Most ‘overvalued’ housing markets

The Economist magazine has named the Canadian housing market among the most overvalued in the world. (Even though they love our cities)

Measured using price-to-rent and price-to-income ratios, the Economist says housing markets are at least 25 per cent overvalued in nine of the 23 economies it tracked.

When comparing the relationship between the costs of buying and renting, it cited Canada, Hong Kong and New Zealand as “the most glaring examples” of overheated markets.

“The overshoot in these economies and others bears an unhappy resemblance to the situation that prevailed in America at the height of its boom, just before the financial crisis,” the magazine states.

Read the full article here.

Hat-tip to kabloona for the link.

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Westside Realtor
Guest
Westside Realtor

Corruption, fraud, theft, debt, debt, debt.

Whole thing is set to end badly.

Westside sfh prices continue to soften. Now.

I believe everything will head south. Except for one Surrey building other of course…

carlk
Guest
carlk

There is currently a potential “dark horse” event that is happening in HongKong which may sustain our high flying market in the near future:

http://www.scmp.com/comment/article/1584333/it-time-leave-beloved-hong-kong

I think it was mentioned several times before but there’s an estimated 300,000 Canadians working and living in Hong Kong.

Son of Ponzi
Guest
Son of Ponzi

The Economist has been saying this for a long time.
However, they continue to rank Vancouver among the top most livable cities.
Until they factor in the cost of housing into the rankings, I will not pay any attention to their rankings.

Son of Ponzi
Guest
Son of Ponzi

#2
I’m not sure if you noticed, but the Hang Seng Index is flying high right now.
Seems like the market is not concerned about any “dark horse” events.

NOM NOM NOM
Guest
NOM NOM NOM

@#4 That is the nature of dark horse events… People are generally myopic to them until hindsight provides insight.

http://www.bbc.com/news/business-29026670

Lou
Guest
Lou

#2
Do you think people in Hong Kong love democrat, they only love money. Otherwise why didn’t they stay in beloved Canada and went back to there to make more money.

Oracle
Guest
Oracle

The Ecocomist Survey only looks at English speaking cities.

Beijing and Mumbai are way more expensive than Hong Kong or Vancouver.

space889
Member
space889

If people in HK loved democracy then why weren’t they protesting under the British rule? Britain was a democracy since the Opium wars when they pushed/forced opium into China, fought 2 wars so they can continue to be drug supplier/pushers, and sign unequal treaty to get HK as a colony for 145 years. For the entire 145 years of HK existence as a British colony, they never had a right to vote for anything. So I have no respect for any HKers who are over age of 18 before the handover who cry about loss of democracy and such. If you want it so bad then why didn’t you fight for it before the handover?

UBC in crisis mode
Guest
UBC in crisis mode
Some recent price reduction in Van West (not much): 6168 COLLINGWOOD PL, Vancouver, BC V6N 1V1 ($4,480,000) RARE OPPORTUNITY, SOUTH FACING BIG LOT OVER 15,100sq.ft. Sits on high side of street. Only 7 years old charming character home in priva… House – 3,488Sqft. – 4Beds – 5.0Baths $400,000 (8.2%) June 28, 2014 ===================================== # 3703 1077 W CORDOVA ST, Vancouver, BC V6C 2C6 ($2,480,000) Shaw Tower – Premier Development in the Heart of Vancouver, next to the Olympic Flame. A large expansive two bedroom, two bath home wit… Condo/Apt – 1,602Sqft. – 2Beds – 2.0Baths $170,000 (6.4%) Aug. 15, 2014 ======================================== 1755 W 68TH AV, Vancouver, BC V6P 2V9 ($4,198,000) Magnificent Absolutely stunning custom build executive French Inspired, architecturally designed home by European craftsman, sought aft… House – 4,302Sqft. – 6Beds – 6.0Baths $190,000 (4.3%) June 25, 2014 =========================================== 6842… Read more »
mac
Member
mac
For Boomerang from the last thread. It’s not “data”, it’s real life. Why would I post something not happening. We pay now 2500. There’s a 2 point something allowable increase coming up for us in Nov taking us to 2550. There are 4 units the same as our with 2 new tenants. They PAY 2800 plus 75 for parking plus 50 for storage. The two new units were rented without a gap. There is also lots of construction noise. And the 1-beds now go for 1850. You have a generous landlord. But if you are indeed in the OV, a short conversation between your landlord and our landlord could net a different result for you. It’s not pleasant. We also look around Craigslist but all I can see is rents that have gone up dramatically on the Westside over this… Read more »
Son of Ponzi
Guest
Son of Ponzi

Thanks UBC.
Gotta love 5909 Holland.
“Affordable with 2 Mortgage helpers”

Boombust
Guest
Boombust

#7 Oracle,

“Beijing and Mumbai”…because everyone wants to live there, right?

