Appreciation fantasy
May 14th 2011 - Vancouver house prices have risen to a new record high for the month of April bringing the REBGV benchmark home price to $3,432,285. Another record was broken last month as condo prices in the downtown core actually surpassed the SFH benchmark price in Vancouver. A 5 year old 450 square foot condo in downtown Vancouver is now worth $3,458,998.
Vancouver Mayor Cam Muir has just announced plans for a mass-awards ceremony to award the ‘bravery and faith’ of Vancouver real estate investors.
“These are the people who have really kept this economy going while the rest of the globe stumbled” Muir explains. “Not so long ago there was a real danger of all the naysayers drowning out the strong and reasoned voices of condo investors. I recall the dark spring of 2008 when condo prices actually fell a small fraction and some assumed we would follow the US into the dark abyss of depreciation. Of course as we all know now that was the perfect buying opportunity”
Many give at least partial credit for Vancouver’s eternally booming real estate market to the ‘minimum rent increase’ act that was brought into law just under two years ago.
Many residents spoke out against this law at the time claiming ‘rent is determined by what people can pay’. Some believed that requiring a minimum rental rate increase of 20% per year for all rental units would wreck our economy as people moved away. Clearly this has not happened as the increases have only improved our position on the world stage. City planner Robn Adamache explains:
“Just like Prada or Gucci, smart people know that the more you pay for something the more it’s worth”
The awards ceremony will be held June 30th at the new BC place stadium. There will be free hot dogs for the kids and a special performance by Billy Ray Cyrus.
RSS 2.0 comments feed. Both comments and pings are currently closed.
May 14th, 2008 at 8:57 am
May 14th, 2008 at 9:19 am
May 14th, 2008 at 9:28 am
May 14th, 2008 at 9:32 am
May 14th, 2008 at 9:58 am
May 14th, 2008 at 10:27 am
May 14th, 2008 at 10:32 am
This post is just one more reason I adore you.
May 14th, 2008 at 10:36 am
May 14th, 2008 at 11:17 am
May 14th, 2008 at 11:32 am
LOL!
i love satire!
Some believed that requiring a minimum rental rate increase of 20% per year for all rental units would wreck our economy as people moved away.
otherwise known as the mandatory bunkbed clause.
who knew that shipping containers on False Creek barges would sell as housing?
May 14th, 2008 at 12:11 pm
May 14th, 2008 at 12:24 pm
May 14th, 2008 at 12:25 pm
May 14th, 2008 at 12:27 pm
http://www.nytimes.com/2008/05/15/busin … f=business
Just talked to a realtor who I’ve known for decades and he said it’s getting ugly, that the sellers haven’t figured out they need to lower their asking prices and the few buyers out there are low balling like crazy, he mostly works in the westside and yaletown.
May 14th, 2008 at 12:44 pm
What a great point. If only Pope had only shown this graph 2 years ago I’d have saved a lot of time reading blogs.
May 14th, 2008 at 12:54 pm
http://tinyurl.com/5385lu
Homes market flooded by sellers
May 14th, 2008 at 12:57 pm
Now I know why this idiot Michael Randallbard used to suggest that theme for your city…what was it? Oh yes…
INVITE THE WORLD
TO GO HOME.
May 14th, 2008 at 1:00 pm
May 14th, 2008 at 1:55 pm
This could all be quite ugly, especially in those condos that aren’t so green but are “well lit” (i.e. the developer put in lots of lights to make it look bright to make a good impression).
Electricity bills are going in one direction only. While everyone needs to heat their house, only condo owners have the obligation to pay for brightly lit halls, foyers and exteriors.
Perhaps windmills on top of the some of the taller condo developments might help reduce the monthly overhead?
Then again, perhaps its different here and Vancouver can continue to justify price-to-rent ratios that are beyond the peak of the US bubble.
May 14th, 2008 at 2:01 pm
My chart predicting the $3 million average condo price by 2010 came to be? How could you know that.. unless… Hey you’re from the future! I’m honored! I’m curious, who wins the US election?
Also some winning lotto ticket numbers would come in handy..
May 14th, 2008 at 2:10 pm
You must be mistaken, the ‘four bed homes’ made out of discarded shipping containers are in whistler. It’s the place to be.
I’ll be posting the depreciation fantasy tomorrow morning.
May 14th, 2008 at 2:11 pm
I am glad we don’t have subprime in Canada. Only 40 year mortgages. Another brilliant policy move from Ottawa to help ensure things are different here.
Flaherty should follow up by brining in 100 year mortgages, to give the market another “boost” into the Olympics.
May 14th, 2008 at 2:26 pm
Fits right in here.
May 14th, 2008 at 2:27 pm
Any comment on today’s link from bdk regarding increased strata fees? I appreciated your thoughtful response to my previous strata fee question, but perhaps this needs further consideration and discussion.
bdk said: Apparently Strata Fees have become an issue in other cities where the bubble has burst.
http://www.nytimes.com/2008/05/15/busin … f=business
May 14th, 2008 at 2:31 pm
Well done.
May 14th, 2008 at 2:43 pm
Thats so outlandish there’s NO WAY it could be true, not in the greatest city on earth!
May 14th, 2008 at 2:58 pm
May 14th, 2008 at 3:01 pm
May 14th, 2008 at 3:03 pm
Fits right in here.
You mean here as in your post? I don’t get it, is this Realtard agent humour?
