High prices: sign of a sick or healthy market?

When you own something you might be delighted to hear that the price is rising.

Even if you don’t sell it to cash in, there’s a certain amount of psychological comfort to be found in owning something ‘valuable’.

So it’s not remarkable that many people are delighted by the rising cost of real estate in Canada.

But is this just the economic equivalent of a sugar high?  If all homes are rising in price you don’t really benefit from selling unless you leave the market or downsize to where the percentages are smaller.

Jonathan Miller, a US real estate appraiser posted an article comparing the US and Canadian markets.

He makes the point that sharply rising prices in US markets didn’t work out to be indicative of a markets health, rather they led to the inevitable hangover when the party was over.

Is it different here?

61 Responses to “High prices: sign of a sick or healthy market?”

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    I_see_debt_PEOPLE! Says:
    1

    Never rising interest environment says the CB.
    It’s different here people.
    HAM as always.

    Another 10-15 years and THEN, the prices reverse for another 25 years.

    But, we’ll all be dead by then.

    Well-loved. Like or Dislike: Thumb up 29 Thumb down 1

    No Noise Says:
    2

    It’s a sick market definitely, but one can be sensible and go on a low-sugar diet anytime. “If all homes are rising in price you don’t really benefit from selling unless you leave the market or downsize to where the percentages are smaller”. How about leave the market (sell, at high) and buy back (locally) following the correction?

    Hot debate. What do you think? Thumb up 11 Thumb down 0

    Mister Obvious Says:
    3

    High prices mean nothing until you crystallize your gains and rebalance. If your only asset is a house then “rebalancing” simply means downsizing to a lesser piece of RE. In that case, prepare to lose a chunk of your newly freed equity to real estate commissions, legal costs and moving fees.

    The best way to keep most of your gains is to invest in a carefully diversified and balanced portfolio for the long term. Yes, you will still need to take some risks but they are moderate in comparison to the ones you now face now at the top end of this property bubble.

    Then become a renter and let some other property owner take the hit due to the present high RE risk and its associated low capitalization rate.

    Make sure you go for professional management in a purpose-built rental building. Don’t rent from desperate condo owners or SFH owners with basement suites. You can do much better today and its far cheaper than owning. Hint: Don’t be cheap yourself, either. You do get what you pay for but nowadays you get can much more value by renting.

    Hot debate. What do you think? Thumb up 18 Thumb down 0

    whats going on with SFH in van east? Everyone is offering without subjects (inspection) to win bids (the hot ones at least). Is this a new low or has this been happening for years?

    Like or Dislike: Thumb up 4 Thumb down 3

    space889 Says:
    5

    @manx – simple – those houses priced between $700K to $1M are affordable to most locals who are trading up and there aren’t many of them, hence the bidding one. Everyone want to live in Vancouver and Van East is still better than everywhere on the planet except Van West and West Van.

    Yes, people are that crazy so just accept it and try to profit from it.

    Hot debate. What do you think? Thumb up 10 Thumb down 10

    piper Says:
    6

    http://www.hiddensecretsofmoney.com/blog/OutrageousCanadianCurrencyExpansion

    OUTRAGEOUS – Canadian Currency Expansion Dwarfs USA
    By Dan Rubock – HiddenSecretsOfMoney.com
    Posted May 04, 2014

    “The expansion of your currency supply in the last decade is outageous…this is actually theft”
    ​- Mike Maloney

    Michael Maloney will be appearing at the Canadian Investor Conference June 1-2 in Vancouver.

    Hot debate. What do you think? Thumb up 9 Thumb down 2

    Melba Says:
    7

    …..Everyone want to live in Vancouver and Van East is still better than everywhere on the planet except Van West and West Van…..

    This statement perfectly illustrates what’s at the core of Vancouver’s RE prices, i.e. Vancouverits are nuts (I think they must roll down the mountain sides and land in Vancouver).

    I wonder if there’s some sort of universal dementia scale that measures the thickness of people who think Vancouver is the best place on the planet?

