Vancouver's Real Estate Market

[hud 91gt]

Good old Huffington

China's Cash Outflow Crackdown Could Crash Vancouver Real Estate$|$Stephen Punwasi


On another note, January's statistics I found very interesting. Sales down about 38 percent from last year, but listings increased a huge amount from the last few months. Basically on par with Jan 2016, but up 215% from last month.

Supply is coming but the demand still isnt there.

[Tapioca]

Actually, listings in Greater Vancouver (anywhere north of the Fraser to Coquitlam) are at the lowest number compared to the last 5 years in January based on data compiled by the REBGV.

Detached houses in Vancouver aren't moving. Condos and townhouses still are. Multiple offers on good units are still happening.

[Traum]

^^ For the local working class, how can anyone really afford to purchase a single detached house all by themselves? I was playing a mortgage calculator just now, and even with a combined household income of $150k and a $500k down payment, the bank will only lend you $873k for the mortgage. $1.4M can't buy you very much house in Vancouver / Burnaby / Richmond.

[MarkyMark]

Yeah I'm pretty sure no one making a combined 150k are searching for 1.4 million dollar houses without a considerable amount of help, hence why that 500k sweet spot in townhouses in the burbs are selling well.

[Kamui712]

If you have 500k down and 873k loan that's plenty to get a starter home. There are a number of places selling between 900k - 1.2 mill granted they're going to be a little smaller. For first time buyers that's pretty damn good. I mean most people 25-35 only make enough to buy a Condo as their first place.

[68style]

The fundamental issue with all that is that there's a big difference between someone who is holding money in a few extra properties and if something goes wrong they just say "oh well" and sell it as opposed to people that sign on to 30 years of "I hope I never get sick or lose my job or literally noting in my life ever changes or the market doesn't correct or the dollar doesn't devalue or my wife doesn't get sick or my kids are healthy and free of physical or mental impediments or else I'm FUCKED" situations that all these lucky starter families are in nowadays.

[donk.]

House prices may be falling, but entry level condos and townhouses have gone absolutely mad in the past few months.

I have been looking for the past 2 years - Tri cities area / pitt meadows

two years ago you could get a townhouse in tri city for 280-340k, 240-300 in pitt
last year they went up to 330-400k in tri city, 280-340k in pitt
and in the past few months... my god.... nothing under 700k in pomo, 500k in coq/poco, 400k in pitt

and im talking entry level townhouses here.
saving up an extra 30k over a year to "get a better downpayment" did me absolutely nothing.

/rant

[kr4l]

Originally Posted by 68style

The fundamental issue with all that is that there's a big difference between someone who is holding money in a few extra properties and if something goes wrong they just say "oh well" and sell it as opposed to people that sign on to 30 years of "I hope I never get sick or lose my job or literally noting in my life ever changes or the market doesn't correct or the dollar doesn't devalue or my wife doesn't get sick or my kids are healthy and free of physical or mental impediments or else I'm FUCKED" situations that all these lucky starter families are in nowadays.

If that's such a big issue, then why buy at all? Why not just rent. If you lose your job or get sick, you're good

[Tapioca]

I had some spare time this afternoon, so I went to a few open houses this afternoon. Had a chat with a couple of realtors.

Detached house - listed at 828K; lots of interest (4-5 families were at the house when I was there). Realtor is expecting a multiple offer situation. Comps last year were around 850K.

Two townhouses - listed at just under a hair under 700K. One was well-staged and already has 2 offers. The other has been on the market for a while and was rented. One comp in the same complex sold last week at 20K over asking (710K vs 688K.)

These properties are in Port Moody. I've also heard recent chatter on Twitter that detached homes in Vancouver are starting to creep up again.

[GS8]

Where can I get $500k to put down towards a house?

At this rate, using the above goal, I should be able to have that downpayment by the time I'm 132 years old.

[Tapioca]

Originally Posted by GS8

Where can I get $500k to put down towards a house?

At this rate, using the above goal, I should be able to have that downpayment by the time I'm 132 years old.

Well who buys a detached house if they're on their own as a starter home in Metro Vancouver?

People who are buying houses in this market already have equity from other properties.

It wasn't that long ago that condos at Woodwards were 250K. Considering the going rate for any condo downtown is 1000 per square foot, you would have had considerable appreciation on your shoebox 1 bedroom over the last decade.

Husband and wife both had 1 bedroom condos downtown before getting married. They sell and combine their equity to buy a Vancouver special with a basement suite on the East Side. It's a pretty common scenario in Vancouver. It's the leverage that is scary; not whether or not it's beyond the realm of possibility.

[Sw0op]

Originally Posted by Tapioca

Well who buys a detached house if they're on their own as a starter home in Metro Vancouver?

People who are buying houses in this market already have equity from other properties.

It wasn't that long ago that condos at Woodwards were 250K. Considering the going rate for any condo downtown is 1000 per square foot, you would have had considerable appreciation on your shoebox 1 bedroom over the last decade.

Husband and wife both had 1 bedroom condos downtown before getting married. They sell and combine their equity to buy a Vancouver special with a basement suite on the East Side. It's a pretty common scenario in Vancouver. It's the leverage that is scary; not whether or not it's beyond the realm of possibility.

thats the normal yes but dont rule out ppl buying house homes in this market as their starter

a few homes i've been looking at just recently sold in Van/BBY....and one was a little narrow house that sold a day after open house @ list price and well above assessed value...

[frozen]

Originally Posted by 68style

The fundamental issue with all that is that there's a big difference between someone who is holding money in a few extra properties and if something goes wrong they just say "oh well" and sell it as opposed to people that sign on to 30 years of "I hope I never get sick or lose my job or literally noting in my life ever changes or the market doesn't correct or the dollar doesn't devalue or my wife doesn't get sick or my kids are healthy and free of physical or mental impediments or else I'm FUCKED" situations that all these lucky starter families are in nowadays.

