No sign of bubble bursting

This Vancouver Sun article used to have the headline “Vancouver housing market in bubble, new house price index claims.

That version of the article apparently included the following:

“While foreign investors are no doubt playing some role, we think this explanation is overblown. Low interest rates and self-fulfilling expectations of higher prices continue to inflate actual prices independently of fundamentals,” reads a press release from the creators of the index.

“Over the longer-term, we still believe that these housing markets will experience major price reversals.”

But that has since been updated to “Vancouver’s ‘housing bubble’ shows no sign of bursting” and we’re having a hard time finding the above quote. The article now says:

According to Davidoff, it is impossible to judge Vancouver’s real estate market on the same bases as that in other cities. In the Prairies and the U.S. Midwest, where space is plentiful, the value of a home is essentially what it costs to build. Vancouver, on the other hand, is almost out of new land to build on. “The house, that means, is worth whatever people are willing to pay,” he said.

We can’t quite put our finger on it, but it feels like there’s been a subtle shift in the tone of this article.

Read whatever the article currently says here.

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would-be buyer
Guest
would-be buyer

Oh, and it’s awesome to wake up this morning to my investments tanking. This is why people buy houses. I get to have a heart attack every couple of months when the market tanks and fret over an impending stock market crash and with it my life savings. But those who put their money into real estate get to sit back and read articles about how smart and rich they are. This roulette stock market is pushing investors into real estate.

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[…] –Surprise! No Rate Increase. –Alberta down, who’s next? –Always running out of land –Global boom continues –Hamilton prices see biggest jump –Van RE stranger than fiction –Actual reporting happening –Paul is back with the numbers! – […]

Oracle
Guest
Oracle

And for those Garth believers who think as US bond yields rise so will ours? Give your head a fucking shake. We will have QE1 in Canada to keep our yields low. USA has already had QE1, QE2, and QE3.

Oracle
Guest
Oracle

Saying goodbye to you all tonite.

It has become very clear what the future holds. Immigration will continue at at least current levels and will concentrate in Canada’s big 3 cities. NDP and Liberals will open up family reunification while the Cons will let TFW and students (rich) in thru the back doors.

Add to this the fact that detached homes will continue to be a smaller proportion of total housing stock.

You can believe what you want but limited supply with the immigration floodgates opens means detached housing not dropping. Even with limited rate hikes.

Good Luck Boyz and Girlz.

Doomcouver
Member
Doomcouver

@152

Up to 1000 clients of this guy could be illegally living in Canada. Some of them are able to vote, work, and collect benefits as Canadian citizens.

I recommend everyone let Citizenship and Immigration Canada know that this isn’t okay. Here’s the link to their complaints page:
https://secure.cic.gc.ca/feedback-retroaction/feedback-retroaction-eng.aspx

Send them the article
http://www.richmond-news.com/news/unlicensed-richmond-immigration-consultant-let-hundreds-into-canada-illegally-crown-1.2062272

and let them know that all 1000 of Xun “Sunny” Wang’s clients need to have their citizenship or residency applications reviewed, and if found to be fraudulent mass deportations should happen.

fanaticallybroke
Guest
fanaticallybroke

Trudeau and Mulcair shooting each while the Grey man just sits back and laughs. Consider that right of centre = one party. Left of centre = 3 parties. If there is no strategic voting, the grey man wins again.

would-be buyer
Guest
would-be buyer
Does anyone think that interest rates will rise quickly enough to pop this bubble? I am disappointed with Yellen’s decision today. She has shown that she is going to be very dovish moving forward. Obviously, if there is a rate increase, it won’t be until December now. And, likely .25% at most. That would put our 5 year fixed at 2.75% – and likely not until next Spring maybe? That’s a very bearish indicator for Vancouver real estate heading into 2016. Perhaps a 2% rise over the next 3 years? So, that would be over a decade of low rates now? So glad I put my plans to buy a house on hold thinking rates would rise and this bubble would burst. We have politicians who aren’t willing to pop this bubble. Conservative willing to inflate it with new promised… Read more »
vangrl
Member
vangrl
#150 “In the next segment, the candidates were asked what they would do to guard against a “housing bubble.” Trudeau said that far too many Canadians rely on their homes for their “economic security.” He added that Canada’s needs to ensure that as housing prices rise, “incomes are rising as well.” “We need to reassure Canadians that the economy is going to grow at the same pace as their house values and that’s not what Mr. Harper has delivered,” said Trudeau. Trudeau also said that rising house prices have made it difficult for Canadians to afford rental housing. He promoted his party’s plan to increase investment in home construction of rental units and to increase the guaranteed income supplement for seniors. Trudeau also committed to “restoring” the long-form census to see if issues such as foreign home ownership merit further… Read more »
Yunak
Guest
Yunak

@149

“Even Chinese don’t want to live in China.”

