Posted by: chupacabra
So when is Pedro going to get his comeuppance? I feel like around 2000 Vancouver's R/E market went public. There seems to be cities that are on the open market for investment just like stocks and once they go public there is no going back because the owners of these investment properties changed the entire market by their presence. As long as there are wealthy people looking at Vancouver real estate like a stock ticker the cost to buy will never be steered by local incomes. If the prices do drop it will just provide opportunity to buy in. This is permanent.
Prices would need to collapse over 50% before Pedro gets his comeuppance. Even at a 50% drop from today's prices, things are still too expensive. Like Adam West points out, prices everywhere are fucking stupid. A shitbox in Hedley is over $270K. There's a place in Lytton you can get for $230K, and while the structure looks sound it needs around $70K in interior work unless you're ok with living in something that resembles a garden shed. Another example is a shitbox 30 minutes outside of Nelson for $290K. It's had a little bit of work done, but is asking over $100K more that what it sold for in 2019. Does a small house that needs work in that part of the province have any justification for going up $100K in price in two years? You start looking around the province for cheap single family homes and find out pretty quick that it doesn't exist anymore unless you're buying in the middle of nowhere that is a hike from any sort of ammenities. Tin can mobiles don't count either, I'm talking real houses. Your best best anywhere close to the lower mainland right now is this shitbox in Boston Bar for $199K. If you want really cheap you're going to places like Hixon, Houston or Quesnel to get around the $150K or less mark. Or you're moving outside of BC to Alberta - just look at the difference in available homes under the $200K price mark.
While foreign money has played a big role imho, local sellers and buyers have helped move the frenzy along as well due to low interest rates. Add in the unscrupulousness of the banks too, making loans they shouldn't. And of course government and the real estate industry shares part of the blame to due to easy loopholes that offer tax free profits and shady players interested in making as much money as possible. Houses on the east side are starting to catch up in value to some on the west side - it's not uncommon to see east side homes sell for $2 mil or more. It's completely fucked. Unless someone in their 30's has parents with a house that are about to croak, the chances of young people buying a home in Metro Van are over. The odd person can do it if maybe the win the lottery on something like GME or BTC, but otherwise the avg working stiff can look forward to a life of renting in Metro Van.
This article is from 2016, but really goes back to 2015, and shows just how bad things were/are. What I find surprising is that the R/E industry has don't more to stand up for itself and expose the shady shit. By letting a lot of this crap go on the entire industry is tarnished. The average person seems to have no trust in R/E agents anymore and thinks the entire industry is shit. There are of course still good realtors out there, but I think their image is damaged beyond repair and people simply look at them as a necessary evil.