Realtor: Bubble correction is underway.

VCI Favorite Ian Watt says the bubble is deflating in Vancouver, with a correction of 10-15% in Coal Harbor condos so far in the last six months:

“Usually you’d have five to 10 sales a month, but we’ve only had one in the last six weeks. Everything above $2 million is pretty much dead; anything related to international money is gone right now.”

Prices have also declined for downtown condos in the $600,000 to $700,000 range, Watt said.

In relatively affordable Langley and Abbotsford, where a two-bedroom, two-bathroom townhome goes for between $300,000 and $400,000, it’s a similar story: seven or eight weeks ago, sellers would receive multiple offers. Properties are now sitting on the market for longer, said Tim Sawatzky, a realtor with 2 Percent Realty Valley.

Where it was once common to see lineups to buy condo pre-sales contracts, Sawatzky said developers in Surrey, Langley and Abbotsford are now offering a variety of incentives, such as a $20,000 “furnishing package,” or between $20,000 and $40,000 off the closing price when the building is completed. (When buyers purchase a pre-sale condo contract, they typically pay five to 15 per cent of the price up front and then pay the full amount after the building is completed.)

All sorts of cash incentives in the market right now if that’s your sort of thing.  Read the full article here.

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[…] appears there might be a limit to ‘build it and they will come’. Southseacompany points out a recent development proposal that was pulled amid signs of weak […]

Dyugle
Dyugle
2 years ago

Reality bites for Canada as foreign hunger fades for its securities
https://reut.rs/2LsUx5q
Nasty graph will affect Canadian dollar and put the BOC in the hot seat.

Doomcouver
Doomcouver
2 years ago

‘Significant or very significant’: Analysis shows money-laundering vulnerabilities in B.C. real estate
https://vancouversun.com/news/local-news/dan-fumano-data-point-to-money-laundering-vulnerabilities-in-b-c-real-estate-sector

“According to data obtained by Postmedia News, Canada’s financial intelligence watchdog found “significant” and “very significant” deficiencies in the anti-money laundering controls at 88 per cent of real estate entities they examined in B.C. over the last two years.”

These money launderers won’t like the extra focus on their real estate holdings. If this leads to some government seizures, you can expect the rest of the rats to sell and abandon the sinking ship.

bullwhip29
bullwhip29
2 years ago

Following the bombshell report detailing how Vancouver-area casinos became hubs of international money laundering, the second phase of B.C.’s battle against dirty money is expected to target real estate
https://vancouversun.com/news/local-news/dan-fumano-data-point-to-money-laundering-vulnerabilities-in-b-c-real-estate-sector

Oracle
Oracle
2 years ago

Looks like the Admin is ready to shut down This site.

Give us a 2 week warning before you do it.

Thx for providing a platform for the last few years.

Name
Name
2 years ago
Reply to  Oracle

my sources say that the Admin bought recently so no more interest in running this site…
Wow just Wow !!!

Slava
Slava
2 years ago
Reply to  Oracle

You wish.

southseacompany
southseacompany
2 years ago

“Fears of Australian property market ‘fire sale'”, ABC News ( Australia) video

https://www.youtube.com/watch?v=6-8c5tH_9Qw

“House prices in Australia are dropping in most capital cities with data released today showing Sydney and Melbourne posting their weakest results in six years.
One of the factors that could see prices fall still further is interest-only lending. During the next three years, billions of dollars of interest-only loans will roll over to principal plus interest. That could force many Australians into serious financial difficulty.”

xhistory
xhistory
2 years ago

…..“Bank credit swells and shrinks in synch with the land cycle… buyers need more credit to purchase land; the appreciated land than serves as collateral for more bank loans.”

https://www.forbes.com/sites/jordanlulich/…state-market-crash/

….the appreciated land than serves as collateral for more bank loans.”

….the appreciated land than serves as collateral for more bank loans.”

