BC Liberals successfully pump up condo prices

Here’s a surprise – it turns out if you hand out $13 Million in loans to the general population to buy a product, the price of that product rises.

In this case the product is condos and the $13M comes courtesy of taxpayers and the BC liberal governments ‘BC Home Owner Mortgage and Equity Partnership’ program.

As it turns out though, not everyone things this is the smartest thing in the world. UBC economist Tom Davidoff sounds downright unenthusiastic:

The BC Liberals announced the program back in December, arguing it would help young families crack into the red-hot housing market.

But critics warned that financially stretched buyers would take on risk by essentially starting a second mortgage and that the infusion of cash could drive prices up.

Davidoff said that second case appears to be playing out, with people using the program now accounting for about five to 10 per cent of condo purchases.

“When there’s too many people chasing too few houses, pushing more people to get in on the action just seems like a really dumb idea.”

Condo sales have been driving the Metro Vancouver real estate market in recent months, and the average unit price now sits at about $655,000.

For the month of May, the Real Estate Board of Greater Vancouver found 95 per cent of all condos listed had sold, with prices up more than 17 per cent year over year.

Read the full article over at global news.

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Abdul Lahazi
Guest
Abdul Lahazi

This ‘BC Home Owner Mortgage and Equity Partnership’ program (what a mouthful) move by Christy was to show support for her condo developer backers after she brought in the FBT. The BC Libs have no ethics as shown by their flip-flop throne speech. All they care about is power and staying in power. Hopefully it will be bye-bye Christy on Thursday. The new government should cancel the mortgage assistance program immediately.

Screwed
Guest
Screwed

Do you know why the GreenDp voted down Corp and union donations? Because the RE cartel has already paid them to continue the game.

bullwhip29
Guest
bullwhip29

imho another card will get flipped in krusty’s favor on thursday. given that she seems almost too willing to accept defeat and has done so for many weeks now, i suspect there is something else at play here.

best place on earth
Guest
best place on earth

I hope Ms. clark will call another election. Spend another $45 mil to avoid the communists take over, price-less.

history
Guest
history

BC Home Owner Mortgage and Equity Partnership’ program
….

BC Vehicle living and service worker partnership program

registered
Member
registered

Prices track demand?
Demand tracks the size of the buyer pool?
Nobel level stuff here.

Combat roach
Guest
Combat roach

C$ jumps to four-month high as Poloz raises prospects of July hike

http://ca.reuters.com/article/businessNews/idCAKBN19J1VU-OCABS

bullwhip29
Guest
bullwhip29
Sebastien
Guest
Sebastien

Pure Greed:
2130 Gerald Avenue, Burnaby
Oct 11:$2,999,900
Jun 27: $1,850,000
Change: – $1,149,900 -38%
Assessment 2016: $1,618,900

Abdul Lahazi
Guest
Abdul Lahazi

2016 assessed $1,619,000

Sales history:
03/Nov/2015 $1,373,000
08/Jun/2015 $1,280,000

southseacompany
Member
southseacompany

“Rate hike expectations, C$ rise as Poloz reiterates cuts have done their job”, Financial Post

http://business.financialpost.com/business-pmn/poloz-low-interest-rates-put-in-place-after-oil-shock-have-done-their-job/wcm/4fc46b42-1aac-4be5-beb8-de8a6d84d3e9

“With the Bank of Canada nearing its next policy decision, governor Stephen Poloz is reiterating his message that his 2015 interest-rate cuts appear to have done their job.”

“Poloz said in an interview broadcast on business news channel CNBC that the Canadian economy enjoyed “surprisingly” strong growth in the first three months of 2017 and he expected the pace to stay above potential.”

southseacompany
Member
southseacompany

“Pound jumps as Mark Carney says rate hike debate is building “, The Guardian

https://www.theguardian.com/business/live/2017/jun/28/bank-of-england-interest-rates-house-prices-pound-euro-ftse-business-live

“Mark Carney’s comments are the clearest signal yet that the Bank of England is “minded to tighten” monetary policy,”

bullwhip29
Guest
bullwhip29

>>> my apologies for posting this idiot’s article on supposed EHT loopholes. as it turns out, having any old friend or family member living in your property (without even paying rent) for at least 180 days/yr exempts you from the tax meaning this whole exercise was either a complete waste of everyone’s time, patience and money OR a deliberate attempt at pulling the wool over everyone’s eyes.

Few Vancouver condo owners selling as vacancy tax looms
https://www.theglobeandmail.com/news/british-columbia/few-vancouver-condo-owners-selling-as-vacancy-tax-looms/article35460287

Just me
Guest
Just me

The condo market alone clearly cannot support the current land valuations.
Big day of price reductions yesterday:

http://myrealtycheck.ca/

A see of red, especially for SFHs. Price reductions are starting to be more sizable, exceeding 10% in many cases.
Effects of the lack of Chinese buyers at the high end will start trickling down soon enough.

best place on earth
Guest
best place on earth

here is your chance to buy. No? that what I thought. btw, are you one of the angry people who stomped city hall chamber yesterday?

