Foreign buyers disappearing?

The problem with having your recession at the same time as everyone else is that it can put a damper on the dream that a wealthy foreigner will swoop in and bid the price of your Whalley pre-sale back up.  According to this article, South Koreans are now purchasing 73% less overseas property than they were a year ago.

According to the Ministry of Strategy and Finance Wednesday, local residents purchased homes and other properties in foreign countries worth $25 million in September, down 73 percent from $92 million a year earlier. The number of transactions totaled 56, down from 288. The September figure was also lower than the $45 million of the previous month.

Overseas property buying in the third quarter totaled $141 million, down more than 50 percent from $312 million for the same period last year.

The ministry said the international financial market turmoil and the sluggish housing market at home and abroad continued to dampen local investor sentiment. The worsening credit shortage and the possibility of a global economic slowdown accelerated a drop in home prices around the world, discouraging Koreans from spending on homes and other properties in foreign countries.

I have a feeling that Korea is not the only country seeing a decline in overseas buying.  But don’t give up hope just yet, the Canadian dollar has dropped dramatically against the US dollar recently, so once they get their financial house in order I’m sure we’ll start seeing lots of American buyers in BC again.  Yessir, its only a matter of time.

A hat tip to Gadwin for the article link.

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Alexcanuck
Alexcanuck
11 years ago

I wish moving everything to cash would be the safe bet……….I wish moving everything to cash would be the safe bet

Others DID move to cash, which is WHY the surge in monetary base.

Yes, inflation will be nasty, and start soon, but first some more meltdown to survive.

I hope to be MOVE out of cash at that point, (that is MOVE, not BE out of cash!) but not yet. Won't be long….. Who came up with the "TSX Days to zero"? Yes, exactly. Could also be called "Your RRSP days to zero".

Sorry for that!

beatstreet
beatstreet
11 years ago

Tomorrow is going to be quite a ride…

Every day is now quite a ride. The S&P 500 can move 10% by lunch. That would not be unusual this month. I wish moving everything to cash would be the safe bet…but as soon as everyone does that (assuming it will take 6-12 months) there is a risk that inflation could hit…just a wild guess. US Monetary base is now up over 30% year over year. Its a beautiful chart: http://research.stlouisfed.org/fred2/series/BASE?…

exx
exx
11 years ago

Oh, and the Nikkei closed down ~9%(-811). DOW down 256 in pre-market. Tomorrow is going to be quite a ride…

exx
exx
11 years ago

Here's the video to today's Global story. The media, as expected, is squeezing the air, much of which was their own, right out of this bubble.

On a separate note, my coworker listed his place at the end of August. His asking price was exactly 07 assessment despite his Realtor's request to go 4% lower. A month later and no bites, he had lowered it the 4%. Now, almost 2 months later, he is reducing it another 10% for a grand total of 14%. He was initially hopeful and greedy, saying that IF he received any offers, he wouldn't consider anything <2%. Now he's hoping for ANY offer. I wish him luck, he will need it.

punface
punface
11 years ago

I think Global TV deserves *some* credit for the way they introduced the story with a mocking recap of RE boosters' past predictions of how it "can't happen here."

Vansanity
Vansanity
11 years ago

Crabman – I saw that piece on the news tonight. I feel good about that. I think that 30% from peak is still a bit conservative. Take a house at $750,000 quick math says in 2010 that will be worth $525,000. Ouch $225,000 hit. I think it's, I'm thinking it will drop 40%(+).

There is a perfect storm with the credit crisis and the global recession. The funny thing is, people talk about RE prices and point to the recession, but prices would be falling regardless. Supply has outreached demand causing a glut (which has just started), thanks part in parcel to overbuilding, speculation and a lack of affordability. The rest of the issues that are occurring just add fuel to the fire.

readon
readon
11 years ago

More money than God….

Brittanny
Brittanny
11 years ago

Thanx VHB. That is amazing! The Nikkei top was almost 40,000 points and now it is 7,000 and change. Any idea of what that amounts to in yen or $'s lost?

VHB
VHB
11 years ago

39K for the nikkei, actually. <a href="http://ca.finance.yahoo.com/charts#symbol=^N225;range=my" rel="nofollow">link. It's now 80% off its top.

Alexcanuck
Alexcanuck
11 years ago

What was the top, 20,000 points

38,900 in late '89.

