Vancouver Real Estate - Bubble or Nonsense?

[nickerjones]

Man Vancouver is Crazy... here are our prices in Oklahoma :
5,000 Sf House = 500K


10,000 Sf home is listed for 1.6 million

[Crazy Bacon Legs]

When moving to Vancouver about 4 years ago, I predicted the economy would tank. Thus, I got a variable mortgage at prime minus 0.85%. I have been paying between 1.65 and 2.15% interest on my mortgage the entire time. My mortgage term has been chopped in half and the property value has gone up somewhere around 20-25%. The combination of low interest and Vancouver's skyrocketing real estate prices means I am a happy panda.

This doesn't have a whole lot to do with the topic. I'm just really jazzed about this. Yay me.

[flamesfever]

I recall flying over the lower mainland and Vancouver in the late 60's in a private plane with a friend in real estate, who looked down and said, "Some day this area will be very expensive to live in, as there is an ever increasing demand for a limited supply of land.

[The Yen Man]

Originally Posted by pepper24

Huge bubble. When rates get back to historical averages.....pop! Calgary won't be too far behind.

Vancouver really doesn't follow any trends like the rest of the market does. They have so much foreign investment from China and Hong Kong that it really doesn't matter what interest rates do.

Case in point. My cousin and her family are moving back to Richmond from Hong Kong. They sold both their properties in HK, and paid $600K cash for their town house in Richmond. And by Hong Kong standards, they're not even considered wealthy or well off. It's just that the housing market in HK is way more expensive than here, and when they immigrate to here, the prices in Vancouver seem like a bargain compared to what they pay in Hong Kong.

[Clarkey]

A wealthy Chinese guy I work with claims that this same effect is about to hit Calgary. He said that wealthy Chinese (he is one of them) are starting to opt to move to Calgary instead because you get more bang for your buck here. Apparently the advent of flights direct from Calgary to Hong Kong have also contributed to the desirability of Calgary.

[Kybosh]

Originally Posted by Clarkey

A wealthy Chinese guy I work with claims that this same effect is about to hit Calgary. He said that wealthy Chinese (he is one of them) are starting to opt to move to Calgary instead because you get more bang for your buck here. Apparently the advent of flights direct from Calgary to Hong Kong have also contributed to the desirability of Calgary.

I would not be surprised in the slightest. To be honest, wealthy Chinese already own large amount of properties in Calgary. I've personally lived in a several condos that were owned by rich guys in Beijing.

The difference between here and Vancouver, however, is space constraints. I could see Calgary going up in property values but not to the same extent as Vancouver.

[mykalberta]

As much as I HATE Can####s fans.

As others have said, limited available land close to the Ocean and in a city that is consistently rated as one of the best places in the world to live will always have affordability issues.

The other issue I think that is driving real estate in general is very simple, early very frugal Baby Boomers are dieing and leaving their extremely large inheritance to an extremely smaller number of children.

I personally know 3 people who in the last 5 years have recieved "free" money from their grandparents all in excess of $500K - one got over $1mil. When you can purchase a home with "free" money it doesnt really matter what your income is.

[squiggs96]

Originally Posted by Winsor_Pilates

You may be interested in the Cambie St. corridor plans if you're looking in that area. Big plans to come for 16th Av and South.
http://vancouver.ca/commsvcs/planning/cambiecorridor/

I love the Cambie corridor. I have been outbid in that area a few times this spring. One house was listed at $1.1M to bring in people like me, but they were actually looking for $1.7-$1.8M. They got it in about three weeks.

Do you have any knowledge on the three row homes at the corner of Cambie and 33rd? They have been there since July of last year I believe and have changed realtors at least three times that I've seen. Are they just firm on the price and not willing to budge, or do people not want to move there? My thoughts are that they are great houses with decent floorplans and the lanehomes are great for a mortgage helper. The downside is there is no real land as the three homes take up all the dirt and if you are willing to spend $1.8M plus HST you can easily get a great house in that area for that price. I think the middle one is worth $1.5M including HST and the smaller two at $1.3M. Thoughts?

MLS # V880481, V881176 and V880624.

If you feel more comfortable PMing me that's fine. I'm not sure what you are and aren't able to say on a forum like this being a realtor.

[squiggs96]

Originally Posted by nickerjones

Man Vancouver is Crazy... here are our prices in Oklahoma :
5,000 Sf House = 500K


10,000 Sf home is listed for 1.6 million

As much as I love watching HGTV shows about buying property, they also depress me. I saw one where a couple in Alabama were buying their first home and were shocked that their $195,000 wouldn't buy them a 3,000 sq ft home with a few acres of land. They ended up settling on a place with only 2,500 sq ft. for $180,000.

There is no way you could even build a home for that price in Calgary or Vancouver, never mind the cost of the land.

[The Yen Man]

Originally Posted by squiggs96

As much as I love watching HGTV shows about buying property, they also depress me. I saw one where a couple in Alabama were buying their first home and were shocked that their $195,000 wouldn't buy them a 3,000 sq ft home with a few acres of land. They ended up settling on a place with only 2,500 sq ft. for $180,000.