    Well-loved. Like or Dislike: Thumb up 34 Thumb down 2

    I’m one of those demented people that wants to live in east van. i grew up there, my aging parents are close by, its close to work. i don’t think vancouver is the best place on earth, far from. I’ve accepted that prices are going to be crazy but I cannot accept the fact that offers with subjects are tossed out immediately. Whats next? Every offer must come with a $1000 cash in an envelope?

    Hot debate. What do you think? Thumb up 19 Thumb down 5

    Yunak Says:
    9

    Off the topic but efficient in addressing cultural differences when it comes to emigration.

    http://youtu.be/aaEqZQXmx5M

    Like or Dislike: Thumb up 5 Thumb down 3

    space889 Says:
    10

    When there are 10 competing offers and seller wants a quick close, why would you consider any offer that has subjects, even if the price is say 5% higher? An accept offer with no subjects means even if the deal fell through, the buyer is still on the hook for any losses the seller suffers. If the seller manages to sell for a higher price after a failed first deal, the seller still gets to keep the ~5% or 7% deposit so it’s even a bigger win.

    Quick sell with no subjects is the way to go in the current market. Especially given that a lot of the East Van older houses likely have lots of internal problems being covered up by fresh paints. No inspection subject is a god send.

    Hot debate. What do you think? Thumb up 11 Thumb down 0

    Zero Down Forty Says:
    11

    @#38 Then rent in East Van. It will be cheaper and your landlord will be subsidizing you, while you continue to build up a down payment in a market that has been flat for 5 years.

    For every $10k you save toward your downpayment, you will save about $6k of interest on a 25 year mortgage.

    Well-loved. Like or Dislike: Thumb up 32 Thumb down 1

    manx Says:
    12

    We’ve been renting in east van for 4 years and have 50% down (saved over many many years) for our target crack shack. Landlord is selling our apartment soon and wife is spooked from renting. Plus we now have a young child. Where do I insert unhappy wife and growing kid in the rent vs buy equation?

    Hot debate. What do you think? Thumb up 14 Thumb down 4

    sugarhigh Says:
    13

    …..Everyone want to live in Vancouver and Van East is still better than everywhere on the planet except Van West and West Van…..

    Hahahahahah. Hahahhahahahaha. Hhhaaaaagghhhhhhh. Acch. Sorry choked on my pizza. Hahah. Oh boy, that’s a doozy.

    Hot debate. What do you think? Thumb up 20 Thumb down 3

    CanuckDownUnder Says:
    14

    @12: Your wife is spooked? That’s what you get for renting next to a hospice.

    Hot debate. What do you think? Thumb up 15 Thumb down 5

    New Listings 290
    Price Changes 136
    Sold Listings 177
    TI:16515

    http://www.paulboenisch.com

    Well-loved. Like or Dislike: Thumb up 59 Thumb down 4

    Johnny-boy Says:
    16

    Hot debate. What do you think? Thumb up 11 Thumb down 1

    Son of Ponzi Says:
    17

    Expired/cancelled listings 41.

    Hot debate. What do you think? Thumb up 6 Thumb down 4

    Real World Says:
    18

    @92 “As I’ve said before, there can’t be a shortage of anything in a free market because supply and demand are always equal at the market price.”

    I guess you learned everything from a text book. In the real world there is a finite supply of quality labour. If one company raises wages to attract a more desirable candidate another company loses out and has a shortage.

    I have no direct experience with TFWs but I can see why companies are going that route. When it comes to unskilled labour Canadians just don’t want to do it. You can pay $20 per hour starting with zero related experience and zero skill level and you still end up with lazy people who show up when they want. The TFW program is not about saving money it is about getting a reliable workforce. From my understanding the TFWs are more expensive and a lot of work to bring in. The only benefit is getting a worker who shows up everyday. After 20 years of hiring for 1000s of positions at various skill levels I can tell you the pickins out there are slim in BC for good reliable workers. Pay doesn’t matter. If a person is lazy they are lazy. I personally don’t want the head ache of a TFW program and would prefer to offer jobs to Canadians but I am seriously considering going that route for my organization. I am not saying there are no good workers out there because there are plenty. But the bulk of the unemployed are that way for a reason. If you had a company and your livelihood depended on it would you rather hire Tedeastside or a Philippino TFW?

