Friday Free-for-all! June 17th 2016

It’s that time of the week again…

Friday Free-for-all time! This is our standard end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Lowest interest rates in 5000 years
Tales from a line-up
Careful with that equity Eugene
Would ‘Brexit’ affect our prices?
Bank of mom & dad
More tales from a line-up
Housing bubble alarm

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

188 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Banker
Banker
4 years ago

I work for a Foreign Canadian bank. I work closely with Credit Risk dept, specifically consumer credit. Our current stress tests show that a 10% drop in current house prices would leave us with upto 25% of mortgages under water. That is due to a large amount of recent purchases with 5 to 10% down. We have much tighter mortgage lending than domestic banks. This I know as staff can get larger loans from them as apposed to a staff loan. This was based on last weeks stress test and is 100% facts.

Hyper-mega-Bull
Hyper-mega-Bull
4 years ago
Hyper-mega-Bull
Hyper-mega-Bull
4 years ago
space889
space889
4 years ago

Serves them right…

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago

Pay Your Rent: Landlord Takes The Staircase Down For Not Paying Rent!

http://www.worldstarhiphop.com/videos/video.php?v=wshhHZkWFCbeE07k15p8

space889
space889
4 years ago

Good for them to take these slackers to tasks. Bet a lot of the bears on this blog are probably like this. Feel like the landlords should be paying them instead since they are such model renters.

You have a more effective way?

space889
space889
4 years ago

Dragging a shark? What’s next for these locusts? Dragging an alligator to pose for selfie? Geez…

https://ca.news.yahoo.com/watch-shark-dies-tourists-pull-075521352.html

southseacompany
southseacompany
4 years ago

“Housing crash in Canada could cost mortgage lenders almost $12 billion, Moody’s warns”, Financial Post
http://business.financialpost.com/news/economy/housing-crash-in-canada-could-cost-mortgage-lenders-almost-12-billion-moodys-warns

“If Canada were to experience a U.S.-style housing crisis, with house prices falling by up to 35 per cent, mortgage lenders including the country’s big six banks could lose nearly $12 billion, according to a new report from Moody’s Investors Service.”

“Mortgage insurers including CMHC would rack up further losses of as much as $6 billion”

Loon
Loon
4 years ago

Moody’s warns Canadian banks on the hook for $12 billion if housing market corrects:

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/economy/housing-crash-in-canada-could-cost-mortgage-lenders-almost-12-billion-moodys-warns&pubdate=2016-06-20

My take away is that house prices will be driven by the wave of defaults.

Hyper-mega-Bull
Hyper-mega-Bull
4 years ago
Reply to  Loon

why would people default? they can’t walk away from that debt and interest rates are low with no signs of going up. when the do go up there will be plenty of warning and people will lock in.

Doomcouver
Doomcouver
4 years ago

Even at low rates, many Canadians are one paycheck away from being unable to pay their debts. With real estate being such a massive chunk of our GDP, a down market will create a significant amount of unemployment. In essence, the defaults Loon is talking about will most likely not be voluntary. The homeowners will be unemployed or under-employed, unable to make payments, and unable to sell their home if it’s underwater.

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago

The curious timing of Premier Clark’s sexual assault story: Why now?

https://www.youtube.com/watch?v=do3LsZZbYe0

888888
888888
4 years ago

She think’s she is smarter than the voter’s.

realist
realist
4 years ago
Reply to  888888

She is, and she proved it by being elected. But the voters are smartening up these days quite quickly!

Best place on meth
Best place on meth
4 years ago

Are You Listening, Canada: Australia Slaps Chinese Home Buyers With New Taxes http://www.zerohedge.com/news/2016-06-19/are-you-listening-canada-australia-slaps-chinese-home-buyers-new-taxes In a move that we strongly urge Canada (and every other nation which is the end-target of Chinese hot money laundering) to evaluate, Sydney announced it would impose new taxes on foreigners buying homes as concerns grow that a flood of mostly Chinese investors is crowding out locals and killing the “Great Australian Dream” of owning property. As Sydney prices rise to record levels – the Australian city is ranked only second to Hong Kong as major cities with the world’s least-affordable housing – new potential homeowners have been increasingly forced out of the market with foreigners blamed as a key factor the AFP reports. We can only assume that China’s infamous offshore money laundering nexus of Vancouver did not make the list because some Chinese oligarch… Read more »

Combat roach
Combat roach
4 years ago

We must fight the fucking shit (evil) and we’ll prevail.

patriotz
4 years ago

The new tax is a one-time PTT of 4%. The intention is simply to raise more taxes, not to force Chinese buyers, which the local economy is increasingly dependent on, out of the market or bring prices down.

Chinese Investment in Australian Real Estate Doubles

LS in Arbutus
LS in Arbutus
4 years ago

https://www.linkedin.com/pulse/cooling-off-bc-real-estate-market-from-top-down-kenneth-pazder See the below post from Garth’s page. This just shows how little substance is actually supporting this market. I do think the government must act (and better act) or they will have mass protests. The common guy on the street, including homeowners, know that this is ridiculous. In my opinion, because of cost of living, Vancouver’s become relatively unlivable, even for those in the top 5% as they work hard and think, there’s got be more to life than worrying about buying a house, or, the equity in my house. Good if you read the entire link, but below is an excerpt. ———————————————————– Kenneth Pazder the RE Lawyer who wrote the article COOLING OFF THE BC REAL ESTATE MARKET FROM THE TOP DOWN may have better insight than most on the Vancouver RE market. According to his Linkedin page… Read more »

Newcoomer
Newcoomer
4 years ago
Reply to  LS in Arbutus

How does “pulling the prices UPWARDS from the top end” work? What’s the mechanism? The fellow says that foreign buyers are overpaying for the top 3-5%. That would mean that, if no locals completed at those prices, supply would be reduced by 3-5% (if some locals compete, there is less reduction in supply). Is the argument that house prices have tripled because supply is down 3-5%, or is there another argument?

realist
realist
4 years ago
Reply to  Newcoomer

“How does “pulling the prices UPWARDS from the top end” work?”
As the local would-be bidders for the top 3-5% are shut out by the foreign buyers, they can either withdraw from the market, or bid for the next lower 5% of the market. This segment now has more bidders, some of whom have more money than usual bidders. The” property ladder” remains intact, even if the rungs move farther apart.

Newcoomer
Newcoomer
4 years ago
Reply to  realist

Right, so the maximum impact is a reduction of 5% of the total supply, which is not enough to drive really large prices changes in the overall market. Contrast this with something like lowering interest rate or lowering downpayment requirements. In those cases, very large numbers of people join the market or are given extra purchasing power. When those people buy, they give extra purchasing power to the sellers, who can all bid higher on the next highest level, and so on. As you move up the funnel, the effect is magnified. But in the top-down scenario, the effect is diluted as you move down the funnel until, at the lowest levels (say townhouses in Langley) the impact is imperceivable. And yet townhouses in Langley are selling for crazy prices, that no one would ever expect to see as a… Read more »

CarlK
CarlK
4 years ago
Reply to  Newcoomer

Yes, the other mechanism at work is called the Multiplier effect. The proceeds from sale of retirees’ multi million dollar homes are distributed down market via family members (kids and grandkids) which in turn results in further sales in lower price segments etc.

space889
space889
4 years ago
Reply to  CarlK

One time only though.

realist
realist
4 years ago
Reply to  Newcoomer

Low mortgage interest rates do increase purchasing power of most of the potential market, and at all levels. However, they are a discrete event: rock bottom rates having been achieved long ago, there has been little significant change for years. OTOH, new foreign buyers arrive every year, so their effect is cumulative over the years. Regarding your hypothesis that there are asymmetric effects from additional demand at the top vs. bottom ends of the market, I am not certain why that should be the case. In usual RE market dynamics, most of the new demand is in the bottom 15%, which then propagates upwards; is there a reason that propagation should work differently from the top end? Now consider the empiric evidence: mortgage interest rates and CMHC rules are the same in Vancouver and Halifax, yet the prices are very… Read more »

ostritch
ostritch
4 years ago
Reply to  LS in Arbutus

Tell us about the mass protests LS. Who will be there? And how many? I’ve yet to see a mass protest anywhere in Canada outside MTL.

