Vancouver Home Prices 1 in 5 Over $1,000,000

1 in 5

According to the Huffington Post you will need more than a lump of coal in your stocking if you are shopping for a Vancouver home.

Double

Using data from the Canadian Real Estate association The Huffington Post says that this year 1 in 5 homes sold in Vancouver went for more than $1,000,000.00 – almost double the 10.1 percent recorded in 2009 .

Graph Credit Information Courtesy The Huffington Post and CREA

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Boombust Says:
November 21st, 2011 at 5:28 pm

Well, all I can say is that if Arianna Huffington is taking notice of thise nonsense, it must be the biggest “oddity” of all time.

Worthy of a Ripley’s entry, too.

BubbleBoy Says:
November 21st, 2011 at 6:49 pm

How is this sustainable? Well this is how. We are different, and better than those stupid US people that make more money than us. “We are Canadian”!! Eh?

L8erDude Says:
November 21st, 2011 at 7:27 pm

wow – and I wonder how many detached are over 1M…60-70%???

davers Says:
November 21st, 2011 at 10:14 pm

Dammit, they actually used sold number too. I was all prepared to say, “just because thats the asking price doesnt mean thats what they will get” but that shut me up. This is getting into insanity territory right here.

November 21st, 2011 at 10:26 pm

@davers
“This is getting into insanity” – conversely, it might be the new normal?

stats don't lie Says:
November 22nd, 2011 at 4:07 am

So, based on the traditional affordability ratio of 3:1, it sounds like 1 in 5 Vancouver residents have a $333k annual salary.

(maybe in 2050?)

November 22nd, 2011 at 6:35 am

@stats
What if that is really the case. In a don’t ask, don’t tell society, that ratio might be walking out the door.

vanpro Says:
November 22nd, 2011 at 8:13 am

Larry, unless you want to risk jail time, CRA/govt ask and you have to tell: according to taxpayer and other govt stats, Vancouver has lower avg. household incomes than Calgary, Toronto etc… WAY lower than $333k (more like $70k)……

http://www.bcstats.gov.bc.ca/data/lss/labour.asp

The current Vancouver housing bubble is the greatest bubble on the planet and perhaps of all time – now that’s something to be proud of (?)….

L8erDude Says:
November 22nd, 2011 at 8:38 am

@ stats don’t lie.
Yes, 333K annual salary assuming 0 equity is included in each and every purchase. But as you well know, a lot of buyers are putting down big deposits and reducing their mortgage amount

November 22nd, 2011 at 8:53 am

@vanpro
“risk jail time”
– what’s the down side? Free meals, warm blankets, laundry once a week, someone to watch over you. For some it’s a grand alternative to a bad pension plan. 🙂

” greatest bubble on the planet and perhaps of all time ‘

– that is a very bold statement considering life as we know it isn’t over.

vanpro Says:
November 22nd, 2011 at 9:17 am

Larry: I would suggest it is a bolder statement to declare that current prices in Vancouver are NOT a bubble….

BubbleBoy Says:
November 22nd, 2011 at 10:56 am

If you look at real estate outside of the metro areas in Canada, demand has withered and prices dropping. This is usually how a correction starts. If you look around the world, prices falling. The only thing different about Van and the GTA, is that we think we have $ but in fact it’s nit ours to begin with. Why do banks lend us this $? Because Mr Harper backed these loans with the stupid CMHC. Eventually taxpayers will be paying for that. If you made $ during this crazy run, good for you. You’ll need it. For all the idiots buying in the last 3 years, that will be your home for a lifetime. Trust me people, it’s coming. And I am a ex realtor!!

L8erDude Says:
November 22nd, 2011 at 6:48 pm

yawn…
same discussion as 2008.

“falling worlldwide prices”
“calamity everywhere”
“only a matter of time before Vancouver effected”
“blood on the streets”

if economic turmoil creates a buying opportunity here the buyers who’ve been sitting it out for nearly a decade will be all over any sniff of a discount.

And, the only thing different about GVRD and GTA is the immigration. 10s of thousands moving to each region every year. This is basically a recipe for real estate success regardless the “fundamentals”

SoapSuds Says:
November 22nd, 2011 at 7:59 pm

I’ve been keeping a track of Westside sale – November is dead.