Best place on meth
Best place on meth
2 years ago

Canadian millennials have a new reason to resent baby boomers

https://theprovince.com/real-estate/retirees-are-driving-up-prices-of-waterfront-cottages-in-canada/wcm/cafe8750-4048-4a20-aec7-58d028956a26

First they reaped the benefit of the biggest property boom in Canada’s history — now they’re driving up the cost of a country retreat

Oracle
Oracle
2 years ago

And you suckers are going to pay higher taxes for their medical care and seniors homes. Privatize Medicare and let them pay for it through their equity.

I know it’s not the Canadian way but if you don’t then continue bending over for the rest of your life. And as an aside, it’ll put pressure on housing.

Best place on meth
Best place on meth
2 years ago

The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years

https://www.bloomberg.com/news/articles/2018-07-26/american-housing-market-is-showing-signs-of-running-out-of-steam

The U.S. housing market — particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas — appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.

“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview. He stressed that he isn’t ready to make that call yet.

southseacompany
southseacompany
2 years ago

“Proposal for luxury condo tower in Vancouver pulled amid signs of weak demand”, Globe & Mail

https://www.theglobeandmail.com/canada/british-columbia/article-proposal-for-luxury-condo-tower-in-vancouver-pulled-amid-signs-of-weak/

“A proposal for a downtown Vancouver luxury condo tower that was scheduled to go to a public hearing next week has been abruptly cancelled by the owner.”

“A representative of the developer, Brilliant Circle Group, sent a letter to the planning department last week withdrawing the project. The letter, obtained by The Globe and Mail, explained that the decision “is due to the impact of the rapidly changing real estate market, which affects both the unit mix and the CAC evaluation.””

““Everything’s corrected and the luxury market is gone,” said Ian Watt, a realtor who specializes in higher-end housing. “Anything under $2-million will sell, but in the last two months, there’s been only one sale over $3.5-million.””

Name
Name
2 years ago

“Brilliant Circle Group” sounds like an axian gang.

YVR
YVR
2 years ago

Pulled to make design changes.

The project is not dead, but the company is going to re-evaluate the design and resize the units for the triangular piece of land at Georgia and Pender streets that was bought for $16-million five years ago. It is now assessed at $30-million.

YVR
YVR
2 years ago
Reply to  YVR

George Wong, whose company, Magnum Projects, was set to market the Brilliant Circle tower, said he thinks the West Georgia project is an unusual case and its withdrawal isn’t the beginning of a crash. He is also marketing the Landmark On Robson towers for the company Asia Standard, which has about 240 market condos planned for the site. That is the highest-priced development on the market, with the apartments selling for $2,000 to $5,000 a square foot, depending on their placement. Just less than 50 have been sold since the marketing started in February. Mr. Wong said the Landmark’s owners, based in Hong Kong, don’t need external financing, so they are comfortable with taking five years to sell the building.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  YVR

Resizing to reduce the price per square foot? A price cut then.

YVR
YVR
2 years ago

Resizing indicates reducing the unit size to price the unit lower not less per square foot. Although they could be making other changes to reduce the price per square foot as well. The other project quoted states they are priced at $2K to $5K per foot for a building on Robson St. That means the bottom floor facing the street is $2k per foot. Ludicrous.

Lost...but not Leased
Lost...but not Leased
2 years ago
Reply to  YVR

Our resident VCI geniuses seemed to miss THE most intriguing feature of the Globe and Mail article..the COV wants to charge CAC ‘s ( Community Amenity Charges ) of $300-$400 sq. ft.

WTF?
Wholly sh*te Batman!!!

Now……is this a fee across- the- board for of all COV developments?…..one would think it is…however then what the developer charges should not be pro-rated CAC….The COV gets its extra pound of flesh come property tax time and via the BC assessment racket.

These CAC’s get rolled into people’s mortgages etc.etc.
Regardless…CAC’s are a result of POOR planning…..the little guy gets f#cked over every time to pay for poor governance(redundant).

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago

There’s a reason nobody ever replies to you.