LS in Arbutus
LS in Arbutus
4 years ago
Reply to  ostritch

Yes fair enough. I don’t see protests either, but we certainly are hearing a lot more news and the man on the street can speak pretty intelligently about all the factors inflating this bubble, particularly in the lower mainland. I think people are really worried and there is a ton of uncertainty. I think it has become quite impossible for the government to turn a blind eye to it, particularly when the 1% is priced out as well. Not a really great joie de vivre living here in the lower mainland these days. Unless you’re Bob Rennie of course. All that said, I think this has gone on far too long and the gov’t is now damned if they do and damned if they don’t. Either way, it will implode on itself.

ostritch
ostritch
4 years ago
Reply to  LS in Arbutus

Can I please take apart most of everything you’re saying LS? I don’t dislike you I just want you to think about what you’re saying and tell me if its wishful thinking or not. Ok? The Man on the Street. Gosh. We all know him, we see him on the news. He’s always a white guy. Notice how the news never interviews or even SHOWS the Mainland newcomers. Only rare stories; the opening of the designer outlet mall in Richmond, a pre-sale line up, a line up at Best Buy at Christmas. Honesty would mean that the man in our street is as likely to be Chinese as white. Yet the “white” news prefers to pretend nothing is has changed. So what’s this fake man in the street going to say? Is he a homeowner? And what’s the new Vancouver… Read more »

space889
space889
4 years ago
Reply to  LS in Arbutus

Don’t you also have to sell the house in order to finish the money laundering? So who are these foreign launderers selling the houses to? Locals?

If they only sell to other foreign money launderers then there is no leakage of all these $$$ into the local money beyond the first sale. Given the assertion that most of Van West / West Van have been sold to Chinese, I don’t see how their activity would continue to drive the markets, especially the 80% under $1M market to crazy heights.

Oracle
Oracle
4 years ago

Trudeau is going to go down as the worst prime minister in history.

Let’s face it. He is a drama teacher…not a math/science guy.

He distorted Vancouver housing market so much that he is screwed. The people that voted him in are going to vote him out.

He sat on his ass while Vancouver skyrocketed 50%. He is dumb or is an asshole. He is fucked. Ow that he can’t do anything. Moron.

toasty
toasty
4 years ago
Reply to  Oracle

Shut up. He is the only PM to even acknowledge a problems. He called it a ‘crisis’. Want to blame anyone, blame the crooks before him and Gregor and Christy who keep denying it

MLS watch
MLS watch
4 years ago
Reply to  toasty

It is S. Harper who invented the 40 yr mortgage, and did nothing to tame the market, for 10 years.

patriotz
4 years ago
Reply to  toasty

Vancouver Mayor: City Is ‘At a Breaking Point’ (July 2015)
If you want to blame Gregor for being a few years too late to point out the problem (and note when he took office in 2009 prices were falling) go ahead, but use the past tense.

YVR
YVR
4 years ago
Reply to  patriotz

Yes about the time Mayor Moon Beam sold his kits house for a massive profit and no longer owns Vancouver real estate he has been on the soap box stating the Provincial and Federal governments should do something. Mean while he does nothing and takes funds from Bob Rennnie.

wwwww
wwwww
4 years ago
Reply to  toasty

at some point they have to acknowledge the crisis to pacify the public. and look, it’s worked!

he’s the priminister of canada. you think he didn’t know there were problems already?

franko
franko
4 years ago
Reply to  wwwww

Justin has had plenty of time to close that gaping loophole of the old Immigrant Investor Program…….it is called Quebec.

