It’s that time of the week again! This is when we do our regular end of the week news round-up and open topic discussion thread for the weekend. Here are a few stories to kick off the chat:
–Vancouver home resales plummet
–Young families fleeing BC
–CMHC forecasts moderate slowdown
–Canadian prices falling steadily
–Canadians invade Costco
–Home inspectors regulated
–US market recovering?
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
If you’re wondering why we haven’t heard as much about wealthy chinese buyers lately as prices drift down in Vancouver, maybe it’s because they’re moving to the USA.
“California has always been popular with Asian buyers,” he told beyondbrics. “But whereas before it was mainly buyers from Taiwan, Hong Kong and Japan, now we are seeing more mainland buyers visiting.”
Reasons for purchases vary, say those who have dealt with overseas Chinese buyers. Some are buying because they want to emigrate or they have children who will go to school in the US. More and more Chinese millionaires are looking to settle in the US or at least secure residency rights.
And why would they be buying in the US as opposed to Canada?
Others buy because the numbers add up: the renminbi is relatively strong against the US dollar and property prices are cheap compared to Australia or Canada.
But it’s not supposed to work like that! Wealthy people aren’t supposed to look for good deals..
It’s that time of the week again! Friday is here and the weekend draws nigh!
So lets 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:
–19,000 Listings Party!
–Vancouver home sales hit 10 year low
–Updated inventory graph, next leg up!
–OSFI Relent on tougher rules
–Your own private BC island?
–Investors shy away from Genworth
–US prices down 42% from peak?
–Sales great in interior says BCREA
–The moving-to-America experiment
–Boomers double-down on real estate
–Canadas mobility problem
–VCI comment signal to noise graph
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend.
Also! For a short time we tried opening up registration on the VancouverPeak forums, but were immediately inundated with spam registrations. So we’re back to invite only for now. There are ten invite codes at the end of this post if you’re interested in registering for an account there. The main advantages of a VancouverPeak account are that you can upload images, xls files, etc to share data or analysis.
Here are those codes, you can use them at this registration link, first come first served.
Used codes removed and replaced with fresh codes Saturday Morning 9:19 am:
..At least that’s what Mark Carney and other Bank of Canada officials have said according to this article, yet they’re refraining from being more specific.
Meanwhile the Organization for Economic and Co-operative Development (OECD) is urging Canada to start raising interest rates in the fall and keep on raising them to stop an inflating housing bubble and reign in inflation.
The OECD, a high-powered economic research group backed by contributions from its 34 rich country members, offers a scenario: An increase in the benchmark rate of a quarter of a percentage point in the autumn, and similar increases each quarter through to the end of next year, leaving the benchmark overnight target at 2.25 per cent.
That still would be low by historical standards, yet, according to the OECD, likely a big enough increase to cause prospective homeowners to think twice before buying at current inflated prices. However, the OECD’s recommendation comes with a risk.
The Federal Reserve Board has made a conditional pledge to leave U.S. rates extremely low until the end of 2014. Following the OECD’s path could create an unprecedented spread between Canadian and U.S. interest rates, which would put upward pressure on a Canadian dollar that many say already is too strong.
Oh, and the OECD made this same recommendation a year ago and was ignored. So I wonder how Carney intends to bring the days of ultra-cheap money to an end?