How do we compare to Victoria?

As prices have gotten silly in Vancouver they are often compared to what you can get in other cities around the world, many of them in the post-correction US.

But you don’t have to go far for an alternative to Vancouver, you can even stay in the province.

Our nearest comparable would be the smaller city of Victoria.

To that end Interest Only has put together this chart showing the variation in home prices between Vancouver and Victoria based on Teranet data.  After dipping in 2005 the deviation has become rather pronounced recently.  Here’s what they say about it:

What this tells us is that Average home prices in Vancouver relative to Victoria are stretched.  Victoria prices are rolling over and as a result, Vancouver looks like a new 23 year high versus Victoria prices. The ratio is outside of two standard deviations relative to the 23 year average (The shaded area).

 

vanvic

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Anonymous
Anonymous
7 years ago

“Aim for the trolls! Kill the trolls! Bring them down!” – Gandalf The Grey

southseacompany
southseacompany
7 years ago

Speaking of pre-sales, this is interesting;

“Failed condo pre-sale deal costs Vancouver buyer $750K
Court upholds terms of pre-sale contract signed by buyer”

With video.

http://www.cbc.ca/news/canada/british-columbia/story/2013/06/18/bc-presale-condo-lawsuit-vancouverl.html

#thisisadisaster
#thisisadisaster
7 years ago

@ #56 – How does that compare with the first 18 days of June 2012? 2011? Any reference point whatsoever? Also, as I’m worried you missed out due to down-voting…check it out before you explode:

Oh no, more strong sales. Time to shift gears because sales don’t matter – inventory, bond yields, Vancouver sucks (even though I spend EVERY night on a blog discussing it), price changes (deeper deeper, must go deeper says RE Canary to Makaya)…What will it be tonight?

There’s some critical mass here, maybe a support group is in order? A place where anyone can express their sorrow, mock homeowners, and compare the latest awesome places they’re renting for $3k (which, by the way is cheap cheap cheap).

southseacompany
southseacompany
7 years ago

@ anonymous #47 I have known this person for a few years professionally, and without saying too much, I was involved in this project as a consultant for a year or so. I know from the meetings who they would be marketing to. I’m not in real estate sales or work directly for a developer and don’t own and am a bear as you can tell from my moniker, so I have no personal interest in making this up. It is metrotown, so who else are they going to market to? I don’t think this person was lying. But, this is pre-sales so they work on getting buyers for maybe a year or more before the sales centre opens. This would have been the result of a market from a year to two years ago, so not reflective of now.… Read more »

RE Canary
RE Canary
7 years ago

Wow,
1581 price reductions already this month.
This Canary better get out before the RE mine explodes.

Son of Ponzi
Son of Ponzi
7 years ago

Anon 808,
If you need a good home inspector with FENG Shui experience,
FENG SHUI MASTER WONG is your guy.

Schadenfreude
Schadenfreude
7 years ago

@51. More like buy a condo, they’re running out of suckers. LOL!

I would also like to know more about the origin of the term “numb skull”. Are those the people who, after repeated blows to the skull, notice that their skull has cracked open only because of the different acoustical sound of the blow to the head rather than any nerve sensation?

Also regarding the “mortgage lending crack down”, is there an audio recording we can enjoy of the acoustical sounds made as a result of cracking of said numb skulls?

emmi
emmi
7 years ago

@52, the biggest debt curb in Canada could be a tweak up in the interest rates in the U.S. along with slowing sales of raw stuff to China.

Anonymous
Anonymous
7 years ago

Risk of housing debt remains “elevated”. There are five years or so to delever before the next recession. If prices don’t start falling again that is going to leave a massive overhang and longer term economic impairment.

Don’t get hung up on daily sales vascillations, look at the big picture. Stabilizing prices is not good enough. Prices need to correct. More debt curbs are coming. Trust me on this.

Anonymous
Anonymous
7 years ago

‘pre-sale deal costs buyer $750K’

Ha, ha! Laugh of the day. What a fucking sucker.

