Cost of housing making people leave BC?

According to this piece in the Vancouver Sun, more Canadians are leaving BC than moving to it.

In fact according to BC Stats 2,234 people moved away from the province in the last three months of last year alone.

Why are people leaving BC?

That’s up for debate, but basic economics probably has some effect.

Large mortgages are a scourge, seriously limiting what folks can do on other fronts to enhance their lives.

Indeed, onerous mortgages probably are the reason British Columbians have so much non-mortgage debt.

It now takes 82.3 per cent of typical household income to purchase a detached bungalow in Vancouver, according to Royal Bank figures released last week.

Read the full article here.

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Ed
Guest
Ed

I rent units in my place for my landlord and I’ve been doing it for many years.

I’ve noticed a distinct trend that there are no longer working types that are looking for places anymore. Just students. No Familes, no working professionals.

There is no longer the churn of people getting tired of one place moving to the next. People are pretty fed up with deciding to leave only to find a more expensive place to move into.

The only people being held captive to the process are students who live for a year or so, then move back home.

Anonymous
Guest
Anonymous

Where they going to leave to? Immigrate to India, China?? It’s so difficult to immigrate to desirable places like the USA.

Yet Canada is one of the easiest places to immigrate to in the world. Keep packing them in. It’ll keep my rent coming!!

Boomerang Kids
Guest
Boomerang Kids

http://www.bloomberg.com/video/single-best-chart-jobless-kids-boomerang-back-home-zZ_RutowTziVVTtMtqs~rA.html

They’re not leaving BC. As @Ed#1 says, they just move back to the room they had as little kids.

Tomorrow at 11am Vancouver time, we’ll get an update on how much longer Bernanke will be running this experiment. He might say 2015 but you might hear 2050. Those two year numbers sound similar in a noisy room.

Another place people can go without leaving BC is to homeless settlements. Look for more stories about homeless people crowding out and killing property values in the news. If there are homeless people near your property now then you’d better sell soon, because the “bright idea” of putting off the collapse into the future can only produce more homeless people.

kabloona
Member
kabloona
Failed condo pre-sale deal costs Vancouver buyer $750K Court upholds terms of pre-sale contract signed by buyer CBC News http://www.cbc.ca/news/canada/british-columbia/story/2013/06/18/bc-presale-condo-lawsuit-vancouverl.html A man who signed a pre-sale contract for a luxury condo in Vancouver has lost almost three quarters of a million dollars after he failed to complete the final sale on the unit. Lawrence Austin signed a deal to buy the condo at 1499 West Pender in the spring of 2008, just months before the global financial crash. Austin agreed to pay Reliance Properties $2.71 million for the 25th floor Coal Harbour condo, and put down a 10 per cent deposit of $271,000. But within a few months the global real estate market had crashed and Austin began looking at his options to get out of the deal. Initially, he argued that at the time of the sale he had… Read more »
Turkey
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Turkey

@Anonytroll,

Where they going to leave to? Immigrate to India, China?? It’s so difficult to immigrate to desirable places like the USA.

If you’re a professional, the TN visa is easy to get, and companies will often work with you to make it even easier. Several of my fellow alums have migrated to California to work in Silicon Valley. The wage differential is very, very hard to argue with.

pricedoutfornow
Guest
pricedoutfornow

We recently found a SFH for rent in the COV. I got the impression that the landlord wasn’t being flooded with applicants to rent the property, despite it being a great location (East, not West tho), not a bad price, and a whole house.
We’ve been looking for months at houses to rent, all over the city, and whenever we go, there aren’t hoards of people looking to rent. We even looked at a 4 bedroom house deep in the westside, close to Crofton house school, for the low price of $1800 (!!) and we were still the only people there looking. Odd. Where are all the renters?

George
Guest
George

On the CTV BC News website half way down the page under the heading “Question of the Day” appears this poll question: “Do you think a condo is a good investment in Metro Vancouver?” Right now, 70% have voted NO.

http://bc.ctvnews.ca/

chilled
Member
chilled

Our governments really don’t care who leaves, as long as there are hordes of people lined up to enter Canada from whatever filthy despot they are trying to flee. Pockets of cash, ill-begotten or not, is also very attractive to our leaders. For lower end service jobs that do not support a decent living but are a requirement for any large urban area, no problem, that’s what the foreign worker program is for!!

southseacompany
Member
southseacompany

“Housing crash wouldn’t hurt Canadian banks at first” The Province

http://www.theprovince.com/business/Housing+crash+wouldn+hurt+Canadian+banks+first/8546765/story.html#ixzz2Wfw11Lnq

“While a ‘hard’ landing for domestic housing, including a sustained decline in selling prices or demand, would not be in anyone’s best interest,..” said Brad Smith, an analyst at Stonecap Securities in Toronto.”

Not in everyone’s best interest? I’m sure folks hoping to buy would certainly would welcome a sustained decline.

