Vancouver's Real Estate Market

[Mr.HappySilp]

Originally Posted by yoursyumiko

Thanks for the insight on New Westminster condo.
Any thoughts on Burquitlam area (closed to skytrain)? New condo are in similar price range as New West.

I used to live there 20 years ago. The house I used to live (now it turn into townhouse) is 3mins walk to the park, safeway, Mcdonalds Dariy queen. That area was very quiet and fun. Lot's to do after dinner and traffic wasn't too bad.

I would think traffic is much worse now and although there are some changes it still seems to be very quiet. Nice park is still there. In terms of school there is a ele school near by )3 blocks), a middle school (not sure if they still call them middle school) that's 20mins and there was also bus that takes you to Centennial high school. Take the skytrain/bus/drive down North road and there is Logheed mall, some BB Tea place, desert place, sushi, food and Bikram yoga and a fitness center. There is also a Korean supermarket. SFU is nearby.

Not so bad back then......

[Blueboy222]

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[Bonka]

If there's a shortfall, a judgement will be made against you and the lender can try to collect from you for up to 10 years. Following that, the lender can renew the judgement at their discretion. If the mortgage was insured (CMHC, Genworth) they can enforce the judgement. This will show up on a credit report.

If one cannot pay the outstanding balance they'll need to talk to a bankruptcy trustee on how to handle. The lender will always want to work with the mortgagee to avoid foreclosing but the lender will always try to recoup any outstanding balances. Don't bother trying to out wait a bank.

[Blueboy222]

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[roopi]

Originally Posted by zyzzjr

Thank you for the post. It was very helpful. I was wondering if you could clarify a little bit in this part.

If the mortgage was insured (CMHC, Genworth) they can enforce the judgement.

If my mortgage was insured by cmhc and I default, does that mean they pay off the rest of my debt and I'm free to go? Or does that mean they would be the new owner of my debt and I owe them the rest of the money and that they would eventually come after me to garnish my wage until it is paid off? Thank you again.

They own the debt and they will come after you. Many people believe this 'mortgage insurance' is for them when it is really for the lender.

I had a friend go through this were his rental turned into a grow op by the renters and destroyed the house. He couldn't rent it without a ridiculous amount of repairs. It foreclosed and a few years later CMHC or one of them came after him. His only choice was bankruptcy at the time.

[nah]

Originally Posted by Dharminder

I could be completely wrong but I don't think its the same person that owns both and my reason is nothing concrete I have used someone on my streets ad in the past or parts of it.

No expert but 900k in north delta is a pretty good price considering assessed value according to government is 915 & 924k. Decent size lot which is hard to come across
900k x 20%= 180k
ball park 3300 mortgage a month
Out of pocket for owner $700 + a month not bad if you have extra cash lying around.

House 2 sold for $941k, asking was $899k. A lot of the lots in Delta are like that. If you're buying to lose money on rent in the short term because you anticipate the market jumping even higher...that's speculating.

It prevents legitimate families that want to set roots in areas like those.

[Tapioca]

Some numbers that might be of interest to first-time homebuyers...

567 Clarke and Como pricing:
1 bedrooms (460-530 sq. ft): $350K
2 bedrooms (770-900 sq. ft): $486K
3 bedrooms (875-1030 sq ft): $740K

A couple of sales of starter homes in my 'hood:
37-2000 Panorama Drive
2 bed/2 bath townhouse, ~1200 square feet
List: $579K
Sale: $635K
Days on market: 1 week

56-2000 Panorama Drive
2 bed/2 bath townhouse, ~1150 square feet
List: $539K
Sale: $590K
Days on market: 1 week

[Hondaracer]

The 2 bed Clark and como are actually reasonable if you can get thay price.

What development is that

[Tapioca]

Originally Posted by Hondaracer

The 2 bed Clark and como are actually reasonable if you can get thay price.

What development is that

Uptown Coquitlam Condominium Homes for Sale | 576 Clarke and Como ? A collection of$364 Uptown Coquitlam condominium homes at the intersection of life+style. Spectacular views and just 2 minutes from the Evergreen skytrain.

That pricing is available to anyone working with a realtor. If anyone is actually interested and wants to see floor and site plans, PM me.

[subordinate]

Man, that's tempting. Think I just got FOMO going on..though. If anyone's interested, I read through new west papers that the Front/Begbie crossings don't have to be whistled.

