Higher prices, rising rates, new tax announcements, and latest mortgage requirements are all playing important factors towards the plummeting of housing sales in the Metro Vancouver area. As housing sales dipped to the lowest level in the recent years, Metro Vancouver’s new homes have soared in the initial quarter of the year, with stats in Vancouver alone being more than twice as high as the same period in 2017. There were 6,542 home sales on the Multiple Listing Service (MLS) in Metro Vancouver during the initial quarter of 2018, which is a decrease of 13.1 percent from the same period last year. This represents the region’s lowest first-quarter sales total since 2013, reported by the Real Estate Board of Greater Vancouver (REBGV).
The overall housing sales in the first quarter of the year were the lowest in the past 5 years. In fact, even the local listings of detached, attached and apartment properties dropped by almost 7 percent in March as compared to previous year. But total housing stats across the region increased to 6,864 units in the first three months of 2018, up by 30 percent from the last year. Massive increments were also noticed in the Northern Vancouver area, where about 1,422 new homes were initiated, comparable to only 107 in the same period the preceding year. Even though there have been almost 43,000 new homes under construction across the Metro Vancouver area, the current inventory remains incredibly low.
Sales have started to outstrip supply for condos and townhouses. The benchmark price for a condo was close to $700,000 in March. This is a leap of 26% compared to the preceding year. Standard townhouse prices across Metro Vancouver reached $835,300 last month, which is a 2 % hike over February and an overall 18% rise from March 2017.
Renters are paying the real price when it comes to living in these highly expensive areas. According to the Canada Mortgage and Housing Corporation, average rent has nationally gone up previous year by 2.7 percent to $947 per month. Meanwhile, rental property is becoming tougher and tougher to avail. The CMHC says that the overall vacancy rate for cities across the country was three percent in 2017, down from 3.7 percent in 2016. In its annual report on housing rentals, the corporation said the demand for a purpose-built apartment is outpacing the growth in supply, while the rates of condos rented out are also declining.
This uncontrollable price outburst has taken the market by surprise. This is becoming a serious concern for both businesses and residents looking to recruit new candidates. It is becoming immensely cumbersome to buy quality real estate in Vancouver. The government of British Columbia is looking to follow new measures intended to mitigate the highly inflammable housing costs.
Increasing construction can meet the rising demand for rental studios and multi-family homes. Beyond that, it wouldn’t hurt for people to look for suitable accommodations adjacent to or on the outskirts of the Metro Vancouver area!
It is easy to comprehend why people are moving up in the housing continuum and freeing up the real nature of rental homes. But the main question is – is it economically viable to shift the paradigm over to detached homes and condos? Let’s figure it out!
For a long time now, Vancouver’s real estate market showcases a high degree of vulnerability. Certain reports continue to signal strong evidence of staunch overvaluation as housing prices are still going north of expectations. Surveys noted that homeowners in Greater Vancouver and the Greater Toronto Area remain probably the most highly indebted in Canada, due to the speed in which their real estate market has expanded. Other measures designed to either cool down the housing market include Bank of Canada, raising key interest rates, Ontario’s Fair Housing Plan and a new mortgage stress test by Ottawa for insured mortgages. Unguaranteed mortgages remain slightly more expensive.
We have found moderate evidence of price acceleration when it comes to the overall market, but it has been pointed out that low price acceleration among detached homes was causing an extremely high price growth influx among condos and townhomes. Instead of buying detached homes, families are now settling for the option of apartments and condos. The irony is that condos aren’t exactly on the cheaper side!
Renters are struggling to find homes because prices are skyrocketing and at the same time availability is rapidly declining. Vancouver’s housing market continues to overheat, as demand for multi-family units remains elevated, largely due to their relative easy affordability as compared to single-detached homes. As a result, inventories of both new and resale multi-family units are at or near all time lows. People believe that the Canadian government at one point in time was able to construct enough rental buildings annually, but after the arrival of private sector, it hasn’t been able to fulfil the rising requirements of the growing population. In turn, there has been a shortage of quality apartments and condos in Vancouver, and this has led to an enormous rise in housing rent.
