Vancouver has just been ranked the #3 least affordable housing market in the world behind Hong Kong and Sydney according to a survey by Demographia.
This is the second year in a row Vancouver ranked third after hitting second place in 2015. The city has been ranked with the worst housing affordability in Canada in all previous Demographia surveys since 2004.
Demographia reported Vancouver’s year-over-year price growth was equal to a year of household income in the city. It also mentioned the city experienced a “modest” net domestic out-migration in 2016, meaning more people left the city than moved in.
Which city do you think those people that left Vancouver are moving to: Hong Kong or Sydney?
Read the full article here.
Shopping for a house but didn’t buy yet? Now may be the time! The benchmark price of a detached home in Vancouver just dropped by $27k. That’s just about the price of a brand new Civic, so if you buy now it’s like getting a free car!
What will next month bring? Is this free car premium a temporary result of snow or will you be able to upgrade to a BMW next month? Time will tell.
The new BC government interest free loans program for first time buyers might help to get some more condos sold. Certainly real estate developers in this province tend to be in agreement with government policies, showing their appreciation by holding 8 of the top 10 liberal donor spots:
Eight of the 10 top donors to the B.C. Liberal party in 2016, and so far in 2017, are involved in the province’s property development and construction industries.
Combined, the eight donors contributed nearly $1.5 million of the $12.5 million collected by the Liberals during the period, an analysis by Postmedia News of the donor list released by the Liberals last week shows.
Some of the real estate development and construction sector donations came in six-figure instalments.
At least this booming real estate market is creating lots of jobs right?
Well, not as many as Quebec which created more full time jobs than any other province and accounts for 42% of national labor growth in 2016.
Way too early to call this one, but Whistler or Bust points out the steep crash in December prices at the National Bank home price index. This one is interesting because it only measures sales of the exact same property to get it’s numbers.
If you go to housepriceindex.ca and click Vancouver you’ll see a chart that shows the recent dip, which looks like one of the steepest declines on the index so far.
Some realtors have stated that January sales are not looking very good so far and Paul Boenisch posts daily numbers here that are showing listings bumping up in the new year, but not too much on the sales numbers so far.
Paul also has a new website up at clivestevepaul.com if you’re looking for help buying or selling particularly on the north shore. That’s a shout out to a realtor who has consistently shared daily sales stats for years and years for your amusement and edification. Cheers Paul!
An anecdote from commenter YVR on asking prices downtown:
Every month a realtor send me listing and sales for my building where I rent. It is a newish building in downtown Vancouver so suites are almost identical to compare sale prices to. Here are the last 3 sales for almost identical suites:
March 2016 $1.32 million
June 2016 $1.36 million
Nov 2016 $1.15 million
From June to Nov that is over a 15% reduction or $210K in 5 months. Imagine being the person who bought in June and just received the same flyer with the recent sale price. Ouch. If he/she sold today after transaction costs they would be down by $280K and that assumes they could get the November price which is unlikely.