Condo-mania spreading like fungus!

Have you got your inoculation? Article in todays Vancouver Sun: Condo fever predicted to spread.

The Lower Mainland’s seeming addiction to condominium living will continue to spread to other desirable regions of the province, Canada Mortgage and Housing Corp. reports in its latest British Columbia forecasts.

We just can’t get enough of ’em! Its the lifestyle!

However, on cost, Frketich added that keeping housing “at a price that people will buy is the main motivator behind that move to multi-unit starts.”

“There is no sense in building housing that people can’t buy, and this is a response on the builders’ side to bring forward product that people can buy.”

In Kamloops, for instance, the average home price will climb 17.2 per cent to $305,587 in 2007 compared with 2006.

And what about mortgage rates? They’ve got a prediction for everything!

Frketich said she expects mortgage rates to edge up in 2008. Rates will remain historically low, but she expects they will put a dent in housing resales, which will spill over into less demand for new homes.

She added that for the past few years, B.C. has been building new housing faster than its population growth warrants. And as employment growth slows, Frketich expects new housing construction to remain at a still relatively high 30,000 units per year over the next five years.

Thank goodness housing prices can’t actually go down or we might really have a problem with the combination of high prices, all that supply and slow population growth.

So what are the symptoms of condo fever? I feel a bit dizzy, but maybe its just the spin.

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condohype
condohype
13 years ago

I wish an objectivity fungus would spread across the Sun's business and real estate coverage. Where's the alternative opinion?

patriotz
patriotz
13 years ago

In Kamloops, for instance, the average home price will climb 17.2 per cent to $305,587 in 2007 compared with 2006.And this is reported as "news"?Perhaps the sports page could tell us the scores for each game of the Stanley Cup final? I don't feel like waiting.

Clarke
Clarke
13 years ago

It is comforting to know that if you are totally ignorant of basic economic principles and cannot play "connect the dots" to save your life, you too can have a career at CMHC.

tulip-Mania2
tulip-Mania2
13 years ago

"There is no sense in building housing that people can't buy, and this is a response on the builders' side to bring forward product that people can buy."Doesn't she know, affordability is a non issue?RE in BC is based on international pricing and there not be a connection with local incomes.The contradictions are just too much. The only thing she left out was that land is so scarce in BC.And btw, Mr. Pope, don't worry about the fever, it's self limiting, and will go away on its own. Only those who can't stay away from mortgage lenders may develop a more severe strain of the disease.

solipsist
solipsist
13 years ago

pope – I better buy some quick – I bet you aren't making any more of it…

markx
markx
13 years ago

My gf live in Kamloops. Everyone and their dog in Kamloops are flipping homes. The number of housing starts is just insane, for a town with about 100k people, and a pulp mill as its main industry.Are we running out of land in Kamloops? Or are we running out of trees there due to the beetles?

Joel
Joel
13 years ago

"She added that for the past few years, B.C. has been building new housing faster than its population growth warrants."Wow, that's a first from CMHC I think, gotta give a little bit of credit there, of course, stopping short of the word 'oversupply'.Does anyone know what the net in-migration numbers are over the last couple of quarters for Greater Vancouver?

mohican
mohican
13 years ago

Love it guys! Apparently the CMHC has a pair of crystal balls which give them the guts to make these predictions and the prescience to be amazingly accurate! At first I thought I was green with envy over the crystal balls but now I know its the nausea from the fever.

the pope
the pope
13 years ago

solipsist: you need a very expensive ointment to take care of that problem. Fortunately I happen to have some for sale, its odorless, invisible and deliverable via email.Do you have a paypal account?

solipsist
solipsist
13 years ago

Thanks for the laugh pope. I've been a bit woozy myself lately. I'm starting to find the ads over at CondoHype to be rather seductive, in spite of the sarcasm.I had a nasty dream about buying an assignment at The W(TF?). I had many room mates, and I woke up in a cold sweat. But then I woke up and realized that it was actually my condo leaking (kind of like some of those other dreams I have). But then I really woke up – safe and dry in my bed – and realized that I was a dreaming a dream of dreaming.Oh my. Do you think I've got the fever?