So is it viable for the common people to start renting condos and apartments at over $1500 a month? No! In fact, it would be very troubling for average middle income families to invest that much money in rent alone. It was reported that last year, Canadians nearly spent more than 30% of their incomes on shelter costs, which is way beyond the line of affordability. All in all, it is becoming very difficult for families to survive, not to mention, save money with these rising costs.
The need of the hour is direct intervention from the government to help reduce proliferating housing costs.
It seems like Vancouverites are more concerned about gas price in the past 2 days than Vancouver/Yaletown real estate! might as well talk about gas price!
Source: GasBuddy. Retrieved from cbc.ca/bc/gasprice
“Vancouver is expensive to live” has been ring our ears for a while. We have the most expensive gas in North America (gas prices spike to $1.50CAD/Litre) , as well as high cost on housings..etc. On the other hand, we also believe that Vancouver is “very international” as we have
The’s a cost for being a “popular” city so it is expensive to live in! However, how “expensive” is Vancouver compare to other popular ones? Let’s have a look at cost of living compared with other well-known cities around the world. Looks like we are not too bad!
Please include attribution to Condos in Yaletown with this graphic.
There isn’t an easy-to-read chart out there so we have decided to come out with an overview of how greater Vancouver & Fraser Valley Real Estate has grown in the past 10 years. Information is compiled from Real Estate Board of Greater Vancouver and Fraser Valley Real Estate Board
Looks like everyone is a WINNER if you have purchased at least a piece of property in the past 10 years.
The real estate in Yaletown, Vancouver BC, is perhaps going to be the probable central causes for a resurging housing bubble that hit the US a decade ago. Adjunct economic housing instability has engrossed a fury of housing spectators, disenfranchised students, and residents towards a political decry.
Most spirited candidates once believed that half a million dollars could get them a beautiful offshore mansion. The reality is however different. 500,000 $ is only equivalent to a small residential condo. This is exactly why most people believe that the housing market is out of control.
Now, certain spectators believe that the city’s housing market was being covertly restructured to supply millionaires in the third world countries with a medium to vent out their black currencies through investment. Others believe that extreme housing prices are due to a lack of political management of funds and resources, forcing the housing sector to collapse because of changes in the global dynamics. Now everyone has their own peculiar hunch, so here are certain trends that have really taken British Columbia aback.
The law of capitalism says that the rich get richer and the poor get poorer. This could exactly be the case here. Most multi-million dollar tycoons are investing from their pool of wealth into real estate to create secondary sources of income through investment. Exorbitant lumps of wealth need to be utilised and real estate, well, it’s the best way to block your money!
International agencies reckon that shell companies own most high-end properties in posh areas. Within Vancouver’s city limits, around 99 percent of the single detached houses are now assessed at $1 million. More than 20,000 Vancouver homes get vacant every year. Vancouver’s rental vacancy rate is hovering just below one percent! This means that property sale and purchase have taken a leap forward, and people other than the middle class are reaping vital benefits from this!
Foreign nationals are taking advantage of having access to quality real estate. There are a plethora of opportunities for Non-Canadians to buy, invest, and extract profits from real estate. Most immigrants are finding it rather tough to attain affordable accommodation, yet there a rich group of ‘so-called’ sophisticated immigrants that spur up the real estate prices with their barrels of wealth.
The trends of real estate in Yaletown, Vancouver aren’t on the people friendly side. Perhaps, proper governmental action and holistic mortgage policies could help control the snowballing effect of prices. Developing punitive housing taxes and other measures to prevent illegal money from entering into the Canadian economy is the right step forward.
Canada has a vast land area covering up to almost 10m million square kilometres, considered as the second largest country in the world. Canadian government invites and encourages migrant workers and residents from other countries to fill up jobs and occupy uncovered areas in the country. This is in response to the rising economic status of the country.
Canada’s Federal Economic immigration platform has been recruiting a number of migrant skilled workers to accommodate demand for workers on Canada’s local job vacancy and manpower needs either as temporary workers or permanent residents. The country is also trying to attract foreign investors as an additional government funds and government profit opportunities.
Check out reasons why you need to invest and purchase real estate as soon as possible. There are a lot of positive and optimistic expectations this year, 2018.
There are 7 things that Canadian residents should count on in investing in land, property, house and real estate this year.