Just me
Just me
2 years ago

“There’s a reason nobody ever replies to you…”
….said the most popular dude on the blog.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  Just me

In case you hadn’t noticed it’s not a goal of mine to be popular amongst xenophobes.

Lost...but not Leased
Lost...but not Leased
2 years ago

Sez dumbass f*cktwit.

YVR
YVR
2 years ago

“Community Amenity Charges ) of $300-$400 sq. ft…Now……is this a fee across- the- board for of all COV developments?” No, CACs are what the CoV gets to give additional density to the developer. For example if the property is zoned for a 25 story high rise the and the developer wants to build a 40 story high rise the CoV will grant it for a certain CAC (money towards community amenities). The developer can always pay no CAC if they build to the zoning level. CAC are only paid for up-zoning. Having said that the CoV pretty much holds all developments to this by old zoning regulations which does not allow for the density which is normal for a particular area. If there were no CAC then the land value would be higher. It would not reduce the price of… Read more »

Dave
2 years ago

We are so stupid in this City. So many people think this is somehow free money that the City creates from thin air. If the City cared about affordable housing, they’d give density away for free and to more developers to get product built and increase supply.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  YVR

If they’re resizing smaller to directly reduce unit costs then they’ve got 50 buyers who have put down deposits to screw over.

YVR
YVR
2 years ago

Wrong building. The building being “resized” has not been sold yet.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  YVR

Right you are.

MAKE TRUDEAU A DRAMA TEACHER AGAIN
MAKE TRUDEAU A DRAMA TEACHER AGAIN
2 years ago

Anything under $2-million will sell, but in the last two months, there’s been only one sale over $3.5-million.””

And they said it was locals driving the price increases. No foreign money – nothing to see here.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago

Which part of “anything under $2m will sell” is confusing to you?

MAKE TRUDEAU A DRAMA TEACHER AGAIN
MAKE TRUDEAU A DRAMA TEACHER AGAIN
2 years ago

AIDS they said it was locals moving the market not HAM. They were wrong and the fact anything over $2 mil is not moving cause locals can’t afford it proves it.

Not even two highly paid professionals can afford a $5 mil home. Only students and housewives from China can.

You really are stupid and likely the most hated person here.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago

So the fact that locals are gobbling up everything under $2m isn’t what’s moving the market? We already knew that foreign buyers made up 5-10% of sales and that they were mostly active at the high end. But that’s never been the majority of sales. Now you think that this proves the small minority of sales drives the market?

I’m guessing you inherited your money because you’re clearly too fucking stupid to have earned it.

Oracle
Oracle
2 years ago

If anyone on Twitter, and you tweet about housing in a negative way, be forwarned that politicians and developers have probably paid to get you shadowbanned.

Twitter is the only avenue for democracy. Once that’s gone, nothing else left.

MAKE TRUDEAU A DRAMA TEACHER AGAIN
MAKE TRUDEAU A DRAMA TEACHER AGAIN
2 years ago

Globe article today about developers panicking

Diadora
Diadora
2 years ago

I hope PaulB is not loosing interest in posting daily sales number on this site.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  Diadora

He knows that associating with racists is bad for business.

Oracle
Oracle
2 years ago

Brings up the racist card again. Hahaha

I bet you more than half the people here are ‘visible minorities’.

Only racists here maybe is BPOM and SIDA.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  Oracle

Being a minority doesn’t mean you can’t also be racist. Are you that dumb?

Oracle
Oracle
2 years ago

Sure you can! How do you treat blacks when you go back to China?

Like the locals do? I thought so.

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  Oracle

Oh, you are that dumb.

Oracle
Oracle
2 years ago

Commie upvoted himself.

Spec
2 years ago
Reply to  Oracle

LOL. You proved his point…

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  Oracle

Without being a member? You’re even more dumb than I thought.