There is no way you could even build a home for that price in Calgary or Vancouver, never mind the cost of the land.

I feel exactly the same as you when I watch shows like Property Virgins and House Hunters when they show the houses in the States. $300K down there gets you something that would cost almost $1M here in Calgary. It's insane.

[Old Yeller]

Yeah I saw a House Hunters show based in Houston. Gorgeous fully upgraded house that was 3500 sq ft, had a pool, 3 car garage, it was on over an acre of land and it was listed for slightly under $300K - I think they ended up getting it for $275K.

I just sold my 1000 sq ft starter home for slightly more than $275K. There's no pool and a 0 car garage.

[Bill Bumface]

How can they even get building materials to make a house like that for such a low price?

[Morozee]

Originally Posted by squiggs96

I love the Cambie corridor. I have been outbid in that area a few times this spring. One house was listed at $1.1M to bring in people like me, but they were actually looking for $1.7-$1.8M. They got it in about three weeks.

Do you have any knowledge on the three row homes at the corner of Cambie and 33rd? They have been there since July of last year I believe and have changed realtors at least three times that I've seen. Are they just firm on the price and not willing to budge, or do people not want to move there? My thoughts are that they are great houses with decent floorplans and the lanehomes are great for a mortgage helper. The downside is there is no real land as the three homes take up all the dirt and if you are willing to spend $1.8M plus HST you can easily get a great house in that area for that price. I think the middle one is worth $1.5M including HST and the smaller two at $1.3M. Thoughts?

MLS # V880481, V881176 and V880624.

If you feel more comfortable PMing me that's fine. I'm not sure what you are and aren't able to say on a forum like this being a realtor.

Wow, I couldn't imagine shopping for a home with that kind of budget! Especially living in Manitoba, 1.1M - 1.8M will get you a beautiful home on a large piece of land.

Case in point:
http://www.realtor.ca/propertyDetail...dKey=273600900

http://www.realtor.ca/propertyDetail...dKey=315354983

What does this contribute to a thread about Vancouver real estate? Probably nothing. I just find the real estate differences in the cities across this country interesting.

[squiggs96]

Originally Posted by Morozee

Wow, I couldn't imagine shopping for a home with that kind of budget! Especially living in Manitoba, 1.1M - 1.8M will get you a beautiful home on a large piece of land.

Case in point:
http://www.realtor.ca/propertyDetail...dKey=273600900

http://www.realtor.ca/propertyDetail...dKey=315354983

What does this contribute to a thread about Vancouver real estate? Probably nothing. I just find the real estate differences in the cities across this country interesting.

Yeah, but think of the cost of maintaining all that grass. There is fertilizer, and blade sharpening and gasoline.

[blankall]

Originally Posted by hulkrogan

How can they even get building materials to make a house like that for such a low price?

I think it helps that the construction and production markets are flooded with cheap labour that is often willing to work for less than minimum wage.

The price of building materials is also considerably cheaper as fuel is taxed less in the states.

[afc wimbledon]

Originally Posted by blankall

I think it helps that the construction and production markets are flooded with cheap labour that is often willing to work for less than minimum wage.

The price of building materials is also considerably cheaper as fuel is taxed less in the states.

If the yanks ever do stop the mexicans coming in they are going to crap a brick as their costs for food and construction triple overnight.

[billybob123]

Originally Posted by hulkrogan

How can they even get building materials to make a house like that for such a low price?

I think it has a lot to do with the resale market cratering in the US. I bet most of these homes are selling at a large loss to the sellers.

[squiggs96]

Originally Posted by billybob123

I think it has a lot to do with the resale market cratering in the US. I bet most of these homes are selling at a large loss to the sellers.

There are definitely houses being sold for losses, but there are still many, many new developments that are selling that cheap as well.

[Tinordi]

Vancouver's an executive city with people buying condos and homes as a means of another bank account. Want to keep $700,000 in roubles in a Russian bank account or park it in a West-End condo?

I honestly don't think there's much of a bubble beyond what's going on in other Canadian cities. It's just that the demand for housing is much much higher due to limited supply in Vancouver proper and large domestic and international demand. It's a beautiful city with excellent amenities, hence people want to live or own there.

[blankall]

Originally Posted by afc wimbledon

If the yanks ever do stop the mexicans coming in they are going to crap a brick as their costs for food and construction triple overnight.

It's a bit of a double edged sword though . It also means there are less jobs available to legal citizens and the citizens have to work for less money. Plus having people send money back into Mexico is awful for the economy as a whole. Yes there are a lot of benefits to average Americans too though.

Back on topic though, I don't think Vancouver will see a huge bubble burst. Vancouver's market gets small correctiosn all the time. Like others have said, there is always a vicious line of people waiting to buy and the prices always end up trending upwards. Too little supply for the nice areas in Vancouver as many of the less desirable areas have awful commutes and are crime ridden.