Vancouver housing bubble starts collapsing. Local realtor insists that housing only goes up.. (link)
. Unregistered
Posted 7/4/2012 11:20 pm
Why would anyone trust what a commissioned realtor has to say about the housing market?
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China factor hits high-end real estate properties
By RICHARD ZUSSMAN, QMI AGENCY
April 17, 2012
Chinese investors are cooling on Vancouver real estate, leaving luxury homes languishing on the market, which some experts say will lead to downward pressure on prices overall.
The bottom has fallen out of Vancouvers high-end homes, according to immigration expert Richard Kurland. When you have the high end blown apart, people who would buy a house for $2 million now wait. That has a cascading effect. That keeps trickling down. If that trend continues you will see $800,000 down to $600,000 and down and down.
Kurland said foreign investors are fleeing the local market because the Canada Revenue Agency is on the verge of cracking down on overseas tax reporting and the Canadian government is seriously looking at 400 Chinese fugitives living in the country and attempting to send them home by July.
This has led to a decrease in demand for high-end homes, he said.
By example, one home on Vancouvers west side has seen its list price plummet to $4.5 million from $7 million five months ago.
The bust, however, has not hit West Vancouver yet, according to Clarence Debelle.
The realtor specializes in selling to buyers from China and noted 13 of the last 16 homes that sold for more than $3 million in the swanky British Properties since last September were purchased by Chinese buyers.
I believe we are going to see continued Chinese buying sustained for the next three years. They are here today and they will keep coming, he said.
Canadian Real Estate Agency numbers released Monday reported the average price of a home in Canada in March was $369,677, down from $371,591 a year previously.
The average Vancouver home was $761,742, down from $786,311 in March 2011.
Posted 7/4/2012 11:25 pm
Remember the height of the US real estate bubble (2006), and the chief economist for the National Association of Realtors came out with this book..
"We are experiencing a historic wealth-building opportunity, says David Lereah, chief economist for the National Association of Realtors."
An invaluable book . . . Todays real estate markets are booming and Lereah makes a convincing case for why the real estate expansion will continue into the next decade. This book should prove to be a truly practical guide for any household looking to create wealth in real estate. DEWEY DAANE, FORMER GOVERNOR OF THE FEDERAL RESERVE BOARD OF GOVERNORS
Posted 7/4/2012 11:29 pm
Why can't Obongo just stop these Chinks from moving here and buying property. Americans can't buy property in Mexico if they aren't citizens of Mexico.
It's an export business, you dumbass. Do you want foreigners to buy your products, or not?
If you build a house in Canada, then sell it to a foreigner, you get the money just like if you sold an item. Plus, Canada gets to collect recurring property taxes.
Posted 7/4/2012 11:40 pm
There's only 3 options in Canada if you want city life. Toronto, Vancouver and Montreal.
Everything else is like a large town at best, not like the United States which has dozens of huge cities.
I was joking. The toronto skyline is a sea of cranes building condos full of 300k 500square foot "studios". Little bungalows used as grow-ops are $1 million.
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March 8, 2005
By Dawn Johnson-Cox (Naples, FL)
"..I recently encouraged a family member to take advantage of a condo conversion and now has been her first chance to build wealth in real estate.."
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March 9, 2005
By James Peters (Columbia, South Carolina)
"..Hats off to Dr. David Lereah for defying those naysayers and proponents of a real estate bubble..
..Facts speak for themselves and the book is full of data that supports the conclusions reached by Dr. Lereah.."
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July 22, 2005
By MW Girl (MW, USA)
"..Unlike many of today's naysayers, this book takes a shot at analyzing the current RE market and it's future trend by assessing facts. It's simple for others to write articles claiming a "bubble about to burst" based on an unprecedented "run up", but this Author backs his assessment with real facts, that quite frankly, set my mind at ease and even may have even motivated me to invest in some more property! Thank you for your efforts Mr. Lereah!! This was money well spent!!!!.."
Many don't care about the short-term, because their main concern is to park money overseas, out of the reach of China's government (which is pretty corrupt).
They're all-cash buyers, so it's not like they'll end up with an underwater mortgage or face foreclosure.