Name
Name
2 years ago

Vancouver Tenants Union looks to expand across BC

https://www.news1130.com/2018/07/28/vancouver-tenants-union-looks-expand-across-bc/

“When I came back four years ago I found Vancouver in particular I can only describe as having a kind of toxic mist of greed hanging over. It all related to the value of land and property,” she explains.

that sums things up quite well…

Lost...but not Leased
Lost...but not Leased
2 years ago
Reply to  Name

In a tight rental market these people have little if any power.

Dyugle
Dyugle
2 years ago

The million dollar SFH line has moved west of the Pitt river with Port Coquitlam now under that value. Line is at the Lougheed highway. Next target is South Coquitlam.

Best place on meth
Best place on meth
2 years ago
Reply to  Dyugle

Ladner slipped under a mil last month.

Yes, the world famous Ladner with its A list movie stars and international high roller financiers all living there.

Once again, that’s Ladner.

Lost...but not Leased
Lost...but not Leased
2 years ago
Reply to  Dyugle

Hmmm…this is interesting…NDP has a few ridings in these areas….NDP policies are killing off own soon- to- be ex- millionaire supporters ????

Regardless…interesting to observe where the” million dollar SFH” line maxed out before retreating.

Watch the condo market not only follow SFH…..but likely implode..many people bought at these peripheries and drove prices to unsustainable levels. Bubble is deflating fast.

Or. conversely, if one could afford to pay $1 million…now you can shop around for something closer.

Oracle
Oracle
2 years ago

Some issues that can bring down Canada to its knees and wakrbthe naive minions up!

World trade of $2 Trillion per year. The US-EU trade is half or $1 Trillion. They have started negotiating true free trade. If it happens it means zero tariffs and zero subsidies.

Trump at the same time may strike a deal with Mexico. Trump basically said Fuck Canada because the clown Trudeau is pandering to Chinese interests.

China is Trumps #1 Target. Hopefully the country is set back decades and their financial system collapses. The vested interests in canada in alignment with China must be defeated!

Otherwise Canada will be brought to its knees.

YVR
YVR
2 years ago

Andrew Weaver slams the NPD faux crack down on tax evasion.

“This is not dealing with tax avoidance, despite what the press release says. What this is doing is it’s allowing government to collect data, and it’s also essentially dealing with anonymity of property ownership,” said Weaver. He says the NDP government needs to require the property transfer tax be applied to the beneficial owner of property, not just the owner listed on the land title. Weaver says the province needs to close the bare trust loophole that allows people to purchase a property in a trust, have a corporation own shares in that trust, and then sell the shares in that corporation and transfer the beneficial ownership of the property without changing the title, to avoid paying the property transfer tax.

https://www.cbc.ca/news/canada/british-columbia/bc-government-crackdown-tax-evasion-real-estate-property-transfer-tax-1.4762163

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  YVR

Does he mean avoidance or evasion?

realist
realist
2 years ago
Reply to  YVR

Andrew Weaver, quoted in the above article:
“This is not dealing with tax avoidance, despite what the press release says. What this is doing is it’s allowing government to collect data, and it’s also essentially dealing with anonymity of property ownership.” He says the NDP government needs to require the property transfer tax be applied to the beneficial owner of property, not just the owner listed on the land title. “They haven’t closed that loophole … they still left it open, but now it’s transparent, and it’s almost like you’re taking half steps in actually dealing with what frankly government said it was going to do ages ago, and it still hasn’t done it.”

Oracle
Oracle
2 years ago
Reply to  realist

Wow. NDP showing its true colours. They are hoping to stay in power on the backs of the naive.

If renters can’t see this then they deserve this.

Bare Trust should be closed. That simple. They could do it in a week.

This data collection is no better than a ‘study’.

Vote for PR. Then vote massively for the Greens. Let’s Fuck this NDP up!!

YVR
YVR
2 years ago

“NDP rules could boost Pattullo Bridge replacement by $100 million”

Your tax dollars at work. The unions pay the NDP you pay the unions.

https://vancouversun.com/news/politics/ndp-rules-could-boost-pattullo-bridge-replacement-by-100-million

Name
Name
2 years ago
Reply to  YVR

The same thing happened when the new island highway was built. It was a closed shop for unions only. No non union trades were permitted. So it cost the taxpayers millions more than it could have.

