Posted by: syncro
How about now?
Two record high listings on REW in my hood, open houses this weekend. One just lowered their listing price down from >1.3M to a reasonable 1.27
My neighbour who was an original owner just moved. They were stressed because it took a couple weeks to find the right buyer.
I personally know two new immigrants who want to find housing here.
Not a bubble.
Posted by: heckler
Posted by: syncro
How about now?
Two record high listings on REW in my hood, open houses this weekend. One just lowered their listing price down from >1.3M to a reasonable 1.27
My neighbour who was an original owner just moved. They were stressed because it took a couple weeks to find the right buyer.
I personally know two new immigrants who want to find housing here.
Not a bubble.
I am with you Heckler. The demand is still there so it feels like there will be a correction, but not a cliff. Rent is super high too so the incentive to buy even with the higher rates still exists.
All of Canada is a bubble.
Yes Vancouver will still be very expensive after the bubble bursts but no way these income to debt to property ratios can remain at these levels without something crashing.
Posted by: heckler
Posted by: syncro
How about now?
Two record high listings on REW in my hood, open houses this weekend. One just lowered their listing price down from >1.3M to a reasonable 1.27
That just means the bubble hasn't burst yet.
Posted by: earleb
All of Canada is a bubble.
Yes Vancouver will still be very expensive after the bubble bursts but no way these income to debt to property ratios can remain at these levels without something crashing.
The issue is that Vancouver is no longer just a Canadian city, it's a global city now and it's hard to compete with people who can spend a couple mil on a vacation home and not blink an eye. It's like your local beer league game has a dozen ex pro level athletes show up, the landscape has changed and joe average isn't getting a quality chance on net anymore. Even with a crash, most locals are still going to be priced out of owning a SFH unless they have some generational wealth to count on. For the people who don't have that they are SOL. A correction started to take place during covid, but then things went batshit crazy and we're up 25% in the past three years, albeit a bit below the peak in April of last year.
The average SFH is now 2.1 mil, so even if prices fall 50% most people are still priced out of the market. I won't say it can't happen, but unless the avg price falls 70% or more it's not going to make much of a difference to the avg person who doesn't already own property or have some wealth.
TLDR - even if the bubble burst I don't think it will make much of a difference to those who need it. It'll just be cheaper for institutional investors.
Before I was a property owner I believed there was a bubble.
Now that I own property in the lower mainland I hold the position that it is simply expensive.
Actual experience compounding annual growth rates: 3% salary growth vs 7% real estate growth over the past 20 years. Zero generational wealth.
7% CAGR isn’t unreasonable for other financial assets. This one keeps you warm and dry too!
The real problem is normal salaries don't keep up.
If you want to end up wealthy, use your salary to buy assets, not liabilities (expensive cars being the worst).
Posted by: syncro
Underpants...the answer is clearly underpants.
The comment that it's an international city and market is very much the case.
My son is attending an event at St George's school this weekend.
When looking up the directions on line, google notes tuition is 51k/year.
There was a display in the lobby showing bios of new students. Every single one was international.
So... if people are moving here and putting their kids into schools that are 51k/year, do you think they care if the average price for a detached house is 2 mil? I'm gonna bet not. Peanuts.
Yes that's not everyone but it's just an example of how the averages get driven up.
Posted by: Kenny
The comment that it's an international city and market is very much the case.
My son is attending an event at St George's school this weekend.
When looking up the directions on line, google notes tuition is 51k/year.
There was a display in the lobby showing bios of new students. Every single one was international.
So... if people are moving here and putting their kids into schools that are 51k/year, do you think they care if the average price for a detached house is 2 mil? I'm gonna bet not. Peanuts.
Yes that's not everyone but it's just an example of how the averages get driven up.
They don't care about mortgage rates either. The other thing to consider is that Vancouver has it's own very wealthy people. According to a new report when it comes to people worth more than 100 million, Vancouver is 41st globally and this is expected to keep growing quickly. Toronto has even more.
30% of NV residents own multiple properties.... how many Tesla's on the road? Lots of $ floating around.
when i was in grade school there might be 1 person of color in the whole class
there was in fact only 1 south azn family in the whole school of 600
now for lots of reasons there would be 1 person not of color in that same classroom
.https://globalnews.ca/news/10027665/bc-short-term-rental-market-legislation/
Today the Shit has hit the fan for people running multiple STR's,
I think more importantly this will set a precedent as to what the STR LL can get away with
Posted by: chupacabra
The other thing to consider is that Vancouver has it's own very wealthy people. According to a new report when it comes to people worth more than 100 million, Vancouver is 41st globally and this is expected to keep growing quickly. Toronto has even more.
Thanks for contributing to being in the top 50.
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