Zero Down Forty
Zero Down Forty
4 years ago
Reply to  Oracle

The bubble started under the Libs but both Libs & Cons have contributed, although Cons did slow it some what in their later years. 1999-2006 LIBERALS: – 1999: CMCH down-payments reduced to 5% – 2001-2005: BoC drops rate from 6% to 2% – 2003: CMHC reduces mortgage insurance premiums by 15% and eliminates homeowner price ceilings. – 1999-2006: VAN HOME PRICES RISE 70% 2006-2010 CONSERVATIVES: – 2006: CHMC brings in longer amortization periods (from 25 years up to 40 years) and higher loan-to-value ratio loans (up to 100 per cent). 0% down payment. – 2009 BoC brings in emergency near zero rates. – 2006-2010: VAN HOME PRICES RISE 35% – 2010: CMHC reverses and brings in 10% DPs and 20% for investment properties. – 2011 CMHC reduces amortization period to 30 years for mortgages with loan-to-value ratios of more than… Read more »

ostritch
ostritch
4 years ago

The “bubble” is global. The mass migration of wealth is global. But there’s a ranking if desired cities. Most of them in the anglosphere, who we should have figured out long ago because it’s The Global Language of Business. I remember when people said it would be Esperanto. Bears woulda denied the price increase and HAM in Esperancze if that had taken off too.

patriotz
4 years ago
Reply to  ostritch

“The “bubble” is global.”

http://www.economist.com/blogs/dailychart/2011/11/global-house-prices

Note that the US, despite some local overvaluations, is far from bubble territory overall. Note also that the leader in all bubble categories except one is Australia. The leader in the other category is Canada. The least bubbly country apart from Japan is Germany which uses the Euro, has very low interest rates, and no restrictions on foreign ownership.

MikeS
MikeS
4 years ago

So on Monday there’s a $200 dinner with Bill Morneau in White Rock and I got invited (I volunteered for the Liberals back in October). Anyone ever been to something like this? Would I even get a chance to ask him anything? Like… how soon can we expect any action?

Wife is pressuring me to buy. We’ve got $200k saved up and a 4 month old baby. Last year she asked me what to do and I said to invest in the market and I’ve been catching shit from her all year for it.

Help me VCI, you’re my only hope!

Shut It Down Already
Shut It Down Already
4 years ago
Reply to  MikeS

Don’t ask anybody here – they’re clueless.

tedeastside
tedeastside
4 years ago

really….so everybody is clueless except you ????

got it!!

Best place on meth
Best place on meth
4 years ago
Reply to  tedeastside

Yeah, he’s the fucking genius who keeps denying that chinese money is driving up prices.

Everyone is wrong except him.

Shut It Down Already
Shut It Down Already
4 years ago

I didn’t say everybody was clueless but me – read it again. It’s this sort of display of “logic” that supports my original statment. Either way the mental model of how RE operates here clearly holds no predictive powers – as you’ve been wrong for about a decade. That doesn’t make me a genius. I just know that the stats indicate the majority of sales are to locals. Sure, there’s foreign money at the high end. But the locals are the ones tripping over themselves to buy, outbidding each other because “real estate always goes up, and why pay somebody else’s mortgage?”. People love to buy assets when they’re expensive, and panic sell when prices are low – solidifying a paper loss. You can’t blame foreigners for the herd mentality of the financially illiterate locals who want nothing more than… Read more »

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago
Reply to  MikeS

Buy it.As i said before there will no crash only price stagnant for next couple of years(my guess is 5 years) but when the price climb up even crack shack that is worth today price of $1.5 Million will be worth around 2.5 million just for the land vale.

Remember when people in here making fun of $800,000 crack shack 5 years ago. they are worth 1.8 million easily right now.That will be S$700,000 in tax free money which will haven taken 25 years of Vancouver average salary to save.

http://vancouvercondo.info/?s=crack+shack

StupidityCheck
StupidityCheck
4 years ago
Reply to  MikeS

Best options, in order:
1. Leave. Your kind aren’t welcome here.
2. Keep renting.
3. Divorce.
4. Buy.

