouver is at least $900k.

Don't use one outlier and assume that all single detached are affordable. Because they are not.
Deal Fanatic
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Apr 20, 2011
5310 posts
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Vancouver
A few months ago there was a house for sale(Collingwood or Killarney) with a garage, authorized for a laneway house for $650,000. There was an easement on it because of a giant sewer pipe under it thus the house could not be increased in size. Few months ago also there was a 1.1 million (not a shacK) house on manor just south of vanness with a typical owners suite upstairs a few suites downstairs. 10 years old

brand new, under construction, East Vancouver, $858,000
http://www.realtylink.org/prop_search/D ... l&From=MLS
Deal Addict
User avatar
Apr 12, 2005
1283 posts
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popbottle wrote: A few months ago there was a house for sale(Collingwood or Killarney) with a garage, authorized for a laneway house for $650,000. There was an easement on it because of a giant sewer pipe under it thus the house could not be increased in size. Few months ago also there was a 1.1 million (not a shacK) house on manor just south of vanness with a typical owners suite upstairs a few suites downstairs. 10 years old
And how much did they sell for? You do realize that some people purposely list for a lower than market value to attract multiple bids right?
brand new, under construction, East Vancouver, $858,000
http://www.realtylink.org/prop_search/D ... l&From=MLS
This is a split level, not a detached...... better compare it to a duplex instead...

It's funny you mentioned this listing, because I actually talked to the realtor responsible for this listing a month ago and she told me to get a new 3 levels + laneway house is $1.8M in East Van and even more in Killarney..

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