Pas moi.

Gabriele
Guest
Gabriele

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mac
Member
mac

As for these ridiculous rents in the OV. Rents support prices at current mortgage rates. You can rent 300K of money for less than $1500/month. Then buy a 1-bed. As long as they can continue to adjust new condo prices down ever so slightly, they will continue to develop. The new east side developments are in areas where land costs are cheaper. They purchase the land years before, it goes up in value and they still make a good profit, which they can squeeze a bit of necessary.

Harry Wang
Guest
Harry Wang

Beautiful Empty Homes of Vancouver

http://beautifulemptyhomes.tumblr.com/

@space889
Guest
@space889

the reason is obvious. everyone knows the Cantonese love white ppl. just ask “Wilfred”, “Johnson”, or “Alfred”, my Cantonese friends.

patriotz
Member

@7: “The Ecocomist Survey only looks at English speaking cities.”

Wrong, but besides the point really.

“Beijing and Mumbai are way more expensive than Hong Kong or Vancouver.”

That is a meaningless comparison because the labour and housing markets of 3rd world countries are structured differently and statistics are not reliable.

The cost of living for a ordinary person in these cites is lower than in Vancouver. It has to be, because the ordinary person makes a lot less money. Is RE less affordable for the ordinary person? Yes, but so are cars and anything else globally priced.

space889
Member
space889

@patriotz – a lot of big companies in China provide dormitories at free or very low cost, along with free/low cost lunch and even breakfasts. Yes the RE market is different there but so are living arrangements. Many employees living in apartments they can’t otherwise afford to buy or rent on their salary. Companies park their cash in RE as much as individuals in China.

Sample case – employees of almost all 3 star hotels like Super 8, Holiday Inn, etc in Beijing are not native Beijing but migrant workers, and a lot of them lives in dorms in the hotel itself or offsite with shuttle bus transport.

Devore
Member
Devore

“I’m not sure if you noticed, but the Hang Seng Index is flying high right now.
Seems like the market is not concerned about any “dark horse” events.”

Of course not. Everyone who is not a boat-rocking high-level bureaucrat will continue to make lots of money regardless of who is in charge. China is not about to strangle the golden goose. Ultimately it’s all about the money. No one is leaving HK.

Joe Mainlander
Guest
Joe Mainlander

@#3 If someone told me that a $5 million mansion in West Van is very liveable, I would would not doubt them. I’m sure it is. If the same person told me it was overvalued, I would agree. I wouldn’t see a contradiction.

tedeastside
Member
tedeastside

canada is a dead end country where talent goes to die

talented people like Jim Carey and James Cameron bailed on that dead end country for a reason….

RFM
Guest
RFM

The VANCOUVER REALTOR HUNGER INDEX for August 2014 was 58%. How does this compare? The 17-year average for August is 50%. At 58%, the 2014 August VRHI was higher than 8 years and lower than 8 years since 1998.

Details and comparison data for 17 years at: http://vancouverpeak.com/showthread.php?tid=64

Girlbear
Guest
Girlbear
cris
Guest
cris

“So I have no respect for any HKers who are over age of 18 before the handover who cry about loss of democracy and such. If you want it so bad then why didn’t you fight for it before the handover?”

I don’t know where is the logic on this. Do you go out and rob homeless on the street? And tell them “You are poor anyway why cry about loss of little money to me?”

Respect yourself first before handing out respects. And your respects are overvalued by 50% according to The Economist.

Lou
Guest
Lou

When browsing the sfh in greater Vancouver Area, they seems all asking for 20% over property assessment, how greedy they are, I believe the realtors play a big role here…WTF, I hope they will stay on the market forever.

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