Crucial Question: Will People Be As Eager To Buy Homes If Prices Are Flat Or Dropping?

2017-jan-change

The average price of a Canadian home sold in January was $470,253, just 0.2 per cent more than the same month a year earlier.
The Canadian Real Estate Association reported Wednesday that sales were down by 1.3 per cent during the month, to the second-lowest monthly level since the fall of 2015.
New government rules designed to crack down on speculation in the mortgage market came into effect in October and January’s numbers suggest they appear to be working.
“Canadian homebuyers face some challenges this year, including new mortgage rules that make it harder to qualify for a mortgage and regulatory changes that will push up mortgage financing costs,” CREA president Cliff Iverson said in a release.
“It will take some time to gauge the extent to which these challenges will weigh on home buyers in different housing markets across Canada.”

‘Average Canadian house price barely increased in past 12 months’, CBC 15 Feb 2017

Longtime (and long-suffering) readers will recall that our premise has always been that, in markets such as Vancouver, people have overextended themselves to buy homes at prices far above fundamental value because they anticipate ongoing outsized future price increases. This is why we have called all buyers ‘speculators’. A significant price stall or pullback will test this hypothesis. Will buyers still be eager to overextend with the prospect of ‘barely increasing’ prices in future?
Speculators are almost all momentum buyers; they hate assets that are falling in price.
– vreaa

71 responses to “Crucial Question: Will People Be As Eager To Buy Homes If Prices Are Flat Or Dropping?

  1. Almost everyone I know who bought housing to live in themselves aren’t really counting on outsized future price gains. They don’t want price to fall but at the same time, they aren’t expected crazy price gains going forward either. They just want a home they can live in, have some control over interior deco, and can afford on a month to month basis.

    • I’m with Space889 on this one. If I were to buy, it would be to secure my place in the city– not to get rich.

      Mind you, if prices were flat or dropping (which they are, for what I’m looking for), my sense of urgency would be much weaker, as has been the case since August.

  2. I like how vreaa calls all buyers speculators. So I guess I am speculating when I bought my principal residence so that I can do whatever I want to my own place, not getting kicked out of my own place cause some douche wants to sell the place for a quick profit, and provide some form of stability for my family. I guess it is hard to comprehend that some people might want a stable place to call home and not have to worry about losing control of a strong element of family. If that is how you define speculating then sure, I love speculating, it is a very important element of my life actually. I am thankful I speculated. Speculation is great, everyone should really try it, but know your limit and play within it.

    But I agree with M. If it goes down or flatlines I suspect those who wants to buy to live will still buy but they will be much more picky and far less urgent than when the market is going straight up.

  3. It would be interesting to have statistics on those who do treat real estate as a business: the renoflippers; the new builders; the buy and holds. Out of the approx. 20 sales near us over the last 12 years, maybe 7 fell into the spec category – 4 of those houses sold twice in a year; 2 were new-builds; 1 is a buy and hold – it will be torn down – there’s no way the rental comes close to carrying the mortgage.

    • [FT] – Trump’s Canadian venture highlights conflict of interest fears: Vancouver development risks violating the emoluments clause in the US constitution

      …”Joo Kim Tiah, the son of one of Malaysia’s wealthiest tycoons, sat on stage in the summer of 2013 as his new business partner announced their plans for a C$360m luxury condominium-hotel project on Vancouver’s most prestigious downtown thoroughfare.

      With characteristic salesmanship, Donald Trump bragged that the 63-storey glass tower on West Georgia Street would be “one of the great buildings, not only in Canada and the US but anywhere in the world”.

      Mr Tiah, chief executive of Holborn Group, his family’s Canada-based property development company, was similarly effusive, saying the Trump International Hotel & Tower Vancouver would one day “become a new symbol” for the city…

      …The Vancouver Sun recently reported that wealthy locals as well as foreign buyers have purchased units. One investor is a company called KMF Property, whose address the Sun linked to a home “owned by Sou Lam Fong, the founder of CHTC Fong’s Industries, a Hong Kong-based manufacturing company”. CHTC Fong’s majority shareholder is the Chinese government.