As the Canadian government allow express entry for foreign skilled workers to augment job vacancies for different industries, the number of population in the country proportionately grows as well. Demand for housing is growing rapidly.
|2006||2011||2016||2006 to 2016|
|Newfoundland and Labrador||505,469||514,536||519,716||2.8|
|Prince Edward Island||135,851||140,204||142,907||5.2|
|Source: Statistics Canada, 2016, 2011 and 2006 Censuses of Population.|
Every year the land and real estate appraisal increases by months or by years. It is inevitable market pricing for all commodity and realty. Purchase and invest in property and housing estate as earliest as possible this year to skip paying an increased value on real estates. Even after retirement, your house and land’s price increases. It never stops increasing day by day.
Due to demand for housing and land development in the past years (and is expected to continue this year), real estate loan interests are expected to increase. In line with the increase on the value of land, property and housing prices, as well.
Canadian banks are expected to increase their rate target up to 1.25% interest rate (and will possible surge more) from the start of this year, 2018. So, it is wise to invest as early as possible.
Since the new Federal Immigration project has been implementing, competition with owning a land or a house per family has been a race. Cities like Toronto, Montréal, Vancouver, and Ottawa have been now occupied pretty much by a lot of working migrants and their families. The diversity of residents and the surge in population limits the chances of getting the best area around town or cities, because you get to compete with the purchasing of the real estate of your choice.
Purchase a piece of land or a house now, or let just have what area remains. It has now been a race to who will get the best location and best house to purchase.
Definitely, a real estate and properties price increases, every year. With the promising business opportunities and job vacancies in whole Canada including those from other far flung regions, expectations in competitive economy, country’s increased GDP rate and job vacancies can ploy buying and sales capacity; thus inducing increase in prices and higher interest rates, depending on location and economic progress of the area.
Bank loans, purchasing another property, authentication of documents, and legal certification often requires land and housing ownership. Investing in real estate can open great deal of opportunities for you and your family. It is an asset you can use to gain another asset, property or gain connections, and work / business chances.
The house and lot you purchased now can surely gain profit in the coming years, despite of the property tax, renovation and maintenance costs; Can be passed on to your children, or your children’s children. Do not wait till the whole Canada is crowded and there are no left space for you to purchase.
All around the world, people seek a luxurious and dream residence. Vancouver luxury homes are the perfect combination of beauty, style, elegance & more. The city offers amazing quality of life and all the modern amenities.
The previous years in Vancouver saw high demand for luxury homes. But the scenario has changed this year. Let’s understand exactly why and how this has happened:
When compared to July 2016, Vancouver house sales over $1 million have plunged in the first half of 2017,
The city has witnessed a slowdown in luxury home sales. This is due to the 15 per cent foreign-buyer tax introduced in August 2016, in a struggle to cool the previously red hot market. Only after living through historic highs the previous year, sales activity in the $1 million-plus market stabilised in the first half of this year.
In the $4 million-plus market, overall luxury sales experienced a 52 % year-over-year slump to 211 units.
What’s more? The BC Government’s latest data suggests foreign buyers have been decreasing for months.
Limiting capital outflows has been China’s zealous effort.
In the first three months of 2017, luxury house prices in prominent global cities escalated by 4.3% compared to the same period last year, and this upsurge can largely be credited to China’s cities.
Chinese officials limited foreign currency transactions to a paltry $9,000 as of July 1.
The new controls are aimed at ceasing “ants moving house,” says Anne Stevenson-Yang, of J. Capital Research Ltd., one of the leading experts on the Chinese economy. The term is used in China for getting many people to make small money transfers to eventually transfer plenty to purchase property.
Though folks discover ways around the rules, Anne says. Mostly, the rich already have their wealth overseas, thus they are not impacted by new controls. Irrespective, foreign exchange reserves have upturned every month since January.
In the present, the slowdown is already surfacing in Vancouver’s luxury home market. Single family home sales above $3 Million have jumped 27% year over year while inventory has hiked 24%.
It will be interesting to see how long China withstands the latest tightening. If China stays determined on limiting outflows, Vancouver housing market won’t be the only one to experience the impact. According to a report, there will be an 84% decline in offshore property buying in 2017.
The people of Vancouver may finally be able to heave a sigh of relief.