Its not just Vancouver

Affordability is a problem all over BC according to this story on news1130:

The average home in BC now goes for $455,000, so affording one means a family has to pull in well over $100,000 a year. That’s a stretch considering Statistics Canada figures from 2005, when the average family took home about $65,000 a year.

I always find it interesting that these stories seldom mention prices dropping – they talk about how prices have gotten out of reach for many buyers, but never seem to connect the dots. I guess its up to outside buyers to keep our prices lofty?

Or perhaps overextended locals will stretch further to buy ‘investment’ property here. Haven’t you heard? BC is running out of land!

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fgah
fgah
13 years ago

Are you kidding?The average House price in Van is well over 650000.Where your average house price of 400000 came from?400000 is only good for a new cramped apt in a shitty area like NW.

Jason
Jason
13 years ago

RE: Average incomesAverages do not give a fair representation of income spreads because high incomes will skew the numbers, which is why any credible source will use median income numbers.

el bbub
el bbub
13 years ago

satvI do not beleive in bear and bullish.So, what you're saying is you don't believe in Providers/Savers of capital and Users of capital?BoC doesn't just print the money whenever people need it. Well, maybe it does, but that's a whole other topic."people need encouragement to move forward.discouragement to sit back."and information from contradictory sources to make intelligent decisions on their own. That's what we do here.

markx
markx
13 years ago

I wonder what the Fraser Institute consider as a "family", since StatsCan showed that median household income is inthe 50k range. Of course, if you define a family only as a mom, a dad, and kids living in a SFH, then you would arrive at a different family income. I guess their argument is that retirees don't constitute a family.

wg2c
wg2c
13 years ago

"According to the Fraser Institute, the average B.C. family (with two or more earners) makes about $81,200, and pays a total of $36,900 in taxes…"i'm not sure what "average" is here; it would seem that it could be skewed by a few large-income families. i would be more interested in knowing that $x family income represented the yth percentile.

patriotz
patriotz
13 years ago

According to the Fraser Institute…Not sure if their stats are credible enoughWould this be the same "research institute" that has had nothing to say about the housing bubble in Vancouver or anywhere else?The "taxpayers' friend" that has had nothing to say about CMHC (i.e. you and me) insuring high-ratio mortgages in Vancouver and other bubble areas?Connect the dots.

satv
satv
13 years ago

accordingly

satv
satv
13 years ago

el bubb whats happening is world wide scenarios.for bbI do not beleive in bear and bullish.people need encouragement to move forward.discouragement to sit back.we must change ourself accodringly with time.

Swirlyman
Swirlyman
13 years ago

More like, next station Spuzzum.

satv
satv
13 years ago

reknab for 853 you can buy 165 to 170k mortgage.go for flex value which is always -.75 than the prime rate.right now its 5.25 then go for 35 year amortization.and go to small banks like scotia or bom,even cibc offer good deal not on computer but on personal visit.

satv
satv
13 years ago

then what about sliding little bit to next station surrey then langley.now you have make that easy for you go get one.you are in.

el bbub
el bbub
13 years ago

satv"Next station" is not a very bearish concept. Though, it is an alternative for those who think Vancouver really IS different.But we all know what is really happening…

Reknab
Reknab
13 years ago

I work in a mortgage approval centre and I don't think you will get much of anything anywhere in the lower mainland let alone East Van condo wise for $144k.Based on these numbers I think it highly unlikely that a minimum wage earning couple could buy anything by bringing their salary to table solely.

Reknab
Reknab
13 years ago

SATV here are the numbers the TD how much can I afford mortgage calculator came up with based on a gross salary of $40k and 5% down. Keep in mind this would be considering the couple has ZERO debt currently.Purchase Price of Property $144,251 Mortgage Amount $134,251 Monthly Mortgage Payment Over Term2 $854 Based On Your Inputs… Interest Rate Over Term 5.94% per annum Down Payment $10,000 Amortization Period 25 years Gross Household Income $40,000 Annually Property Expenses $3,000 Annually Monthly Debt Expense $0 Monthly That doesn't give you much of a house/condo (if any) and definetly no trade up space for a future family.

