New home prices fall for 9th month

We’ve now seen nine consecutive months of falling new home prices, mostly driven by the drop out here in the west.  Despite predictions the drop was over, prices fell nationally in June by .2 percent on the month for a year over year drop of 3.3 percent.  This is the sharpest national decline in new home prices since the early nineties.

The biggest drop in one month was right here in Vancouver where June saw a .9 percent drop in prices as builders tried to clear out inventory.  Right now Saskatchewan, Alberta and British Columbia are driving prices down, while the east coast is pulling them up.  St. Johns saw the largest yearly gains of 10.3 percent, while Vancouver is showing losses of 9.1 percent.

If you’re looking to buy a new condo, it’s probably a good time to haggle.

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Greg

#47 – I saw oil going up for a long time as well, did you jump into the market? I mean – did you see what was going on? Oil was going up, all this crazy talk of a bubble and speculation were garbage, i'm sure you just looked at what was going on and piled your dollars into a sure investment. Hmm… But then what happened?

Do some research of market cycles and bubbles, japan, the tulip bulb manaia, dot com, US housing… The one thing about 100% of the people that said "This time it's different"? They were all wrong.

Vic

To be honest, I am doing research on the market and my future home purchase. I can't just go out a buy a house on the spot — location, size of house, size of lot, price tag, schools…all need to be in the right balance. Its a home for me…not a 10% to 20% per year yielding bond. I use open houses as a surveying tool…with out getting an agent involved. When I bought a home with my parents in 1999, it took 3 years of research to find the right home for them. Today…with my family, I expect the same and I only started looking this year. 😀

Can't stop Asia

Vic

That's Burnaby, check out Vancouver,esp westside.

jeez

Vic: isnt that who you would expect to be shopping for a house? for the average entry level home thats your support market.

Vic

I have been going to open houses in Burnaby for the last couple of months and I do notice a trend. I notice a lot of young families looking for homes. Young families with toddlers and infants who feel a condo isn't a place to raise a child. Sure… I see the occasional immigrant but I see 3x more young families than affluent asian immigrants.

As for #47….if you open your eyes…and turn your head to the east. Things aren't looking so good. Take Ontario — auto industry = dead. Look north — BC Forestry = almost dead. And if you look a little furthur…Ireland and Iceland are experiencing a crisis that makes the US Depression look like a speed bump. I am not too sure about you but things don't look too rosy.

Can't stop Asia

LV favorite of Asians.

Supraboy

It's funny how this blog is full of people hoping to get a piece of real estate. I can feel that most of the bears hear are in desperation to have a home. I went to Holt Renfrew today on a WEEKDAY with NO sale going on, guess what, it was jammed packed. I looked at the LV store and there was a lineup, I thought there was a sale, when I walked by, I saw people lining up to pay for fully priced items. I really wonder where this money is coming from. I realized that we are really in a booming economy. It has been +5 yrs of people bashing real estate, but guess what, in 5 yrs, the markets have rocketed in Vancouver. My friend was looking at a property near killarney today. Sold for $565,000 in… Read more »

Can't stop Asia

Why is 1/2 of Richmond, Chinatown? Why is the busiest store in Metrotown T&T? Why is there a T&T even in Coquitlam? What is H Mart doing in Burnaby Lougheed? Why did RC Superstore buy T&T? Is it because everyone loves Asian foods?

Can't stop Asia

#43

Those local kids' parents did not go to school here(Canada), dumbass.

Can't stop Asia

#42

That is just it, if they keep buying, there won't be a correction. They will not stop coming, they haven't before, why should they stop now. Vancouver will always be a top destination for Asia.

hongcouvercrackhead

#41 spewed –

hongcouvercrackhead

Have you seen the ethnicity of the students in our Vancouver schools. What does that tell yah.

wut R U saying white kids like to skip out?

u racist basturd.

another anecDOH! those r local kids dumbass.