[kr4l]

Heads up, I just went to the VIP previewing and that starting price does not reflect what you pay. My real estate agent said I have to 'make an offer' and see if they accept it. Also, each floor you go up is about $3000.

I was looking at 1 bed and den for 360k. He said if I go about 20 floors up, it's going to probably cost $450k so...

[ws6ta]

Originally Posted by nah

I've been watching the market and 2 houses that recently sold for close to $900,000 each (North Delta) are now on the market as rentals. They look to be bought by the same person as the houses are on the same street and the ads look the same. I'm going to assume they didn't pay cash for these, so these would be someone speculating and possibly over leveraging themselves. I hope the market crashes and these type of speculators lose their shirt.

House 1: https://vancouver.craigslist.ca/rds/apa/6080291855.html
House 2: https://vancouver.craigslist.ca/van/apa/6079943995.html

house 1 was actually on sale for 878 and sold for 920 in 6 days ...

[Mr.HappySilp]

Originally Posted by kr4l

Heads up, I just went to the VIP previewing and that starting price does not reflect what you pay. My real estate agent said I have to 'make an offer' and see if they accept it. Also, each floor you go up is about $3000.

I was looking at 1 bed and den for 360k. He said if I go about 20 floors up, it's going to probably cost $450k so...

Same thing with Concrd pacific VIP now. Is crap lol. They don't even let you pick the unit you want. What they do is select one suite from each floor and if you like it you place a price on it. Also if several people place a price for the suite you want, then you have 2 more chance to place another price on it. They won't tell you what others have offer. Basically they turn this into a bidding war lol. I laugh and left. The units they let you buy is like the worse lol. Facing the worse direction with the worse layout and if you say no there are 10+ people waiting to buy it.

Most of the units seem to be selling offshore anyways which people are willing to pay 30% to 50% more than what you are willing to pay.

[Tapioca]

Originally Posted by kr4l

Heads up, I just went to the VIP previewing and that starting price does not reflect what you pay. My real estate agent said I have to 'make an offer' and see if they accept it. Also, each floor you go up is about $3000.

I was looking at 1 bed and den for 360k. He said if I go about 20 floors up, it's going to probably cost $450k so...

The starting price is just that - it's a price for the smallest unit on the lowest floor in the building. You're probably adding another 10% for a unit that would be desirable enough to live in.

$3K per floor is pretty typical. This was the pricing increment when I had a condo 12 years ago.

[kr4l]

Originally Posted by Tapioca

The starting price is just that - it's a price for the smallest unit on the lowest floor in the building. You're probably adding another 10% for a unit that would be desirable enough to live in.

$3K per floor is pretty typical. This was the pricing increment when I had a condo 12 years ago.

Not true at all with my last 2 condo purchases about 4 years and 5 years ago. Yes you paid more, but not $3000 more. I paid maybe $1000

Problem is I will purchase the most undesirable unit for starting price but I can't because I have to bid on it

[Sw0op]

5 years ago the market was in a bit of a downturn...3k a floor is very typical..ive seen 5k before

[kr4l]

This isn't downtown or Vancouver for that matter. Yes 5 years ago was during a downtime so it was definitely plausible but I only used that example because he said it was typical 12 years ago

[Tapioca]

Originally Posted by kr4l

This isn't downtown or Vancouver for that matter. Yes 5 years ago was during a downtime so it was definitely plausible but I only used that example because he said it was typical 12 years ago

2-3k per floor was the going rate for pre-construction condos in Brentwood in the mid-2000s. This was also when a 2 bedroom/2 bath could be had in a concrete building for 250k. 1% increase per floor. Those were the days...

[Mr.HappySilp]

Originally Posted by Sw0op

5 years ago the market was in a bit of a downturn...3k a floor is very typical..ive seen 5k before

when I purchase my presale in 2014 it was $1000 for each floor.

[Tapioca]

The latest census data confirms our suspicions: no one is leaving Metro Vancouver, despite high housing costs. Again, the narrative that millennials are fleeing Vancouver is not supported by the data, despite anecdotes offered on the internet.

Millennials aren't fleeing Vancouver but older siblings are
Census numbers suggest 30 and 40 somethings moving south of the Fraser
By Tara Carman, CBC News Posted: May 03, 2017 6:06 PM PT Last Updated: May 03, 2017 6:06 PM PT

Millennials are not fleeing the City of Vancouver over housing costs, census data suggests.