P.S. WTF were you thinking volunteering for the liberals?

Best place on meth
Best place on meth
4 years ago
Reply to  StupidityCheck

#3 sounds the most appealing.

duh
duh
4 years ago

Definitely the best option for anyone who is happiest when they are on their own masturbating to trump speeches!

HAMster
HAMster
4 years ago
Reply to  MikeS

How do you have the $200K invested? Not in a savings account I hope. I can give you some investment suggestions if you are interested.

MikeS
MikeS
4 years ago
Reply to  HAMster

We put it into ETFs and Mutual funds. So far we’re down about 1%.

HAMster
HAMster
4 years ago
Reply to  MikeS

Have a look into this:
http://www.quadravest.com/#!dividend15-home/c20bo
Quadravest also has other funds but I like their DFN.
You’ll need a self-directed trading account.
DFN trades on the TSX.

space889
space889
4 years ago
Reply to  MikeS

Ditch the mutual funds if there is an ETF equivalent. Almost all self-direct investment company (TD, Scotia iTrade, etc) all have those risk profile questionnaire you can take and then direct you to a suggested asset allocation charge. You can use that as a starting point. If you aren’t someone who can stomach a 20% drop or don’t like to actively manage the account, go with more conservative income oriented balanced fund. I would also suggest have more global exposure since Canada is only about what? 1% of the world market? But do it slowly when CAD$ is on an upswing like recently.

MikeS
MikeS
4 years ago
Reply to  MikeS

Well, I went for it. Here’s hoping it’s a good time.

As for why I volunteered for them, I figured they would be better than the Conservatives on housing — you know, the guys that helped stoke the flames of this thing.

patriotz
4 years ago
Reply to  MikeS

They are better. Granted they are just tepid, but that’s an improvement on batshit crazy.

MikeS
MikeS
4 years ago
Reply to  patriotz

Bingo.

StupidityCheck
StupidityCheck
4 years ago
Reply to  MikeS

Sorry, thought you meant BC Liberals.

Newcoomer
Newcoomer
4 years ago
Reply to  MikeS

Does she also give you shit for not buying LottoMax tickets when she reads about people making money at that?

MikeS
MikeS
4 years ago
Reply to  Newcoomer

Umm… if everyone you know is winning at LottoMax then the odds actually are pretty good.

We both wish we had a crystal ball to get an idea of where things will be next year.

30% up? 30% down? No change from today? Please enlighten me as to what I should do. If the whole world is going recessionary then I’m not really sure where else I’m supposed to get a return on our money.

Best place on meth
Best place on meth
4 years ago
Reply to  MikeS

You can buy a house or go to the casino and throw it all on red, same thing.

Or you could invest in something less insane like what HAMster suggested. That steady 1% a month return is looking pretty good actually.

ostritch
ostritch
4 years ago
Reply to  MikeS

Sounds like a smart woman. The Bears here have been blaming women for being “emotional” about investing for years, ie: wanting a house. Meanwhile, 12 miserable years later, the unemotional bears are still pounding their chests making noise to prove their the smarter bear with a jack shit 4.5% return on their Garth Turner style investments.

You know what dude, I’ve sat in on the other side of the mirror with a bank looking at different age groups talk about investments. By the time the men were in their 60s, the whole lot of them admitted their wives were better investors than them. My advice is get over thinking you’re smarter than her if you’re not.

888888
888888
4 years ago
Reply to  HAMster

I thought you could buy with a 5% down payment, how is this a deal ?Anyone have an explanation.?

888888
888888
4 years ago
Reply to  888888

I didn’t realise that you need 20% down on presale condo. I bet gov’t is involved with this scheme.These developers and Chrusty and Junior probably came up with this solution to crisis.Look forward to continued sale of Canada to Chinese . We can see right through you Chrusty. Don’t forget who own’s Concord .

patriotz
4 years ago
Reply to  888888

“I didn’t realise that you need 20% down on presale condo.”

