“Hi – for what it’s worth, I’m a Canadian citizen who moved to Europe at the age of 15 with his parents and I’m now looking to come back (with wife and child) to YVR. I grew up in West Van and I found the prices incredible when I paid a visit in April 11 – more expensive per square foot than central London!
If Europe’s experience is anything to go by, you *might* see 15%-20% drop (mostly in marginal areas) over the next 18 months followed by a subsequent slow decline of 2-5% per year. But of course, the Canadian economy is in nothing like the same mess as the US/UK, so… maybe not.
Can anyone recommend decent areas without nuts pricing on the North Shore, or am I just being totally ignorant?
With thanks –
Craig Sterling”
- Craig at VREAA 21 Dec 2011 4:18am
We’d recommend many areas, but only after prices collapse. Sometime later this decade; perhaps in a few years time. Prices will end up dropping over 50% by the trough; across the board. No sector will be immune, despite what the various cheerleaders tell you.
And even after the 50%+ drop, Vancouver RE will still be richly priced by both global and Canadian standards. – vreaa
…”more expensive per square foot than central London!”…
Perhaps, but definitely not more expensive than this $88M ‘petite’ pied a terre in the BigApple…
“This sale is an outlier. It works out to be about $13,000 per sq. foot, the highest on record, for anything, that has ever occurred.” – Jonathan Miller, Chief Executive, Real Estate Appraiser Miller Samuel
[Forbes] – {Russian} Billionaire’s Daughter Pays Record Sum For NYC Pad
http://tinyurl.com/7fjorhr
On the other hand, on you can get a 6-room pre-war co-op on New York’s Upper East Side (toniest neighbourhood) for $1.35 million, LESS than what a bungalow crack-shack costs on the West Side. Also recently saw advertised on NYC’s Park Avenue (also posh) an apartment for considerably less than that.
As for reasonably priced Vancouver neighbourhoods, I don’t know any to recommend.
And, many large employers that I know of have a “cost of living adjustment” (i.e. higher salaries) for workers stationed in NYC.
In Vancouver, the “cost of living adjustment” is usually negative: everyone wants to live here, so why should they pay more?
Viewing real estate in more than a few locales requires navigating a rabbit hole first. And ignore the cat, all he does is tell you you’re mad.
how many times do we have to tell the newcomers? London is not Vancouver, London can only dream it’s Vancouver with our beautiful skies, mountain, water, culinary scene, and world class environmental and social views. Look at the world’s only LEED Platinium building that we have! Surrounded on all 4 with no room to grow, Vancouver is the little piece of oasis in the dessert that is the world, the pearl in a sea of mud, the sanctuary in a world gone mad. Billions are banging on the doors to get in, people with billions are lining up at the gates waiting. Count your luck that you got in and buy before you are forever priced out!
London is the financial hub of all of Europe, whose collective GDP makes Vancouver’s coffee shop wages look infantile. All assets move in certain patterns and always have a correction period. For Vancouver, its been on a roughly 10 year period for correction. We are past due. The fact that Vancouver is a sanctuary is priced into it historically, and yes you pay a premium for here. However, it’s well passed its charting pattern. I would be very wary of Canadian real estate right now as an investment. I would disagree that billions are banging on the doors to get in. It will be interesting to see how the current downturn in real estate in China this December will effect Vancouver. Will they offload their foreign investment real estate to cover their losses back home?
“The fact that Vancouver is a sanctuary is priced into it historically.”
“I would disagree that billions are banging on the doors to get in.”
—
Agree on both counts.
The concept of the premiums being ‘priced in’ appears to be beyond many local commentators.
Britannia Beach qualifies as North Shore and is withing easy commuting distance to Vancouver’s downtown according to some realtors. It is “cheap” if you ignore the toxic remains of a copper mine.
I think anyone who lives in Vancouver knows what’s coming. It is palpable.
The screwloose jerks that bid up homes and leaky condos are about to get theirs.
Europe is BROKE. Most of the big Banks are BROKE – and food prices are heading to the moon. When an average Vancouver fool has to pay 90% of income to put roof over his square head – how do you eat?
Paying down a mortgage on what soon will be underwater makes no sense.
If you have a place – cut the price and sell.
RENT is the new black.
I do know at least one person who told me she is only eating once per day because that is all that she can afford. She has a full time job probably making about $18 an hour, living in a rented basement suite. Food is expensive in Vancouver.
I don’t know anyone who actually pays down a mortgage…as soon as the assessment indicates an increase in “equity” it is pulled out to buy toys.
Central London has very few single family houses with land. If you are talking condo to condo then London is way more expensive. Even with the recent price drops. Also most people in London don’t make exorbitant salaries either. As far as buying on the North shore, there are tons of cheap areas. try blueridge or mount seymour parkway or deep cove. they all suck by the way
What I’ve seen out of London suggests relatively low yields. I don’t think Vancouver is alone in having elevated pricing. The difference with London is that the city is 8MM and Vancouver is around 2MM. A wee bit of a difference.
Since 2MM is the population of Greater Vancouver, it should be compared to population of Greater London, which is 14MM
Yes those are the cheap areas. The cheapest tear-down quality house in those areas will cost you only $748,800.
Oh no, I hope this thread doesn’t degenerate into another “London is a world class city but Vancouver isn’t because of X, Y, Z…”. We’ve had enough of those. (At least, I have.)
You can find something affordable under Lion’s Gate bridge if you want to change to Indian status. There is not much in North Van. in terms of a single family home that could be considered affordable.
i guess it depends on your definition of affordable
http://business.financialpost.com/2011/12/22/get-ready-for-housing-market-correction-td/