The story of the millennial generation leaving Vancouver in droves due to the cost of living is a myth, the latest census figures suggest.

It is, in fact, their older 30 and 40 something siblings who are packing up the kids and fleeing south of the Fraser.

The number of 25 to 34-year-olds living in the City of Vancouver increased 21 per cent between 2006 and 2016, the census data reveals. Surrey saw a 37 per cent increase in this age group over the same time period.

Burnaby, New Westminster and the North Shore also saw increases.


Vancouver is, however, losing its younger Gen Xers. The city lost almost 9,000 residents between the ages of 35 and 44 between 2006 and 2016, which amounts to a nine per cent drop.

Burnaby, Richmond, the North Shore and New Westminster also lost members of this age group, though the drop was less steep than in Vancouver.

Vancouver's loss is, at least in part, Surrey's gain. That city saw an 18 per cent increase in this age group over the same time period, gaining almost 11,000 people between 35 and 44.

This trends do not come as a surprise to Paul Kershaw of the University of B.C.'s School of Population and Public Health.

The city's real estate market and couple's biological clocks are what is driving them, he said.

"You'll have the 20-somethings who'll be excited to come to what is, in many respects, a vibrant city, lots of cool things to do here, and they'll be willing to make a go of it in a bachelor pad or a basement suite. And they do that in part by adapting starting their own homes and starting their families," he said.

"And then, they start running into their biological clocks."

When couples have their first child, some will choose to stay in a one or two-bedroom apartment, Kershaw said, but with a second child, it becomes more difficult due to the costs associated with a three-bedroom home.

Families choose to delay having a child or having a second child well into their 30s, which is part of what accounts for that demographic's movement out of Vancouver, Kershaw said.

[Traum]

Originally Posted by Tapioca

The latest census data confirms our suspicions: no one is leaving Metro Vancouver, despite high housing costs. Again, the narrative that millennials are fleeing Vancouver is not supported by the data, despite anecdotes offered on the internet.

The article you quoted made absolutely zero mention of people (regardless of age group) leaving Metro Vancouver. All that it has provided are some figures for the municipalities. So it neither confirms nor disproves the proposition that people are leave (Metro) Vancouver.

[hud 91gt]

I just read a blurb, but how did they come up with data to compare, when there has only been one census in like what? 8-10 years?

[Ludepower]

Originally Posted by Mr.HappySilp

when I purchase my presale in 2014 it was $1000 for each floor.

It's 2017 and downtown presales are $1200sq ft and 10k increments for each floor and 50k for parking spot

[Tapioca]

Originally Posted by Traum

The article you quoted made absolutely zero mention of people (regardless of age group) leaving Metro Vancouver. All that it has provided are some figures for the municipalities. So it neither confirms nor disproves the proposition that people are leave (Metro) Vancouver.

The predominant narrative that is thrown around is that as a result of high housing costs, young people would be leaving Metro Vancouver for other parts of Canada or the world. This census should have revealed a decrease in people under age 35 over the last 10 years if this was true.

We are seeing record rents and record prices in entry level homes, such as condos. These are related to what the census data are telling us.

Originally Posted by hud 91gt

I just read a blurb, but how did they come up with data to compare, when there has only been one census in like what? 8-10 years?

The census is conducted every 5 years. The government has 3 sets of census data over the last decade.

[Traum]

Originally Posted by Tapioca

The predominant narrative that is thrown around is that as a result of high housing costs, young people would be leaving Metro Vancouver for other parts of Canada or the world. This census should have revealed a decrease in people under age 35 over the last 10 years if this was true.

We are seeing record rents and record prices in entry level homes, such as condos. These are related to what the census data are telling us.

The numbers as presented are just numbers. It gives no indication of whether people are leaving the city or not.

As an extreme example, consider this. ABCDE are 5 people originally living in Vancouver. Because of the high housing costs, ABCD all left Metro Van, and only E is staying behind. But during this time, FGHIJKLMN are 9 additional people that came. So in total, the city's new population is EFGHIJKLMN for a total of 10, and we have a net population gain of 5 additional persons. But the numbers themselves do not show that 80% of the original residents have already left the city due to high housing costs.

Of course, I do not think the situation in Vancouver is as extreme as my example suggest. But it goes to illustrate that looking at numbers alone are rather meaningless.