Hasman calls market ‘unhealthy’ ‘not sustainable’

If you live in Vancouver you probably recognize the name Andrew Hasman. He’s a local realtor since 1993, and apparently doesn’t agree with the view that we’re in a new paradigm, but still manages to steer clear of the word ‘bubble’.

“Many people who buy here aren’t buying because they’re moving here,” said Hasman. “They’re buying on speculation or to park money here … There have been cases where people come and purchase five or six houses. No one needs five to six houses unless you’re speculating.”

Overseas buyers from Mainland China have been the driving force behind the price rise, Hasman said. “That’s what’s driving the market, really — of single family homes that have sold in the last 18 months, I would say, they’re conservatively 70 per cent, probably 80 per cent of the buyers,” he said.

He said that in some cases, the houses are placed back on the market within weeks, at a 10 per cent higher price, or simply remain empty.

For more local realtor reactions to the current market check out the full article in the Vancouver Observer.

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patriotz

@the R:

"Suddenly, you are asking them to accept Canadian culture."

Hello? Like we kidnapped them from China and made them live here? Like we're trying to disrupt their lives or something?

If I were to immigrate to China (which is practically impossible) it would be demanded of me that I accept Chinese culture. They still remember those foreign concessions, you know.

Why should we make any "concessions" to people from other countries who decide to take the opportunities to come to Canada which we generously offer?

chinaren

People born and raised in PRC (People's Republic of China) do not believe in shén guǐ lùn (god-ghost-theory), thanks to Chaiman's teaching and re-education.

Simpatico

@macho nacho: Amen to that. Notice that Blackstone says "no comment" when asked about the sale. A friend of mine near the top of a BC commercial real estate group is exiting saying the trend data shows he will not be making enough money to support his family or make his own mortgage payments in Vancouver in the near future. Sounds pretty bleak to me.

macho nacho

@Simpatico: On commercial RE, if Blackstone is bailing out of Canada, something's up.

Patiently Waiting

According to the weekly stats, sales have steadily fallen by 10% over the last month. Meanwhile, prices have been rising rapidly. SFH sales are growing while attached are declining. The market is choking.

the R

An article about the UBC hospice says a lot about the way many of these new "Canadians" think:

"The people who live next door are mostly newcomers from Asia," Jung said. "This way of thinking is formed throughout our lives, especially in our childhood. Suddenly, you are asking them to accept Canadian culture."

Jung said while he supports cultural integration, it is important to understand the concerns of the small but vocal group of opponents and give them a say as well.

Read more: http://www.vancouversun.com/health/hospice+oppone

Simpatico

@1.9milCrackHouse: As a confirmed bear with plenty of money to buy when I wish, I stand pat as a renter, unperturbed by the mindless rambling of the RE bulls, or the usual bumps in the road down for residential real estate in Canada and Vancouver. There is a systematic way deflation unfolds in RE and we simply see inventory build to the point where the folks recognize times have changed, time to sell before everyone else and their brother, oops too late, now we have to paint and fix up to sell, oops too late, now we have to price to sell, now prices start falling, the fools rush in too early, the prices keep falling, then the buyers recognize, oops, too early to buy anything, let's sit pat. There is lots of bad news out there in the world,… Read more »

Jack

"Comments on this blog have slowed from 100+ per day to a trickle."

Everyone is focussed on the Canucks' drive to win the cup!

Go Nucks Go!

1.9milCrackHouse

Guys, I've changed my name to 1.9milCrackHouse from 900k to keep up to date with the house prices in 2011.

Comments on this blog have slowed from 100+ per day to a trickle. Even the bears have been converted to bulls or are too depressed to write.

We've got to be close to a top if even Austrailia is down 7% from their recent peak.

Bear Scat

Lookee lookee…

Its almost the end of May and sales are still strong strong strong!

So much for the dumbass predictions of Best Place on Meth.

Those "dramatic" March 18th rules certainly had an impact!

Hahah bears – look at that price chart for vancouver RE – straight up! Good thing you sat on the sidelines you smart little bears…hahahhahah

Anonymous
Romeo Jordan

PaulB, Larry over at Yattermatters.com is commenting on the build up in inventory that has gradually manifested – any thoughts?

If you run into McLosin, please warn him of what is to come. Remember – it takes a village to raise a child.

xoxox

Romeo Jordan

paulb.

Sold Listings 196

sorry, ha ha

Best place on meth

@paulb.:

Sales?

paulb.

