Vancouver Housing Plunge

Discussion in 'Wall St. News' started by Stockolio, Mar 7, 2019.

  1. https://www.theglobeandmail.com/bus...houses-sold-in-vancouver-plunges-33-per-cent/

    The scary part is the high amount of Households who tapped into there Housing Equity to finance a luxury lifestyle, soon to be equity negative or used equity to leverage multiple properties, speculators usually use minimal equity, which means they likely will ow upon selling the speculated properties.

    The average price of detached houses sold in Vancouver has plunged more than $1-million over a 16-month period, a 33-per-cent decline as the downturn in real estate deepens, newly released statistics show.

    Within the City of Vancouver, the price for detached properties averaged $2,070,030 last month for sales on the multiple listing service, down sharply from $3,080,563 in October, 2017, according to an analysis by Steve Saretsky, a real estate agent who also writes a housing newsletter. The last month that Vancouver’s average detached price dipped below $2.1-million was in February, 2015.
     
    Last edited: Mar 7, 2019
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  2. ironchef

    ironchef

    Sounds like the Chinese are leaving Vancouver.
     
    VPhantom, viruscore1, _eug_ and 2 others like this.
  3. Not Really, Vancouver is heaven for Chinese...There has been some fire sales, especially in City of Richmond which is mostly Chinese, one Chinese speculator took something like a 900k haircut in a Van House just to dump it. China's Economy is just getting obliterated with defaults and companies shutting down, Australia and Vancouver are definitely feeling it!
     
  4. Tell me, what do you think is causing the housing slump in Vancouver ?
     
  5. ironchef

    ironchef

    Then it must be Newton's Third Law: Gravity. What goes up must come down. :D
     
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  6. ironchef

    ironchef

    Or perhaps there is no longer any greater fools.
     
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  7. _eug_

    _eug_

    Stricter mortgage lending rules over the last few years and increasing interest rates might have something to do with it...
     
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  8. El_Cubano

    El_Cubano

    Its still not going down fast enough for your average person to be able to afford anything not out in the boonies. I dont ever see myself buying in Vancouver
     
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  9. Haha, Burnaby went up like crazy too... Surrey is not crazy expensive but it's filled with heads. I live in Van and rent, with the Minsky moment China is gonna witness causing Global Recession, I see prices dropping another 40-50 % down the road in Vancouver, obliterating people's savings who had it tied in Home Equity, gonna be a weird thing to see.

    https://business.financialpost.com/...aying-only-the-interest-on-their-loans-survey

    Over the past 15 years, home equity lines of credit have been the largest contributor to Canadian non-mortgage household debt. Tuesday’s report follows similar studies from the the country’s federal housing agency and the Bank of Canada that highlighted some of the risks associated with such loans.

    The average HELOC holder at a federally regulated bank owes $65,000. The survey by the Ottawa-based consumer protection agency was designed to track how home equity lines of credit are being used, and how much consumers know about them.
     
  10. Here's what it looks like. A 3 million home in kitsilano, similar home in buffalo ny is 50k.
     
    #10     Mar 8, 2019