Sunshine and Lots of Rain
Our government’s sunshine dream that a foreign national property purchase tax would improve affordability, has after two solid months of rain, washed away. The accumulation of rain appears to have affected the Vancouver market as average prices once more floated upward.
Average Price 1977 – 2016Yattermatters – Average Price Nov 2016
Vancouver Real Estate Average Numbers
|Nov 16 – $1,612,469
|Nov 16 – $763,331
|Nov 16 – $562,160
|Nov 15 – $1,579,170||Nov 15 – $630,018||Nov 15 – $500,084|
Vancouver Real Estate Inventory – Active Listings
|Nov 16 – 4,724
|Nov 16 – 1,092
|Nov 16 – 2,569
|Nov 15 – 3,356||Nov 15 – 995||Nov 15 – 3,745|
Vancouver Real Estate – Units Sold
|Nov 16 – 643
|Nov 16 – 376
|Nov 16 – 1,200
|Nov 15 – 1,344||Nov 15 – 636||Nov 15 – 1,553|
*Percentage = YOY
Money, Water, Least Resistance
Vancouver home sales are down substantially and have provided fodder for pundits lauding the success of the foreign national 15% purchase tax. Yet average prices are holding or rising further squelching the possibility of affordable housing. It’s a dilemma that is spreading.
The nature of money and water is to find least resistance. Compared to a year ago Vancouver’s market has changed but that change has spawned market issues for outlying communities. As example consider quiet, staid Victoria that now feels ‘the money’ pouring into their market.
Vancouver’s earliest talking heads said it couldn’t happen here. Now, their same stories emanate from Victoria.
They use nice words such “interesting question”, “anecdotal evidence”, “it could go either way”, “I wish we had stats”, “gauging the ripple effect could be difficult”. Words Vancouverites will recall as all too familiar.
Were you to make a best guess – one that is probably as good as any made by these talking heads, it would be that communities outside of Vancouver are about find themselves in a predicament equal to Vancouver’s
Since you are in the mood, throw another pebble into the talking head pool with this guess.
Our Cherub Premiere is ramping up her need for votes and in a Super Natural moment will empty her foreign tax bucket at currently tax free communities still not understanding that her action will not stop the rain of ever increasing home prices.