Just me
Guest
Just me

No. I am one of the quiet people repeating that this circus will come to an end at some point. And the show will be a pleasure to see.
Do you have any comments on the latest stats for price reductions?

Bestplaceonearth
Guest
Bestplaceonearth

Are you buying? Market is still red hot. Inventory is limited. Look like you will be waiting until you see st. Peter.

Oracle
Guest
Oracle

What’s amazing is the price declines in Vancouver and the over asking solids in the Fraser Valley at the same time.

Oracle
Guest
Oracle

Hopefully no snap election tomoro.

Then we can have NDP Green coalition govern until Porportional Representation is in place.

All bets will be off real estate as soon as tomoro.

After PR:

Greens
NDP
Liberals will become 2: Libs and Cons
A new nationalist party will rise.

5 parties vying for leadership.

Dave
Member

If we get PR, I plan to vote for the most extreme party, no matter their political affiliation. My hope is that somebody extreme holds the balance of power.

Shut It Down Already
Guest
Shut It Down Already

That’s never backfired.

Dave
Member

I want it to backfire. If we get PR, I want to watch the whole thing burn down.

Shut It Down Already
Guest
Shut It Down Already

You want your own plan to backfire? Uh huh….

Shut It Down Already
Guest
Shut It Down Already

That link shows that price reductions are decreasing in magnitude. Check the graph. So perhaps they are more number out but they’re not more sizeable.

Just me
Guest
Just me

Price reductions appear to be larger, if you follow the numbers over the past two weeks.
Your statement is unwarranted.

Shut It Down Already
Guest
Shut It Down Already

Observation bias.

Just me
Guest
Just me

Average prices taking a dive, according to Zolo.
YoY average drop is 8.8% (what a serendipitous number!)

https://www.zolo.ca/vancouver-real-estate/trends

Xi Jinping capital controls did take their time to have some effects, but they are starting to work their way through the system.

Oracle
Guest
Oracle

Wait until Province wide FBT and a 2% non resident/2nd homes tax.

Just me
Guest
Just me

Swaps trading suggests investors placing 69% odds of July rise.

https://www.bloomberg.com/news/articles/2017-06-28/canada-july-rate-hike-odds-jump-after-poloz-restates-bias

News today is getting better by the minute. Imagine the effects of a further increase in mortgage rates in this weak price environement. SFHs are going to tank.

Dave
Member

It’s about time they raised rates.

I agree with the market and it looks like they are finally going to act. I think the political pressure finally got to the Bank and they are worried about a housing bubble.

They never should have cut rates two years ago.

Abdul Lahazi
Guest
Abdul Lahazi

BoM analyst saying that it’s pretty sure there will now be a July rate hike by BoC. Probably quarter percent.

Between a rate hike and the awol Chineeze money and a change in government it looks like real estate will be going down some more.

Dave
Member

We are definitely about to face some headwinds with real estate.

The biggest impact coming will be higher rates. But a new government and potentially new rules will also have an effect.

But until we see listings go up, I think prices aren’t going to move much.

bullwhip29
Guest
bullwhip29

John Horgan formally introduces motion of non confidence in B.C. Liberal government
http://www.cbc.ca/news/canada/british-columbia/horgan-non-confidence-motion-here-we-go-1.4182755

With 41 NDP MLAs and three Green MLAs who have agreed to support the motion, it will likely pass Thursday afternoon. Should that happen, Premier Christy Clark will be obligated to meet Lt-Gov. Judith Guichon, who will announce one of two things: either she is inviting Horgan and the NDP to form government or that she is dissolving the house, sparking another election.

Oracle
Guest
Oracle

kick the bitch out tomorrow.

if she bribes the LG to call an election, lets start a mass movement for the NDP and Greens to not run against each other in close ridings.

That should bury the bitch.

paulb
Member

New
196
Price Change
43
Sold
171
TI:9333

https://www.instagram.com/clivestevepaul/

Just me
Guest
Just me

Foreign buyers still investing in Metro Vancouver real estate despite B.C. tax

http://vancouversun.com/news/local-news/foreign-buyers-still-investing-in-metro-vancouver-real-estate-despite-b-c-tax

The only person who has managed to reduce the flows has been XI Jinping. Christy’s tax was a joke.

Abdul Lahazi
Guest
Abdul Lahazi

And yet prices continue to decline.

Combat roach
Guest
Combat roach

A plenty of locusts are still hopping around. Just a short stroll through Robson and Alberni can tell. We are still too far to get them repelled.

Oracle
Guest
Oracle

Hopefully 2% tax and province wide FBT is coming. Otherwise protests gonna take place in from of Eby’s office and Weavers office.

Watch and see.

Oracle
Guest
Oracle

Whistler, Shut it, Space, etc..

Life is going to turn against you tomorrow. First time in 16 years, you house humping party will be out of power.

Didn’t think it could happen? Well its happening. Sure hope you don’t own multiple properties. 🙂

taxes they are coming.

And Admin, forward these assholes IP’s to CRA. I’m sure they are avoiding taxes.

Shut It Down Already
Guest
Shut It Down Already

Fuck off, loser.

Oracle
Guest
Oracle

Would slap you around like a rag doll. Hahaha.

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