Comments on: Vancouver ‘severely unaffordable’

By: anonymous

anonymous — Wed, 27 Jan 2010 19:58:23 +0000

Tim - The Montreal Olympics didnt face an Global economic situation as there is now all over the globe. Also there wasnt a US housing crash where some of our US neighbours have lost so very much. The Montreal Olympics went ridicuously over budget and Canadians got stuck paying the bill. Which will probably happen a second time around come Vancouver 2010. Certainly some are hoping for a severe correction. Who knows when it will happen. You dont know and I dont know. The people who are on this site arent suking and hoping for a huge drop. The people on this site are educated university debt laden grads who are trying to pay off their student loans after obtaining their degrees. Hey some kids dont have mommy and daddy big bucks waiting in the wings to help them out. They are the young employed professional couple trying to raise a family and have jobs (EXAMPLE: The first time homebuyer on this site). Think about those hardworking immigrants that are trying to pay down their mortages. But your probably a crusty old fossil who doesnt give a shit about his fellow human beings. You just think because you bought your home ages ago, your smarter than the rest of the folks on this site.

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By: someone

someone — Wed, 27 Jan 2010 18:18:30 +0000

First time homebuyer....I cant sit here and tell you I know whats exactly the right think to do for you and your family. I am in the same position. My thoughts are to hold out. I have a large downpayment saved up. I have a great job..which I hope hold out until after the olympics and for many years to come. Unfortunatley, many of my customers are losing their jobs and are skilled trades people, managers, business professionals etc. If your parents are going to be providing daycare service please think about what could happen if they become ill suddenly, etc. Its something my cousin had to deal with. Whatever you decide to do I wish you all the best and everyone else whos out there thinking about making a big step into homeownership. Let the bubble burst!

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By: Belly Dancer

Belly Dancer — Tue, 26 Jan 2010 23:38:09 +0000

I wonder….Do you suppose that if you live in this city long enough, the constant rain eventually starts to short out those synapses responsible for logical deductive reasoning?

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By: tim

tim — Tue, 26 Jan 2010 20:36:29 +0000

@patriotz: Montreal Housing prices had started to fall in 1975 and the correction was around 23% from 179.1K to 138.2K by 1978. That's two years after the Olympics. The Los Angeles stat that you mentioned, from 1984 to the early 90's... that's over 6 years of lag. I think many here are under the impression that we just have to outlast the Olympics and there will be a sudden drop. If this study proves true, you should be thinking down a target purchase date of 2014-2018 for a... 20(?)% discount? Not that it's anything to sneeze at, but I'm willing to bet some have been on these sites for 3-5 years complaining about real estate prices and hoping that it'll drop to 40-50%. Don't hold your breath.

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By: Anonymous

Anonymous — Tue, 26 Jan 2010 11:51:09 +0000

@bubbly: It must be because we're running out of land. Canada has more people and less land than the US right?

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By: macchiato

macchiato — Tue, 26 Jan 2010 11:27:44 +0000

@Vansanity said: "9.3 times income? Again, I know it’s an average and plenty of homes have more than one income (spouses, mortgage helpers, grow ups, whatever) so it’s to be taken with a grain of salt, but it’s just so outrageous!" No, it's not averages. It's much worse than you are suggesting. It's medians. Further, it considers median HOUSEHOLD INCOME, so spouses and the lot are counted. Quote from financialpost: In Vancouver, for example, a median home price of $540,900 was divided by median household income of $58,200 to create a multiple of 9.3.

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By: Little

Little — Tue, 26 Jan 2010 11:05:08 +0000

I am raising my family in a small space - 944 sq feet to be exact. In this space I have a dog and a child with another one on the way. Do I feel guilty that I am raising my kid without a yard? Not on your life. I am walking distance to a kids waterpark, an outdoor pool, surrounded by playgrounds and dog parks and have only filled up my gas tank once in the last two months. I suppose some of you would say that I should have a little yard, but for what? So my kid can play alone? Forget it. I lived in the burbs, and I don't have fond memories specifically of hanging out in the yard as opposed to the park or lake with other kids. This North American concept of the big house and mortgage is our undoing. We don't need it to raise a family. Owning "stuff" doesn't make anyone a better parent, and that includes a stinky little yard.

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By: blueskies

blueskies — Tue, 26 Jan 2010 10:31:25 +0000

@mino3: Disingenuous Dave trots out the CMHC numbers on a regular basis. He knows they are a very narrow subset of all available rentals but this is the only argument he can come with. There will be a great selection of units available after the Olympics. "Mortgage helper" basement suites as well as condos held by newly minted reluctant landlords. ....gonna be fascinating to watch this tank.......

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By: mino3

mino3 — Tue, 26 Jan 2010 09:12:20 +0000

Dave is looking at CMHC rental stats for purpose built apartment buildings. There haven't been any built in decades (although some condos were converted to apartments due to lack of buyers) so of course they're in short supply (compared to the horde of lower-middle class stiffs) and rents aren't falling. CMHC tries to track the secondary market, but their methods are so flimsy as to be practically worthless. So as usual, Dave is right on the money...

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By: doug r

doug r — Tue, 26 Jan 2010 08:17:19 +0000

@1st Time Home Buyer: Sit tight until after the Olympics and rents come down a bit. Then enjoy your rental for a year or two until mortgage rates go up and force prices down. Or not. Just don't count on those mortgage rates staying down this low for much longer.

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