Tag Archives: costs

What’s happened to condo prices?

With all the media focus on rising real estate prices in Vancouver you’d think all market segments must be doing pretty well right?

Well it sure looks like condo prices have been languishing.  First we had the CIBC world markets report showing Vancouver condo prices barely budging in the last five years, and now Ulsterman points out the following:

It’s easy to only see the big gains SFH’s have made over the past 5 years and overlook the many “homeowners” of condos who have not made much or even lost money (what!?!, but i was told it only goes…).

I noticed 303-1333 W 7th Ave (V1088944) listed in the Georgia Straight p72 of Nov 20-27 issue). It’s a 1bd/1bath unit listed for $355,000. The key detail was of course, “Amazing deal, listed $20,000 below where it sold in 2009.”

So after paying $70k in interest, $15k’ish in taxes and strata fees, $20k capital loss, CMHC fee when buying (10k) (3%?), $13k selling fees. This gets expensive really fast ($128,000 over 5 years or $2133/month). It probably rents for $1300/month.

Not such a slam dunk.

Are condos just hitting a price ceiling at the entry level? Shouldn’t condo prices be going up more in this market?

Joe Mainlander points out that the REBGV HPI paints a similar picture.

Even the REBGV HPI stats point to a sinking condo market (not 20% though);

Metro Van Apartment HPI;

July 2008 = $367k
July 2014 = $380k

There’s been 10% inflation since then, so HPI would need to be $403k just to keep up.

A 6% drop in real dollars.

FFFA! Little Mountain, Debt, Holidays & Heritage

Boo!

You made it to the end of another week and here at VCI that means it’s time for another Friday Free-for-all!

This is 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:

Canadians spend more on housing
Heritage drives down prices
Using tax dollars to boost economy
The little mountain that couldn’t
Holidays are for losers
TFW program not so curtailed
Swedish bubble test case?

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Friday Free-for-all!

It’s the end of another work week and the start of another month! Hope you paid your rent and your mortgage bills and still have money in the bank.

The month of May wrapped up with higher than normal listings and lower than normal sales. We’ll have to wait to see what the official word is, but it sounds like we may see a bit of softening in some detached prices and little bump up in condo prices.

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:

MOI 6.66, the MOI of the beast
Inventory graph back into record high
Teranet sales pair dries up
Will bloggers ruin the perfect market?
Okanagon sees huge foreclosure spike
How much is your commute?
Building jobs boom
Van Commercial RE booms
RBC: Ownership costs climbing
Rising prices means confidence for Toronto

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!