Category Archives: prices

One half year into a decline

It’s not just Vancouver, sales are falling across the nation marking the first March decline since the recession.

Prices fell in seven of the 11 markets in the index, led by a 1.5 per cent drop in the capital region of Ottawa-Gatineau. In Victoria, British Columbia’s capital city, prices were down 1.1 per cent, with Vancouver prices down 0.5 per cent.

Canada’s once-hot housing market has softened since the start of last year, as tighter mortgage rules and five interest rate hikes from the Bank of Canada since July 2017 have curbed buyer spending power.

Read the full article here.

A plan to not help affordability

southseacompany points out this article about Finance minister Bill Morneaus plan to ‘help‘ homebuyers.

“One of the things Finance Minister Bill Morneau did in the budget on Tuesday was to take steps to fix Canada’s home ownership problem. But who told him Canada has a homeownership problem?” 

“Homeownership rates in Canada are among the highest in the developed world. Even among young people, homeownership rates are high compared to our peers with more than 40 per cent of households led by people under 35 owning homes. And yes, even in Toronto and Vancouver, homeownership rates are high relative to those cities’ global peers.”

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.

Vancouver condo prices go negative

Sales down, inventory up and prices are down for condos in the greater Vancouver area :

The price of a condo in Greater Vancouver is coming down. REBGV reported a benchmark price of $658,600 in January, down 0.8% from the month before. This represents a 1.7% decline compared to the same month last year. In the City proper, condo apartments in Vancouver East fell to $530,500, down 3.9% from last year. In Vancouver West prices fell to $783,400, down 3.6% from last year. Prices are falling, but they still have a long way to go for typical incomes.

Read the full article here.