It’s not a down payment, it’s a deposit. The reporter was using the wrong terminology. This is required by the banks who are financing the project to protect against the pre-sale buyers walking away.

ostritch
ostritch
4 years ago
Reply to  patriotz

Oh my gawd.

I\'m With Stupid V
I\'m With Stupid V
4 years ago
Reply to  888888

For the love of god do some research before you comment, oh wait this is VCI board that is the norm here.

” I bet gov’t is involved with this scheme.” This is my favorite line.

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago
Reply to  888888

Among other incentives, the program would decrease the initial deposit from 25 per cent to 15 per cent paid out over three years at 5 per cent each year. It would also pay half of the buyer’s mortgage for the first year.

https://www.concordbrentwood.com/assets/documents/home.pdf

https://www.google.ca/search?q=Concord+Pacific&oq=Concord+Pacific&aqs=chrome..69i57j69i60l3.153561j0j4&sourceid=chrome&ie=UTF-8#q=Concord+Pacific&tbs=qdr:d,ctr:countryCA&cr=countryCA

HAMster
HAMster
4 years ago

New Translink buses are to be built in China. Christy sells out to China yet again.

http://globalnews.ca/news/2770397/future-b-c-transit-buses-to-be-made-in-china/

YVR
YVR
4 years ago
Reply to  HAMster

We need Trump to run North America wide.

YVR
YVR
4 years ago
Reply to  patriotz

Trump is just playing by Obama’s rules. What Trump is proposing is to change the rules.

nonny
nonny
4 years ago
Reply to  YVR

And the punchline is… some people believe him! “yes, pretty much everything I’ve said up to this point has been a lie in pursuit of attention and profit, but if you read between the lines I’m here to save you and I’ll change as soon as elected!”

I\'m With Stupid V
I\'m With Stupid V
4 years ago
Reply to  HAMster

By that logic pretty much every fucking Canadian company is a sellout to Canada.
Also Canadians are all sellouts cause they vote with their wallets and buy cheaper Chinese goods.

Best place on meth
Best place on meth
4 years ago
Reply to  HAMster

“Christy Clark had a clear choice, and she chose to outsource Canadian work to China,” said Jerry Dias, Unifor’s National President. “Christy Clark wasted an important opportunity to fix transit and create good jobs at the same time.”

That’s our little mop-headed traitor, she’d rather create jobs in China than in Canada.

space889
space889
4 years ago

Who doesn’t love to pay 3x the price for the same thing?!

southseacompany
southseacompany
4 years ago

“$12 trillion of QE and the lowest rates in 5,000 years … for this?”, CNBC News
http://www.cnbc.com/2016/06/13/12-trillion-of-qe-and-the-lowest-rates-in-5000-years-for-this.html

“The numbers are daunting if not shocking: $12.3 trillion of money printing, nearly $10 trillion in negative-yielding global bonds, 654 interest rate cuts since Lehman Brothers collapsed in 2008.”

“Those actions have resulted in global growth in advanced economies that likely won’t eclipse 2 percent this year, inflation levels that remain well below targets and a burgeoning global debt problem that remains unresolved, withstood only through the lowest interest rates the world has seen in 5,000 years.”

Newcoomer
Newcoomer
4 years ago
Reply to  888888

Quite a while. You would have to change the laws first.

Newcoomer
Newcoomer
4 years ago
Reply to  StupidityCheck

Yes, but that has nothing to do with the situation being reported on in Seattle, where people who were in a place and paying way under market suddenly had their rent raised to market. If you sign a fixed term lease here, and your rent is raised to market at the end of that term, it’s not going to be a 50% jump. My guess is that our friend with the lucky name did not read the article and just guessed that it was about extreme rent inflation, when in fact it was not. For what it’s worth, the rents being asked in the article seem pretty reasonable.

ostritch
ostritch
4 years ago
Reply to  Newcoomer

Really? Renovictions? Plus after your one year lease is up, landlords simply ask you to leave. It’s happening to tenants in the Bentall Kennedy owned “market” rentals in the Olympic Village. They really are market rentals because 2.5% increase a year doesn’t cut it for BK.

toasty
toasty
4 years ago

https://ca.news.yahoo.com/nova-scotia-homes-selling-well-110000166.html

They just need some offshore Chinese buyers too. Can we send them ours?

