So are we ‘world class’ yet?
Despite not making it onto lists of the worlds most economically powerful cities, Vancouver is finally being compared to London, Stockholm & New York and we come out on top!
Swiss bank UBS has named Vancouver the city with the worlds riskiest housing bubble:
UBS said Vancouver prices were unaffected by the financial crisis in 2008 and continue to rise despite weakening commodity prices.
“Over the last two years, the housing market has gone into overdrive due to strong demand for local properties among foreign investors and a loose monetary policy,” the report said.
“Currently, house prices in Vancouver seem clearly out of step with economic fundamentals, and are in bubble risk territory.”
Hot on the heels of Vancouver are London and the Swedish capital, Stockholm. The report stated that, with the exception of Milan, low interest rates in the euro zone have pushed all the European cities reviewed into bubble territory.
Read the full article over at CNBC.
There seems to be a shift if then Vancouver real estate market lately and that has some people excited about a potential return to sanity, but we’ve seen versions of this story before. BearVancouverite shares some thoughts on why they remain ‘cautiously optimistic’ and a question about the future:
Some posters here are counting their chickens before they hatch. I’m with Ulsterman in being cautiously optimistic.
We all need some perspective here:
1) Total inventory is still below 10k. In previous years even 15k+ inventory saw a mostly sellers market.
2) The superb chart that Brian Ripley posted shows that the purple dots are leveling off, at an absorption level ABOVE 2015 and 2014 still. I hope this continues to drop.
3) News reports show that condos are still selling at a decent pace
4) Even a 50% drop in Summer 2016 listing prices only resets prices to maybe 2013 levels. Most houses I see listed in Killarney for instance are as of yesterday listing for $2.2-2.8M. Going down from there to $1.1-1.4M is still above what almost every bear here was willing to pay in 2010.
Here’s my question, and I honestly want to know because I’m trying to figure out at what point I should seriously consider buying. If there’s a 50% drop, and a Killarney 120 year old near teardown is selling for $1.2M, how many of the prominent bears here (including vangrl, yvr, Hamster, BPOM, LS in Arbutus, and UBC in crisis) would recommend a friend to buy at that point?
Btw as a counterpoint to my above caution, here’s my personal observations:
1) I’m seeing a lot of Killarney listings SFH come up now. Far more than I noticed throughout summer.
2) In general I’m seeing more 3BR+ listings per day than during summer, although there’s still very little coming up.
3) I’m seeing a lot of higher quality SFH being listed. Eg not just teardowns
4) Some of the listings I see have descriptions which include the realtor saying “lived in by long term owner” or “for sale by original owner” or “owner of 40 years” etc. So just observationally some of the inventory coming online is from locals finally willing to sell.
HALT_YVR wrote in with a recap of this weekends rally and a link to video of the first 4 speakers:
We just wanted to say thanks to everyone that managed to make it out to our rally this Saturday. Despite the lousy weather, we managed to get 200 people out to make noise about this housing crisis slowly grinding local Vancouverites into dust. We had some great speakers that ran the gamut from average citizens to lawyers, economists, and activists. For those that didn’t get a chance to make it out, here’s a video of the first 4 of our 6 speakers. It’s long at 45 min but well worth the listen: https://youtu.be/h6wRS-fMHi4
We’ll keep you posted on future events that are just now in the planning stages. Expect another event to draw attention to our housing crisis and pressure government in the next two months.
In the meantime like our FB Page to keep up with all the latest updates: https://www.facebook.com/HALTVancouver/
Thanks again for your support,
The HALT Team
Housing Action for Local Taxpayers (HALT) is a group of Vancouverites whose goal is to pressure government to take action on local housing affordability.
HALT wrote in to let everyone at VCI know they are holding a rally at the Vancouver Art Gallery this Saturday Sept 17th at 2pm.
They have a great line up of speakers including Christine Duhaime the Vancouver lawyer focused money laundering.
More information can be found on their Facebook page.
Here’s some info from their comment yesterday:
Specifically we are calling on Government to:
– HALT money laundering and tax fraud by individuals hiding their money in our housing market
– HALT Immigrant Investor Programs that bring in owners who do not contribute to our income tax base
– HALT corporate donations to political parties. For too long, our governments have served moneyed interests and not the interests of the citizens of our city and our province
– HALT AirBnB of our rental stock. We need regulations in place to protect our renters
– HALT demolitions of affordable rentals that are being replaced by unaffordable luxury condos marketed to offshore buyers
We’ve got a great panel of speakers lined up including:
– Christine Duhaime, a lawyer heavily involved in catching foreign money launderers in Vancouver
– Josh Gordon, Assistant Professor, School of Public Policy, Simon Fraser University, who has done extensive research on the impact of foreign capital on our housing market
– Dr. Darren Joneson, whose housing story we featured on our Facebook page
– Caroline Adderson, author of the book “Vancouver Vanishes” owner of FB community of the same name, will talk about demolitions of heritage homes, zoning and how we create density in a liveable, sustainable city
– Paul Kershaw, founder of Generation Squeeze, who will talk about the the challenges millenials face in getting into the housing market and Gen Squeeze’s “Homes First” policy.
Please come out, stand up, be counted, and let our government officials know that enough is enough!
Thanks for your support,
The HALT Team
You can find more info on their Facebook page and at haltvancouver.org.
Perhaps someone can inform us as to where this graph originated- both Newcomer and YVR posted this in yesterdays comments.
This is an inflation adjusted chart showing average peak detached house prices and where prices would have to go to match a couple of different historical price collapses in Vancouver:
The original image is posted here on cloudup.