    Hot debate. What do you think? Thumb up 17 Thumb down 24

    Son of Ponzi Says:
    19

    Price reductions for the last 3 days:
    127,120,136
    Let’s keep an eye on this number.
    It measures sellers delusional thinking.

    Hot debate. What do you think? Thumb up 19 Thumb down 4

    Guy Smiley Guy Smiley Says:
    20

    @Real World #18

    Hahahaha thumbs up…. That is a kick-ass closing argument!

    Hot debate. What do you think? Thumb up 9 Thumb down 5

    tedeastside Says:
    21

    Seattle… the birthplace of Costco, Starbucks, Amazon, Boeing, Microsoft,
    the richest human being in the history of mankind,

    Vancouver… the birthplace of BC Bud

    man… Seattle is such a winner, vancouver is such a loser, it has to call itself the best place on earth

    Hot debate. What do you think? Thumb up 20 Thumb down 12

    The Man Says:
    22

    @#12 You can’t. There is no known power in the universe that is stronger than the biological force of a nesting woman. CMHC, interest rates, HAM, speculators…. Hah. You all think that is driving our market? Tens of thousands of wives and girlfriends are driving this market.

    Hot debate. What do you think? Thumb up 13 Thumb down 12

    No Noise Says:
    23

    @#12 You can. Rent a bigger place in East Van for your family. Like we do. Vancouver has incredible price-to-rent valuations. Then you can diversify your liquid assets too! haha

    Hot debate. What do you think? Thumb up 18 Thumb down 1

    RaggedyRenter RaggedyRenter Says:
    24

    News from South East Asia.

    Apparently palm oil importers in China imports palm oil to obtain financing to play in the real estate game. Apparently this all went fubar

    http://in.reuters.com/article/2014/05/08/china-palmoil-idINL3N0NU07120140508

    Helluva business plan

    Start a business
    Borrow money for the business
    Import a commodity
    Borrow against the commodity
    Leverage up in the real estate market
    Run to West Van when all goes down.

    Hot debate. What do you think? Thumb up 18 Thumb down 1

    chosun Says:
    25

    @the man, you don’t see many kids in the City of Vancouver
    the suburbs have all the kids

    Like or Dislike: Thumb up 3 Thumb down 1

    patriotz patriotz Says:
    26

    @18: “In the real world there is a finite supply of quality labour. If one company raises wages to attract a more desirable candidate another company loses out and has a shortage.”

    Being outbid by someone else for labour or some other factor of production does not mean a shortage. What it means is that someone else is more efficient at using that factor of production than you.

    If someone is willing to pay more than you can for workers and make a profit, that’s the market telling you that your business is not viable. Don’t expect the government to rescue you by allowing you to bring in slave labour.

    Well-loved. Like or Dislike: Thumb up 36 Thumb down 5

    Many Franks Says:
    27

    The unstoppable force (strata council dysfunction) meets the immovable object (depreciation report requirement):

    Condo owners ignoring depreciation reports

    Fewer than 20% of the 30,000 strata corporations in British Columbia have agreed to acquire depreciation reports, which were mandated for most condominium buildings in December 2013 under the provincial Strata Property Act, Regulations and Amendments.

    “Anecdotal evidence is 50% did nothing, by way of not voting, 15%-20% ordered the report and the balance voted to exempt themselves,” said Jeremy Bramwell, president of Vancouver-based Bramwell & Associates Realty Advisors Inc., a commercial appraiser that operates one of the largest depreciation report departments in the province.

    “Lenders who do not see a depreciation report will raise the mortgage interest rates to offset the increased risk. Higher mortgage rates will force down the offer price from the buyer as more money is required to service the loan. Or in older buildings, they may decline the loan,” Bramwell said.

    Well-loved. Like or Dislike: Thumb up 30 Thumb down 0

    #thisisadisaster Says:
    28

    “Price reductions for the last 3 days:
    127,120,136
    Let’s keep an eye on this number.
    It measures sellers delusional thinking.”

    Can you please explain why? What is the benchmark we should be looking for? Is there a seasonal trend? Please explain what we need to be looking out for.

    Thanks!

    Hot debate. What do you think? Thumb up 10 Thumb down 2

    space889 Says:
    29

    I think East Van only has 1 really good ranked highschool, with lots of high schools from Burnaby, Richmond, North Van outranking that one. The prices in those places aren’t higher than East Van and you get better house and neighborhood in my view. For families with young kids and worried about quality of education at public schools, I don’t see why you would pick East Van.

    Also, I just like houses that are a bit further apart from each other myself.

    Hot debate. What do you think? Thumb up 13 Thumb down 2

    dyugle Says:
    30

    https://www.cmhc-schl.gc.ca/en/corp/about/anrecopl/anre/upload/CMHC_68134_w.pdf
    Looks like the CMHC can get around the 600 billion limit on insurance-in-force. They plan to increase the guarantees-in-force category by over 45 billion this year. So much for the government trying to decrease taxpayer risk. This will bump up the total to over 1 trillion dollars in taxpayer backed loans.

    Hot debate. What do you think? Thumb up 13 Thumb down 1

    cris Says:
    31

    space 889,

    Churchill is still a very good school.

    Like or Dislike: Thumb up 2 Thumb down 2

    UBC in crisis mode Says:
    32

    Some recent price reductions (5% or more) for Vancouver properties between $1.5 – 2 million.

    You need to move fast before priced out forever.

    $1,988,000
    5850 GRANVILLE ST, Vancouver, BC V6M 3C7
    Possible future development assembly. ARKS City plan suggests Senior’s Housing. Call LS for details. Character house is priced at resid…
    House – 2,644 Sqft. – 5 Beds – 2.0 Baths
    $200,000 (9.1%)
    Jan. 22, 2014
    ============================
    $1,980,000
    858 W 63RD AV, Vancouver, BC V6P 2H4
    Marpole area, build-to-suit 3 level home with 3bdrm up and mortgage helper in bsmt. Build your dream home with your choice of color and…
    House – 2,500 Sqft. – 5 Beds – 5.0 Baths
    $200,000 (9.2%)
    April 29, 2014
    ================================
    $1,990,000
    1479 W 59TH AV, Vancouver, BC V6P 1Y8
    This property is spacious and totally renovated with the permission of City Hall in 2012 with 250K for main floor and basement together…
    House – 4,400 Sqft. – 8 Beds – 6.0 Baths
    $198,000 (9.0%)
    Feb. 20, 2014
    ====================================
    $1,698,000
    3821 W 50TH AV, Vancouver, BC V6N 3V4
    Big Lot 60 X 136 on a super quiet, very private block, build your dream home and enjoy everything this neighbourhood has to offer – ste…
    House – 2,000 Sqft. – 2 Beds – 1.0 Baths
    $182,000 (9.7%)
    April 1, 2014
    ===================================
    $1,888,000
    1985 W 52ND AV, Vancouver, BC V6P 1J6
    Kerrisdale location. This three level house features 4 bedrooms, 4 baths, 1 bedroom basement suite. Close to Magee & Maple Grove School…
    House – 2,437 Sqft. – 4 Beds – 4.0 Baths
    $179,000 (8.7%)
    April 30, 2014
    ==================================
    $1,798,000
    718 E 10TH AV, Vancouver, BC V5T 2A7
    INVESTOR ALERT! Entry level fully leased 7 unit multi-family investment opportunity in Vancouver’s popular Mount Pleasant neighbourhood…
    House – 4,300 Sqft. – 4 Beds – 7.0 Baths
    $160,000 (8.2%)
    April 1, 2014
    =======================================
    $1,598,000
    486 E 53RD AV, Vancouver, BC V5X 1J2
    Impressive 3 level home with over 2800+ SF of luxurious living space plus bonus 463 laneway home! Great attention to detail built to hi…
    House – 3,280 Sqft. – 8 Beds – 7.0 Baths
    $151,000 (8.6%)
    April 29, 2014
    ========================================
    $1,668,000
    2119 E 49TH AV, Vancouver, BC V5P 1T6
    Here it is folks! This property is nothing short of LARGE! House boasts 4,493 square ft of living space, a total of 10 spacious bdrms a…
    House – 4,493 Sqft. – 10 Beds – 6.0 Baths
    $120,888 (6.8%)
    March 1, 2014
    ========================================
    $1,988,000
    27 W 17TH AV, Vancouver, BC V5Y 1Z5
    LUXURY Monster Home w/Mortage Helper. NO GST! Total: 3445sqft, 9 bdrms; 5 Up, 4 Down, 7 baths. All 3 Floors 10 ft Ceilings! Mountain Vi…
    House – 3,445 Sqft. – 9 Beds – 6.0 Baths
    $111,000 (5.3%)
    April 15, 2014
    =======================================
    $1,988,000
    6680 EAST BV, Vancouver, BC V6P 5R1
    OPEN Sun Apr 27, 2pm-4pm
    A bungalow like no other on a large lot in the Magee Secondary & Maple Grove Elementary areas. This charming bungalow comes completely
    House – 2,399 Sqft. – 4 Beds – 4.0 Baths
    $100,000 (4.8%)
    April 13, 2014

