“I visited a few open houses today. At every single one of them, I was the only visitor. The used house salesmen seemed generally lethargic. When I talked to each of them, I always got the same sales pitch – buy now, do a few quick fixes (or not) and sell higher. It’s all about flipping. Nobody assumed that I may actually want to *live* there. They were not concerned about quality of life for me, or having a family there, or entertaining guests, or proximity of amenities. It was always about selling down the road, one or two years from now for a profit of a few hundreds of thousand dollars.”
– bubbly at VREAA 30 Sep 202 6:51pm
Homes in Vancouver have become priced largely as financial instruments, and far less so for their utility as dwellings.
Now inventory is high, sales are slow, and prices are showing the initial signs of weakening. Open houses are very quiet.
As the bubble deflates, prices will approximate those determined by true underlying value.
By my calculations, this means prices will fall by somewhere in the range of 50%-66% from the peak.