May 14th, 2008 at 3:10 pm
May 14th, 2008 at 3:12 pm
May 14th, 2008 at 3:16 pm
May 14th, 2008 at 3:23 pm
Recently I have notice this guy luc has nabed vhb and mohican and finally tony called him troll to save bears from the bulls,When luc had argue vhb never come to explain things,
So here is question for jesse if some one like to give rant to vhb who is going to respond because graph are not your property not even vhb’s and you just have post that link without explaining the scene.What to response to structure without legs and arms do you like to waste valuable time,either you post a comment based on what you think is making a sense or you don’t post that bs again.
May 14th, 2008 at 3:32 pm
That about sums up your comment. I’d ask if you actually had a point, but I know the answer would be just as unintelligible.
May 14th, 2008 at 3:36 pm
post the answer please?
May 14th, 2008 at 3:38 pm
Any response to bdk’s article link regarding housing crash induced strata fee increases?
2008-05-14 12:27:12
Apparently Strata Fees have become an issue in other cities where the bubble has burst.
http://www.nytimes.com/2008/05/15/busin … f=business
I appreciated your thoughtful comments to my previous question regarding strata fees, but perhaps this deserves further consideration. Anything special about the Vancouver situation that would prevent what the article describes is happening in Miami?
May 14th, 2008 at 3:49 pm
May 14th, 2008 at 3:51 pm
WTF? I gave credit and a citation. Anything posted on the internet is free to be cited with proper credit which I did. Do your own research if you like. The data is real and not “bs”, whatever that means, but you can choose to disagree.
May 14th, 2008 at 4:01 pm
My source told me Krissh has been trying to sell his condo but can’t find a buyer.
My advice is simple sell it for whatever you can get today because it’s going to drop for decades to come!
May 14th, 2008 at 4:24 pm
Not really as this is already happening here, but like the property market is behind the US. Our percentage of strata fees in arrears is growing, something that was non existent last year is now around 7%. A majority of Strata councils are doing little or no maintenance except cosmetics, and those councils are typically dominated by speculators. There are some really good strata’s where the council is pro-active and the majority are either homeowners living there or long term investors who have no interest in making a quick buck. The rule of thumb I use is; if the strata is dominated by absentee landlords then likely it is a bad building or will be one fairly soon. If all the strata members live there and especially if they have lived there for > 3 years then you probably are looking at a good building. Simple rule is if there has been no maintenance fee increases equivalent to 3-5% on an annual basis you likely are moving into a building with speculators who want to make a quick buck and could care less if the building falls apart later. If the capital contingency is inadequate, (many buildings) steer clear. Lower then normal maintenance fees is a symbol of bad management on the stratas part, as they are just deferring the cost to the next buyer. Would you buy a vehicle from me if I said “hey this thing is maintenance free I just change the oil and wash it every month” or would you buy from me if I showed you regular service checks from a reputable dealer?
May 14th, 2008 at 5:01 pm
So, 2007 had near 0% strata fees in arrears, now in 2008 we have 7%. In Vancouver? This is quite enlightening, as it should indicate the amount of fiscally distressed owners. Would be wonderful if you monitored this for the Van RE Bear Blogosphere. I’d sure like to see a graph of this to watch for a trend. I wonder who the delinquents are? Owner tenants, amateur landlords, or blatant flippers.
Anyhow, kewl data point to consider. Thanx.
May 14th, 2008 at 5:10 pm
May 14th, 2008 at 5:18 pm
Noname
May 14th, 2008 at 5:37 pm
May 14th, 2008 at 6:33 pm
I have no plan to sell my properties other than just one unit in july to make a room to buy house later on.Anybody selling their property in fear or for high prices this is what they going to lose
1.Ownership title
2.Status as first time buyers
3.Fee to Realtors
4.Lower Interest Rates.
5.Brand new mortgage term
6.Start from Interest Rates again instead of principle
What are they going to get for all this mess?
TENENCY
If you think prices going to fall I will be singing Annie are you OK -a smooth homeowner from micheal jackson but the reality that will bite your a## is that PRICES ARE GOING UP decade after decades!
BDK? CRABMAN?
May 14th, 2008 at 7:00 pm
1. Half the monthly payments (or less).
2. Someone else fixes problems.
3. Get to laugh at Krrish when prices crash.
4. Save Hundreds of Thousands of dollars.
5. Get your pick of 10’s of thousands of condo inventory in the near future.
6. Free s/s appliance and hardwood floor upgrades from desperate sellers.
May 14th, 2008 at 7:05 pm
May 14th, 2008 at 7:11 pm
May 14th, 2008 at 7:23 pm
Interest rates are lower because home prices are higher to afford interest rates will be up in your case down in my case.
“2. Someone else fixes problems.”
There is no land to accomodate too many hl people government must drive people to somewhere else in case some one can’t afford to rent here
“3. Get to laugh at Krrish when prices crash”.
won’t even catch the falling monkeys a## in your case it will be fun what hole you have dig where no one seems to fit(again in your case)
“5. Get your pick of 10’s of thousands of condo inventory in the near future”.
by signing up contract with management to keep the building clean as CARETAKER
“6. Free s/s appliance and hardwood floor upgrades from desperate sellers”.
Dreams are yours you can have it all by paying or just dream it.
“4. Save Hundreds of Thousands of dollars”.
ONLY IF YOU BUY TODAY
May 14th, 2008 at 7:38 pm