Lost...but not Leased
Lost...but not Leased
2 years ago
Reply to  Name

Are you sure it was closed shop?
…..I thought it was wages on par with unions was the key .

bullwhip29
bullwhip29
2 years ago

Sonny Sidhu, of G S Farm says he and other blueberry farms in Richmond are having to keep a keener eye on pickers these days. Theft is a recurring problem and so are a minority of pickers who don’t respect rules, including littering, where at one point this season, Sidhu, in a shake-your-head moment, had to discard a used diaper found between his rows of blueberry bushes…
http://www.richmond-news.com/business/richmond-u-pick-101-guide-farmers-don-t-do-dirty-diapers-1.23380951

Best place on meth
Best place on meth
2 years ago
Reply to  bullwhip29

At least they’re finally starting to put their infant locusts into diapers rather than allowing them to piss and shit freely wherever they go.

Note to the farm owner, the reason some of them show up without buckets is because they’re only there to fill their bellies, not to buy.

I’ve witnessed this first hand.

YVR
YVR
2 years ago

What makes you think the diaper was for an infant?

Name
Name
2 years ago
Name
Name
2 years ago

China says vaccine maker Changsheng broke manufacturing rules, faked records

https://globalnews.ca/news/4357502/china-says-vaccine-maker-changsheng-broke-manufacturing-rules/

we can add this to the long list of fraudulent practices to come out of that cesspool of a country.

Hyper-mega-Bull
Hyper-mega-Bull
2 years ago
Reply to  Name

more likely didn’t pay the bribe or executive didn’t let the high level communist party official sleep with his wife.

Hyper-mega-Bull
Hyper-mega-Bull
2 years ago

the fact that there are manufacturing rules and fake records is a given. the real question is what resulted in them getting caught? see my above comment.

Spec
2 years ago

Looks like that AirBnB slum host has been facing some headwinds.. https://www.vancouverisawesome.com/2018/07/27/airbnb-fined-illegal-hostel-north-vancouver/

Un Real

“In fact, the apparent pattern to Ms. Yu’s behaviour is to verbally express a willingness to comply when speaking with staff and then take actions in her property that contradict her verbal promises and result in worsening the non-compliance,” the report stated.

After an inspection in March 2017, bylaw officers ordered Yu to remove a sofa bed she’d been renting out in her basement. When staff came back the next month, they found Yu had replaced it with bunk beds, bringing the total number of beds in the townhouse to 15.

The letter sent to Yu afterward read “You are required to IMMEDIATELY CEASE AND DESIST the tourist accommodation use and the use of the basement level as a habitable room.”

Hyper-mega-Bull
Hyper-mega-Bull
2 years ago
Reply to  Spec

she did an interview.

https://www.reddit.com/r/vancouver/comments/9290hb/more_details_on_controversial_north_vancouver/

chinese know canadians and especially vancouverites are weak and toothless. expect exploitation to continue to increase.

Best place on meth
Best place on meth
2 years ago

Belligerent cunt, isn’t she.

This is the kind of disrespectful trash we let into our country, if only it was possible to strip her of her citizenship, seize her assets, and shove her into a container bound for her shithole of origin.

Strata Hacker
Strata Hacker
2 years ago

Container? You are getting soft. Just flush er down the toilet

southseacompany
southseacompany
2 years ago

“Vancouver Condo Developers Report Slower Sales”, Better Dwelling

http://vancitycondoguide.com/condo-developers-report-slower-sales/

Doomcouver
Doomcouver
2 years ago

Oh man, I’ve been getting the popcorn ready for almost a decade now. Strap in boys, this is the big one.

Oracle
Oracle
2 years ago
Reply to  Doomcouver

They’ll stop building while population inflows continue. Then what? Higher rents and more FOMO.

