Tag Archives: luxury

Vancouver Housing Myths

Crabman pointed out this article in BIV: Conference torpedoes Vancouver housing myths

Metro Vancouver housing is affordable. The market is stable. There is no glut of new condominiums looming. And foreign investors are not driving sales and prices higher.

I believe those are not the myths being exploded, but meant to be statements of fact at the beginning of the article. As for the ‘affordability’ issue, the cities top condo salesman says simply omit SFH and disregard the top 20% of the market and things don’t look so bad.

Rennie said media and pundits concentrate on the average price of single-family detached houses in the City of Vancouver, which consistently average in the million- dollar range, with condominiums north of $440,000. But, he said, such higher-end sales represent only 20% of the overall market.

For the remaining 80% of buyers, the average detached house is around $670,000 and the average condominium is $316,000, Rennie said.

But there seems to be some question about how that math works out. Crabman claims to have done the math and come up with a different result:

There are also 383 houses listed over $670k in East Van. When I removed the most expensive 20% of listings, the median price of the bottom 80% was $1,088,000.

And on the west side, the median price for the “cheaper” 80% of listings was $2,888,888.

But even if Crabman is mistaken and Rennie has the math correct, there’s this:

Of course, once you also exclude the top 20% of incomes, $670,000 is anything but affordable.

 

 

Friday Free-for-all! Luxury Credit.

You made it to the end of another work week, and that means it’s time to do our regular Friday Free-for-all post here at VCI.

This is our 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:

Price changes and credit (graph)
Why so many doomers?
High prices raise debt levels
Perspective on foreign buyer levels
3rd try for Versace in Vancouver

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

Vancouver no longer on planet earth?

The Condo King has emerged from hibernation and seen no shadow: that means two more years of bubble.

“We no longer live in Vancouver. We live on the planet.”

With that remark, renowned Vancouver realtor Bob Rennie attempted to explain the evolution of this city’s exasperating housing market.

He made the comment last week to a conference of the Urban Land Institute, an organization representing realtors and developers who intimately understand what the condo guru was referring to.

Full article in the Vancouver Sun.

Taxpayers funding condo flippers?

By now everyone knows about the high cost of the Olympic Village project.

Current estimates are that it will cost taxpayers between $400 – $600 million to pay this off.

There are 68 units still left unsold over the last six years, but over at the ‘Canada House’ building it looks like a number of units have been bought and flipped, at least one for more than $400k profit in a month.

Hat tip to Mac who pointed out this article in the Province.

So whats going on here? Should these units have been priced higher or considering the tough sales across this project were they right to unload them quickly even if there were buyers willing to pay more?

Fake houses for fake buyers.

Could our market get any more surreal?

As if marketers pretending to be buyers wasn’t weird enough now there’s a pretend house as well.

Last week there was the story about the 2nd most expensive property ever listed in Canada

(spoiler alert: it’s a teardown in West Van).

It turns out those pictures of a weird gaudy Barbie palace that looked like it was built out of frosting and gold plastic were not of the actual home.

Screen Shot

The Sun has since learned that the photos on the listing realtor’s website are artist’s renderings and not photos of the actual home on the property. The home on the property is a rancher/bungalow built in 1964. Realtor Laura McLaren says the images on her website depicting a mansion “are renderings of what could be built on this property.”

Yep, they’re ‘artist renderings’ of the sort of thing that could be built on that property.

Design is subjective, but if you had $38 million and enough left over to build a dream home would this be your ideal style?