    Well-loved. Like or Dislike: Thumb up 25 Thumb down 2

    fixie guy Says:
    33

    30 dyugle: “Looks like the CMHC can get around the 600 billion limit on insurance-in-force… plan to increase the guarantees-in-force category by over 45 billion this year.”

    The federal election isn’t until 2015.

    Like or Dislike: Thumb up 8 Thumb down 0

    Egg Hunt Says:
    34

    Many banks, Invetsment analyst predict further Canadian dollar depreciation.
    Now Canada’s economy heavy on debt, very low on export,
    government does not target FX rate, but with its current policy,
    currency devaluation only supports internal inflation.

    — quote —-
    There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
    Ludwig Von Mises

    Hot debate. What do you think? Thumb up 16 Thumb down 2

    Son of Ponzi Says:
    35

    # 34

    — quote —-
    There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
    Ludwig Von Mises
    ——————-
    That’s what my mechanic tells me:
    Pay me now, or pay me later.

    Hot debate. What do you think? Thumb up 11 Thumb down 1

    Vancouver sees the country’s biggest drop in new home prices
    The price of new homes dipped in the twelve months to March, according to the New Housing Price index released by Statistics Canada May 8.

    Year-over-year, prices were 1.1% lower than a year ago. This represents the biggest drop in the country compared with all other major cities. Ottawa-Gatineau came in second place with a decrease of 1.0%.

    StatsCan table here

    Well-loved. Like or Dislike: Thumb up 34 Thumb down 1

    Son of Ponzi Says:
    38

    #28
    These numbers are from Paul B’s report. Price changes.
    Almost all price changes are price reductions.
    Daily price reductions over 120 appear to be quite high, though I have no historical data. (too lazy to go back and check all of Paul’s postings).
    With an average of 120 over 22 business days we could see about 2,500 price reductions per month.
    Which is quite significant, I believe.

    Hot debate. What do you think? Thumb up 13 Thumb down 4

    wcth Says:
    39

    #36

    I just took a look at the StatsCan data.

    According to their index for new homes the current prices in Vancouver are at 2007 levels!!!

    There were peaks in 2007 and 2010 but prices have been on a decline since 2010.

    Good thing this no one knows about this index.

    Hot debate. What do you think? Thumb up 19 Thumb down 1

    Joe Mainlander Says:
    40

    @#39 Even looking at REBGV HPI;

    peak of 2008 June = $569k (adjusted for inflation should be $630 in today’s dollars)
    2014 April = $619k

    So even their HPI shows a drop in real dollars. HPI has not even kept up with inflation.

    The correction has been slowly happening. It’s all in the way they spin it.