WS
Guest
WS
I bounced around Southern California for 12 years on TN Visas before finally getting married and settling down with a green card. It was not that difficult. Worked for 5 different firms and lived in Newport Beach, San Diego, Santa Monica and settled in Hermosa Beach (damn nice places to live). I some how qualified for an accounting TN without being an accountant. I work in finance and have an MBA but I was certainly stretching it on every TN application to qualify as an accountant. I get up to Vancouver a couple times a year to visit family and friends (the few left who havent moved on) and try to target July/August and once in Feb/March to go skiing. Sure don’t miss that 10 month rainy season in Vancouver. Although you do still get a strange energy the few… Read more »
Son of Ponzi
Guest
Son of Ponzi

On a recent trip to Germany, I met a Vancouver woman on the train from Berlin to Dresden.
She originally just came for a visit but then got offered a job for about twice the salary.
She’s happy as a clam. Berlin is the start-up capital of the world.
People get out of your damp basement!
Travel, and discover that the BPOE is just a fraud perpetrated by the RE consortium.

Anonymous
Guest
Anonymous

WS: so why you visiting a blog that concerns itself with vancouver housing prices? Thinking of coming back like the rest of the world?

Also TN visa is temporary. Not permanent. And you can’t bring your parents and siblings with you.

You bears will never understand that the world is awash in money. Speculation and parking money is the new game. The pack at the front is way ahead so the market looks distorted to those way behind.

Remember —> the world is awash in money.

VMD
Member
BoC Poloz speech: “Given the circumstances, it was a good thing that households had the capacity to expand their spending – this provided a necessary cushion from the worst effects of the global contraction. The Bank has been careful to remind people that interest rates will rise at some point. We have urged homeowners and other borrowers to do the arithmetic to ensure that they will be able to manage their debts at more normal interest rates. I am confident that this is exactly what people are doing. This growth model has been effective, but its limits are clear. In fact, while recent data are choppy, we continue to see a constructive evolution of activity in the housing sector. What needs to happen next is for export momentum to build and business investment to recover while the household sector settles… Read more »
bon jovi
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bon jovi

this morning on CBC radio Saskatchewan had net gain of 4000 in the last year.

Son of Ponzi
Guest
Son of Ponzi

It’s a fact that productive, educated people are leaving BC for the prairies.
This trend will get worse once the RE house of cards has collapsed.
30% of economic activity is RE related.
Take that away and unemployment will sore.

Son of Ponzi
Guest
Son of Ponzi

Just came back from Winnipeg.
This is now my second trip, and I’ve never been bothered by Mosquitos while there.
Is this another urban myth that Vancouverites are spreading in order to degrade other cities in Canada?

gokou3
Guest
gokou3

Remember —> the world is awash in money… and also awash in properties costing less than Vancouver’s.

gokou3
Guest
gokou3

“Housing crash wouldn’t hurt Canadian banks at first”

So… at second?

COCersmash HAMstedfellow
Guest
COCersmash HAMstedfellow

Cash Squeeze in China, Interest Rate Swaps Rise Most in 22 Months; China’s Credit Bubble About to Pop; Shadow Banking Crackdown

http://globaleconomicanalysis.blogspot.com/2013/06/cash-squeeze-in-china-interest-rate.html#HKIzv9L732dOXHE3.99

Mark Cranky
Guest
Mark Cranky

gokou3 Says:
June 19th, 2013 at 11:02 am 18
“Housing crash wouldn’t hurt Canadian banks at first”

So… at second?

At second “Housing crash wouldn’t hurt Canadian banks” because
their Sugar Daddy CMHC (aka Taxpayer) will bail the banks out

WS
Guest
WS
Anonymous: I follow this blog for a couple reasons. One is that much of my family still lives in Vancouver and a large portion of our family wealth is tied up in Vancouver real estate. My opinion matters in family wealth discussions and it is wise to be informed. I’d like to think I have tempered any irrational enthusiasm for Vancouver real estate amongst my family members. If I could, I would have had them sell everything a couple years ago – to no avail – but at least I think I prevented additional purchases in the last 10 years. Second, understanding the general health of Canada’s economy is somewhat relevant in my line of work. These types of blogs can provide better information than most of the mainstream publications. I don’t mean to be a hater on Vancouver. It… Read more »
gokou3
Guest
gokou3

“It is not an international destination city with a worldwide stellar reputation but merely a regional player among the ilk of Seattle and Portland.”

Minus the Microsoft, Boeing, Costco, Amazon, Nike, etc. in terms of job prospects..

Bernanke spooks market again
Guest
Bernanke spooks market again

No matter how he dances around the issue, equity markets are hard to fool, as Bond yields hit 15 month high.

Hate to be in the shoes of leveraged homeowners who will have to re-mortgage sometime down the road.

squeako
Guest
squeako

How about buyers or real estate have to take a little course in personal finance and pass before they can take a big loan or mortgage?
Learn the vocabulary and some basic math relating to taking loans/mortgages, the real cost of homeownership.
Hmm.. maybe that is not good for some businesses, but it would be good for the potential victim.

Reduce the number “oh.. I didn’t know..”

r u ready?
Guest
r u ready?

for the tidal wave of money that is about to hit our shores as the rats try to escape the sinking People’s Republic of China?

The world has never seen anything like it. There will be a 24/7 traffic jam starting in YVR and spreading out across the lower mainland.

It doesn’t matter if they are welcome or if they are allowed to stay, they are coming, with cash, and ready to buy something.

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