Category Archives: BC

Vancouver homes lost 49% of their down payment in one year.

Southseacompany pointed out this article at global news: according to zolo, Vancouver home prices have lost almost half of their down payment value in one year.

“Once considered Canada’s hottest locale for real estate, home values in the West Coast city took a beating over the course of a year, with the average home price dropping from over $1.1 million in February 2016 to $995,583 a year later.”

“Zoocasa calculated the loss (or gain) of return by taking the year-over-year change in average home prices and then dividing it by the down payment buyers would have had to make in February 2016.”

“By this measure, Vancouverites lost 49 per cent of the return on their down payments.”

Read the full article here.

Free money popular with first time buyers

The new BC first time buyer program is proving to be popular with over 1000 applicants who will hopefully vote for the current government in the next election.

“The B.C. Liberal government has received more than 1,000 applications from first-time home buyers who have been lured by new incentives under a program designed to improve housing affordability.”

“Critics, however, say the program is adding fuel to an already heated market for condos, notably in the Vancouver region.”

““Ottawa has been saying let’s have fewer highly leveraged buyers, but the province is saying we have to help the risky, leveraged first-time buyers get into the market,” Prof. Davidoff said in an interview Sunday. “The province has sweetened the pot.””

Read the full article in the Globe and Mail.

And now a political message from Dave

Dave sent in the following opinion, in which he throws up his hands in despair at the state of politics in BC and its role in the housing bubble.

If there was ever an election to vote for None of the Above, this would be it.

I no longer believe that any of the three major parties represent the interests of the average British Columbian. Each have sold themselves out to Special Interest groups of one type or another.

I’ll first start with the BC Liberals because they are looking for a fifth term. I have been a party member, volunteer and voter for the BC Liberals each of the last four elections. I am also a small business owner and employer and I generate a healthy income. In theory, I’m the easiest vote the Liberals should ever get. But they aren’t getting my vote this time.

Continue reading And now a political message from Dave

Getting Denser

There is a move afoot to discourage owners from tearing down pre 1940s character homes in Vancouver, but this brings concerns that such a move would limit development and supply.

The mayor agrees and is making statements hinting at increasing housing mix in low density neighborhoods:

“People are feeling squeezed out,” said Robertson.

He argues since 2011, more than 1000 people have left neighbourhoods like Dunbar, Arbutus Ridge and Kerrisdale — neighbourhoods that feature character-style homes.

“It’s clear our lowest density neighbourhoods are changing and we need to make sure they’re changing for the people who need them,” he said.

Robertson says, “now is the right time to advance the conversation for more affordability and a mix of housing types that fit within our single family home neighbourhoods.”

His statement says that mix could include townhomes, row houses, and duplexes.

Meanwhile, roughly 1,000 homes are torn down every year in Vancouver and the majority of those were built before 1940.

Read the full article here.

Axing the property transfer tax

The Premier would like to get rid of or minimize the property transfer tax but it currently just brings in too much money.

“We really want to start knocking down the property transfer tax because it is a drag on our economy. It is one thing that we can do to try and increase affordability,” Clark said.

“Why don’t we do it in this budget? Because this year we brought in $928 million in revenue. The only way to replace that would be to raise taxes elsewhere,” she said.

Is the buying and selling of homes where our economy needs a boost?

Read the full article here.