      Norman Eisen, a former White House ethics adviser, says the connection with Beijing could represent a violation “since in essence a cut of any foreign emoluments are being passed through to him [Mr Trump] personally. That is the consequence of the president’s insistence on hanging on to ownership of his businesses”.”…

      https://www.ft.com/content/50495b2c-f1d7-11e6-8758-6876151821a6

  4. If the market goes into crash mode, which I don’t believe it will anytime soon at this low inventory level, people wouldn’t feel so pressured to buy with no conditions or getting into bidding wars. Frankly that’s a good thing! A balanced market that gives both buyer and seller ability to give and take some is good.balanced market that gives both buyer and seller ability to give and take some is good.

  5. If RE crashes, a lot of the people will be worried about their job. At that point, only the rich with cash can buy. Middle class buyers will still be priced out. Existing homeowners will likely facing a lot of financial pressure. How does that kind of environment make this city a more livable and affordable for young families?

    • What if your job has nothing to do with a housing crash?
      Why would I be worried in a housing crash?

    • Sure if you work in gov’t or a crown corporation with good old iron bowl job security.

      25% of our economy is now related directly or indirectly to RE industry. A housing crash will not simply be confined to the RE / construction sector. It will ripple through the entire local economy with devastating effects. Heck, even if you live entirely of things like exports, tourism, English students, you might still likely to be affected.

      • rod_jonsson_pmd

        –begin semi-incoherent rant
        /%
        housing cannot be a primary industry – a stable config needs to produce enough in excess in order to spend a fraction of that on housing itself … the smaller the fraction, the wealthier you are … that is why the whole country is in big bad trouble … jt has no idea the pile that’s going to fall on him … and he wants to open the doors wider too? how long is that wait list for non-urgent procedures now? … the libs have some nice dreams, give them that … but they have no clue how to get stuff done … there’s no end to what they think they can do with other ppl’s money … if you consistently operate where the rubber meets the road, you get conservative (small c) real fast … it has all been enabled by abnormally easy credit (both -ve real rates and deliberately busted lending standards) plus external flows, which it turns out are also driven by abnormally easy credit … for bc and vcr to maintain these prices, ppl will need to keep bringing their cap acquired elsewhere, even if there is nothing for them to do – it can’t stop or else … as a former westsider who grew up there when parts were still blue collar, have to echo ej’s sentiments … every current or former resident i know who made out fine, or even great, – it’s really been like a lottery ticket – they all hate what’s happened … complete disaster and we haven’t got to the worst part yet … if any place could use a biblical flood to clean out and save it, that’s vcr
        %/
        –end semi-incoherent rant

    • I think that’s why we can agree that having a high percentage of your GDP be related to RE is probably pretty crazy.

      link: /www.investorsfriend.com/canadian-gdp-canadian-imports-and-exports/ (sorry, if I put a real link, it always goes into moderation, maybe vreaa can edit this into a real link…)

  6. It’s fun to watch the bulls flounder and rationalize and deny as the market crumbles. They’ve gone from “buy now or be priced out forever” to “it’s not about price, it’s about having control over home decor”. Lol. This market has turned and it will be a long and painful slide back to reality. This is still not understood, but it will be. Vreaa is right, everyone who has bought over the past few years has speculated on sustained price appreciation. You don’t spend hundreds of thousands or millions of dollars on a house if you think prices will come down, I don’t care how badly you want “stability”. But of course, who wants to admit they are the greater fool? Blame will be laid on everything other than their own greed and recklessness.

    • So the dude who bought a detached home in feb 08 is going to lose millions of dollars? Or the guy who bought in march of 10? Or hell april of 12? Right.. I thought so too…

    • One thing is clear, you are priced out forever. Based on what the landless said, the bears also have been speculating on their housing status, and their lives too; they speculated a trajectory 64.59% crash. Unfortunate for them, it never happened. A condo in Hope might be too much for their reach, no need to talk about Vancouver.

