Category Archives: BC

The good side of falling real estate prices

Over at the Globe and Mail commenters are ‘feeling the schadenfreude‘ over falling Vancouver real estate values.

JP Beauchesne:

As a 32-year-old, I am definitely feeling the schadenfreude here. Housing prices are unrealistically high across much of the country, and I would like few things better than to see that market crash so that I can have a shot at buying a decent house myself

Read all the select comments here.

Greater Vancouver has best month for home sales since 1986

Best if you’re hoping for price drops on real estate that is.

We dont have official numbers for March yet, but realtor Steve Saretsky says that we just saw the lowest March sales numbers since 1986:

Saretsky said prices are in fact taking a dip, however the slide isn’t evenly distributed.

“You know you can probably get a 40 per cent discount at a house in West Vancouver, but you might only get a 15 per cent discount on a house in East Vancouver.”

He added that condo sales also saw an 18-year low last month.

Of course he did say this on April 1st. Read the full article here.

Luxury Mansion Rentals for Dirt Cheap

…At least that’s what CTVnews says.

The city of Vancouver is facing a crisis in housing affordability, with one bedroom units averaging about $1,730 per month.

But these rentals offer a single room in a multi-bedroom house for anywhere between $700 and $1,500, with more than 5,000 empty bedrooms available across the city.

“Maybe the cheapest real estate right now is mansion rentals,” Roy said.

While most owners contacted by CTV News said they don’t want groups renting out the homes, the rentals present a cheaper housing alternative for students and young professionals.

Sehrish Qureshi is one of 14 students who applied online and was placed in a Vancouver mansion nicknamed “the castle,” paying around $1,000 a month for a mansion with a pool, home theatre, and games room.

When move-in day arrived, she was shocked by the furnished, $5-million home.

“Me and my family were just like, ‘What? Is this for real?’” she said.

“I’ve compared it to some of my classmates, and they pay, like, $1,300, $1,400 for small studio apartments in downtown … I’m so happy with what I’m paying.”

Read the full article here.

Mortgage brokers stuck in the middle

Mortgage brokers make their money by getting people mortgages. In a softening market this can present a challenge.

FICOM is the agency that regulates mortgage brokers and they are issuing a warning:

Brokers should not overleverage their clients; this may be done by fudging applications – overstating the income of a borrower to obtain a bigger loan (and hence a bigger commission), said Carter, who also warned brokers of working with unregistered fixers.

Carter told brokers in Vancouver that the days of “how to get to yes” are over with new market uncertainty, and slumping sales and prices. Now, brokers need to be extra vigilant and learn “when to say no.”

He said Canadians could be in for a rude awakening if real estate prices fall and they’re still saddled with big mortgages and even loans against their equity, suggested Carter. And the brokers who brought loans to those homebuyers will face extra scrutiny, he said, which is why he’s calling on the industry to ease back the throttle on new mortgages that may be contrary to the best interests of the public.

Read the full article here.