November 22nd, 2011 at 9:34 pm

@Soapsuds

encouraging news – thanks

Boombust Says:
November 23rd, 2011 at 6:23 am

“And, the only thing different about GVRD and GTA is the immigration. 10s of thousands moving to each region every year. This is basically a recipe for real estate success regardless the “fundamentals”

They used that very same argument in our previous booms that, guess what? Went BUST!

painted turtle Says:
November 23rd, 2011 at 8:05 am

@ L8erDude
Immigration numbers are up?
I think you should have a second look…

BubbleBoy Says:
November 23rd, 2011 at 8:55 am

Larry,

This example is to show everyone how stupid RE is in Van. This is not healthy either. This guy made close to a half mil playing with people. Is this what you support?

Ed. Note: Link Removed

November 23rd, 2011 at 9:33 am

@bubble

last time i checked it’s a free country.
if you choose to deal with the individual you cite in this example (I removed the link as I don’t advertise other agents listings) that is your choice. As to whether I support that person’s business model is irrelevant in a public forum.
I run my show my way and stand or fall by my methods and credo. Some people love me, others choose to go elsewhere. Thankfully, the first group are in the majority.

BubbleBoy Says:
November 23rd, 2011 at 2:39 pm

What I am saying is, would u support flipping? Now the floor is set for the sale in that area.

November 23rd, 2011 at 5:05 pm

@bubble
I suspect you may not be clear about an agency relationship and exactly who is in charge….
Simply, I am an agent (bound by rules of law and professional conduct) who represents the seller in the marketing of a property.
As long as the proposal of flipping meets the guidelines of a legal transaction it remains the seller’s business and moral prerogative to determine if they wish to ‘flip’ – not mine!

L8erDude Says:
November 23rd, 2011 at 8:37 pm

“Immigration numbers are up?
I think you should have a second look…”

not up, just strong.
even if we added 1/2 the typical immigration #’s we’d see detached home prices rise.

vanpro Says:
November 24th, 2011 at 10:20 am

L8erDude:

Immigration has become VERY WEAK:

Immigration & population growth trend has actually reversed this year – we have the lowest immigration & population growth in in nearly 10 years and now net OUT-migration to other provinces.

See latest plunging immigration stats for BC and Vancouver from Stats Can as detailed by Central 1 Economics and RBC Economics. Vancouver’s pop. growth is down to just 1.7% per annum (a lowly 6th out of all CDN cities behind Toronto, Calgary and others) due to: (1) international immigration is plunging to 10 yr. lows and (2) net out-migration to other provinces in search of better jobs, economic opportunities and lower housing costs:

http://www.central1.com/publications/economics/pdf/briefing/1739%20BC.pdf

http://www.rbc.com/economics/market/pdf/citytrend.pdf

L8erdude Says:
November 24th, 2011 at 1:27 pm

@ vanpro

This is tongue in cheek, right? ‘Cause if migration to BC is weak then strong must look like a tsunami. Looks like we added 12,200 to BC (and primarily Vancouver) in just one quarter this year; of which more than 8K were international (all Vancouver).
Thanks for bolstering my comment with proof of the significance.

November 24th, 2011 at 9:35 pm

Best Spam of the Day

i was thinking to make my home and need best construction experienced persons and thanks GOD i find you .

vanpro Says:
November 24th, 2011 at 9:40 pm

Vancouver is WAY behind Calgary and Toronto in terms of population growth RATES (absolute numbers you quote are not relevant – you have to look at RATES relative to our existing population NETTED out for outflow of people) and NET migration. Yet those cities have b/w 1/2 to nearly 1/3 our house prices. Read the reports I linked to. Here is the commentary therein:

“Slower population growth in recent quarters has
reflected a sharp decline in the flow of landed international immigrants to the province and an increased outflow of residents to other provinces.

