VANCOUVER — The Real Estate Board of Greater Vancouver says home sales have plateaued after reaching record highs in March.
In its third-quarter housing overview for 2021, it said the number of homes listed for sale in Metro Vancouver has fallen to lows not seen since 2016.
The increasing correlation between sales and new listings over the pandemic is consistent with more buyers selling their homes and purchasing other, typically larger ones, it said. First-time homebuyers or those who moved into bigger houses made up a large proportion of house sales, it said.
Andy Yan, director of the City Program at Simon Fraser University, said the earlier rise in sales could be attributed to seasonality where home sales see a surge in the summer as well as people spending the money they had saved up during the pandemic on buying a house…read more.
Canadian real estate has long been frothy, but how does it look compared to other countries? According to the US Federal Reserve (the Fed) exuberance index in Q1 2021, pretty bad. Only two G7 countries are considered exuberant markets (a.k.a. bubbles) — Canada and Germany. Those two countries are also the longest-running bubbles of any advanced economy. The longer a market remains exuberant, the greater the drag on quality of life and the economy. They also tend to require much larger corrections, with greater economic fallout.
We just took a dive into the exuberance index last week, so we’re only going over what you need to know. The Fed tracks global housing markets for exuberance, looking to identify bubbles. In this case, exuberance means explosive price growth beyond market fundamentals. When this happens, people are buying based on the excitement of paying more, or fear of being locked out. Whatever the reason, it’s an emotional one. By tracking this, they hope to prevent a 2006-like event from happening again.
One or two quarters isn’t a trend — it happens. The problem is when exuberance becomes persistent, without any correction. Fed researchers say five quarters of exuberance is when the market is exuberant. An exuberant market is better known as a bubble, and bigger corrections are needed to fix them…read more.
Anyone looking to purchase property in Canada who is not a citizen or permanent resident of this country may not have much time left.
After Canadians go to the polls on September 20, some potential homebuyers may have to wait to buy a property in Canada as both the governing Liberals and opposition Conservatives have pledged to ban foreign buyers from purchasing residential homes in Canada for at least the next two years.
The proposals build upon provincial taxes imposed on foreign homebuyers in the hottest housing markets of British Columbia and Ontario in 2016 and 2017, respectively. While experts have long debated whether those policies have helped address the housing affordability crisis that has since spread beyond the confines of the Vancouver and Toronto regions, one prominent policy director warns a federally-imposed ban could backfire…read more.
A ‘new city in America’, set to house five million people, is being planned by a former executive of Walmart.
Last week, Marc Lore, former head of US e-commerce for Walmart, unveiled plans for the new city, appointing a world-famous architect to design it. The billionaire called the plan for the sustainable metropolis, ‘Telosa’.
He hopes to raise $400 billion in funding to create the project from scratch in an American desert, ‘creating a more equitable and sustainable future’…read more.
Drew Roberts couldn’t wait to get out of Toronto.
After he and his girlfriend managed to find work in Kingston, Ont. they found the same problem: even 260 kilometres to the east, the dream of home ownership was still out of reach.
“We left Toronto in search of a more stable career in our respective fields,” said Roberts, a 32-year-old scientist. “We wanted a city with a slower pace in which we could grow our roots.”
When planning to make the move in spring of 2021, Roberts said he kept an eye on the local real estate market, but said prices had already swelled beyond their budget so they instead moved into a rental…read more.
Canadian tax authorities confirmed they knew about illicit foreign capital inflating real estate. They first found out over two decades ago, but only confirmed it to the South China Morning Post (SCMP) this week. A whistleblowing, retired auditor first told SCMP journalist Ian Young about the report in 2016. He waited half a decade for a response from the agency, which confirmed the study took place 25 years ago. The situation shares odd circumstances with an intelligence report mentioning foreign capital and real estate, called Sidewinder. Whistleblowers allege both reports, written one year apart, were suppressed for political reasons.
In 1996, the Canada Revenue Agency (CRA) studied millionaire migrants and homeownership. The tax authority was looking into reports of mansion buyers with poverty-level incomes. Not one or two either, it was a systemic issue.
The secret report was unknown to the public until 2016, when a CRA whistleblower told the SCMP about it. At the time, he alleged the study was suppressed from above. Five years after SCMP filed a freedom of information request, the agency confirmed it does exist…read more.