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.
Vancouver seems to be getting a lot of attention right now for the disparity between house prices and incomes:
The median cost of a Vancouver home, adjusted for purchasing power parity, is US$672,000 — costly but still 15 per cent to 26 per cent below that of San Jose and San Francisco, the two most expensive housing markets, according to Andy Yan, director of Simon Fraser University’s City Program, whose study accounted for the difference in buying power of a dollar across geographies and currencies.
What pushes Vancouver to the top of the unaffordability rankings is paltry wages. In Canada’s third-largest city, the median household earns the equivalent of US$61,036 a year — in line with Columbus and less than families in Omaha, Nebraska, Kansas City, Missouri and even Lancaster, Pennsylvania, a rural community of 59,000 known for cornfields.
fortunately the solution is simple: cut house prices in half or double up current household incomes. Read the full article here.
Kabloona pointed out this article about a vacant zombie neighborhood in West Van.
Nobody’s home except dust bunnies and racoons
In one of Canada’s most expensive neighbourhoods, in hilly West Vancouver, sits a row of seemingly abandoned mansions.
Not a single person can be found on the upper north side of Highview Place on a weekday midafternoon.
Read the full article here.
When the city of Vancouver was trying to woo Amazon there was some concern that housing data would make the city look bad.
As city staff scrambled last fall to put together a proposal to woo Seattle-based Amazon to build a second headquarters here, they were faced with a major potential weakness: how to make the city attractive in the midst of a housing affordability crisis?”
“Internal email records obtained by the National Post through a freedom-of-information request show that the issue was top of mind for staff within the city’s economic development agency, the Vancouver Economic Commission, some of whom discussed leaving out certain housing data that could make the city “look bad.”
Read the full article over at the National Post.
As Dave puts it “Imagine if they were concerned about housing for locals.“
Can it be? Have we gone two month in the spring selling season without a single day hitting over 200 properties sold?
Myraandrews has gone through Paul’s numbers and it looks like that’s the case: