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A sustainable housing market.

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Many people have pointed out this CBC news video about a couple of recent sales in Vancouver and VREAA has a good breakdown transcript of the story and some opinions on it.

This story has everything you need to kick off another year of real estate mania in Vancouver BC: a dilapidated tear-down selling for half a million over asking price, hundreds of thousands in profit for holding a house for a couple of months, whispers of wealthy foreigners and a grinning salesman hoping it never ends.

So what do you think? Can the multi-year rise (pretend 2008 didn’t happen) in Vancouver house prices carry on indefinitely? If you’re bearish on the local market are you starting to doubt your outlook? Does the current market have you thinking about moving to a different economy or just taking on a giant CMHC backed mortgage and buying here? How is the Vancouver real estate market affecting your day to day life and outlook?

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GT

@scullboy:

The very reason WHY it won't crash. Too many will be affected.

Some places are more expensive than others. Vancouver happens to be one of them. So does San Francisco. Some places are very desirable places to live and in turn cost more. Not many people want to live in Winnipeg. I bet it is affordable to live there, though.

There are affordable homes in the Fraser Valley, east of Vancouver.

Prices in Vancouver have plateaued. I don't think we are going to see any ridiculous appreciation like over the past ten years.

Compare it to cars: you can spend $60,000 on a car or $30,000. You decide what you are willing to pay and what you can afford. I don't hear people going to Mercedes dealerships warning that their prices will drop.

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D. Rail

@Anonymus:

……

Phoenix has NO water, no Oil, no Wheat, No Minerals

on other hand Toon and Reggie have ALL of that in abundance.

Unemployment in Arizona is 15% in SK is 5%. case closed.

………

Ya, and to top it all off, it's really, really cold in Phoenix – wait, do I have that right? Duh!

Of course, in Sask., you can watch your dog run away for a week so it's got that going for it eh!

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Anonymus

Renting Says:"My comparison was Saskatoon and Regina to Phoenix. If anything Phoenix (at half the price) is superior in every respect to those two."

Why?

Phoenix has NO water, no Oil, no Wheat, No Minerals

on other hand Toon and Reggie have ALL of that in abundance.

Unemployment in Arizona is 15% in SK is 5%. case closed.

What I find interesting that people in Vancouver (Bears & Bulls included) are completely delusional in their views of the world

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Renting

Have you seen prices in Honkong, London, Tokyo…

You are comparing first tier cities (London, Tokyo) to a second tier city Vancouver.

My comparison was Saskatoon and Regina to Phoenix. If anything Phoenix (at half the price) is superior in every respect to those two.

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TPFKAA

@11,000 coming:

it’s not normal to get this excited over these things, but… boy, am I feeling festive! Merry 11k eve, everyone!

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Anonymus

Renting Says:" Check what you can buy a house for across the border in a variety of much more attractive cities."

Now you Bears are talking like Bulls. Bulls talk: "Have you seen prices in Honkong, London, Tokyo…compare them with Vancouver and Vancouver is cheap"

Renting Says:" 300 large for those cities is a bubble."

Why, not many lululemon stores in those cities? People make as much money in those cities as in Vancouver. Don't you know about price to income calculation? Aren't you a bear? Check the stats.

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Renting

Those same rules apply to Saskatoon and Regina and Winnipeg and Halifax and there is no bubble in those cities. you can buy decent home for 300 large

300 large for those cities is a bubble. Check what you can buy a house for across the border in a variety of much more attractive cities. Those prices are over double that of Phoenix which by most people standards is considered a much nicer place to live.

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fixie guy

#227 Anonymus Says: "Cross the Rockies sometimes, don’t be afraid. we have plenty of Starbucks places to visit as well."

I've lived across this country, bumpkin. Why do you think I have so little patience with the local RE BS machine?

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Renting

@Demographia:

Of course there is no correlation…

The real estate bubble was global. How may rich asians helped Iceland properties triple?

The Rich Asian mantra is real estate marketing and nothing more. The bubbles around the world were driven primarily from locals including Vancouver. It is cheap easy credit otherwise known as a credit bubble. The bubble will pop here just like it did in Iceland and most other places.

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Renting

My point was that you shouldn’t be surprised if the government steers its policies in a way which favours the majority.

Kind of like the US? It ain't working there…

http://www.theglobeandmail.com/report-on-business…

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Anonymouse

@Prca:

"ownership == unaffordable debt;"

My point was that you shouldn't be surprised if the government steers its policies in a way which favours the majority.