Mish brought this up today, comparing to S&P 500 since the tech bubble.

stagnate
stagnate
11 years ago

japan's a lost cause, they don't make anything anymore that can't be made somewhere else (usually for cheaper), they have little or no raw materials, an aging/declining population, and to top it off they've alienated their neighbors by never apologizing for war crimes. it's not looking good for japan.

Dropper
Dropper
11 years ago

No, they'll be getting the hell out of Vancouver because there will be no construction jobs and housing costs are way too f'n high for what jobs there are.

Brittanny
Brittanny
11 years ago

Nikkei is currently down 600 points. Wow, how far is Japan going to fall? What was the top, 20,000 points? They have been in a decline for what? 15 years? They kept lowering interest rates until their central bank rate was 1/2 %.

We are curently using those same kind of fiscal polices. Are we headed for the same result?

You better hang on to your hat(cash)!

beatstreet
beatstreet
11 years ago

Back on topic

I see. By my math that's C$7 billion that the S. Korea gov is throwing at their housing market. No wonder Koreans are pulling out of Vancouver…go where the bacon/welfare is.

John
John
11 years ago

I don't buy jap crap SUVs because they make poor investments. I only buy American SUVs like Dodge Durangos, Hummers and Explorers. I've got a Navigator too. Things are still looking really good.

patriotz
patriotz
11 years ago

Maybe people will still move here because our recession will be a lot less painful then the one most countries will be facing.

Right, the BC economy is bulletproof because BC consumers have so much money stashed away and we produce stuff that the rest of the world has to buy like…. um…..

….crabs?

beatstreet
beatstreet
11 years ago

You guys have to see this one…

Is that a double, queen or king in the bedroom?

I've got crabs
I've got crabs
11 years ago

Wow now half the condos are vacant? That's even a higher number then that Cadman whackjob quotes. Did that number come from Tim "Che" Stevenson?

Maybe people will still move here because our recession will be a lot less painful then the one most countries will be facing. It's not like they moved here in the last few years because we were growing more then China was.

I've got crabs
I've got crabs
11 years ago

What will they be going East for, are they starting up the third shift at the Chrysler plant? Maybe Ford is opening up a new plant? Or is GM going to finally build the Volt?

get some cream for t
get some cream for t
11 years ago

#73

You must be kidding around like John, half the condos downtown are vacant and there are 10,000 more units and who the heck moves to a country when

a)their country is in recession

b)Vancouver is in recession

I know these questions are beyond you, go back to the warehouse

just ducky
just ducky
11 years ago

as well we’re down at least 2thousand units enough to house 4thousand people. Looks like there will be more people fighting for those rental units.

don't forget the 120K construction workers heading East when construction wraps up or is canceled here….

lotsa basement suites will be empty

bye bye mortgage helper ….

I've got crabs
I've got crabs
11 years ago

With most of the 21K listings currently occupied those people still need to live somewhere so that's not adding to supply. Now all these projects getting shelved where is everyone going to live? All the data I've seen shows 30-40thousand people moving here every year. With the Ritz, evelyn, V6A, victoria hills, sky towers, probably infinity as well we're down at least 2thousand units enough to house 4thousand people. Looks like there will be more people fighting for those rental units.

patriotz
patriotz
11 years ago

In the U.S. it appeared to be a gov’t initiative to get more people into home ownership Dingus, OP was right about the government initiative. Here's the proof: "…if you own something, you have a vital stake in the future of our country. The more ownership there is in America, the more vitality there is in America, and the more people have a vital stake in the future of this country." -President George W. Bush, June 17, 2004 In June 2002, President Bush issued America's Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities… Fact Sheet: America's Ownership Society: Expanding Opportunities What's that Sarah? You say Bill Clinton was responsible for the housing bubble, not that guy whose… Read more »

Keeping an Eye on th
11 years ago

"helmut never gave a proper analysis why he expected prices to rise by 10%, and now no analysis for his new prediction. looks like he just goes with the flow. not very good service for his credit union members. he should be fired."

Stagnate:

If Muir, Pastrick, Adamanche, and all the mortgage, and property pimps put out anything less than the BS they put out, they would be canned.

Their job is to dispense the Kool Aid, to an all the too willing Vancouver Re believers.

Anonymous
Anonymous
11 years ago

don't know if anyone's mentioned v6a here already. ctv says they've stopped work on it downtown too… wow, with all the developments grinding to a halt, i'm having a hard time keeping track of them…