Vancouver real estate price reductions

[creaturecat]

big price reductions.
look at this gem. too bad it's in a terrible neighbourhood, and has a tiny lot.
nice street appeal, if nothing else. haha.

[jyl]

So has the tax on non-citizen buyers brought prices down?

It must be weird to live in a city where you have to be 90th percentile to buy a family house.

[TheMentat]

Originally Posted by jyl

So has the tax on non-citizen buyers brought prices down?

Not much yet... Demand was actually slowing down before the tax was implemented. Transaction volume has certainly slowed down since the tax, and there are a lot of optimistically priced homes on the market. It remains to be seen how much prices will react, and how long it will take.

[creaturecat]

prices are down around 10% in our hood. still no takers.
a half decent house in a reasonable hood is >2m. on the less desirable East side.
the half decent house is >4m. on the West side.
ex: this West Side dream home (haha) is priced low, due to being on a very busy street.

[look 171]

Market is softening up all over the place. I feel bad for the folks in the fly over states. Correction in the market is coming soon. Chinese money has stopped flowing. Its harder and harder to get that money out of China according to a friend of mine. European dollar is weak compared to the US dollar. So be careful boys.

[billybek]

Originally Posted by look 171

Market is softening up all over the place. I feel bad for the folks in the fly over states.

Curious as to why the concern over the fly over states? Wouldn't the markets in those areas escaped from the crazy price increases?

Vancouver prices are just plain stupid!

Calgary has seen some prices drop down. Condo markets have taken a bit of a beating depending on location and housing a bit too in suburbia.

[slow&rusty]

And to think $500,000 buys a castle in Houston!

[JJ 911SC]

Originally Posted by slow&rusty

And to think $500,000 buys a castle in Houston!

and a mansion in Cape Breton for now... If Donald Trump wins U.S. presidency, Cape Breton pitched as refuge for Americans - Nova Scotia - CBC News

[notfarnow]

Originally Posted by jyl

So has the tax on non-citizen buyers brought prices down?

It's hurt other provinces. Typical ham-fisted meddling to cool the markets in 2-3 major cities, but applied with a broad brush over the entire country FFS. Our city requires ~500 immigrants per year to balance aging population and outmigration to other provinces. Average price in our real estate board is ~170k, stable as a stone table since 2009. These rules hurt us

[jyl]

Originally Posted by notfarnow

It's hurt other provinces. Typical ham-fisted meddling to cool the markets in 2-3 major cities, but applied with a broad brush over the entire country FFS. Our city requires ~500 immigrants per year to balance aging population and outmigration to other provinces. Average price in our real estate board is ~170k, stable as a stone table since 2009. These rules hurt us

Why wasn't the rule applied only to Vancouver, or only to BC, or only in cities where property values have risen more than X% over the past Y years?

[JJ 911SC]

Originally Posted by jyl

Why wasn't the rule applied only to Vancouver, or only to BC, or only in cities where property values have risen more than X% over the past Y years?

It is in Vancouver only (for now).

[creaturecat]

Originally Posted by notfarnow

It's hurt other provinces. Typical ham-fisted meddling to cool the markets in 2-3 major cities, but applied with a broad brush over the entire country FFS. Our city requires ~500 immigrants per year to balance aging population and outmigration to other provinces. Average price in our real estate board is ~170k, stable as a stone table since 2009. These rules hurt us

don't understand the logic here. there will be more buyers coming your way, folks that are being pushed out (or cashing out) of the expensive market - Vancouver. they are moving elsewhere.
wait till the buying panic in Toronto/Montreal hits full swing. you will have plenty of migrants.
have you been to Vancouver lately? careful what you wish for.

[Norm K]

Originally Posted by slow&rusty

And to think $500,000 buys a castle in Houston!

Yup, but then you're in Houston.

_

[jyl]

Originally Posted by JJ 911SC

It is in Vancouver only (for now).

So what is norfarnow talking about?

[JJ 911SC]

Originally Posted by jyl

So what is norfarnow talking about?

Just a guess but last week the government increase the the % needed for a down payment on houses in order to cool down the market with is mainly skewed by Vancouver and Toronto.

Canada's New Mortgage Rules: This Is How Much You Can Afford

[john70t]

Originally Posted by slow&rusty

And to think $500,000 buys a castle in Houston!

The RE market is all over the place..

(from a few years back):
$500 could also buy a potential windfall bonus in SE Michigan.
Some of these structures are stout beautiful brick jobs from the heyday of the 1940's-1960's.

Or it could be a nightmare obligation to bureaucracy.
Buyer beware of course.

$500 US Detroit homes may be no bargain due to squatters and unpaid taxes - Business - CBC News

[1990C4S]

Originally Posted by jyl

So what is norfarnow talking about?

You have to be able to cover your mortgage using the five year federal rate, not just the short term rate. I think it's 4.5% versus 2.5%. So fewer people qualify, the market cools off.

This change reduces the chances of a real estate market crash if rates rise a couple of percent.

Notfarnow is an agent, I can see that it might hurt his his income.

[KFC911]

Originally Posted by billybek

Curious as to why the concern over the fly over states? Wouldn't the markets in those areas escaped from the crazy price increases?

Vancouver prices are just plain stupid!

Calgary has seen some prices drop down. Condo markets have taken a bit of a beating depending on location and housing a bit too in suburbia.

This area is doing just fine and will continue. The west coast, including CA housing...I just can't relate

[Brian 162]

Originally Posted by TheMentat

Not much yet... Demand was actually slowing down before the tax was implemented. Transaction volume has certainly slowed down since the tax, and there are a lot of optimistically priced homes on the market. It remains to be seen how much prices will react, and how long it will take.

I think the tax was implemented to curtail out of country ownership.
I read an article in The Globe last month about a realtor (I think) that brokered deals with out of country investors.
He lives in West Van. in a $4.5 million dollar house. His income to Revenue Canada (CRA) for the year was $45,000.
Me thinks that someone has some explaining to do.
Some of the condos in downtown Toronto are sold to out of country investors. They just sit empty or are rented out.

[jyl]

Originally Posted by 1990C4S

You have to be able to cover your mortgage using the five year federal rate, not just the short term rate. I think it's 4.5% versus 2.5%. So fewer people qualify, the market cools off.

This change reduces the chances of a real estate market crash if rates rise a couple of percent.

Notfarnow is an agent, I can see that it might hurt his his income.

Interesting. Do Canadians usually finance their homes using variable rate mortgages?

In the US, most mortgages are at fixed rate, currently around 5%.

I'd think that overseas investors buy for cash, so they don't care about interest rate.