From todays Vancouver Sun:
VANCOUVER — The number of real estate sales may have bounced back in March compared to February, but they are still well below levels of a year ago, and so are prices. What is clearly up, however, is the number of condominium developers seeking creditor protection or going into receivership.
It started in June 2007, when the Riverbend condominium project in Coquitlam was the first to succumb and the Bowra Group was appointed receiver. Since then the Bowra Group has been involved in 11 more developments that are struggling and in creditor protection until they can restructure or have gone into receivership.
“I think it’s just a sign of the economy. The forest industry has been in trouble for some time and has its casualties, and the real estate industry has been challenged for a while now,” Bowra group president David Bowra said in an interview.
The article blames problems in credit markets and not high prices or overbuilding for the ‘pinch’ that developers are currently feeling. In other news, markets dropped today on weak building permit numbers, which fell 16% nationally in February. In BC we actually saw an 86.5% surge in February building permits offsetting the decline in other provinces.