satv
satv
13 years ago

wg2c said… satv, what do you think about besides real estate? 6/20/07 7:47 PM wgtocalgarybeside is state of realty.the fact and the truth.government understand we don't have enough work force,they are scared as baby boomers are going to corners.employers also have same type of understanding.so this govt.and employers combined develope system called chase has just begun.if people don't get challenged they become lazy.estimated government point of viewlets say real estate,fuel,grocery,hydro become avialable to us on cheap price's would you ever be worried to work hard and keep your self in labour force.that is a step on labour shortage.estimated employer's point of view.lets say you making $20 per hour and you enjoy some kind of life style.$40 per hour will make you lazy,you will change your avialabilty from full time to 3 days a week acourding to your habits and life… Read more »

jesse
jesse
13 years ago

Slightly OT:Vancouver workers moving to Winnipeg:"One hundred workers from the B.C. city have opted to move to Winnipeg to 'bump' into jobs, says Lorne Hammerberg, Manitoba chapter president of the International Association of Machinists and Aerospace Workers."So the layoffs won't directly translate into unemployment seeing as some of these guys are leaving the province altogether. Guess Winterpeg ain't that bad.

satv
satv
13 years ago

ELL BUBBif house's were ever affordable 97% people should have been enjoy the home ownership right now.I have copy and paste this words from mold city for further discussion. Muir who says we still havent reached previous high housing prices in Vancouver.can you tell me the best ever time when people were able to afford house's.if you beleive muir,I also confirm in past rates of pay was so low, and interest rates were too high.and this mortgage things were very hard to understand for common people,lots of people died without paying off burden.there are only certain percentage of rich people,if you can not afford you fall very close to poverty line.common people hardly can afford anytime in history and present or in future.unless you work atleast 12-16 hour.so currently people with little success are going for further attempt.anybody else with… Read more »

wg2c
wg2c
13 years ago

satv, what do you think about besides real estate?

Clarke
Clarke
13 years ago

"A couple earning minimum wage can still buy a condo in BC, so I don't see what the big deal is. You just have to be willing to work hard, and what could be a safer investment than real estate?"Uhhh no, they could not, unless they skip luxuries like food and clothing, etc. Dosh, we talked about this. You are lost. You need to go back to Chipman's blog.

Reknab
Reknab
13 years ago

Quote"A couple earning minimum wage can still buy a condo in BC"Could you throw some numbers up here to support this theory?

el bbub
el bbub
13 years ago

satvWhat you have to realize is that alot of people are gonna get screwed. There is this thing called "Fair Trade". It is based on fundamentals, so if you don't earn enough money you shouldn't be able to buy what you can't afford. Speculation of property inflates prices and simulates demand. How we know this? By comparing averages or medians, of course.Simulated demand DOES NOT create a fair trade for buyers, cause the value is inflated.When things get out of hand and too much money gets borrowed, what do you think happens? Inflation.Immigration down, Forestry down, other sectors as usual (oh except for furniture, home renovation & food places where construction workers have lunch of course), speculating construction up, Interest rates up! And to sum up Inflation up, and unsustainable/simulated/poor economic growth(think one hour after Olympics) = stagflation.No good. Unless… Read more »

Patiently Waiting
Patiently Waiting
13 years ago

I guess the residents of Burnaby's last trailer park will have to move to the next station. From a manufactured home to some basement dungeon. I hope they get some kind of compensation from the investors. Many of the elderly residents have lived there about 40 years. Oh, when will this evil bubble pop?

dosh
dosh
13 years ago

A couple earning minimum wage can still buy a condo in BC, so I don't see what the big deal is. You just have to be willing to work hard, and what could be a safer investment than real estate?It sounds like some people are willing to give up a little to quickly, but perhaps that means this province will be left with only the hardest working most productive employees.

tulip-Mania2
tulip-Mania2
13 years ago

Satv: all people go to next station, make Vancouver very empty city.Many constructionst guys, and real estate agents, and investorers like yous all goes to Moose Jaw, and maked price go ups there and downs here.and lots unemployement, but I ok because I gets job in making movies,for adults, and my girlfriend she make maryjuana plants.

satv
satv
13 years ago

No matter where you go-I will find you.hey friends I found your comments are very touching,and very hard to dis agree.but if moving step makes you feel better and put you in affordable situation.then buyers did right thing who bought r.e. on right time in vancouver.by moving some where else you will do the same thing,which other people did back here in vancouver.there is nothing wrong with your thinking, but you guys miss the boom, and just woke up from bed or you got hold back by vhb.so your step to buy or rent some where else will pop up the next station.there is nothing wrong with vancouver, people also bought here for same reason, which you found resonable for next station.Vancouver is a main plate form for Canada.you think vancouver is expensive you will find vancouver triple expensive.where ever… Read more »