Why is real estate so incredibly high in Vancouver? (new home, job market)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am telling you right now that the bubble will burst when mortgage rates return back to normal. When that will happen, I have no idea but it will happen. Realtors are the ones that keep perpetuating the idea that it is not a bubble because they have a vested interest in rising prices.
Interest rates are controlled entirely by the federal government, and because of the dominance of the US dollar, almost entirely by the US federal government under the purvey of the Federal Reserve. The fed has little to no incentive to raise interest rates and lots of pressure from financial institutions and markets to keep them low. Ben Bernanke has said many times he will not raise rates until inflation reaches 3% or the jobless rate in the US dips below 6.5%, neither of which seem likely to happen anytime soon. The US economy is only growing on cheap borrowed money, cut that off and that growth stagnates. I actually seriously doubt interest rates will increase much in my lifetime (and I am not that old :-P).
Japan cut local interest rates in half in the late 80s and then to nearly 0% in the 90s to spur the economy, and they have never gone back up since. I see about the same for the US (and by extension, likely Canada)
Real estate is high due to foreign money laundering and the city's complete indifference to housing demolitions which make the house irrelevant and the land everything.
Talk about a bubble has been ongoing for more than a decade. I've read a few boards back in the early 2000's where posters were dead certain it was going to pop. Sadly it has just skyrocketed to unaffordable epic proportions.
Prices will drop when there's a massive earthquake or China's economy tanks.
Well I don't know about the earthquake but the Chinese economy has slowed down considerably now. The bubble, though, continues to grow. An interest rate hike might mean a certain lack of demand. Maybe then prices will cool off.
Those upper-riches never work, and they still can live on welfare. It's like working people can't afford a house, still need to support those supper riches. Is it fare?
Government should change the rule. welfare should give to the people has low-income AND low asset!
Don't let those people use Canada! Don't let those foreigner investors make Canadians poor!
since this post, the chinese stock market has dropped over 800points, i wonder if the housing market will change now. vancouver reminds me of this video that's happening in california. https://www.youtube.com/watch?v=aoeUxzUR4ec
"While August is typically one of the slowest months for real estate transactions, MLS sales data from the first two weeks of the month shows what many have been hoping for during the last few years of escalating prices. According to realtor Brent Eilers, using MLS listing data, there were only three home sales in West Vancouver between Aug. 1 and 14 this year, compared to 52 during the same period last year. That’s a decrease of 94%."
"Zolo, a Canadian real estate brokerage, keeps track of MLS home sales in real-time and reports prices as an average rather than the “benchmark price” used by the REBGV. It currently shows a major correction underway in most Metro Vancouver markets. According to the website, the City of Vancouver currently has an average home price of $1.1 million, down 20.7% over the last 28 days and down 24.5% over the last three months."
Not surprising since the province introduced the new tax. The only way to see what real effect this will have is too look at homes sales over the next year as people adjust and the market adjusts to the new tax.
......now thas explains the mystery of the huge explosion we heard in the Puget Sound yesterday...."What happened?? One of the Bangor base nukes went off??".........."no.....the Vancouver real estate bubble finally burst!!!"
Last edited by saturno_v; 08-19-2016 at 07:37 PM..
I am telling you right now that the bubble will burst when mortgage rates return back to normal
Define "normal"
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Maybe then prices will cool off.