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jesse

@UHOH: "Paul B late with the numbers… Means bullish day…"

😆 FAIL

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paulb.

New Listings 234

Price Changes 56

Sold Listings 101

10988

Often listings trickle in throughout the evening. I will check back later and see if we hit 11k.

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UHOH

Uh oh…

Paul B late with the numbers…

Means bullish day…

Vanrod may be right

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Prca

@Anonymouse:

ownership == unaffordable debt;

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Devore

@fixie guy:

Or maybe they’re just attracted by (temporary) solid appreciation in a (temporarily) low-return global economic environment.

Maybe they just like assets priced in a currency that has steadily appreciated against the US dollar over the last decade? And hey, makes a nice home away from home too.

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Anonymus

fixie guy Says:"You want to look at the Sauder data for some of those markets before the next bubble-free declaration, otherwise risk sounding like a bag of hammers."

I don't have to look at the Sauder data dummy, I live in one of those cities. Cross the Rockies sometimes, don't be afraid. we have plenty of Starbucks places to visit as well.

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fixie guy

221 Anonymus Says: "…you can buy decent home for 300 large…"

Six times income for a city like Halifax is reasonable? You want to look at the Sauder data for some of those markets before the next bubble-free declaration, otherwise risk sounding like a bag of hammers.

Ooops.

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Demographia

Rich Chinese never drove prices up here, locals did. Someday people might actually grasp this concept. ******* You are so right. Of course there is no correlation between RE prices and the influx of affluent asians into Vancouver from 1986 onwards, because those affluent residents from Hong Kong didn't start to immigrate around the world in anticipation of the 1997 Chinese takeover or anything. You can discount those REBGV graphs which show a nice rise in prices from the mid 1980s onwards. You can ignore that prior to the influx, prices reflected that wonderful bear ratio of three times average income (good luck waiting for that to materialize again). And you can ignore that fact that Vancouver has paid a premium of five times average income for 25 years now, roughly from the time that the cultural milieu and demographics… Read more »

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buffates

Realtors offering free trips to vegas if you close a deal with them…wow!

http://www.facebook.com/pages/Matthew-Rasmussen-R…

Matthew Rasmussen REALTOR® If you or anyone you know uses my services for either the successful purchase of a home or sale of a current home this year you will receive a FREE Trip for 2 to LAS VEGAS for 3 Days! Trip includes airfare and accomidations and can be redeemed anytime in 2011. Trip is subject to Terms and Conditions. Contact me for more details

January 15 at 12:25pm · Like · Comment

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Anonymus

DaMann Says: But but but how can you raise rates and take away our long zero down mortgages, that’s government interfering."

Sure, but that is policy that is out of your hand regardless who is in the government. But you can do something if you move. And you can move to the provinces where unemployment currently is 5% and where you can AFFORD nice lifestyle like home ownership, vacations, paid vehicles ….

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Hmmmm...

@patriotz: That is exactly it… if the banks had to lend their own money they would lend on 3-4 times income, certainly not 8 to 10 like they are doing now on our backs. Now that HELOC's are not CMHC backed watch them pucker up and be prudent in a hurry come April 18th. We are in a credit bubble not a housing bubble. In relation to interest rates over the last 10 years home prices are flat. When rates go back to normal levels house prices will as well.

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Anonymus

Best place on meth Says: " Neither are low interest rates, taxpayer backed insurance and 35 year mortgages"

So what is your point dummy? Those same rules apply to Saskatoon and Regina and Winnipeg and Halifax and there is no bubble in those cities. you can buy decent home for 300 large and btw you are not going to be starved of Sushi and Lattes in those cities.

If you can't compete in Vancouver move your ass.

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Anonymouse

@patient renter:

"Our leaders don’t give a shit that average folks can no longer afford a home."

The rate of home ownership is 70%.

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DaMann

@Anonymus:

What a pompous, yet oh so unanimous attitude in Vancouver these days. One of the reasons why the place has gone in the shitter.

You ARE right in one aspect. Home ownership is not a right but as BPOM so perfectly put it

"Neither are low interest rates, taxpayer backed insurance and 35 year mortgages.

But the cheerleaders sure do whine if any of these are about to be taken away."

It's true! You don't like home prices? Get the F@@# out of the city.

But but but how can you raise rates and take away our long zero down mortgages, that's government interfering.

This city has lost the plot.

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