  7. 3240 Napier: 7yr old 2084sq’ house listed at $1.66M – question being, why did they build at .6 instead of the usual prairie dog basement .7? Could it possibly be because it sits on the massive Boundary Road Bog? Imagine the tiny size of these rooms when you have two suites on the ground; 6 bdrs total. Not even a laneway house and the incessant penetrating whine from the TransCan – this is a horrible deal, yet, if it goes under last assessed, it will contribute to the perception of falling prices.

  8. 1754 Gravely: 6,600 sq’ duplex lot listed at $300K under last assessed. Odds of you buying it for that – zero. Then the agent will drum up more business by crowing about how it went for so much over over ask.

  9. 5838 Fleming: painful to contemplate that this is considered top end of the East Van market. For $2.538M it should invoke lust – instead, it’s repellent. Shame really – I’ve taken my kids to Tecumseh Park – it’s a very civilized area, and for a cyclist, it is tops.

    Imagine – $650K down and $10K/month. Ludicrous. It’s not that some people can’t come up with the cash – there’s tons of money looking for a home – but who would want to?

    • I just Google-Mapped it. The “street view”
      picture was taken August 2015. It was for sale then too.

    • Same rodent also has 2 virtually identical new-builds listed in Burnaby – looks like the same set of plans as 5838 Fleming: 7135 and 7155 Dow Ave – $2.438M each.

      Some rodents funnel properties that are still liveable to builders, so that they can collect off the first sale, and then a get a second crack at selling when the new house is built; screwing the sellers and potential buyers of liveable older homes. More and more of these rodents are part of vertically integrated family enterprises – from the demolition, to framing and finishing, to the sale.

  10. Rent, invest the difference, and do better financially over the long haul. Now THAT’S looking out for your family. Brian won’t get it, but maybe someone else will…

    http://www.humbledollar.com/2017/02/money-pit/

  11. In the summer of 2008, a builder bought a lot value property at 3008 26th Ave E for just over $500K – a horrible high traffic location – idiots routinely wrap their cars around poles along here.

    He worked like a dervish – amazing – put up a rock solid Van Spec and two car garage in a matter of months.

    He put it up for sale at the end of 2008 – just as the market tanked. It sold in 2009 in the cruelest month of all: February, for a measly $755K. Fail.

    The trickster who bought it turned it into an illegal student rooming house – even jammed two bedrooms in the garage. He was flying high. It was a revenue machine. Then he got busted.

    The clever weasel sold it just before having to rip out all of his improvements- leaving the country the ad said – in 2011, also in February, for $870K.

    The new buyer thought he was getting a deal – buying into cash flow. Didn’t do due diligence. Bought into doo doo. Had to rip everything out.

    But, time heals real estate wounds. It’s up over $600K since then.

    • “It’s up over $600K since then.”

      It’s not up anything until it is sold and a gain is realized.

      • You can say the same thing about stocks & bonds you invest your rent difference in too.

        Yeah, yeah, I know, you can sell those things in a heartbeat with less transaction cost, etc, etc, etc. True, but I seriously doubt you are watching the real time market second by second, nor can you beat the microseconds speed of HFTs. So by the time you get that alert email about a price drop, you are already another 5%, 10%, 20% too late. Micro-crashes happens in seconds now in the market.

  12. China’s currency controls cause 84% drop in Chinese investment in foreign property:
    http://www.reuters.com/article/us-china-economy-fdi-idUSKBN15V0DB?il=0

  13. @El Ninja – so it’s bad if house price drops and the buyer loses say $300K over 10 years. But renting for 10 years and paying $200K+ in rent is not a loss?

    And bears speculating on a house price drop isn’t a speculator? But a newly minted owner who just wants to own is? Because presumably people only buys on assumption of price appreciation? Seriously?

