Vancouver is 3rd worst affordable housing market

We’ve got some work to do guys. If Vancouver wants to be number one it’s time to pull out all the stops. Let’s bring back the zero down 40 year mortgages and start hustling because right now there are still two more overpriced cities on the globe.

VANCOUVER – Homes are “severely unaffordable” in all four of the B.C. cities that were included in a 325-city international survey of housing costs, and Vancouver’s affordability score was the third-worst of all.

The average home in Vancouver, according to data from the third quarter of last year, cost $602,000 — or 9.5. times the $63,100 median income of households in the city, according to the survey results released Monday by the Winnipeg-based Frontier Centre of Public Policy. Only Sydney, Australia, at 9.6 times the median income, and Hong Kong, at 11.4 times, scored worse.

With their housing prices quite a bit lower but their incomes a little lower, too, Victoria, Abbotsford and Kelowna were — in that order — uncomfortably close to Vancouver’s 323rd-place finish in the international rankings.

We can easily beat Sydney’s 9.6 times median income with a small .2 increase, but we’re really going to have to work hard to beat the current champ. It’s going to be tough and we’re all going to have to take on a lot more debt, but for those of you who think it can’t be done just remember: Miami and San Diego used to have higher house prices than us, but we beat them didn’t we?

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CRASH JPMorgan-Chase
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CRASH JPMorgan-Chase
Dear Abby, I am a crack dealer in Victoria B.C. Who has a steady flow of customers from the nearby junior high school. My parents live in a suburb of Vancouver and one of my sisters, who lives in Calgary, is married to a transvestite. My father and mother have recently been arrested for growing and selling marijuana and are currently dependent on my other two sisters, who are prostitutes in Prince George . I have two brothers. One is currently serving a non-parole life sentence in B.C. Pen for the murder of a teenage boy in 1994. The other brother is currently in jail awaiting charges of sexual misconduct with his children. I have recently become engaged to marry a former Thai prostitute who lives in Nanaimo and is still a part-time "working girl" in a brothel. All things… Read more »
Daniel
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Daniel
Don't know why affordability is measured in terms of price-to-income ratio. Income taxes are not being considered in this equation. People with median income in Hong Kong barely pay taxes after excemptions(0-2%), while a Canadian with median income would easily pay >20% in taxes. Considering this, Vancouver would actually pass Hong Kong in terms of affordability. Other items to consider: Management fees are lower in Hong Kong Utilities, phone, internet, TV bills are lower in Hong Kong Annual government tax is lower in Hong Kong Renovations are cheaper in Hong Kong Mortgage rates are lower in Hong Kong, currently around 0.5% for Hibor or 2% for variable interest loan. Most people in Hong Kong live in cheap public flats, thus median income of people participating in the private market real estate market (renting or buying) is much higher than the… Read more »
rp1
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rp1

Hong Kong was added, so we really only lost ground to Sydney here.

crashcow
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S&P Case-Shiller housing data released today:

"9 markets – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices peaked in 2006 and 2007, meaning that average home prices in those markets have fallen even further than the lows set in the spring of 2009"

http://www.standardandpoors.com/servlet/BlobServe

bubbly
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bubbly

@Daniel: Hong Kong also has the freest and most competitive economy in the World and it's a true hub of international trade. It's in a totally different category than our little rainy backwater.

Keeping An Eye On Th
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Keeping An Eye On Th

"Second wave of housing bust hammers more cities

Seattle and Portland are among the places where home prices are at their lowest levels since peaking in 2006-07"

http://www.salon.com/news/us_economy/?story=/news

YLTNboomerang
Member
It's gonna be a long slow steady slide IMO as we go from 4th to 5th to 6th to… It's going to be listings like these two neighbors that drives the slide: 1) v858893 2) v860521 The first guy listed at $769/sqft The neighbor then listed at $760/sqft (literally, these townhouses are right next to each other and are essentially identical so a great comparison) In response, the first guy dropped his price by a whopping ~1% to almost match the $/sqft of the 2nd guy a week after the listing came on. It was $761/sqft for the first and $760/sqft for the second. After a month of no luck (stayed listed over the holidays), the first guy has now dropped his price by another whopping ~1% to $751/sqft. I'm hoping the second listing drops their price similarly and the… Read more »
boomer
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boomer

Prices in Seattle and Portland are low because unlike Vancouver, they don't have the rich mainland Chinese buying there.

I have been a bear since 2004, renting ever since. Renting is ok except having to move almost every year because the landlords wanted the places back for family. Also it is very hard to find a nice house on the westside to rent in the limited time between moves.

I have given up, prices in Vancouver will never drop as long as the government allows these investor class immigrants. The new house next door to the one I am renting just sold for 3 million plus HST in the Oakridge area after about 100 days on the market. Today said hi to the new neighbors, they are from China.

jesse
Member

We concentrate on the unaffordability but the article and the survey contend that land use restrictions are a necessary component to excessive price swings. I think it's worthy to look at this argument in more detail.