For fuck's sake, learn to use punctuation.

[GS8]

Originally Posted by Tapioca

Well who buys a detached house if they're on their own as a starter home in Metro Vancouver?

People who are buying houses in this market already have equity from other properties.

It wasn't that long ago that condos at Woodwards were 250K. Considering the going rate for any condo downtown is 1000 per square foot, you would have had considerable appreciation on your shoebox 1 bedroom over the last decade.

Husband and wife both had 1 bedroom condos downtown before getting married. They sell and combine their equity to buy a Vancouver special with a basement suite on the East Side. It's a pretty common scenario in Vancouver. It's the leverage that is scary; not whether or not it's beyond the realm of possibility.

I'll live in a collective assortment of Amazon boxes. Those things are pretty damn tough!

[hud 91gt]

Originally Posted by Tapioca

Actually, listings in Greater Vancouver (anywhere north of the Fraser to Coquitlam) are at the lowest number compared to the last 5 years in January based on data compiled by the REBGV.

Detached houses in Vancouver aren't moving. Condos and townhouses still are. Multiple offers on good units are still happening.

I think lowest in 5 years is not a tough sell. It's been a sellers market of course sales/listings will be high. The fact the number of listings are even comparable to last year is the point, as sales arnt comparable.

[68style]

Originally Posted by frozen

For fuck's sake, learn to use punctuation.

Go fuck yourself. Period.

[rb]

Originally Posted by Tapioca

I had some spare time this afternoon, so I went to a few open houses this afternoon. Had a chat with a couple of realtors.

Detached house - listed at 828K; lots of interest (4-5 families were at the house when I was there). Realtor is expecting a multiple offer situation. Comps last year were around 850K.

Was the 828K house in Port Moody?

[Tapioca]

Originally Posted by hud 91gt

I think lowest in 5 years is not a tough sell. It's been a sellers market of course sales/listings will be high. The fact the number of listings are even comparable to last year is the point, as sales arnt comparable.

Less inventory and less sales. We're not seeing higher levels of inventory and lower sales which would be a sign of a bubble. In certain markets, like condos and townhouses in desireble neighbourhoods, whatever is on the market is getting snatched up quickly and above asking. Prices have remained quite sticky for condos and townhomes.

Originally Posted by rb

Was the 828K house in Port Moody?

Yep.

[MrPhreak]

Everything in Van under 7 figures is basically crap

[kr4l]

Originally Posted by MrPhreak

I sold my place in AB, so I am actually in a decent position to buy right now

Problem is that everything in Van under 7 figures is basically shit, and I refuse to get a "873k loan" for a starter home

I'll wait and see what a year with the "stupid money" taps turned off does to the market here

You'll probably see prices going up if anything..

[originalhypa]

Originally Posted by 68style

or else I'm FUCKED" situations that all these lucky starter families are in nowadays.

No worries brah, gofundme will be there for you.

[MrPhreak]

Originally Posted by kr4l

You'll probably see prices going up if anything..

The Vancouver market has never followed housing trends

[Sw0op]

Originally Posted by MrPhreak

The Vancouver market has never followed housing trends, but I have a hard time seeing the prices going up this year

Sales have been down in a big way since last year, and from what I have been observing, things have cooled right off. This is all on the heels of a massive ~30% year over year increase, mostly on paper, an increase that a lot of people are rolling their eyes at.

Foreign Chinese investors are extremely unhappy with the new tax, and it isn't so much about the extra cost as it is a concern that the government will continue to do things to discourage them from buying here. Things like the vacant homes tax is just one example of how they are becoming increasingly aggressive towards speculators.

at the rate stratified units are going detached is looking cheap...a 1000sq ft town house in false creek selling for $1.4M vs a 10 year old house about 10-15mins away for $1.5? keep in mind that the slight uptick in interest rates would have cost the buyer ~$20-30k in mortgageable allowance had they not bought when it was at a low point last year

[Drow]

Originally Posted by 68style

The fundamental issue with all that is that there's a big difference between someone who is holding money in a few extra properties and if something goes wrong they just say "oh well" and sell it as opposed to people that sign on to 30 years of "I hope I never get sick or lose my job or literally noting in my life ever changes or the market doesn't correct or the dollar doesn't devalue or my wife doesn't get sick or my kids are healthy and free of physical or mental impediments or else I'm FUCKED" situations that all these lucky starter families are in nowadays.

Banks offer mortgage insurance. If youre young then the premiums wont be expensive.

[Mr.HappySilp]

Originally Posted by donk.

House prices may be falling, but entry level condos and townhouses have gone absolutely mad in the past few months.

I have been looking for the past 2 years - Tri cities area / pitt meadows

two years ago you could get a townhouse in tri city for 280-340k, 240-300 in pitt
last year they went up to 330-400k in tri city, 280-340k in pitt
and in the past few months... my god.... nothing under 700k in pomo, 500k in coq/poco, 400k in pitt

and im talking entry level townhouses here.
saving up an extra 30k over a year to "get a better downpayment" did me absolutely nothing.

/rant

That's because no one can afford a house unless you have parents help, upgrading form a townhome/apartment to a house or foreign money.

So all the 1st home buyers are getting into the townhome/apartment craze. I am so shock the pre sale apartment I purchase at 298k went up to close to 400k in a few years. I think back now if it was at 400k I will never be able to afford it or even consider buying it in the first place.

Also have you notice now they use the term townhome instead of tonwhouse. I think is because these days townhome are a lot smaller than before so they call it townhome instead. Also back then tonwhouse you still have a small yard to yourself now you will be lucky if you get a balcony.