    Look at any big RE market crashes elsewhere – US, Ireland, Spain, Japan etc. Transaction volumes didn’t go to 0 ever. People still bought all through the crash and afterwards.

    Oh wait, I know, it’s because those buyers are all speculators morons catching a falling knife. But bears are rational beings who has prescience and knows everything, and most importantly never ever speculate on an outcome.

    Please….

    Just for the record, even if I know house prices will drop say 30% of a 10yr period, I would still buy. Why? Cuz, the loss will be about the same for me as renting, but I get benefits of ownership (and costs, yes). But again, I’m not buying my primary residence with hopes of hitting a lottery. It’s a cost of living like all other expenses.

    • this concept is very difficult to understand by el ninja and the likes. otherwise, they would not whine and bitch all the time about the landless status.

      • You know you live in a trailer park when you take your dog for a walk and you both use the same tree.

    • “Even if I know house prices will drop say 30% of a 10yr period, I would still buy.”

      You don’t understand the concept of opportunity cost, do you? The “cost” of renting is compensated for by the return earned on the invested difference.

      Anyway, this line is a classic double-down on a failing narrative. Bulls have gone from “I need to buy because prices are going up” to “I need to buy even when prices fall”. Suddenly it’s no longer about being priced out, it’s about “home ownership”. Quite the about-face.

      • Uhmmm..I think it’s you who don’t understand opportunity cost – the cost of not doing the next best thing with your money – which isn’t always investing your down payment into the market. It might be appropriate for some, but not all.

        We are talking about regular home buyers who wants to own their residence. Not bulls who are gunning for huge price appreciation. A value stock buyer doesn’t buy a stock expecting it to go up a lot. Value buyers are buying for relative safety and income. Thus, the buyer isn’t necessarily buying because he’s a stock market bull. I can’t believe this difference is so hard for you & other bears to understand.

        Also, there are many type of risk. One of them which gets most people isn’t the downside crash risk, but rather volatility. Stock and bond markets can get pretty volatile, while housing market generally aren’t that volatile over the long term. That’s why people have more success investing in housing than they do in stock markets. Frankly, outside of major bull markets, most people lose money in the markets. We are lucky to have huge CB liquidity supporting the market and crush the vol in the last 8+ years. That doesn’t mean stock market is always better housing market nor does it mean everyone can be an investing genius.

    • [CBC] – Donald Trump’s sons to attend grand opening of Vancouver tower

      …”Two of U.S. President Donald Trump’s sons have been confirmed as attending the grand opening later this month of a new hotel in Vancouver that bears their father’s name.

      Public relations firm Talk Shop says Donald Trump Jr. and Eric Trump will participate in the invite-only event at the Trump International Hotel and Tower on Feb. 28.

      The $360-million building, which has already opened to the public, has been the site of protests, including a women’s march, in recent months.

      Mayor Gregor Robertson sent a letter to the tower’s developers in December 2015 asking to drop the Trump name, writing that the city is known for its diversity and equality while Trump was calling for a ban on Muslim people entering the U.S. as a candidate for the Republican party’s nomination.

      The Trump name was not dropped but an online prankster temporarily renamed the site Dump International Hotel and Tower on Google Maps in November.”…

      http://www.cbc.ca/news/canada/british-columbia/trump-sons-vancouver-1.3985648

    • [FT] – China Inc hits brakes on foreign property investment: Spending plunges 84% as regulators battling capital flight target ‘irrational’ deals

      …”Foreign property investment by Chinese companies plunged by 84 per cent last month, as Beijing’s capital controls choked off the flow of foreign acquisitions.

      In an effort to curb capital outflows and ease downward pressure on the renminbi, Chinese regulators have in recent months imposed a series of restrictions on outbound dealmaking. The curbs came after outbound investment in non-financial assets surged by 44 per cent in 2016 to a record $170bn.

