Bentleys and Bordeaux: Chinese newcomers drive Vancouver’s luxury market

http://ca.reuters.com/article/businessNews/idCAKCN0S81I920151014

fewer sales = lower demand.

Sellers will get the message.

Lower for longer.

WSR

>We look at PERSONAL INCOME, debt, and an average price of a home as a case study of the challenges a new home buyer faces.

then they are using bad data, because we all know HAM doesn’t declare income.

@ #6
fewer buyers = fewer sales

@ #7
they are only looking at data which is available. math doesnt add up because they are using the wrong formula. the banks could help to fill in the blanks so to speak with regard to HAM, but won’t. HAM doesnt require financing, but rather a conduit with which they can circumvent the laws in a somewhat plausible fashion (ie. making a large purchase). its win-win for all involved

Vangrl:

It is really that simple.

Only allow Canadian Citizens to own residential real estate in Canada.

“Everything else drawing attention to interest rates, CMHC policies, etc is just a sham to deflect attention from the primary driver of house price gains. Sure these have an affect but houses don’t cost $2 million because of these.

Again:

—> restrict Canadian residential real estate and farmland to Canadian citizens.

Foreign money inflows would stop because they would have to put it in a bank. Haha, not likely.”

@ #10
unfortunately this is all wishful thinking. cdn RE house of cards is simply too big to fail now. best case is cdn citizens/1st timers will be tossed some crumbs in the form of tax breaks/deferrals, lower fees/rates, easier access to credit and the like.

Not too many homes over $2 million are being sold.
Out of the 13,000 homes for sale in Metro Van right now,
only 1,000 are over $2 million.

http://www.realtor.ca/Residential/map.aspx#CultureId=1&ApplicationId=1&RecordsPerPage=9&MaximumResults=9&PropertyTypeId=300&PriceMin=3000000&TransactionTypeId=2&StoreyRange=0-0&BedRange=0-0&BathRange=0-0&LongitudeMin=-123.34547424316388&LongitudeMax=-122.418502807617&LatitudeMin=48.97376056593517&LatitudeMax=49.455928978155875&SortOrder=A&SortBy=1&viewState=m&Longitude=-123.066696166992&Latitude=49.3166961669922&ZoomLevel=13&CurrentPage=1

From the end of August to the end of September, (Chinese) police smashed 37 underground banks and captured 75 suspects.

They have also uncovered dozens of major cases involving a total of 240 billion yuan ($37.8 billion), the Ministry of Public Security said.

These crimes not only involve financial and securities offences, but have also become an underground route and method of money laundering for many suspected corrupt officials and terrorist suspects to illegally transfer their money overseas, he said.

The ministry has also tightened supervision of offshore companies and targeted underground banks to prevent suspects from sending proceeds abroad.

http://economictimes.indiatimes.com/news/international/business/china-cracks-down-on-black-banks-stashing-ill-gotten-wealth/articleshow/49411899.cms

@ #13
in other words 12k < $2M available

and the underlying message in this article
http://www.nationalpost.com/home+sales+fall+toronto+vancouver+because+enough+property+market+crea/11440706/story.html

is total and complete BS

@13
Zero down Forty. thinks having ‘only’ 1,000 ‘homes’ over $2 million, yes TWO frikken MILLION dollars isn’t very much.

Zero down forty thinks we have 13,000 ‘homes’ on the market! In reality we probably have about 4,000 ‘homes’ and 9,000 shoeboxes…

..useful only for singles or at best couples if you can stomach having no personal space for more than a couple of years. It’s the perfect real estate industry recipe to confuse us all via stats and headlines. These aren’t lasting homes.

Hey ZDF, how many ‘homes’ under $1 million do we have? (which most of us still couldn’t qualify for anywhere near the credit to buy!) You know the kind of homes that aren’t boxes, and may, just may, have a yard. How many?

@21

We need an extradition treaty where anyone suspected of stealing money in China and laundering it in Canada gets sent back immediately, no questions asked.

It rather looks like that Vancouver/BC reached the point where is more likely for Julia Lau to become the 36th Premier of British Columbia than to clean up the garbage and send it back where it belongs, unless somehow people wake up.

Re: #20 Probably not many. It’s people extending themselves to buy homes of all and/or any type over the last 15 years, especially in the period between 2003-2007 when the greatest gains happened, that created this asset bubble. Or more correctly, the increased borrowing power behind those purchases.

And since Metro Van’s home homeownership rate has increased from 55% in the 1980’s to 65% today, ‘most of us’ have been buying.