Meanwhile, B.C. also recorded an estimated net loss of 746 persons to other provinces during the quarter. While the inflow and outflow of migrants to and from B.C. has trended higher since late 2009, the outflow has risen substantially faster, reflecting stronger labour market fundamentals in other regions. The unemployment rate in B.C. was 7.5% in August, while comparable rates in the Prairies ranged from 4.5% in Saskatchewan to 5.6% in Alberta. Year-over-year employment growth in Alberta was 4.2%, in contrast to no change in B.C. Tighter labour markets and thus higher potential for income gains has increased the incentive for individuals to cross the provincial border
for economic reasons. On a seasonally-adjusted basis, interprovincial migration has followed a downward trend since early 2010, and has hovered in negative territory for the past
three quarters.”

would-be buyer Says:
November 26th, 2011 at 6:57 pm

The reality is, these historically low “emergency” interest rates will keep sucking in new marginal buyers. i don’t see a “crash” until interest rates rise. My secretary and her husband (blue collar) just purchased their first property with a variable interest rate (2.4%) because, in her words, they can’t afford the fixed rate. They move in January. This scares me. She also told me that the bank wanted them to include their taxes in their monthly mortgage payments but she doesn’t want to do this because she can’t afford the payments if they are included. When I pointed out to her that she HAS to pay her property taxes each year, she stated that her husband works for cash sometimes (he’s a labourer in construction) and they will pay their taxes with his undeclared income. Apparently, most of his income is earned “under the table” and not declared on his income tax. This is also the reason why they had a difficult time securing a mortgage. She gave me a blank stare when I told her that interest rates will eventually rise and her 2.4% interest rate will seem like a bargain in 5 years and questioned whether she really could afford buying a property if she can’t pay the fixed rate (3.2%?). She is expecting their second child and stated that she had no choice but to move from their 2 bedroom rental.

November 26th, 2011 at 7:16 pm

@would-be
alas, by way of academic or empirical knowledge we can only counsel. Choosing to act on that counsel is entirely another matter.

IMO this young woman is being terribly unwise not to bundle the monthly tax stipend . Many amongst us are not good savers and when the tax comes due they usually don’t have the money – declared or not! The back side of that dilemma is not pretty.

I can only add that stories such as this, evoke a deep sense of empathy that serves to remind me of how fortunate others are.

would-be buyer Says:
November 26th, 2011 at 8:02 pm

I agree with you Larry. I worry for her, not only because she is my assistant and I care for her, but because she is so young (20s) and has a growing family. It sounds like her husband is pushing to buy more than she is. He is in construction and desperately wants to flip a property.

The reality is, affordable 3 bedroom rentals in Vancouver are non-existent. It truly is cheaper for my assistant to buy a townhouse in the ‘burbs than try to find a decent rental in Vancouver.

Similarly, my previous assistant bought a townhouse in early 2010 on the urging of her bank (they owned a condo in Coquitlam and were looking for more space after the birth of their first child) because if she didn’t buy before the new tightening in the mortgage lending rules she wouldn’t qualify for a bigger place. My paralegal also bought in early 2010 to beat the new tightening in mortgage lending rules.

I know these are just anecdotal, but I wonder how many others know of “marginal” buyers who rushed into the market before they were truly ready because they feared they would be priced out forever. I really worry about these hard-working middle income earners who struggle to buy property in this city.

would-be buyer Says:
November 26th, 2011 at 8:18 pm

I meant to say earlier this year – 2011, my previous assistant and my paralegal bought to avoid the new tightening of mortgage lending rules.

November 26th, 2011 at 8:30 pm

@would-be
Curious thought, I haven’t looked to see if there is a correlation but I’m wondering if there is one between divorce and ‘pressured home purchases.’ With kids added to the mix it might just be a time bomb – an ugly one for sure! 🙁
Personally I haven’t been involved in this scenario for a long time but maybe it is something I might plan to expect. As you say, the trigger may be the % rates.

would-be buyer Says:
November 26th, 2011 at 9:43 pm

From personal experience, if I didn’t have my 20-month old, I wouldn’t be considering buying a property in this market!

November 26th, 2011 at 11:05 pm

@would-be
Yup them little people sure do fire up the nesting instinct. Makes us all do things we might not consider under different circumstance. Yah gotta love em 🙂

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