      The restrictions have had an effect. Overall non-financial outbound investment fell 36 per cent in January from a year earlier to Rmb53bn ($7.8bn), the commerce ministry said on Thursday, following a 39 per cent drop in December.

      The commerce ministry did not reveal actual figures for January, but the sharp slump in foreign real estate investment comes after an overall 53 per cent surge last year to a record $33bn, according to separate data from JLL, a global realtor.”…

      https://www.ft.com/content/787d0834-f405-11e6-8758-6876151821a6

    • Look at all those red delicious money….yummy…

  14. 3545 28th Ave. E: Quite the little post war craphole tract house – coming up for sale for at least the 7th time since 1994. Recent no permits reno – lots of debris in the butthole back yard still showing on google maps. Towered over by a huge neighbouring deck. How to feel small after laying out $1.29M.

    • [BetterDwelling] – Chinese New Year Sales of Vancouver Real Estate Down 78%

      …”Chinese New Year has always been a popular time for buying property, especially around the Greater Vancouver Region (GVR). In fact, a survey from Chinese real estate portal Juwai said that almost half of Chinese New Year travellers would consider purchasing property this year. While that might be the intention, the barrier to move capital out of China was raised much higher last month. So we checked in with Vancouver real estate agent Aaron Best to give us a peek at this year’s numbers. This year’s numbers show fewer buyers of Vancouver real estate during the lunar new year than previous years.

      Detached Home Sales Decline 87%

      Sales of detached homes had the largest drop during this Chinese New Year vs the years prior. Just 119 sales were logged this year, an 87.28% decline from last year. The average number of sales during this period going back to 2012 is 563, which leaves this year 78% below that number.”…

      https://betterdwelling.com/city/vancouver/chinese-new-year-sales-of-vancouver-real-estate-down-78/

      [NoteToIllustriousEd: Reference lede illustration… “My bad.”]

    • These people need to get their real estate mojo on.

  15. space889 says:

    “Even if I know a house is going to drop 30% I would still buy”.

    That’s about as sincere a statement as, “I would still be attracted to her if she were fat and ugly.”

  16. Arnie Carnegie, can you believe 1966 Kitchener Street? 2016 assessment was $1,325,000 listed for $1,699,000. I can’t believe real estate agents waste their resources on these listings.

  17. You mean William St. I’ve been through this area thousands of times.

    List works out to $680/sq’. Given a choice between this and a Coal Harbour condo, I’d take this. But with its tiny lot, no view, no suite, no garage, no lane … I wouldn’t touch it even if I had lots of cash.

    The agent has tons of room with which to hammer the seller on price. It could come down $400K and still be juicy for the seller. The agent’s name is Hammer – he gets a lot of mileage out of that.

    Most agents will list a donkey for a million. Eventually the ass will sell.

  18. I dunno. Maybe the market is crashing, but there is very little in the way of inventory coming online right now. Just saying…It might not be this year.

    • Question: could that be because everybody who would normally sell and then buy a bigger home (i.e. climb the “property ladder”) can’t afford to do so? And could it also be that, after years of sustained and dramatic price increases, owners are psychologically blind to the possibility of a significant downturn, interpreting the latest “weakness” as a mere blip in the greater glory of Vancouver real estate? If either of these theories is true, and if the market continues to deteriorate, watch for a flood of listings. Aspirations of climbing the property ladder will be replaced by aspirations of not losing one’s shirt.

      • The whole game theory idea behind RE crashes seems trite. My conjecture is that anyone who tried to sell last year got great prices, and there are fewer relistings as a result. Anyways if there is a crash coming (I’m sure there will be one at some point), it is unlikely to be 2017 in my view.

        What really sucks is people will have gone over 10 years waiting for prices to drop and now they’re 10 years older. I expect few in retrospect wouldn’t have bought if they had to do it over, save a few who have convinced themselves that renting is their bag.