No-Lympics

Anybody been out to Roberts Bank lately? I have never seen such low stockpiles of coal. They look like mole hills. There was only one ship docked…The container cranes were sittng at the 12 o'clock position, AKA NOT ONE IN USE…not one ship was being loaded or offloaded, the docks looked deserted. Why are the coal stocks so low…IMHO its not due to demand, its lack of demand….why have big inventory of coal if you can't sell it? Re China….one economist was interviewed and his view is that the Chinese economy is one big myth. Only a communist country is able to fudge the obvious global economic slowdown. The Chinese have been stockpiling materials in the hopes of a turnaround. He suspects they have tons of inventory of product being stored in China and will be forced to unload it… Read more »

Can't stop Asia

hongcouvercrackhead

Have you seen the ethnicity of the students in our Vancouver schools. What does that tell yah.

arbitrage

Chilled: i wrote "…stereotypes… good at math…they…" to point out that "we" were stereotyping / noticing outliers / etc… – apparently i was too veiled or too clumsy. i guess whipping out my own "them" anecdote doesnt help 😛 Re: anonymous #25 – you seem to be saying they (i assume the taiwanese): 1) know something i dont (that cap rates in tw stink and they have no good alternative), and 2) that the they are wrong to believe in yvr real estate, in spite of (1). Summary: they invest in real estate cause they don't know any better. Which is what a lot of "us" are saying. Back to "asians" – i always wonder if the stereotypically asian posters (crap ass grammar, spelling, constant references to rich asians, pepperoni, suvs, etc…) – are asian. not that it matters. they're… Read more »

hongcouvercrackhead

for all u dum shits out there who think rich asians r gonna save the hongcouver real estate market, NOT!

“oh but this asian family paid 2.1M for some fixer upper down the street”.

your little anecdotes are just dat… anecdotes!

look at the landcor data u friggin numb nutz. 2% of bc real estate is purchased by foreign buyers. TWO PERCENT!

and half of that 2% is probably albertans.

so u all either retarded or in denial.

either way its an insult to retards and egyptians.

Can't stop Asia

#8-drugs "r" us

You are right on. I am telling you all, Canadian passports are for sale, cheap. All it takes is the price of a condo or whatever real estate. Chinese, Koreans, etc, etc. are buying up Vancouver and all Gordo wants is more property transfer tax and now HST.

Chilled

arbitrage: since we’re throwing stereotypes around… aren’t asians supposed to be good at math? So, whytf would they be buying?

**********************************************************

I used to think the same thing until I real Outliers.

Good read.

http://www.gladwell.com/outliers/index.html

Available at your public library, for those of us to choose to stuff consumption and taxes.

Vansanity

http://www.debtclock.ca/

Spitfire posted the US debt is $590 per person, ours is $14K per person… and growing.

Nope, still nothing to see here.

Re: Olympic rental prices, I don't blame people for being greedy, its human nature, plus those mortgages must be gauging their wallet and savings. If somone was stupid enough to spend that, fuck them! I hope they discover what bankruptcy is like eventually.

Its been a while since I posted so I had to bring some bitterness, it's how I role.

Anonymous

SpitfireS,

Dude, the laffer curve is not constant. And who said the slope is zero right now. When the economy goes bad, government gets more taxes by increasing tax. Increase consumption tax is a good thing. People should spend less.

jjss

I was shocked to read in Telegraph.co.uk (August 11th 2009)that, "China's ratio of property prices to incomes is seven times higher than in the US. It costs 3 months' salary per square metre of space – though tower blocks are sitting empty.Prices are being propped up by state enterprises, abetted by local Commmunist bosses."

Girlbear

Franco: 1 Chinese yuan = 0.159095283 Canadian dollars

So $150k CAD is a millionaire in your world.

Not really the picture of the uber rich Asian.

That's a household number to boot.

Girlbear

Interesting…

There are approx 7M millionaires in the US.(not including primary residence)

There are approx 825,000 in China.

All those millionaires in the US couldn't save their real estate bubble. How can we expect the scant few from China who move or invest here to save ours??

Franco

So Shanghai has over 2 million multi-millionaires in a city of 13 million people?

Yes,One third of the population have assess around that figure but in RMB,not USD,still enough for down payment here.

Anonymous

116,000 millionaires? Let me guess: that includes property and stocks on the Shanghai exchange. Not very liquid.

The vast majority are buying houses by incurring debt. It's as simple as that.

best place on meth

Girlbear:

116,000 is a far cry from 2.1 million, ain't it?

Or am I wrong about the population of the lower mainland?