Okay, we agree, but now what? ‘Policy stimulus’ has sucked forward demand from the future. In the Vancouver RE market, this has been happening steadily for the better part of a decade. The super-cheap money of the last two years simply fueled the final frenzied blow-off in the process. We now have less demand, high inventory, rising rates, and prices still in the stratosphere, gasping for oxygen. This can only result in ongoing price drops. We seem to have peaked in May [2010]. – vreaa
From the bankofcanada.ca 20 Jul 2010 -
“The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent.”
“Housing activity is declining markedly from high levels, consistent with the Bank’s view that policy stimulus resulted in household expenditures being brought forward into late 2009 and early 2010.”
This market is going to get spanked. The great thing is, the BoC really doesnt base their decisions on what happens way out west. If there is a slow decline in the east and a plunge here, the will probably be more concerned with the slow decline in the east.
And even if the whole damn country starts to plunge, what can they do? Drop rates by 0.5%? Anyone who wanted to buy at high prices with low rates will have already done so, so I dont think that will have much of an effect.
http://www.realtor.ca/propertyDetails.aspx?propertyId=9607800
I think this listing is a bit of a signal of a stagnant market. 4 other similar units in the the building are available at $500k or more. This one goes on the market at $399k but is still sitting there more than a month later. 1236 sq ft, right across from a buried skytrain station and a block from Langara College…but it ain’t movin’.
For every 100K 35yrs mortage and 0.25% of interest increase = $11 more per month.
Think about the impact for current owner, who already rent out part of their house, and 500+K of mortage. In addition, let not forget this is the 2nd time of increase in the year.
rf
Way to piss of your neighbours. I would have loved to be a fly on the wall when the owners of the other listings saw that one. Now a month later, I bet some of them have have had to eat their words.
Good find
re: http://www.realtor.ca/propertyDetails.aspx?propertyId=9607800
I know what problem is. The address is 444 49th avenue.
The number ’4′ sounds like ‘dead’ in chinese so the rich Asian investors (you know, the ones that splurge on $30 meals) are staying away from this building.
i dont know any wealthy asians who would be buying a 30 yo timber framed condo regardless of the address. in any case, the 444 doesnt explain the 100K discrepancy between identical units.