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Condominium sales to slow in '08: survey

LORI MCLEOD

Globe and Mail Update

Latest comment posted at 3:40 PM EDT 06/04/08

Price increases are also forecast to moderate in major Canadian markets; Vancouver rise seen at just 5.7 per cent ...Read the full article

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  1. Phil . from Vancouver, Canada writes: Most Vancouver real estate is 40% down to flow positive. Rent multipliers are 20 while the historical average is 12.5-15.

    There are detached houses in Burnaby listed at 600k where the MLS listing says are currently tenanted at 2k/month. That will service just over 300k of debt.
  2. Phil . from Vancouver, Canada writes: The median family income in Vancouver in 2007 is 64k

    http://www40.statcan.ca/l01/cst01/famil107a.htm

    The average price for a detached house in Vancouver is 761k

    http://www.realtylink.org/hpi/rebgvhpistats.cfm?date=0208&TYPE=buyers

    A lender will typically offer a family a mortagate that is 3-4 times
    their gross annual income.

    64k x 4 = 256k.

    Unbelievable, I know.
  3. The Economic Hitman jr. from Vancouver, Canada writes: I don't really understand the assertion that, "A slowdown in the condominium market this year could help open the door to home ownership for buyers previously sidelined by soaring real estate prices, according to a study by Genworth Financial Canada and the Conference Board of Canada." If the market increased in Vancouver by about 15% in each of the last 3 years and is forecast to increase another 6% this year, how does that increase affordability? If I could not afford a condo last year, how does an increase in prices help me? The report goes on to say, "In many cities condominiums are filling a need for relatively affordable housing close to the city core." In Vancouver, they are equally unaffordable for the average worker (see above for average income). I think this market is great for bankers and real estate agents who have helped fan the flames of this market through aggressive techniques for getting butts in chairs so-to-speak. At what time in the past would a 40 year mortgage been considered acceptable? How informed can a buyer be when fronting a deposit for a condo that doesn't even have a rendering of what it's going to look like when its done? I don't let the sheep-buyers off the hook either; buying out of fear is inherently flawed. I suppose it irks me that this market is talked about as though it's normal. This is an abnormal market, and I'm not sure who is being hurt more; the average Joe who can't buy a house, or the one who does buy the house. Time will tell.
  4. Brad Fgroupthinkn from Canada writes: Did you mean bubble? In TO we saw agents highering people to stand in line for days to make mulitple purchases- smells like smoke.
    that other math stuff in the threads above- well they are just plain scary. Look out below!!
  5. k p from Vancouver, Canada writes: With one bedroom condos selling for over $400k in Vancouver, where is the affordability for single wage earners?
    Prices would have to drop 50 per cent to become affordable for first time buyers.
    I have a sneaking suspicion, many of the sold units are sitting empty waiting to be used for the 2010 winter Olympics.
    The biggest owners could very well be the BC Government and corporations involved with the Olympics.
  6. bill k from Canada writes: RE agents all know the bubble has popped and no buyers are left. They are looking for ANY SUCKER to buy overvalued homes from people who are in debt to their eyeballs and need to sell. The US housing crash is now starting to be felt in Canada. POP....What was that
  7. R C from Vancouver, Canada writes: There are plenty of buyers Bill K and there always will be. We are much more strict with lending policies in Canada. What you see in the states is clearly not happening here.

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