Yes, there’s a housing bubble
Painted turtle pointed out this article in the Vancouver Sun: Yes, there’s a housing bubble in Canada – but only in three cities. You read that correctly. The Vancouver sun printed an article calling the Vancouver market a bubble. I hope Beelzebub has some of those left over Olympic mittens.
According to a national study released last year by Pitney Bowes Business Insight, the average household income level in Calgary topped $113,000, while the average in Edmonton exceeded $90,000.
Vancouver was well behind both Alberta cities, at $82,300. That’s about $2,000 higher than Windsor, Ont., which has some of the lowest house prices in Canada. Toronto boasted average household incomes of $101,400.
Let’s look at it another way.
When U.S. house prices got to their most extreme levels during the U.S. housing bubble, the ratio of average household income levels to average local house prices got to 10 times or more in overheated markets like Los Angeles and Phoenix.
In Vancouver, the average detached bungalow now costs roughly 11 times the typical average local household income level, based on the data above.
Read the full article at the Vancouver Sun website.
Bears Take It To The Streets – “Vancouver Housing Bubble Ready To Pop!” Signs In Downtown Core « Vancouver Real Estate Anecdote Archive Says:
May 2nd, 2010 at 4:39 pm
[...] members of the public, trapped in disinformation bubbles, for whom this will be news. Thanks to nonymouse (at vancouvercondo.info 29 Apr 2010 10:24 am) who broke the news of the posters and, at our request, forwarded these photos. [...]
April 30th, 2010 at 9:53 pm
@Is Kite is Good:Home ownership is not a bussiness,however,buying a place to live or as investment will begin with ability to carry monthly expenses and the extent of loss you can take in any other circumastances.There is no advice to switch over your target,Your current circumastances and financial future will help you decide to click on the cost of home or apartment areawise.If you feel comfortable then buy if not then just rent a place.I think it's good to buy re-sale home instead of new homes for efficiency purpose.Homeowner as seller will have it repaired for you and you would be able to run inspection.The service response to national home warranty programme is like you are talking to somebody who is dead but somehow they will pick up phone to secrew you up further.
April 30th, 2010 at 8:29 am
@paulb:
Close to 400 sales, that's massive.
April 30th, 2010 at 6:43 am
@Summer: Why, yes:
http://thedailybite.files.wordpress.com/2009/10/f…
“Last night “it” happened to me. Out at dinner with several sensible, professional, well-paid collegues. Conversation drifted to RE and house prices… “ « Vancouver Real Estate Anecdote Archive Says:
April 30th, 2010 at 6:38 am
[...] April 2010 · Leave a Comment bhtbg at vancouvercondo.info 29 Apr 2010 10:26 am [...]
“Today I saw someone had posted a home made poster on a telephone pole on Denman street that loudly proclaimed that the real-estate bubble was going to pop in Vancouver.” « Vancouver Real Estate Anecdote Archive Says:
April 30th, 2010 at 6:35 am
[...] April 2010 · Leave a Comment nonymouse at vancouvercondo.info 29 Apr 2010 10:24 am [...]
“It is not just the Chinese doing the speculative buying, I know of Whites, Indians, Filipinos, Koreans and other races doing the same thing. Flipping houses using borrowed money and living a materialistic life with fancy cars, bags etc.” &laq Says:
April 30th, 2010 at 6:32 am
[...] LY at vancouvercondo.info 29 Apr 2010 10:59 am – [...]
April 29th, 2010 at 11:48 pm
Kite, I have a pre approved mortgage but act fast I needs, but with all these rich asians coming i need your help.
Where should I buy tomorrow?
Hurry I am running out of time. I am approved for $570k so please give me some options.
Also if I move to a house I want to get maximum rental potential so please help me with future rental needs. I want ot rent ot a bitter bear and makes maximum cash!
April 29th, 2010 at 11:43 pm
@ulsterman: 58K in 2005. 2007 (last reporting from StatsCan) – 66K. I imagine it's not up much from that, but I could be wrong.
But yeah, even still, dollars are being stretched. And credit maxed.
April 29th, 2010 at 11:42 pm
could be seeing the final push from the April 19 deadline – everyone would want things to close prior to the weekend and May.
April 29th, 2010 at 11:01 pm
Check out how they're dealing with oversupply in Ireland:
http://www.belfasttelegraph.co.uk/breaking-news/u…
" A Green minister in charge of planning rules has backed plans to bring in the bulldozers to tackle massive oversupply of property.
Ciaran Cuffe, appointed to the job in last month's reshuffle, said he supported selective demolition as some loans taken over by bad-bank Nama will be so worthless buildings may have to be flattened.
"
April 29th, 2010 at 10:56 pm
$58,000 median household income?!? How do families live on that kind of income in the Lower Mainland? Baffling.
We live in such a bizzaro-world here. We have supposedly wealthy enough to bid average houses over $1m, yet we can't keep schools open for a full school year. Curiouser and curiouser…
April 29th, 2010 at 10:09 pm
The Ottawa Citizen has a story announcing that, according to MoneySense magazine, Ottawa has been chosen as the best place to live in Canada! Shhhhh! Don't tell anyone that owns real estate in Vancouver; they won't be able to handle it; their future financial and emotional well-being depends on them believing that Vancouver is the best place on earth to live, and that everyone wants to move here.
April 29th, 2010 at 10:04 pm
@PJ:
Sales lag by about two weeks. We're seeing the pre-April 19 rush to buy still playing out.
Arranging a mortgage doesn't happen overnight and there's details like inspections and such that can be built into a contract so the sale isn't final until all the conditions are met. That's when it's recorded, not when it's signed.
April 29th, 2010 at 10:01 pm
@Anonymous:
"What is the historical months of inventory for this time of year?
Does anyone have a link"
http://agentwill.com/weekly-stats/
http://vancouvercondo.info/forum/topic/total-inve…
The first only goes back to 2008 but has a wider variety of stats, the second starts in 2006. The reason for the inconsistency in numbers is they're using different regional boundaries.
April 29th, 2010 at 9:51 pm
I can't believe hos strong sales are still even after the April 19th deadline.
April 29th, 2010 at 9:32 pm
Hey Paul
I don't know for certain but that looks like an extremely high level of sales. Is this still largely a pre-April 19th rush?