What needs to happen is an abrupt correction.

Stand up for Canada
Stand up for Canada
2 years ago

Fire sale Van West

https://www.zolo.ca/vancouver-real-estate/1243-west-64th-avenue

Ask: 1.59m
Assessed: 1.957m

Likely another relist as the pics are of snow on the ground.

southseacompany
southseacompany
2 years ago

“Trump is pressuring the Fed to keep interest rates low. Nixon actually did it — and damaged the economy”, Los Angeles Times

http://www.latimes.com/business/la-fi-fed-political-pressure-20180727-story.html

“Fed Chairman Arthur Burns was worried that continuing the low rates and expansionary monetary policy with the economy growing again could lead to what he called “awful problems” down the line. Nixon was more worried about his reelection in 1972.”

““We’ve really got to think of goosing it … late summer and fall of this year and next year,” Nixon told Burns on March 19, 1971, according to White House audio recordings released years later.””

bullwhip29
bullwhip29
2 years ago

if things are so “tremendous”, then how can he justify this? imho things aren’t as rosy as they seem, but the powers that be in the US and elsewhere won’t be spinning that narrative at this time as it would be politically suicidal. perhaps once the midterms are over they can walk back some of sales pitch but it will be too late to prevent the popping of the everything bubble (which I suspect is already underway). the moneychangers at the Fed know this market is one big festering turd and are trying to position themselves without upsetting the apple cart or tipping their hand. honestly, they left things way too late. having said this, all the experts and talking heads (who are still busy pumping the markets up at this time) will ultimately blame the mess on him since… Read more »

Oracle
Oracle
2 years ago
Reply to  bullwhip29

Trumps going to win huge in midterms. CNN won’t even broadcast the poll numbers. Lol

kabloona
kabloona
2 years ago
Reply to  Oracle

LOL? Are you laughing at yourself….

Seriously.

🙂

Best place on meth
Best place on meth
2 years ago

Record Drop in Foreigners Buying U.S. Homes Home purchases by overseas buyers have fallen 21%, dealing fresh blow to housing market https://www.wsj.com/articles/record-drop-in-foreigners-buying-u-s-homes-1532632676 “This might be the first time in my career that I’m seeing more Chinese sellers than buyers,” said John Chang, a broker-owner at Engel & Völkers in New York City. Mr. Chang said his clients have watched prices rise sharply in recent years and determined that now is their opportunity to “cash out.” On a trip to China last week, Mr. Chang said he realized that Chinese news coverage of the U.S. is spooking would-be buyers. “It’s staggering,” he said of the negative coverage, including editorials saying now isn’t a safe time to invest in the U.S. and articles chronicling real-estate developments funded by Chinese investors that have gone bankrupt. Chinese buyers remained the largest purchasers of U.S.… Read more »

patriotz
2 years ago

https://www.prnewswire.com/news-releases/international-activity-in-us-residential-real-estate-market-declines-according-to-realtor-survey-300687161.html

Article without paywall. Note that NAR’s “foreign buyer” stats include recent immigrants. Interestingly, “Buyers from Canada are the most likely to purchase a home through an all-cash sale (78 percent).” But that means all-cash on the US side – I would think a lot of them are getting money from HELOC’s on their residences in Canada.

Best place on meth
Best place on meth
2 years ago
Reply to  patriotz

“The saying goes that all real estate is local, but that does not mean that all buyers are,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. “Even in this current global environment of political uncertainty, the U.S. real estate market continues to be seen as a safe, secure and profitable place to invest in property.”

6th generation realtor?

WTF?

Shut It Down Already (original)
Shut It Down Already (original)
2 years ago
Reply to  patriotz

To the petrified “foreign” means “Chinese”.

Also note that prices are increasing despite the drop in sales to foreigners. It’s almost as if they’re not the cause. How odd.

Loon
Loon
2 years ago

Who the heck wants to own in Trump town ? Not this Canuck.