New Listings 271

Back On Market Listings 7

Price Changes 170

Boombust

HAM, Shmam.

Much ado about nothing.

This market will correct (as it always does) when it gets the message.

Vancouver is ALWAYS the last in, last out. Move along.

patriotz

@Old guy:

The Sun was a half decent newspaper, while the Province was alway trash.

Not always, the Province was a respectable newspaper once upon a time. I think it changed to a tabloid in 1983.

While the Aspers deserve all the blame directed at them the decline started before their ownership. Conrad Black must take his share for the slide of the Sun which included regular columns by wifey Babs.

Old guy

@Anonymous:

You can blame Israel Asper for that one. The Sun was a half decent newspaper, while the Province was alway trash. Then it was swallowed up in Israel Asper's empire and that was the end. Party line from HQ and little else. Many other fine papers in this country were also destroyed by him and his sons. Any editors or columnists that stood their ground were tossed.

rp1

@fixie guy: I expect them to not tighten broadly, since the housing market in many parts of the country is already in trouble. I think they will reimpose CMHC insurance caps of ~750k, avoiding disruption in Toronto.

It seems totally insane that bank deposits are insured up to 100k and mortgages to infinity. Everything about the mortgage market in Canada reeks of moral hazard.

Bear Vancouverite

@Patiently Waiting "You think our local Chinese like these (supposed) offshore buyers? As a white dude, I couldn’t care less about the prices in Richmond. If I were Asian OTOH…" No local Asian that I'm aware of is happy about the supposed HAM. @anonymous: "All the government has to do is to come up with a rule that will put the Vancouver Sun out of business. Maybe a simple rule like: print real news. That should do it!" Getting rid of a single paper won't do anything. The Chinese papers, both here and overseas, do alot of RE pumping, and agents are paying for full page spreads to perpetuate the myth of ever rising real estate here in Vancouver. @patriotz: “Anyway, given that the #1 target group for the Conservatives in BC is the Chinese immigrant community, I’ll believe it… Read more »

fixie guy

11 jesse Says: "What could the federal government do to deal with this, without affecting other regions of the country that aren’t in bizarro bubble territory?"

Oh FFS, the federal government caused this problem. By loosening lending standards, by wildly increasing the scope of mortgage loans they back, and I'll argue by immigration policies. These polices had the effect of making their numbers look good, they don't give a rat's ass about the voter until the voter gives one.

What I expect them to do, and shortly, is move back towards traditional landing requirements. The false 'miracle economy' coupled with the Liberal implosion gave Harper the majority mandate he so desperately wanted and now they won't tip toe around backing away from the precipice.

Anonymous

All the government has to do is to come up with a rule that will put the Vancouver Sun out of business. Maybe a simple rule like: print real news. That should do it!

It sounds crazy, but it’s surprising how many people believe, or if nothing else, allow the nonsense printed by the Sun thinly disguised as news to reinforce their own believes in unlimited unabated returns from Vancouver real estate.

The single worst thing that ever happened to this city was the amalgamation of the Sun and the Province. Time for the both the Sun and the Province to set a real newspaper to take their place!

jesse

@patriotz: "the #1 target group for the Conservatives in BC is the Chinese immigrant community, I’ll believe it when I see it." You hit on the jurisdiction aspect, which is why I expect there is some federal pressure for provinces to be more heavily involved in dealing with property asset bubbles. I don't think the government is ignorant of the legal framework but does have incentive to impose regional restrictions. The government may have "targeted" the Chinese immigrant community, but first I know the immigrant Chinese community does not speak with one voice when it comes to foreign ownership (witness the mass protests in Hong Kong and Taiwan over limiting foreign ownership), and second the government has targeted many other groups who stand to be net losers from a specific region's unsustainable profligacy, most notably people living anywhere but Vancouver… Read more »

Patiently Waiting

@patriotz: "Anyway, given that the #1 target group for the Conservatives in BC is the Chinese immigrant community, I’ll believe it when I see it."

You think our local Chinese like these (supposed) offshore buyers?

As a white dude, I couldn't care less about the prices in Richmond. If I were Asian OTOH…

patriotz

@jesse:

It may go as far as foreign residential property ownership restrictions.

That could be challenged by one or more provinces as an infringement on their jurisdiction over property rights.

OTOH the feds could just levy punitive taxes on offshore owners and/or prohibit the banks from lending to them.

Anyway, given that the #1 target group for the Conservatives in BC is the Chinese immigrant community, I'll believe it when I see it.