Is there a viable regime that could help reduce price bubbles by quickly increasing housing supply faster than population growth?

Westside Hag
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Westside Hag

Boomer,

I am puzzled as to why people are voting your comment down as everything you say is true. Sad, but true.

Vancouver is being handed over to China. It is that simple.

kansai92
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kansai92

Will me buy 3 and my dog buy 3 help?

Idon'tfeellikel
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Idon'tfeellikel

@boomer: Did you ask your new neighbours how many bribes it took to accumulate 3M in cash?

As well, you should reassure them you have no intention of dying in the near future… Wouldn't want to mess with the new neighbours Feng Shui…

wolfey
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wolfey
#9 boomer yes i would agree with you. BC is handing Vancouver west to the chinese(I 'm asian by the way, local born) but other vancouver areas they will leave for the white/ brown / etc folk…it's all about telling their friends they live in Van/ West…it like telling them i drive a benz or wearing a rolex. it's not the money …it's the status… u know the type …they would skip a meal to look good instead of working out because it's takes to long and is too much work. i 'm not saying they don't work hard but if it's not related to image/ status/ money forget it u can't say i 'm racist …i'm just saying what everybody is thinking if you think about it …It's the modern day version of the chinese head tax back in… Read more »
wolfey
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wolfey

#9 boomer

ps…i 've been renting since 2004 …but i 'm single. my investments cover about 80-90 % of my rent…which has steadily increase about 3 % / year.

i can see how it is tough for you and your family. i hope it works out someday

dbcooper
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dbcooper

" Abbotsford " !!?

I've driven through there

what is the attraction?

hard to wrap ones' head around this

patriotz
Member
Active Member
Price/income comparisons are only valid if you're comparing cities with similar ownership rates. The reason is that you're looking at everyone's income – both owners and renters, but comparing it with the prices of individually titled properties. Individually titled properties, on average, have higher income occupants than multi-unit rental properties, everywhere. If city A has a lower ownership rate than city B it will have a higher price/income for the same level of actual affordability, because the market for the individually titled stock represents a higher-income segment of the population. For an extreme example, consider a city where everyone lives in a multi-unit rental except Bill Gates. What would the price/income be? Hong Kong has an ownership rate of only 50% or so, so its higher price/income doesn't mean that it's less affordable for those who actually buy. You can… Read more »
Keeping An Eye On The Pimps
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Keeping An Eye On The Pimps

I.P. Daily, be brave; things could actually be worse. You could be related to a mortgage broker, or a business editor type on Realty Radio98

TIME MACHINE
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TIME MACHINE

@boomer: Thanks for the totally contrived post. Slow day at the sales office?

LY
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LY

boomer, one vote up for you.

Sydney and Vancouver have one thing in common. Lots of economic immigrants (non-investor type) from Asia particularly from Hong Kong and China. It is easier and takes lesser time to migrate to Australia and Canada than US which I heard takes more than 10-15 years wait if sponsored.

I know status image is important in Hong Kong. I remember as a tourist 10 years ago, wearing a simple non-collar T-shirt looking for jewelry for my wife in a Hong Kong shop. I was looked down, ignored and frowned upon. But when I took out my gold/platinum visa card, their attitude changed and treated me differently with a smile. That's the last time I visited that country.

AG Sage
Member

>We can easily beat Sydney’s 9.6 times median income with a small .2 increase, but we’re really going to have to work hard to beat the current champ

It's easy. Everyone in Vancouver, go ask your boss for a 20% pay cut, then the unaffordability trophy of Hong Kong will be in yours. (Funny how that sounds terrible, but a further increase in prices is trumpeted as a good thing…)

Renting
Guest
Renting

Thanks for the totally contrived post. Slow day at the sales office?

Yes it looks like we are back to the fake made up stories again.

Here is how it works:

1. Been a bear for a long time but I am giving up now.

2. Rich Chinese are buying everything.

3. Then a few confirmation posts.

All by first time posters. Are realtors that desperate?

registered
Member
registered

18 TIME MACHINE Says: "@boomer: Thanks for the totally contrived post. Slow day at the sales office?"

No shit. It looks like the new industry astroturf style is to associate bears with unpalatable and borderline racist sentiment.

Jack Wagon
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Jack Wagon

gotta wonder how depressing it is to go home at the end of the day and tell your wife and kids about your day.

"Sell any houses honey?"

"No, but I made some BS posts on a RE blog and probably convinced a couple morons that they'll never be able to afford to buy in this city. Is that Kraft Dinner AGAIN?"

Sad ass bastards. I'm actually starting to feel sorry for them.

Best place on meth
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Best place on meth

Intrawest moving it's Vancouver headquarters to Colorado.

http://www.vancouversun.com/business/Intrawest+mo

Anonymus
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Anonymus

Desperate days in small-town America
http://www.cbc.ca/world/story/2011/01/25/f-rfa-ma
no wonder house prices are declining in US. decline of society.

Bears stop comparing Canada with US

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