you know what time it is, long it up!
–More OV condos available, problems with windows, floors and heat fixed soon!
–Church torn down to make more condos
–Plenty of choice for island buyers
–What can you afford?
–Vancouvers baby steps define our time
–Carney warns on global risk
–
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Mark Carney spoke candidly at a function in Toronto and his "off the record" remarks got leaked. I guess he doesn't consider the general public important enough to hear what he really thinks.
http://www.theglobeandmail.com/report-on-business…
So the GFC isn't over yet? Hoocoodanode?
Shysters. All of them.
Carney always speaks candidly. You just have to listen a bit more closely than you do to people who have little to lose by being wrong.
Still, everyone's sh!ts smell a little.
Here is the latest affordability report.
http://www.rbc.com/economics/market/pdf/house.pdf
It's not as bad as I initially thought. Condos are still pretty affordable, which is a positive sign for price stability. Detached homes are getting excessive though.
Financial Post:Vancouver housing testing 'rationality'
I just heard the following on CKNW: RBC Senior Econominist discussing how Vancouver housing costs 72% of income. Then Michael Levy comes on and says it is irrelevant as Vancouver residents are not buying, it is rich wealthy foreigners. Celebrating the fact that we are selling our city to the highest foreign bidder. Levy then said, if Vancouver born children want to buy in the area, they will need to buy in Mission and commute.
Do the powers that be really want to drive all local born residents out of this city and replace them with Chinese? How does this benefit anyone?
@Dave:
Do really think 40% of pre-tax income for a condo in Vancouver is affordable?
I don't believe that number even includes strata fees.
Yes I do. The average GVRD income can afford the average Vancouver condo. Keep in mind, those costs are for Vancouver, not Burnaby, Coquitlam or Richmond would have more affordable offerings.
Condo prices haven't taken off to the extent of SFHs this past year. I think condo prices are right where they should be. Detached homes have gotten ahead of where they should be.
That's not to say a correction won't take condo prices with it. I just don't see much price moderation happening.
@Dave:
Of course laneway could still make economic sense if you had an existing dwelling in good shape, even if the municipalities allowed lot subdivisions for row housing.
But building on bare lots after teardowns greatly outnumbers laneway building today. That's the market saying that laneway is really just a niche rather than a general solution.
And what really counts for affordable ownership for families going forward is what's allowed in new developments east of the Port Mann.
@jesse:
Jesse, row housing is located in other municipalities because you can build that product and make a profit. The number change completely once you get out of Vancouver. It's much easier to build that kind of product when you have a huge undeveloped site.
Zoning and bylaws don't enter into it. If it made sense, developers would be all over it.
@patriotz:
I agree. New homes by far outnumber laneway housing.
Building affordable housing east of the Port Mann isn't a challenge. That's simple and it already exists, but I doubt you agree on my definition of affordability. If affordability was the challenge, then they wouldn't be building McMansions on 1/4 acre lots.
The challenge for the burbs in my opinion is transportation and community development, not affordability. I think the suburbs are ugly and poorly developed. I love the free market, but in this case it fails in some aspects.
@TPFKAA:
Racial Tension?
It is absurd because will not bethe case in Vancouver.Vancouver population is overwhelmingly Chinese who have the wealth and government support from China to prevent white Canadian to launch a smililar riot against Chinese like the one in 19 century.Nowadays China is great enough to be respect and fear of.Who would dear to provoke the lion.China is no more a sick man of Asia but a rising sun which will shine and nurture those who has chosen the right path but against those who dare to test the patient and power of Great China.American had learned a lesson during 1996 Taiwan Straight incident in which a Chinese nuclear Sub repelled the 7th fleet.
@Dave:
>>>I think condo prices are right where they should be.<<<
Seriously? The benchmark is close to half a million.
40% pretax is 55% after tax. 55% of income to own a condo and that's with very low interest rates.
I consider that rate to be doable, but hardly affordable.
Check this out…
“We fear that the Vancouver market is becoming increasingly disconnected from local demand conditions and vulnerable to a painful correction, especially once interest rates resume their ascent,” said Robert Hogue, senior economist with RBC and author of the report.
Sorry Noticed someone posted it already
"This is a way of estimating the maximum home-related expenses you can afford to pay each month. To qualify for CMHC insurance, the total should not exceed 32% of your gross monthly household income."
“40% pretax is 55% after tax. ”
Isn’t there a CMHC limit around 32%?
Yes.
These numbers (along with the legendary 72% of income to own a house) are hypothetical numbers derived from median prices and median incomes. They do not represent what actual buyers are actually paying.
@patriotz:
"They do not represent what actual buyers are actually paying."
But it does suggest that if they're paying over 32% then they're doing so without CMHC insurance, and therefore are putting at least 25% down.