Right, so let’s move them all to Canada! Those with connections and rich first, others to follow…

w
Guest
w

Unlicensed Richmond immigration consultant let hundreds into Canada illegally

Wang’s businesses served more than 1,000 customers between 2006 and 2013, charging more than $10 million for services, court heard.

And, despite the millions earned by his companies, court heard, Wang also claimed several thousand dollars of low-income tax benefits between 2008 and 2013

http://www.richmond-news.com/news/unlicensed-richmond-immigration-consultant-let-hundreds-into-canada-illegally-crown-1.2062272

w
Guest
w

I’m guessing you stocktards are happy that the government is going to continue to support your bubble portfolios with the lowest interest rates in 5000 years.

Ulsterman
Member

I didn’t see the debate but are the leaders seriously suggesting raising minimum wage to $15/hr would help housing affordability? $30,000/year full time in Vancouver. The only people “living” on such a pittance in Vancouver are young people living in their parent’s house who don’t have to pay anything to live there. They’re doing OK.

Best place on meth
Member
Best place on meth

#148

There won’t be any takers for 3 reasons:

1. Everyone knows China’s real estate is overpriced by 500% and is now crashing, so for investment purposes it’s a deathwish.

2. Nobody wants to live in China because it’s a shithole.

3. Nobody wants to live in China because it’s a shithole.

Even Chinese don’t want to live in China.

GreenSalad
Guest
GreenSalad

China Relaxes Rules To Let Foreigners Purchase More Real Estate, In Attempt To Boost Slowing Economy

http://www.ibtimes.com/china-relaxes-rules-let-foreigners-purchase-more-real-estate-attempt-boost-slowing-2072571

Shenzhen condo…..going cheap!

Debate
Guest
Debate

Debate made it clear. All parties are for increased immigration. And all parties are good with high prices.

Definitely going to buy going forward. Something I can afford.

Tiger
Guest
Tiger

Find and rate Realestate professionals

http://realestateagents.servicerating.ca/

Shut It Down Already
Guest
Shut It Down Already

“Unlike people from Taiwan, who aren’t so insecure.”

Why not stick to nit-picking economics?

vangrl
Member
vangrl

I should clarify….

minimum wages are an issue, it’s just shouldn’t have been discussed with the debates question on our insane house prices.

vangrl
Member
vangrl

Even if minimum wage was raised to $15 an hour, those workers would have to live with their parents if they wanted to stay in West, North or East Van.

Hardly an answer to our runaway housing prices.

patriotz
Member

@141: “Mulcair – raise minimum wage”

Trudeau accused Mulcair of being dishonest about this and he’s right. It’s being billed as a “National minimum wage” but the federal government only has the power to set wages for industries such as banking, railways, airlines, etc. where almost everyone already makes that much. Disappointing.

http://www.huffingtonpost.ca/2015/08/05/ndp-15-minimum-wage-pledge-mulcair_n_7944720.html

vangrl
Member
vangrl

Trudeau – Raise wages to keep up with increases

Mulcair – raise minimum wage and give child care breaks

Harper – lets make it so everyone can buy, lots of tax breaks for buyers!

OMG we’re so fucked in Vancouver

Paul really shitty timing with the data. If I didn’t appreciate ya so much…

patriotz
Member

Well they just got the housing bubble question in the leaders’ debate.

Trudeau and Mulcair ducked it. But at least they didn’t brag about pumping the market like Harper.

Slagathor
Guest
Slagathor

….“Housing prices in the Hamilton area have rocketed upwards by 16.6 per cent over the past year, the biggest jump in any real estate market in Canada.”….

Well Hamilton does have mountain (Hamilton mountain) and they are next door to a place that recently decided to not have the Olympics, and except for all that Stelco slag bulldozed into Lake Ontario, they’re not making any more land.

Slagathor
Guest
Slagathor

….I think I’ve thought of Vancouver’s newest marketing slogan — “Houdini would be proud!”…

Or: ‘Vancouver, people are dying to live there!’.

paulb
Member

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