It’s that time of the week again!
Let’s do our regular end of the week news round up and open topic discussion thread for the weekend.
Here are a few recent links to kick off the chat:
–Ottawa making housing fix a top priority
–Thanks for the help
–Impact of housing on economy
–Household debt bigger than GDP
–Average Weekly Inventory chart
–Why the borrowing binge will end badly
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
The Globe and Mail has a suprising headline: Sky-high housing prices in Vancouvers west side short lived.
Both sales and prices are down at the top end even more markedly than in the rest of the region, which has also seen a general slowdown this spring.
A house on the 3000 block of West 24th Anenue, first listed at near $4.5-million six months ago, sold on April 15 for $3.35-million.
Fresh statistics from the Greater Vancouver Real Estate Board show the number of sales on the west side is down by nearly 40 per cent for the first four months of the year. Only a third of the nearly 400 homes listed in April have sold – one of the lowest rates in the region.
Realtors say the slowdown appears to have resulted from a combination of tighter lending practices by local banks, which now want proof of income to service large mortgages, more restrictions on how much capital can be taken out of China, and fewer immigrants.
“Banks are now requiring borrowers to disclose incomes and assets before mortgages are approved, as of the last six weeks,” said west-side realtor Marty Pospischil, who specializes in selling single-family homes owned by long-term residents. Last year, he says 90 per cent of his 100 house sales were to “offshore buyers” – people not living here yet, who flew in to buy. This year, it’s less than a tenth of that. “We’re now seeing a 50-per-cent collapse rate in deals, when it’s usually more like 5 per cent,” he said.
Read the full article here.