      • Well, hindsight is 20-20, isn’t it? But foresight isn’t, and that’s all that matters.

        Not sure about game theory — just looking at the numbers. “Mover-upper” homes have gained more in price than starter homes. Aspiring mover-uppers may thus feel trapped.

        And can it really be argued that markets, and ESPECIALLY the Vancouver RE market, are not driven in large part by collective moods? After years of abnormal price gains, it seems unlikely that sellers will be as aware of the possibility of a major price decline as they might otherwise be. Recency bias, in other words.

      • Yes I agree that every year hat passes without a severe correction, the fewer people who witnessed a correction will be around to warn us.

        It is fascinating to contemplate what will be the trigger for Vancouver to hit the skids. It appears to be the Muhammad Ali of housing markets… I am not discounting the possibility it will take HHF to subside before people wake up, in other words another 5-7 years

      • the best thing for your to do, hide in mama’s basement, no lose no gain.

      • You are losing while hiding in your mama basement cuz every year housing gets more expensive and more out of reach, while your remaining life expectancy gets shorter.

        It’s like in UP, by the time they finally saved up enough to buy the tickets to South America – their childhood dream adventure place, the lady is too old and sick to go. I bet a lot of hardcore bears probably feel like that now.

      • space889 speaks from experience, apparently.

      • You mean that he has watched the movie Up? That’s experience for sure.

  19. Also re. 1966 William St: It was built 108 years ago – no rebar in foundations back then. Foundation work = big bucks.

    The attic looks like extra space – it’s not. If you think you can develop it you’re delusional. You could haul small items up the ladder for storage, but that’s it. Don’t step on the ceiling joists.

    And there’s no upside – no possibility of upzoning or land assembly.

    • With endless such “reporting”, Arnie is like the guy on the bus talking to himself.

      That’s the internet, though. Brings out the crazies.

  20. 2821 McGill St: a stunner of a house. Shockingly repulsive in and out. Builders who have no clue about aesthetics or layout. A massively priced turkey in an absolutely horrendous location.

    On the plus side, it’s nice to have consistency between a ridiculous facade, a stupid interior, a freakishly hideous street, and an absurd price. Nothing redeeming whatsoever. The owners have hit it out of the park with this one. Top pick for turkey of the week.

    • Arnie, that house on McGill is awful. To top off your apt description, the photography is also terrible, with strange issues of panoramic effects which results in an aspect ratio that looks … wrong … for several of the photos.

      And what a hideous exterior… And that “feature wall” in the living room? Egads.

    • The builder bought the property less than 2 years ago for $800K. He could have built it out for $500K or less – the location isn’t worthy of more than that; then listed it for $1.5M, and be thrilled to get anything remotely near that. Instead, it sits in all its mishmashed pretentious fakery. Pity the rodent that has it listed – his one and only property for sale – lonelier than the Maytag repairman. Waiting for the phone call that will never come. Getting dressed up to hold open houses that feel like an eternity.

    • [G&M] – One-quarter of detached Vancouver homes could be torn down by 2030: study

      …”Given the recent, rapid rise of Vancouver real estate values, half the single-family homes in the city already have relative values below 7.5 per cent, which Dahmen and fellow number crunchers say creates a more than 50/50 chance the house will face the wrecking ball.

      They say that by 2030, if relatives values continue to plummet, 25 per cent of all single-family homes could be replaced with houses that maximize size.

      “It’s not clear how that will help affordability,” says fellow researcher and mathematician Jens von Bergmann in a release.”…

      http://www.theglobeandmail.com/news/british-columbia/25-per-cent-of-detached-vancouver-homes-could-be-torn-down-by-2030-study/article34100778/

    • rod_jonsson_pmd

      pretty sad what i saw last time through … they haven’t fixed any of the roads on the westside, in 30+ yrs? … all that tax windfall is going somewhere … either a lot of absentee owners or ppl who live there just don’t care … schools looked half empty … meanwhile on eastside schools so stuffed from extra suites that ppl are not guaranteed spots in their own catchment – wonder what kind of teach ratios you get for those prices? … crash or not, the rot is clearly showing … this isn’t the kind of long-term healthy you want to be near

    • Designate every single remaining SFH as heritage home and presto, problem solved! It would drive away all those dirty HAM money who just want big huge faux cardboard mansion too, making housing prices lower and bears happy! So simple, so easy!

