Bubbles and Vancouver Home Prices?
Posted March 1st, 2017 in Real Estate, Statistics | 
Tissues
Tissue boxes fly off store shelves to dry Vancouver home buyers eyes as Vancouver’s average prices bounce back.
Average Price 1977 – 2016
Yattermatters – Average Price Feb 2017
Vancouver Real Estate Average Numbers
| Detached | Attached | Apartment |
| Feb 17 – $1,758,813 -03% |
Feb 17 – $827,893 +10% |
Feb 17 – $603,737 +13% |
| Feb 16 – $1,816,487 | Feb 16 – $747,069 | Feb 16 – $530,915 |
Vancouver Real Estate Inventory – Active Listings
| Detached | Attached | Apartment |
| Feb 17 – 4,310 +24% |
Feb 17 – 1,031 +37% |
Feb 17 – 2,253 -27% |
| Feb 16 – 3,452 | Feb 16 – 750 | Feb 16 – 3,097 |
Vancouver Real Estate – Units Sold
| Detached | Attached | Apartment |
| Feb 17 – 749 -58% |
Feb 17 – 404 -33% |
Feb 17 – 1,275 -28% |
| Feb 16 – 1,784 | Feb 16 – 604 | Feb 16 – 1,790 |
Control
Governments decrees have attempted to control Vancouver’s real estate market. New mortgage regulations and Christy’s crunch – the 15% provincial tax on foreign purchases had an impact. To various degree these controls were effective in slowing sales to a crawl but, have not constrained the Vancouver average price juggernaut.
Trumpian
There are parallels in outcome to our southern friend U.S. President Trump’s alternate perspective of success. Without hard data to back up this opinion a casual overview of the government decrees appear to have delivered alternate outcomes. In Trumpian fashion the Vancouver market out did itself. Economic conventions suggest price and supply go hand in hand. So is it then a surprise to find supply squashed by government intervention resulting in anything other than a higher price? Accordingly, can buyers expecting a government helping hand in controlling the market, find their hopes crushed by higher prices express their deep frustration with anything less than exasperated tears.
Outside The Box
There may be hope. Some government agencies are beginning to recognize that controlling Vancouver’s real estate market is difficult if not impossible. With the goal of countering Vancouver`s non affordable prices one agency, VAHA, the Vancouver Affordable Housing Agency hereafter known as the TPK – Trailer Park Kids, sees Temporary Modular Homes – aka self contained Atco Trailers, as the answer. Their claim – low cost affordable housing throughout the city. The caveat – will Bubbles be able to afford the rent.
Thanks Larry.
Real estate speculation is a global phenomenon.
Cities all over the world are grappling with vacant homes. And it’s primarily citizens of their own countries that are purchasing multiple properties. Stock markets have disappointed many baby boomers over the last 20 years, we see houses as a bit safer, and a bit more understandable. Follow the boomer psyche and that’ll tell you how to spend.
Millennial’s are the next cohort. Home speculation may be a lottery, or a casino, but stocks are slot machine.
Funny, no mention of impact Christy’s new first time buyer down payment scheme as the reason for the turnaround, and also the announcement that work visas holders will be exempted from the 15% FBT. These 2 things, at a time when inventory is low, is the reason for the turnaround. In other words, Gov intervention was working to lower prices, then new Gov intervention worked to reverse the lowering trend.
lol – exactly- no mention of the first time home buyers scheme that was introduced? Talk about government intervention …CHMC, Home buyers RSP, Reno tax credits, etc etc.. 68k empty homes in Vancouver – the world capital for money laundering. Give me a break. Vancouver will be a resort town soon enough.
Almost 60% fewer detached homes traded hands. Wouldn’t you say this impacts the meaningfulness of the ‘average’ sale price?
I think the is a market waiting to see where the chips falls.
@fortune
relative within the scope could be proposed.
@fortune500
exactly. no one is moving.