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago
southseacompany
southseacompany
4 years ago

“Federal housing solutions: lots of talk, not much action”, CBC News
http://www.cbc.ca/news/canada/british-columbia/federal-housing-solutions-lots-of-talk-not-much-action-1.3640864

“The message from Prime Minister Justin Trudeau to those worried they’ll never own a home in Vancouver or Toronto was clear on Friday.”

“He feels your pain but there is no easy answer and there is a great risk of making a serious mistake should his government attempt to influence housing prices.”

patriotz
4 years ago

Translation: he’s heard those warnings that a bust is coming and he doesn’t want to be blamed for it.

YVR
YVR
4 years ago
Reply to  patriotz

Trudeau’s problem is he has been in power since November and Vancouver has gone up 30% to 50% in that time frame. The reality is more damage has taken place under Trudeau’s watch in 6 months than under Harpers in 12 years. As an example a 2 bedroom condo in the building I live in DT Vancouver went from $850K in Nov 2015 to to $1.3 million in may 2016 (sale of identical units). That is a $500K increase in 6 months. The previous $500K increase (from $350k to $850K) took about 13 years! The last 6 months has been like nothing we saw under Harper. Trudeau will take the fall no matter what he does. Better for him to at least say he tried to stop it.

patriotz
4 years ago
Reply to  YVR

Teranet says metro Vancouver is up 21.7% over the year ending May 31 – that’s all sales, all properties. Your building – who knows, but it’s clearly a luxury property.

YVR
YVR
4 years ago
Reply to  patriotz

That is all of Metro Vancouver. Pretty much all that price increase was in the last 6 months. When was the last time prices went up 21.7% across all of Metro Vancouver in 6 months or even a year? Not since the 80s bubble. Of course 21% of todays prices is also much more even inflation adjusted.

ostritch
ostritch
4 years ago
Reply to  patriotz

Idiot. Mine is up almost 100% in less than two years. I don’t know I why you waste your breath trying to look smart.

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago
Reply to  YVR

Show me proof .This cant be real, i called it a BS .There is no way a condo will go up $500,000 in 6 months.Even Vancouver SFH went up 30 %. in the last 6 months.

YVR
YVR
4 years ago

100% true. Maybe a one off on the unit in questions with a bidding war but from what I see all condos are up at least 30% in downtown Vancouver since December 2015. I have a realtor who sends me the actual sales info. It is not un common to see 15% over asking price.

YVR
YVR
4 years ago
Reply to  YVR

This unit on 30th floor sold for $1.5 million in Dec 2015. It was totally renovated.

http://www.sonjapedersen.com/listings/sold/R2017582-3001-1199-marinaside-crescent.html

This identical unit was which was not renovated (year 2000 vintage) and on a lower floor listed at $1.87 million in June and sold over asking. The first unit is probably worth about $200K more due to reno and floor level.

http://stephenrealty.ca/mylistings.html/details-57546488

ostritch
ostritch
4 years ago
Reply to  YVR

If it were a one-off would there be a panic on?

would-be buyer
would-be buyer
4 years ago
patriotz
4 years ago
Reply to  would-be buyer

Had no trouble opening as new private window. Anyway the article is a lot tamer than the headline – not much you haven’t heard already – except this should be noted: On the other hand, he considers some of the dialogue around foreign buyers to have elements of xenophobia and nationalism. “We get close to dangerous territory if we start discriminating based on people’s ethnicity or nationality,” he says. “Some of the subtext here is that, which is very un-Canadian.” Whether or not some opponents of foreign ownership are biased against some ethnic group, the issue of foreign ownership itself has nothing to do with ethnicity and this kind of comment is BS and doubly so coming from someone in this position. Do note he was appointed in 2014 (i.e. by Harper) so that in itself means he’s not going… Read more »

