Trapped in a starter home.

A funny thing happened on the way to financial security and easy riches, the condo promise in Vancouver didn’t really pan out for many young families according to a recent Vancity study.

The idea of a starter home is to get on the property ladder, then trade up as your family grows. But this doesn’t work as well when condo prices stagnate and single family home prices grow, especially when there are very few options available for 3-4 bedroom attached or condos.

Across the region, families who wish to move from a one-bedroom apartment or condo to a three-bedroom home with an attached yard would have to increase their debt level by an average of 95%. In Vancouver’s west side, this jumps to 158%. In the city’s east side, it is a much lower 78%. The biggest jump is found in White Rock, where debt levels would increase by an average of 164%.

Read the full article here.

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Tiger
Tiger
5 years ago
@#77
@#77
5 years ago

Bullx3 – “Crown claims Yuan Xi Tang wanted both his parents dead and blamed them for the breakup with his first love in China”
He should be thankful that his ex-girl did not end up the way of this greedy MIL.
http://tinyurl.com/bwgwrcl

paulb
5 years ago

Today the daily totals seem to be working!! Tonight I will clear everything up with a weekly total and todays numbers. Hopefully the last few bugs are out of the system.

trackback

[…] old people out of their homes, some calling Ladner ‘a disgusting human being’.  But as George points out is it really unfair to ask people who’ve benefitted from decades of rising property values […]

vangrl
vangrl
5 years ago

101-2255 west 5th

Sold in 2011 – $430,000

Just listed – $459,000

They have to get close to full asking to break even (after commission)

no rush to get out and buy older condos.

space889
space889
5 years ago

The thing with retail saie is that this kind of problem has been going on for years. I haven’t really heard any fundamentally and sustained positive retail sales out of US for 5 or 6 years. However, their housing market and stock market is still going up, and seems to be quite divorced from economic fundamentals.

Actually this morning, News 1130 was reporting that GVRD economy is project to grow at 3%, highest in the country, with manufacturing sector expected to grow 8% due to contracts to build non-combat ships for the fed govt. So low interest rate, steady growth, and I’m guessing some good paying manufacturing jobs helping employment, I honest don’t see much crash risk or even downside risk for housing market in the near term.

space889
space889
5 years ago

@bullwhip29 – for those who purchased Van West with RMB 8 years ago, the price hasn’t gone anywhere in RMB terms either. However, apparently those buyers also don’t care either….they just want the house in Van.

bullwhip29
bullwhip29
5 years ago

@ #77

Vanc housing prices expressed in USD have gone basically nowhere for approx 5 yrs

bullwhip29
bullwhip29
5 years ago

@ #75 Car Purchases Lead 3rd-Straight Gain in Canada Retail Sales http://www.bloomberg.com/news/articles/2015-09-23/car-purchases-lead-3rd-straight-gain-in-canadian-retail-sales >>> i dont think this data is necessarily all unicorns and rainbows. sales were actually flat ex autos which is way worse than i expected given the widely predicted surge in summer tourist traffic and drop off in cross border shopping in the three largest mkts in canada. imho the gain in sales is mainly due to heavily financed purchases of big ticket items like autos, furniture, appliances etc (where we are seeing CAD sticker prices spike up across the board) vs more stable spending on non-durables. as we head into the holidays this trend may continue, but i cant see the consumer continuing on in this fashion for too much longer. wait until the post x-mas bills come in january and we’ll get a better lay of… Read more »

space889
space889
5 years ago

– The guy wants a lower Cdn dollar and he’s getting it. What makes you think Poloz wants a high Cdn $? So export sector can crater even more? The economy can suck more? So there is a massive RE crash leading to a long term economic contraction? Just so you can laugh in someone’s face and say I told so! Ha take that! While getting a pink slip and long term unemployment prospect the next day?

Seems to me like a lot of bears on this site are the ineptude ones who thinks they are genius for being so right with the RE market.

space889
space889
5 years ago

@BBB – Yes that’s so unfortunate and you are politicizing it just to satisfy your racist urge. I guess this sort of thing would never ever happen with a Canadian born wholesome moral Caucasian family right?

Oh wait, it does like here – https://en.wikipedia.org/wiki/Richardson_family_murders

Maybe it is Canada that makes these poor souls from China committing these horrendous crimes that they wouldn’t be committing in China.

bobwestsiderealtor
bobwestsiderealtor
5 years ago

PaulB – do you really gain benefit from posting on this site? Does it generate business for you?

If so, congrats, though I would find it somewhat surprising and, to say the least, ironic.

space889
space889
5 years ago

@fanaticallybroke – No more than a lot of Canadians who feel that the gov’t owes them everything, even if they didn’t study, work, and rotted their brains with drugs.

And frankly you can thank Cdn gov’t for this with the way they handled Lai Changxing’s case.

franko
franko
5 years ago

The continued downward spiral of the CAD despite the FED’s hold on rates is just another sign of Poloz’s utter ineptitude. He is also getting some unexpected help from the market hedging it’s bets against a possible Mulcair or Trudeau government. In terms of the CAD, the value of housing in Vancouver has actually decreased over the last year.

