Canada's 'housing bubble' deemed close to bursting

[whatnext]

What money from China did to Vancouver it one listing. Of course such a house should never be worth anything like $3 million but is on the West Side and more importantly across the street from "most famous school", St. George's.

$3,190,000
3886 W 29th Avenue
Vancouver, BC, V6S 1T8 Dunbar
5 Bed 3 Bath 2540 Sqft House

https://www.rew.ca/properties/3585339/3886-w-29th-avenue-vancouver-bc?property_click=map

1. Price Activity Sold Date
   $2,702,000 +100%
   Sold 04/07/16
   
   $1,350,000 +131%
   Sold 01/29/09
   
   $585,000 Sold
   08/27/98
   

[SignalHillHiker]

Good point, ssiguy. We've had a lot of houses changing hands in recent years as well, when prices were high, and no one is going to rent out a place for less than their mortgage - so that will keep rental prices stubbornly high.

The actual prices here aren't too bad. You can still get a one-bedroom for around $1,000. The availability in the core, however, is awful. Viewing lineups outside every one that actually makes it on the open market before already being snapped up by the owner's connections. But most of the city is suburbia, and not a lot of renters want to be out there given the awful public transit. And, in the core, there are AirBnBs and council housing on every block that aren't available to the open market anymore. I'm very grateful I'm not renting downtown anymore. It's cutthroat and expensive right now.

[CivicBlues]

Originally Posted by whatnext

What money from China did to Vancouver it one listing. Of course such a house should never be worth anything like $3 million but is on the West Side and more importantly across the street from "most famous school", St. George's.

Where in this listing does it indicate any of the broken English you use to mock an ESL speaker like a racist from the 1960s? I guess the Vancouver mods warned you enough about your dog-whistling racism so you've decided to try it out in the Canada forum. Let me guess you were Mickey Rooney from Breakfast at Tiffany's for Halloween as a kid?

[whatnext]

Originally Posted by CivicBlues

Where in this listing does it indicate any of the broken English you use to mock an ESL speaker? Haven't the mods warned you enough about your whistling racism yet?

Broken English? That's take right from several real estate listings.

Are you here to tell us how offshore money didn't drive up that house to such a ludicrous price? If not, what are you actually contributing to the discussion?

Funny, if you go to Canada's other coast and you get a waterfront estate just outside Halifax. What ever can explain such a difference? Oh wait, it's "low interest rates, isn't it.

https://www.realtor.ca/real-estate/24454941/446-ketch-harbour-road-halibut-bay-halibut-bay

[CivicBlues]

Ah yes, Halifax, Vancouver's perfect analogue on the East Coast.

Which listing has broken English? Not the one you've posted.

Well maintained 5 bedroom family home with south facing backyard. Located in one of the most desirable areas in Dunbar. Just across the street from St George's Private School. Walking distance to shops, restaurants, and transportations. House has been completely renovated in 1998 and the fully finished basement(8' ceiling) has been renovated in 2018.

If anything you could have highlighted the improper pluralization of "Transportation". Or the dubious use of present perfect continuous tense in the form of "has been" instead of "was" But you instead decided to use a stereotypical slur ("Ah, Most Honorable Daniel San") to highlight the distain you have for the Asian folk living amongst you.

[lio45]

Halifax is actually kinda starting to look like the Vancouver of last decade: this property sold for $1M a few years ago and now it's listed for $3M.

[whatnext]

Furthermore in 2000, two years after that house was sold for $585k the average income in Vancouver was $51,268. Now it is $82,000 so a 60% increase in median income which should leave take that house to $936k if prices rose with income. Yet it is over 3x that. How is that explainable if prices depend on earned Vancouver income?

[CivicBlues]

Whatnext is this you?
https://globalnews.ca/news/9061667/racist-video-rant-richmond-bc/

[GenWhy?]

Originally Posted by whatnext

Furthermore in 2000, two years after that house was sold for $585k the average income in Vancouver was $51,268. Now it is $82,000 so a 60% increase in median income which should leave take that house to $936k if prices rose with income. Yet it is over 3x that. How is that explainable if prices depend on earned Vancouver income?

the average household income of that area in 2016 was something like $240k.

[whatnext]

Originally Posted by GenWhy?

the average household income of that area in 2016 was something like $240k.

And yet the house sold for only $585k? What a deal. And it's not alone:

3826 W 26th Avenue
Vancouver, BC, V6S 1P4

$3,850,000 +531%
Sold 03/31/16

$610,000 +97%
Sold
05/05/98

$310,000 Sold
03/30/88

Of course, getting comparables can be difficult in this area as so many houses have been torn down over the last few years. Let's not forget this 'hood is where the poor Huawei Princess was domiciled in one of her homes, as she waited for the even fancier one to be completed. Funny, she never lived in Vancouver, well, until she was detained here by authorities. Good thing she had two houses to chooses from. Life can be tough for a sanctions-breaking gal, worrying about housing would have just added to the burden.