Shut It Down Already
Shut It Down Already
4 years ago
Reply to  patriotz

I guess he’s read some of the putrid comments here?

patriotz
4 years ago

My idea of putrid is RE marketers and politicians who exploit ethnic divisions to serve their own ends, and then are shocked, shocked by the results.

https://www.youtube.com/watch?v=Sbfa2xpu9Aw

canadiansfirst
canadiansfirst
4 years ago
Reply to  patriotz

“We get close to dangerous territory if we start discriminating based on people’s ethnicity or nationality,” he says.

If you shut off the flow of foreign money into our real estate market and most of it happens to be coming from China for example, that has absolutely nothing to do with ethnicity or nationality whatsoever. It’s economic reality that Canadian families living and working in Vancouver are being forced out in part by foreign money, wherever it happens to come from. It is the Trudeau government’s job to be transparent and honest about that and to act on it if it means that tax paying Canadian families are being forced out of their own cities.

patriotz
4 years ago
Reply to  canadiansfirst

Foreign ownership of corporations has been an issue in Canada for its entire history, and governments of all stripes have been involved in controlling it. In recent years takeovers by China have been at issue and nobody has even claimed that opponents have racial motives.

Just like corporate ownership foreign ownership of RE is an economic issue and to impugn that racial motives are behind its opponents is not only wrong, it serves to further inflame relations between ethnic groups in Canada.

Best place on meth
Best place on meth
4 years ago
Reply to  canadiansfirst

We have every right to discrimate by nationality.

China is a criminal shithole and they should be kept out of Canada.

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago

Now we giving away our job s to China what the pathetic Nation & the province and it leaders.

Future Transit buses to be made in China

https://www.google.ca/search?q=B.C.+Transit+buses+to+be+made+in+China&oq=B.C.+Transit+buses+to+be+made+in+China&aqs=chrome..69i57j69i60&sourceid=chrome&ie=UTF-8#q=B.C.+Transit+buses+to+be+made+in+China&tbs=qdr:d

fosolo1
fosolo1
4 years ago

From the trenches :

Patricia Houlihan
Signs real estate market shifting: homes not selling; sellers RAISING prices after no sale; banks don’t want to lend here; low appraisals…

https://twitter.com/realevancouver

ostritch
ostritch
4 years ago

Coach house in Kits crosses–no sprints–past the $2M mark. So that’s 2.301M for 1300-odd square feet of alleyway house. 1639 Larch.

Sellnoworbepricedin4evah
Sellnoworbepricedin4evah
4 years ago
Reply to  ostritch

Overpaid

southseacompany
southseacompany
4 years ago

“‘This is a bubble. A very big bubble. And it is going to end in tears'”, Business Insider
http://www.businessinsider.com/canadian-housing-bubble-2016-6

“Capital Economics’ chief North America economist, Paul Ashworth pointed out that the gains in housing prices in these regions now “far exceed” those in the US at the peak of its housing bubble.”

“When prices do begin to fall in Toronto and Vancouver, expectations of further declines could become just as self-fulfilling as the expectations of further price gains now. We have no idea exactly how far prices will fall.”

OPENHOUSEMASSACRE
OPENHOUSEMASSACRE
4 years ago

There is never going to be housing bubble price stagnant that the best u guys are going to get .

Business insider have saying this for last 4 years and nothing had happened.

https://www.google.ca/search?q=Business+Insider&oq=Business+Insider&aqs=chrome..69i57j69i65l3&sourceid=chrome&ie=UTF-8#q=business+insider+vancouver+bubble+2012

southseacompany
southseacompany
4 years ago

“Vancouver’s housing market — the canary in the calming”, CBC news
http://www.cbc.ca/news/canada/british-columbia/vancouver-s-housing-market-the-canary-in-the-coalmine-1.3641759

“Prime Minister Trudeau met with housing experts to discuss Vancouver’s red hot real estate market”