Eliminating Affordability

Good news real-estate investors!

Metro Vancouver housing affordability is nearing the worst ever seen in Canada.

That’s according to RBCs housing affordability index:

The index, which captures the proportion of pre-tax household income needed to service the costs of owning a home, rose the most for B.C. among all provinces.

The measures increased by 2.1 percentage points to 71.4 per cent for bungalows, and by 0.4 percentage points to 33.3 per cent for condos.

“Poor housing affordability at the provincial level, particularly in the single-detached home segment, is a reflection of the extreme situation in Vancouver,” said Craig Wright, senior vice-president and chief economist, RBC.

This can only make our real estate more desirable as sales continue at a brisk pace.  Read the full article here.

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Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

>“Unless and until they have to cover losses at home, they’re not going to sell these properties,” said Costello. “They’re going to hold them for the long term.”

why cover loses? does australia have an extradition agreement with china?

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

i’m thinking of turning my richmond property into a hotel/welcome center for the flood of well moneyed economic ‘refugees’ that are going to be streaming into yvr. maybe a shuttle bus service back and forth from the airport also.

Bo Xilai
Member
Bo Xilai

#12 Westside Realtor…

Despite saying the things most people on this board *Wish* was true, you’re just full of shit.

I remember three or four months ago, you were… “oh, it’s so slow on the west side… price falls coming”

I’m a RE bear, but I don’t know why you engage in this disinformation campaign.

southseacompany
Member
southseacompany

“Asian stocks fall after Fed official suggests September rate hike still possible”, Vancouver Sun

http://www.vancouversun.com/business/Asian+stocks+fall+after+official+suggests+September+rate+hike/11328748/story.html#ixzz3kQTwqhlY

“Asian stocks fell Monday after a U.S. Federal Reserve official suggested a September interest rate hike still was possible and Japanese factory activity weakened.”

“The Fed vice chairman, Stanley Fisher said there was a “pretty strong case” for raising rates in September. That ran counter to recent market sentiment that China’s economic slowdown and global market volatility might prompt the Fed to wait.”

Interesting
Guest
Interesting

I think many people would be surprised to learn that Asian “cash buyers” actually got said cash from huge leverage against their companies and investments in China.

I have heard stories of people trying to reparitate money back to China to cover margin calls and debts there. The problem is they must do it without the Gov’t realizing they took it offshore illegally. They are having a tough time doing this.

I think the problems in China will result in more sales than purchases here but you could make both arguments. Only time will tell.

Slagathor
Guest
Slagathor

….China explosion: City of Shandong rocked as huge blast rips through chemical factory

http://www.mirror.co.uk/news/world-news/china-explosion-city-shandong-rocked-6357544

Chinese real-estate bubble blue flamer?

space889
Guest
space889

@BBB – maybe you should look at that report’s assumptions….

Very few working people buys a $3M+ house with 25% as their first home, nor did a lot of existing local homeowners bought their $3M+ house in the last 5 years.

KWT
Guest
KWT

“Over the last 35 years, the economic growth necessary to increase living standards, increase wealth and manage growing inequality has been based increasingly on rising borrowings and financial rather than real engineering. There was reliance on debt-driven consumption. It resulted in global trade and investment imbalances, such as that between China and the US or Germany and the rest of Europe.”

“The official policy is “extend and pretend”, whereby everybody conspires to ignore the underlying problem, cover it up, or devise deferral strategies to kick the can down the road.”

Why we need to lie to ourselves about the state of the economy

http://www.smh.com.au/comment/satyajit-das-column-20150825-gj7bcy.html

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@29

alternatively…

World stocks fall on Fed hike fears

http://www.cbsnews.com/news/world-stocks-fall-on-fed-hike-fears/

Interesting
Guest
Interesting

World stocks fall on Fed hike fears

An interest rate hike may affect stocks temp but it shows the most important economy in the world (Far more important than China’s) is healthy and growing.

Long term this is better for stocks than low interest rates.

Zolt
Guest
Zolt

@Interesting

And if the rate hike doesn’t happen it means the economy is bad and it is long term bad for stocks, correct?

patriotz
Member

@35: “World stocks fall on Fed hike fears”

Which means I can buy the same amount of future income for a lower price today.

Good thing or bad thing?

Top
Guest
Top

Top is near now takes 88.6% of income to own sfh detached in vancouver. ..as soon as it hits 88.8 BOOM it’s over. Just days aways

paulb
Member
Active Member

New Listings 159
Price Changes 64
Sold Listings 178
TI:11943

http://www.paulboenisch.com

w
Guest
w

When are we going to see the sales slowdown that was supposed to be caused by the Chinese crash?

garth-the-gpoat
Guest
garth-the-gpoat

@24

It seems like there was a HUGE Dimsum feed on the North Shore today.

There is no end to this laundering!

w
Guest
w

Shanghai down 4% right now. Will this spill over to North American stock markets?

would-be buyer
Guest
would-be buyer
southseacompany
Member
southseacompany
“The Fed’s plan to hike interest rates”, The Economist magazine http://www.economist.com/blogs/economist-explains/2015/08/economist-explains-21 “ALL across America there are nine-year-olds filing into fourth-grade classrooms who have yet to enjoy the thrill of a Federal-Reserve rate increase. The Fed, America’s central bank, last raised rates in June of 2006, by 25 basis points to 5.25%. It soon found itself reversing course, as a housing bust gave way to the Great Recession; since December of 2008, the Fed’s benchmark interest rate has been set at between 0.0% and 0.25%. Yet that may be about to change.” “A speech delivered on August 29th by Stanley Fischer (pictured), the vice-chairman of the Federal Reserve, gave no indication that the Fed had been deterred by recent market wobbles from its plan to raise rates this year, and perhaps at the next meeting, on September 16-17th. Why is the… Read more »
Shut It Down Already
Guest
Shut It Down Already

11k party came a day early! Good news, everybody!

History
Guest
History

The Fed is going to do to Rates, what the Frackers did to shale.

Oracle
Guest
Oracle

Doomers.

Shanghai back up. How you like that?

Interest rates will only be raised once or twice in USA. And not in Canada. And Bond yields not gonna rise unless you bought into Garyh Turner lies.

Wait and see. 2016 just around the corner.

Don’t waste your life waiting for a correction. The world is yours.

patriotz
Member

More than half of Canadians have less than $10,000 set aside for emergencies: BMO

However, 24 per cent of respondents said they had hardly anything set aside and more than half, 56 per cent, reported having less than $10,000 in available emergency funds.

That means a substantial number of homeowners have less than $10K in savings.

w
Guest
w

U.S. Stocks Tumble as China Slowdown Deepens Concerns on Growth

http://www.bloomberg.com/news/articles/2015-09-01/u-s-index-futures-drop-after-s-p-500-s-worst-month-since-2012

But so far no impact on Vancouver real estate.

bullwhip29
Guest
bullwhip29

@ #48
not the least bit surprising. country has been binging on debt for decades and has gone all in on RE. basically everything is riding on the continued inflating of the housing bubble. it is too big to fail now. when the SHTF it will be incredibly messy and expensive for the savers, taxpayers who will have to foot the bill. all the easy money policies implemented in recent times have resulted in the creation of an elephant sized moral hazard from which there is no easy (or feasible) exit.