Vancouver Real Estate’s Gold Rush
Posted February 10th, 2012 in Real Estate, Sharing the Experience | 
Gold Rush
Factions within Vancouver real estate had their fingers crossed hoping that the Chinese New Year would produce another rush of eager home buyers. Rumored reality however, seems quite different.
The Change
If ‘coffee talk’ amongst Vancouver Realtors® is the measure for that vein of gold then it appears that few if any of those home buying “nuggets” have turned up. It begs the questions why not? Were Vancouver home sellers digging the wrong hole?
Reasons
Seeking answers to explain why Chinese buyers for Vancouver homes were a ‘no show’, we turn to outside perspective to help explain why the Vancouver home selling gold rush never materialized.
The answers, more global than you might expect, all point to a singular problem – China is in trouble.
Perspective
In the following 22 minute video Patrick Chovanec, associate professor at Tsinghua University’s School of Economics and Management in Beijing, and Nouriel Roubini the co-founder and chairman of Roubini Global Economics, an independent, global macroeconomic and market strategy research firm in New York discuss reasons sure to uncross anxious Vancouver real estate fingers.
Thanks Larry for the updated “coffee talk”. Yes, this makes a lot of sense – China has been a state-sponsored credit bubble for a long time and their economy is very much tied to the US and Europe whose economies are imploding. Also, don’t forget another VERY important factor: China pegs it’s currency to the US$ that has fallen 70% vs. the CDN$ in last 7 years – that means it is 70% more expensive for Chinese to buy CDN property just due to the exchange rate BEFORE factoring in the price appreciation of Vancouver real estate in the last 7 years. That is one heavy burden to bear (excuse the pun)….
HI Larry, thanks for the video.
“…a state-sponsored credit bubble for a long time…”
Sounds like our CMHC.
I know a few mainlander families that have bought here in the last few years. They all have fathers which work in China and mothers and kids stay here and spend $ like no tomorrow. Their reason for choosing Van? Because its easier to immigrate here and they need to exit their $ out of China or the Government will eventually take it. This is 3 families. They all like Vancouver because it’s quiet, safe, and the education is good. But, they all do find Vancouver a very expensive city to live in compared to the mainland. After the kids are out of school, they plan to go back to China for work as there is more opportunity for a better career and a much comfortable environment for them. It’s what they are used to. See, even the Chinese think it’s expensive here to live. And theyre stinking rich. They don’t really want to be here, it’s the immigration laws that allows them to be here. Canada is their second home that they can run to if they get busted for laundering $. The fathers take the risk, mom and kids stay here and spend $ like no tomorrow. And doing this in a city that have many criminal ties. Vancouver is a $ laundering city and always will be.
Ok…. don’t paint all foreigners with the same brush. Although I cannot confirm or deny your comment, I can say I’ve met and know many foreigners who choose Canada for a better life for there children and families. Wouldn’t you? There are many whom are contributing to our communities.
A very interesting discussion.