Realtors warn of dramatic sales slump for September 2016

Do you feel like someone should have warned you that Vancouver real estate sales slumped dramatically in September? Well now you have been.

VANCOUVER — Real estate agents say home sales continued to fall dramatically in the Vancouver area last month and even hit a 10-year low in some neighbourhoods.

Agents say the high-end detached home market is seeing the most substantial losses, while the condominium and townhome market remains active.

The Real Estate Board of Greater Vancouver, which covers a large swath of Metro Vancouver but excludes several large suburbs including Surrey, is set to release its home sales data for the month of September tomorrow.

Read the full article over at the Vancouver Sun.

Sort by:   newest | oldest | most voted
Billybonger
Guest
Billybonger

I am bemused by the spin and the mythical “benchmark” pricing for Sept.

Good luck with that.

southseacompany
Member
southseacompany

“Ottawa throws proverbial cup of water to cool hot housing market”, BNN Video
http://www.bnn.ca/real-estate/video/ottawa-throws-proverbial-cup-of-water-to-cool-hot-housing-market~964728

“Ottawa has unveiled new mortgage rules that are making it harder for Canadian homebuyers to qualify for a mortgage. James Laird, co-founder at RateHub.ca and president at CanWise Financial, talks about just what you’d be able to afford under the new requirements. He also talks about why the new measure isn’t as significant at cooling home prices as it may sound.”

Chinabuyeverything
Guest
Chinabuyeverything

Sound familiar?

In conclusion, the lesson seems to be that the marginal New York City buyer has been priced out of the market (volume down 20%) while sellers have not yet accepted that the bubble has burst deciding instead to maintain listing prices while letting their apartments sit on the market longer amid growing inventory levels. Meanwhile, the luxury market is the only segment that seems to be holding up which only serves to prove that Chinese billionaires still have cash they would like to hide in the U.S.

patriotz
Member

http://www.zerohedge.com/news/2016-10-04/nyc-real-estate-bubble-bursts-apartment-sales-crash-20

Typical zerohedge, all numbers cited are for Manhatten only, not all of New York City as the source document (Elliman) makes clear. Also the Chinese are hardly the only ones buying in the Manhatten luxury market.

Billybonger
Guest
Billybonger

Can a person get a pre approval under the current (pre 17th) rules and carry those same terms as an open option for a period of pre approved time after the change?

If so, this will bring some buying forward for a while longer again.

Will we see Oracles’s 7,000 listings by year end?

bullwhip29
Guest
bullwhip29

i think so as long as mortgage funds by march ’17. will 2 wks make much difference though. doubtful…

patriotz
Member

The pre approval is from the lending institution only and does not protect the would be borrower from rejection by the mortgage insurer due to regulatory changes. No insurance, no mortgage.

bullwhip29
Guest
bullwhip29

i understand another announcement re. massive hikes to premiums is imminent

yvr2zrh
Member

This is not true from what I can see. Existing pre-approvals are ok for deals signed in the coming 2 weeks and closing by March 1. If you did not get your pre-approval yesterday, you are SOL and under the new rules already. So – the big rush – will only come from those who were already pre-approved but had not yet done a deal. . . And – if you are pre-approved but don’t have subject removal by Oct 17 – then you are also SOL.

Ktown
Guest
Ktown

Who cares? Only a complete idiot would try to sneak past the new lending rules and over leverage themselves into a market that is crashing. Anyone stupid enough to do this deserves to lose every penny they put into it.

bullwhip29
Guest
bullwhip29

Vancouver homeowners missing out on $30 M in grants, says councillor
http://www.cbc.ca/news/canada/british-columbia/city-of-vancouver-homeowners-grant-review-1.3790563

>>> yes, the 35.3% of Vanc homeowners with properties assessed at > $1.2M are not eligible for a tax break. boo hoo…

bullwhip29
Guest
bullwhip29

BMO Falls as Restatement Seen Akin to Cutting $1 Billion Capital
http://www.bloomberg.com/news/articles/2016-10-04/bmo-restatement-seen-as-equivalent-to-cutting-1-billion-capital

>>> red flags everywhere i look…

Pookie
Guest
trackback

[…] home sales have plunged by about a third in the last month or so, this been largely blamed on the foreign buyer […]

BDK2016
Guest
BDK2016

If strata properties decline that much REIT and pension funds will buy them for their attractive cap rates.
If you chart Vancouver Condo prices back to 2008, they were very high relative to the amount of the monthly rental and then it took 7 years for the condo prices to appreciate again, because it started to make sense to own again. in Back then I was sure condo prices would crash, they slid a bit but basically stayed flat for 7 years until rent caught up.

Ive been gone from posting from this board for 6 years, glad to see a few familiar names like ULSTERMAN