Bull! Bull! Bull!
Bull! Bull! Bull!
5 years ago

Richmond exchange student allegedly murdered his mom over control issues, court hears

Crown claims Yuan Xi Tang wanted both his parents dead and blamed them for the breakup with his first love in China

– See more at: http://www.richmond-news.com/news/richmond-exchange-student-allegedly-murdered-his-mom-over-control-issues-court-hears-1.2065427#sthash.RQAEp9lz.dpuf

the rooming house where the murder happened is one of those houses in richmond where the owner rents out every room.

http://www.richmond-news.com/news/richmond-exchange-student-allegedly-murdered-his-mom-over-control-issues-court-hears-1.2065427

southseacompany
southseacompany
5 years ago

“How much longer can consumers underpin Canada’s economy?’, Reuters http://blogs.reuters.com/macroscope/2015/09/23/how-much-longer-can-consumers-underpin-canadas-economy/ “The Bank of Canada is hoping the average Canadian continues to do the heavy lifting for the economy and gets it out of its rut from the first half of the year, even with dangerously high household debt levels. That may be a big ask.” “Consumer spending – primarily related to the housing market – has been the main driver of the Canadian economy over the past five years. It buoyed and boosted Canada through the worst of the global financial crisis, even as the U.S. housing market and economy crashed.” “But now Canada’s economy has taken a sharp turn for the worse. The jobless rate hit a one-year high of 7 percent in August as sharp falls in oil prices took their toll.” “Even U.S. Federal Reserve Chair Janet… Read more »

vangrl
vangrl
5 years ago

wow, anyone else having issues with this site? i can’t seem to post some links. The photo that accompanies this story has a photo with a huge red banner over it saying “sold for $700,000 Over asking” “In what other city can you attract over 200 people to an Open House on a rain-soaked Saturday, for an old Lot Value house priced at almost $3 million dollars? Got to love the Vancouver real estate market. I’m not sure there really is anywhere else, but if there is, I’d love to know. But back to our rainy Saturday Open House in the Dunbar neighbourhood. The jam-packed affair even surprised us, and just proves that Vancouver’s busy market is relentless. Our market continues to reach new heights, with 33 foot Lot Value homes now selling well above the $2 million mark. One,… Read more »

vangrl
vangrl
5 years ago

Why can’t I post properly???

gotta be 3 parts – sorry.

Anyway..

Bids the question, why was the new listing price so low when West Side homes have gone up 30% in that time frame?

The house did end up selling for 30% more than in 2013, but why the huge red banner exclaiming “sold for 700 thousand of asking”.

Why not “we priced this at 2013 prices hoping to get market value, and we did!”

vangrl
vangrl
5 years ago

4831 Elm Street – sold for 2.7 million 2 years ago.

http://www.theglobeandmail.com/life/home-and-garden/real-estate/two-quick-offers-for-stylish-mackenzie-heights-home/article15958749/

Listed for 2.86 Million recently and just sold…..for $700,000 Over asking.

Shut It Down Already
Shut It Down Already
5 years ago

It’s a 24hr lag yet you buffoons are implying there’s some sort of conspiracy. Get a grip, please.

vangrl
vangrl
5 years ago

4831 Elm Street – sold for 2.7 million 2 years ago.

http://www.theglobeandmail.com/life/home-and-garden/real-estate/two-quick-offers-for-stylish-mackenzie-heights-home/article15958749/

Listed for 2.86 Million recently and just sold…..for $700,000 Over asking.

Bids the question, why was the new listing price so low when West Side homes have gone up 30% in that time frame?

The house did end up selling for 30% more than in 2013, but why the huge red banner exclaiming “SOLD FOR $700,000 OVER ASKING”.
Why not “WE PRICED THIS AT 2013 PRICES EXPECTING TO GET 30% MORE AND WE DID”

http://andrewhasman.com/blog.html/33-foot-building-lots-creep-over-2-million-on-vancouvers-west-side-4037229

southseacompany
southseacompany
5 years ago

“Fed’s Bullard explains the problem with keeping rates at zero forever”, Business Insider video

http://www.businessinsider.com/james-bullard-fed-zero-interest-rates-forever-japan-growth-2015-9

“St. Louis Fed President James Bullard stopped by Business Insider to talk about the Fed’s decision not to raise rates in September. Bullard does not have a vote on the Federal Open Market Committee this year, but argued against the decision to keep rates near zero.

The most notable part of Federal Reserve President Janet Yellen’s news conference was when she responded to a question by saying she couldn’t rule out keeping rates near zero forever.

We asked Bullard why having a zero-interest-rate policy forever was a bad idea. He made a strong argument by pointing to Japan.”

GreaterFool
GreaterFool
5 years ago

Mention HAM to Garth and he will have you labelled a racist and file your comment to be sent to the RCMP and CSIS if needed.

He is rewarded handsomely by HAM and people selling RE to invest with him. Fear mongerer.

Son of Ponzi
Son of Ponzi
5 years ago

Paul,
seems pretty obvious to me.
Sales are up front.
Listings are lagging.
Don’t you think it’s time to call your overlords for an explanation?