    Well-loved. Like or Dislike: Thumb up 29 Thumb down 2

    Son of Ponzi Says:
    41

    #40
    and on top of it:
    REAL inflation has been higher than reported by the Government.

    Hot debate. What do you think? Thumb up 12 Thumb down 3

    #thisisadisaster Says:
    42

    “Daily price reductions over 120 appear to be quite high, though I have no historical data…
    With an average of 120 over 22 business days we could see about 2,500 price reductions per month.
    Which is quite significant, I believe.”

    Sharp analysis. I’m convinced.

    Hot debate. What do you think? Thumb up 14 Thumb down 4

    Price reductions we’re seeing mean nothing. We’ve had times before when price reductions on any given day were higher than sales. That is something. Most people want too much for their house. That’s what this measures. Stubborn idiots with high asking prices.

    Hot debate. What do you think? Thumb up 16 Thumb down 2

    George Says:
    44

    @cris #31

    Churchill is on the west side of Vancouver, not the east side. I know there are some west side snobs who think anything east of Granville Street is the east side.

    Like or Dislike: Thumb up 4 Thumb down 1

    George Says:
    45

    I made some posts on the last thread about TFWs and how the NDP seem to be more on the side of the TFW than out of work Canadians.

    Although, the subject of TFW is getting exhausting I just want to acknowledge Patriotz’ response #65 pointing out how Jinny Sims had some strong criticism of the TFW program and how it impacts working class Canadians. Yes, Patriotz, I agree. The way Jinny Sims has gone after the TFW program has been impressive. Unlike Mable Elmore and others in the NDP she seems to get that the first priority should be Canadian workers. I’ll probably vote for the NDP.

    Hot debate. What do you think? Thumb up 6 Thumb down 4

    George Says:
    46

    I also want to respond to Zero Down Forty #42 on the previous thread. It’s the second time you’ve refered to me as an immigration “truther”. What does that even mean? If you are accusing me of insisting on the truth (as opposed to propaganda, spin) when it comes to immigration, then, yes, I am guilty as charged. I insist on the truth because I care about my country and I am a politically engaged citizen. The term “truther” when used in this context as a slur seems to be an attempt to draw comparisons to the “birthers” in the US–American far right Tea Partiers who, despite being shown the evidence in the form of a US birth certificate, insist that Barack Obama was not born in the US. There is no similarity between US “birthers” and people in Canada who are critical of Canada’s immigration policies, especially regarding TFW and wealthy investor immigrants. The American birthers are illogical in that they refuse to accept the evidence that Obama was born in the US–far from searching for truth, they hold desperately to ideology/belief even when shown contrary evidence. Your attempt to disparage my comments by calling me names just shows that you cannot come up with a logical rebuttal to what I was saying so you launch a personality attack.

    Hot debate. What do you think? Thumb up 8 Thumb down 4

    George Says:
    47

    The point that I was trying to make on the previous thread was that it is not a forgone conclusion that the Conservatives will lose the next federal election because of the TFW scandal, as one commenter was arguing. I accept what Patriotz is saying that the NDP have a better position on the TFW program than the Conservatives. It just seems like anti-immigrant sentiment is growing in Canada, it seems like Canadians are increasingly rejecting multiculturalism. The TFW and IIP programs are some of the hot button issues that are pushing Canadians towards more of an anti-immigrant stance. Yes, this is due to the actions of the Conservative government. But it remains unclear that a rise in anti-immigrant sentiments due to TFW and IIP are going to translate into more votes at the ballot box for the NDP and the Liberals as the NDP and the Liberals are overall highly supportive of immigration and multiculturalism.

    Like or Dislike: Thumb up 5 Thumb down 3

    Best place on meth Says:
    48

    That’s correct, the Conservatives won’t lose the next federal election because of the TFW scandal.

    They’ll lose the next election because people are sick of them.