Buy a condo, they’re running out of land and not making any more condos.

#thisisadisaster
#thisisadisaster
7 years ago

Oh no, more strong sales. Time to shift gears because sales don’t matter – inventory, bond yields, Vancouver sucks (even though I spend EVERY night on a blog discussing it), price changes (deeper deeper, must go deeper says RE Canary to Makaya)…What will it be tonight?

There’s some critical mass here, maybe a support group is in order? A place where anyone can express their sorrow, mock homeowners, and compare the latest awesome places they’re renting for $3k (which, by the way is cheap cheap cheap).

Waiting....
Waiting....
7 years ago

Looks like inventory has peaked for this year. The best we can hope for is that is declines slowly from here to the new year. God help us if inventory crashes. Interest rates won’t help us either…the bond yields are now back to ‘normal’ levels they were at a month ago…thus they will stay the same for the remainder of this year. Job creation is booming this year…did you see last month’s record numbers?

The best we can hope now is to wait for next spring’s explosion in inventory. Surely that is going to happen.

omfgitslikegrouponbutforcondosftw
omfgitslikegrouponbutforcondosftw
7 years ago

The numbers are not quite as bearish as I’d like to see, however the few places I’ve seen for sale that I like have remained listed month after month (and MLS# after MLS#.)

Anonymous
Anonymous
7 years ago

southseacompany: “Had a chat with someone who works for a developer about a Metrotown project that sold out last year. Out of interest, they said 20% were sold to offshore asians, rest to local asians, except for a few units to others.”

If he works for the developer he must be telling the truth. Did he also mention there has never been a better time to buy and that we are now out of land? Those 2 usually go with the Chinese thingy.

Anonymous
Anonymous
7 years ago

Brian: “Seafare dweller, it’s clearly marketed to Chinese. Just look at the address-188, need I say more?”

So they are marketing to Chinese by sending brochures by mail to white people? Maybe they are hoping the white people know a Chinese person and they will pass the brochure on?

Bo Xilai
Bo Xilai
7 years ago

Anon… #5…

Here’s a home inspector who helped us out on our recent purchase. The guy is awesome.

http://www.bchouseinspections.ca/site/about_us/inspector.php

His name is Sean Wiens.

CTV Poll
CTV Poll
7 years ago

Cast your opinion at the CTV Vancouver Facebook page, “Is buying a condo a Good Investment”

Hell NO

i love Van
i love Van
7 years ago

sales are huge, inventory is crashing.

good-format
good-format
7 years ago

Sales so far: 1663
Price Changes so far: 1581

Anonymous
7 years ago

Undeniably believe that which you said. Your favorite justification appeared to be at the internet the simplest factor to understand of. I say to you, I definitely get annoyed while people think about worries that they just don’t know about. You managed to hit the nail upon the highest and defined out the entire thing with no need side effect , folks could take a signal. Will likely be again to get more. Thanks

Loon
Loon
7 years ago

Thanks Paul, anyone have a chart of price changes handy ?

paulb
7 years ago

New Listings 311
Price Changes 126
Sold Listings 212
TI:18438

http://www.paulboenisch.com

emmi
emmi
7 years ago

Anon808, from the archives:

>Sidelines. Says:
April 7th, 2013 at 3:51 pm 140
Re: home inspector. I second Ted Gilmour. Not cheap, but very thorough. He’ll pretty much insist that you be there for the whole inspection. In my case, that was about 8 hours for a detached house. Worth the $$.

FYI, I found it with google with the search “site:vancouvercondo.info house inspector”

ReadyToPop
ReadyToPop
7 years ago

China’s shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts, Fitch Ratings has warned.

Fitch says China credit bubble unprecedented in modern world history
.

sounds good
sounds good
7 years ago

trofimfrueden

new credit card that allows the quadruple of your RE spec. Well known for its 888 prefix