Tag Archives: victoria

Housing bubble pushes out young tech workers

According to this article in the Financial Post Millennials are ‘fleeing Vancouver‘ and moving to cities where they can afford housing.

As housing costs have risen, so have the number of people in their twenties and thirties leaving the city. The net number of people age 18 to 24 added to Vancouver’s population was the lowest ever last year, at 884, and the number of 25-to-44-year-olds decreased by about 1,300, the biggest decline since 2007, according to Statistics Canada.

The tech industry is currently one of the key drivers of economic growth in the area, but they’re noticing the shift:

That driver of growth may evaporate as talent exits Vancouver, said Christine Duhaime, founder and executive director of the Digital Finance Institute, which supports Canada’s financial-technology industry. She’s having a tough time filling a 2,000-square-foot (186-square-meter) open-concept office for startups in Vancouver’s historic Gastown neighborhood she opened this year because potential tenants say they’re leaving the city for Victoria, Kelowna and as far away as London and Singapore.

“We’re banging our heads on the wall,” she said. “Why aren’t they staying? Because it’s too expensive. Vancouver is going to lose its tech edge.”

The nearest towns that seem to be benefiting from the exodus of young tech workers are Victoria and Kelowna. Read the full article over at the Financial Post.

Down is the new flat in Vancouver and Victoria

A ‘flat’ market sounds good right?

Not too up, not too down, but just right.

It means if you buy a condo now you won’t have to suffer the indignity of someone buying the unit upstairs from you for $100k less in the future.

So flat is comfortable and we’re starting to see that word a lot more these days.  This article uses it in the headline: Vancouver condo market stays flat.

So you might be surprised to read the following directly under that headline:

Although Vancouver has a reputation as one of the most expensive cities in North America for housing, condo prices stayed flat or even dropped last year, according to recently released assessment numbers.

That follows several years of the same pattern, which means overall condo prices are now seven to eight per cent lower in inflation-adjusted dollars than they were at the recent peak of the condo market in 2009, says one analyst.

Meanwhile in the capital city they’re using the same word: Flat forecast for Greater Victoria home prices.

And here’s what they say:

Although the number of homes sold for the past year rose by four per cent to 5,998 from 5,747 in 2012, the benchmark price for a single-family house slid by 3.2 per cent. That benchmark, representing a typical house, was $479,599 in December, down from $495,400 during the same month in 2012, the board said Thursday.

The benchmark price has dropped from three years ago when it was $515,500, the board said. And it’s lower than the $483,400 price recorded five years ago.

So here’s the cheat sheet:

Vancouver ‘flat’ = 7-8% drop over four years.

Victoria ‘flat’ = $35,901 drop over three years.

FFFA! Bankrates, Burnaby, Bubbles

It’s that time of the week again!

Time for our end of the week news roundup on open topic discussion thread for the weekend – Friday Free-for-all time!

Here are a few recent links to kick off the chat:

BOC rate stance affect on housing
Burnaby couple wants to pay higher tax
Variable mortgages are safe again
The five largest housing bubbles
Bear motivators
Ownership good or bad for economy?
Vancouver Island investors fear loss
How many Victoria listings are foreclosures?
Ottawa condo surplus

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

Vancouver prices now lower than 2011

If you bought property in Vancouver BC last year and were planning on flipping it this year for a profit, well…

Better luck next year.

Teranet has released their stats for September 2012. Prices are dropping across Canada, but still up Year over year.

This is not so in Vancouver, where prices dropped by 1.2% for the second month in a row, bringing Month over Month (MOM), Year over Year (YOY) and Year to Date (YTD) measures all negative according to Real Professional:

% change y/y: -1.42%
% change m/m: -1.19%
Year to date: -0.60%

The only market that saw a larger monthly drop in the Teranet Home Price Index was Victoria which saw a 1.3% drop.  Together Vancouver and Victoria continue to drag down the national index.