    Hot debate. What do you think? Thumb up 20 Thumb down 3

    New Listings 256
    Price Changes 95
    Sold Listings 164
    TI:16538

    http://www.paulboenisch.com

    Well-loved. Like or Dislike: Thumb up 48 Thumb down 2

    Heard Herd selling Says:
    50

    Writing on the walls, Bank CEO all retiring coincidence at the peak? New finance minister, federal election next fall, anyonewith half a brain can see the powers at be are blowing hot air until after the election, then boom pop the balloon and 4 years for the sheeple to forget about it,

    Hot debate. What do you think? Thumb up 15 Thumb down 3

    Guy Smiley Guy Smiley Says:
    51

    Interesting comment from that article listed by Would-be-buyer….

    One shouldn’t discount the influence of Xi Jinping’s anti-corruption campaign. As a Chinese citizen, hiding unlawful money in property even in abroad is vulnerable from concealment of ownership.

    I sure hope this guy is right.

    Hot debate. What do you think? Thumb up 16 Thumb down 1

    UBC in crisis mode Says:
    52

    Hidden due to low comment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 6 Thumb down 17

    No Noise Says:
    53

    @47 multiculturalism is actually not the problem (although I prefer the US melting pot model). It’s the growing global separation between rich and poor (see Piketty: http://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Century)

    @12 to follow-up: nobody worth listening to thinks Vancouver RE is a good investment at this point. And think of all the costs of ownership that have been listed here ad nauseum. If your wife is so house-horny there are a ton of other non-Vancouver, non-Canada ways to invest in RE. Maybe she’ll be happy enough being an owner and having renters in a RE market with an actual potential upside. Or better yet, stay liquid, avoid cost of ownership, and go with a tradeable RE product – stock, bond, etc, etc

    Hot debate. What do you think? Thumb up 11 Thumb down 1

    Simon Says:
    54

    @UBC

    Let me get this straight. Investors scared off by the bursting of China’s housing bubble will decide to move their money into Vancouver’s housing bubble?

    Hot debate. What do you think? Thumb up 19 Thumb down 1

    George Says:
    55

    From The Guardian:

    “China is considering plans to build a high-speed railway line to the US, the country’s official media reported on Thursday.

    The proposed line would begin in north-east China and run up through Siberia, pass through a tunnel underneath the Pacific Ocean then cut through Alaska and Canada to reach the continental US, according to a report in the state-run Beijing Times newspaper.”

    http://www.theguardian.com/world/2014/may/08/chinese-experts-discussions-high-speed-beijing-american-railway

    Like or Dislike: Thumb up 0 Thumb down 0

    George Says:
    56

    China-US Railway will have to go through Canada. I wonder if it will include a stop in Vancouver (or more likely Richmond)?

    Like or Dislike: Thumb up 1 Thumb down 2

    Oh Grow Op! Says:
    57

    @george 44: “I know there are some west side snobs who think anything east of Granville Street is the east side.”

    Eh. Do you know anyone other than near-hobos who live by Granville? I’d say anything east of Arbutus is the east side and anything east of Alma is suspect.

    Like or Dislike: Thumb up 3 Thumb down 4

    Son of Ponzi Says:
    58

    China-US Railway will have to go through Canada. I wonder if it will include a stop in Vancouver (or more likely Richmond)?
    —————-
    Actually, the terminus station will be Aberdeen Mall in Richmond.
    Close to the Best Chinese Restaurants outside of China.
    And while there, check on the empty Vacation Homes.

    Like or Dislike: Thumb up 7 Thumb down 1

    […] new home price drop in Canada -Average house price takes record fall -Inflation adjusted HPI lower than 2008? -New house prices lower than 2007? -Condo owners ignore depreciation reports -Cashback mortgages, […]

    Like or Dislike: Thumb up 2 Thumb down 0

    I was trying to make an offer, but the seller’s realtor showed me an offer from one buyer’s agent, said will even go higher. Btw, the pontential buy is a ham, signed in Chinese, this is not a lux house, a 20 years duplex, wtf, I know my limit and refuse to go onto a bidding war….locals are priced out forever.

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    saihywekh saihywekh Says:
    61

    The demand is high so that the price is high. It is a positive sign for the economy.

    Like or Dislike: Thumb up 0 Thumb down 0

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