[CivicBlues]

Originally Posted by whatnext

Of course, getting comparables can be difficult in this area as so many houses have been torn down over the last few years. Let's not forget this 'hood is where the poor Huawei Princess was domiciled in one of her homes, as she waited for the even fancier one to be completed. Funny, she never lived in Vancouver, well, until she was detained here by authorities. Good thing she had two houses to chooses from. Life can be tough for a sanctions-breaking gal, worrying about housing would have just added to the burden.

Still on this? Of course why would she need to ever live in Vancouver when she lives entirely rent free in your head

Yes you're absolutely right, Dunbar is now nothing but empty houses entirely owned by CCP cadres. Happy now?

[GenWhy?]

Originally Posted by CivicBlues

Still on this? Of course why would she need to ever live in Vancouver when she lives entirely rent free in your head

Yes you're absolutely right, Dunbar is now nothing but empty houses entirely owned by CCP cadres. Happy now?

I wish, there'd be less traffic

[whatnext]

Originally Posted by CivicBlues

Still on this? Of course why would she need to ever live in Vancouver when she lives entirely rent free in your head

Yes you're absolutely right, Dunbar is now nothing but empty houses entirely owned by CCP cadres. Happy now?

Well, if you'd like to snap one on the block so you could build a shrine or something....

And no gross icky things like big trees!

Investor and builder alert!!! Rare opportunity to own a 52*130 lot in Dunbar. The property is located in one of the most beautiful street West 28th Ave with no big trees, quiet & friendly neighbors. The lovely house is well-kept and walking distance to St. George private school, Lord Byng secondary school, community, parks, and restaurants. Buy and hold, and then you will build your own dream house in the most prestigious area. Please call today for private showing.

https://www.rew.ca/properties/3855869/4015-west-28th-avenue-vancouver-bc?property_click=map

[CivicBlues]

Big trees are a huge nuisance in the fall especially with the age of the maple trees in that area. If you don't want to spend all your time raking leaves from October-Dec you'll want fewer trees.

Also, tree branches are constantly falling off and damaging property.

I guess this business is entirely propped up with laundered money according to you?
https://www.arbutustree.ca/contact/

[whatnext]

Originally Posted by CivicBlues

Big trees are a huge nuisance in the fall especially with the age of the maple trees in that area. If you don't want to spend all your time raking leaves from October-Dec you'll want fewer trees.

Also, tree branches are constantly falling off and damaging property.

I guess this business is entirely propped up with laundered money according to you?
https://www.facebook.com/DunbarTreeService

There you go, owners of multimillion homes don't rake their own leaves so why worry about trees.

Actually Dunbar (indeed much of the West side) is a perfect example of what happens when there are no more Greater Fools. Some of those properties have been on the market for months, closing in on a year (probably more if you count relisting). But when the money spigot from offshore gets turned off or taxed, all of a sudden, no buyers at those prices.

[whatnext]

Originally Posted by GenWhy?

I wish, there'd be less traffic

LOL, the only traffic in Dunbar is people going through it to get to UBC.

[CivicBlues]

I think you're watering down your original argument at this point

[yaletown_fella]

Originally Posted by OldDartmouthMark

You mean if they sell their home when they retire and use the money to pay rent for an apartment?

I understand the concept of home ownership being an asset, but it's an asset they have to live in, spend money to maintain, and pay taxes and insurance on. That's why every time I read about homeowners being "rich" because they own a home and the values have shot up, it doesn't make sense to me as you still have to pay for a place to live.

So if I paid $200,000 for my house and it's now worth $400,000, on paper I have just gained $200,000 of net worth. However, I still have to live here (and want to live here), so I have no more disposable income, and am affected by inflation just like everybody else. The only difference is that I am lucky and privileged enough to own a home.

Sorry, off topic a little, but it's just that I keep reading this idea of wealth through home ownership, but on the ground it doesn't mean you are flush with money, just that you have a place to live that you could cash out on if you want/need to downgrade your living situation at some point.

One issue I see is seniors that spend their life savings to stay in their home, eventually sell their home and move to a senior's facility, only to have the house money eaten up by care expenses. I've seen it happen.

It's still better than living on the street, though.

Fair points. I guess that would largely depend on location and whether or not their home has a secondary unit or two that can be rented out to professionals. Especially , if it's a quality soundproofed build in a prime location. That would essentially allow the homeowner to 'downsize' in retirement, without having to move ,, while getting great cashflow.

[whatnext]

Originally Posted by CivicBlues

I think you're watering down your original argument at this point

How so?

[rbt]

Originally Posted by lio45

That can't be correct. If ~40,000 new units get started every month in Toronto, that's ~500,000 new units added to the supply per year. At that pace, Toronto will soon have a glut of unwanted/unneeded housing, if it doesn't already.

They take monthly starts, multiply by 12 (to create an annual equivalent), and perform an adjustment for seasonality (beef up february, decrease may, etc.).

Even then, it'll halve or double on a month to month basis and is basically useless.