Companies most levered to a decline in Vancouver housing prices

[Parsad]

Flash forward a year, and it looks like the Vancouver real estate bubble is now in the early stage of bursting. Even with mortgage rates still at record lows, it seems the party is finally over. There's just nobody left to buy.

 

Normally June is the start of the busy summer season, but this year June property sales hit a 10-year low, down 28% from last year and 17% from last month. Inventory of listed homes is swelling rapidly. And 38% of listed homes have now had at least one price drop.

 

With much tighter government rules on mortgage lending coming into effect next week, it seems like this will only accelerate. If so, the next 2-3 years are going to be very painful for a lot of Vancouver homeowners, especially recent buyers who took advantage of now-extinct 40-year amortizations and cash-back down payments.

 

Will be interesting now to see if this spreads to the rest of Canada, particularly Toronto.

 

China is slowing too, and it was mostly Chinese and European buyers pushing up prices.  As well as those that made money in the Oil Sands and other commodities.  The hot money isn't flowing as briskly these days and prices are falling.  I just sold my house and there were few offers...sold it for about 12-14% less than it would have gone for last year.  Cheers!   

[leftcoast]

China is slowing too, and it was mostly Chinese and European buyers pushing up prices.  As well as those that made money in the Oil Sands and other commodities.  The hot money isn't flowing as briskly these days and prices are falling.  I just sold my house and there were few offers...sold it for about 12-14% less than it would have gone for last year.  Cheers! 

 

Are you cashing out of the market, or buying a new place?

[rogermunibond]

As some on this board have been warning about for a few years...

 

 

http://professional.wsj.com/article/SB10001424052970203335504578088821389676846.html?mg=reno64-wsj

 

VANCOUVER, British Columbia—After a blistering, multiyear run that saw ramshackle bungalows fetch seven-figure sums, one of the hottest real-estate markets in North America seems to be cooling, damped in part by government changes meant to deflate what many policy makers saw as the start of a bubble.

 

While many U.S. markets are just now showing signs of recovery from a housing crash, Canada has been enjoying a real-estate boom in recent years. Nowhere was that more pronounced than in Vancouver, a market where land long has been in short supply, hemmed in by mountains to the east and the ocean to the west. The city frequently ranks among the most livable in the world and for decades has attracted waves of wealthy Chinese and Asian immigrants.

[Parsad]

China is slowing too, and it was mostly Chinese and European buyers pushing up prices.  As well as those that made money in the Oil Sands and other commodities.  The hot money isn't flowing as briskly these days and prices are falling.  I just sold my house and there were few offers...sold it for about 12-14% less than it would have gone for last year.  Cheers! 

 

Are you cashing out of the market, or buying a new place?

 

Will buy again at some point.  Just silly right now still.  I'm renting a huge house for about half of what it would cost to own.  Rates will not stay low forever, and hot money eventually cools.  Why take on the pain of P/T's, maintenance, garbage/water fees on top of a fully-valued mortgage.  I remember clearly how my father ended up losing 5 properties in the 80's that he spent the 70's accumulating.  It was a very painful decade for him...and our family.  People don't think it can happen again, but they always do!  Cheers!