    • Vancouver’s heritage housing is beautiful like my children are beautiful.

    • [SCMP/IanYoung] – A Vancouver firm offers clients ‘new identities’. Its customers have included Chinese criminals: ‘Amicus is the expert you need if you wish to live a life of anonymity’

      …”At Vancouver firm Amicus International Consulting, discretion is the key to its business: providing clients with anonymity via “new legal identities”.

      Not just new citizenships and passports, but also plausible cover stories. Amicus says it furnishes clients with online profiles, “consistent … on all major social media websites”. And it advises customers on how to stick to their “legend”, with tips such as how to fake an accent without arousing suspicion.

      The company says it also arranges overseas transfers of convicts incarcerated in foreign lands.

      Who would require such a unique set of services?

      The firm promises “extreme confidentiality”. But in case studies listed on its website, Amicus says its clients have included two Chinese fraudsters involved in the theft of more than US$485 million from the Bank of China, which was laundered through the Vancouver real estate markets and Las Vegas casinos between 1991 and 2004.”…

      http://www.scmp.com/news/world/united-states-canada/article/2073180/vancouver-firm-offers-clients-new-identities-its

    • [LAT] – Mega-mansions in this L.A. suburb used to sell to Chinese buyers in days. Now they’re sitting empty for months

      …”The mansion on Fallen Leaf Road in the secluded Upper Rancho neighborhood of Arcadia has all the trappings a wealthy buyer from China could want: a crystal chandelier in the entryway, marble floors, a home theater outfitted with a dozen reclining leather chairs and, naturally, a fortuitous eight bedrooms and eight bathrooms.

      At $9.8 million, the recently built property is a relative bargain. A similar-sized home in Beijing would cost twice as much.

      Yet two months after it was placed on the market, the house remains unsold. Not long ago, real estate like this would have been snapped up almost immediately.

      “It would have been gone in two weeks with multiple offers,” said Dee Chou, the property’s listing agent.

      Other real estate agents in the area report luxury homes geared toward Chinese buyers taking up to half a year to unload.

      “All agents are crying that the money isn’t coming,” said Sanne Lee, an agent for A + Realty & Mortgage in Rowland Heights.

      At the same time, high-end home seekers who plan to take out loans now have a fighting chance as they compete against a smaller pool of cash buyers.

      The turnaround in activity, industry officials say, is directly linked to policies in China.

      The San Gabriel Valley, long the destination of Chinese home buyers looking to provide their families a better living environment as well as safeguard their wealth in American assets, is feeling the effects of Beijing’s crackdown on capital flight.”…

      http://www.latimes.com/business/la-fi-san-gabriel-housing-20170223-story.html

    • This is a stunningly repulsive house. Hopefully Vancouver’s builders won’t see it and get even more stupid ideas. How do I hate it; let me count the ways. I hate the cancerous arched protuberance with the fake keystone hanging over the too thin columns. I hate the double doors. I hate the chimney. I hate the shitpile mix and match roofline with assymetrical inconsistent dormers. I hate the Juliette balcony. I hate the garage doors – imagine that section cut out and you’ll have a better sense of the absurdity of this beige booger of a house.

  21. 5594 Chester: bought 1 yr ago for $1.385M – this below-grade near the bottom of a hill viewless dung heap has had the renoflipping beavers treatment and can be yours for $1.998M. Conveniently located near the graveyard, Church’s Chicken, and the bus. Interior has been staged to a high DTES standard. Rodent’s blurb gets high marks for bs content.

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