Real Estate: “What’s the Rush”

Posted by Canadian Housing Price Charts

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Vancouver is the most unaffordable place to own real estate out of 325 international cites according to Demographia.

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(click on chart or HERE for larger image)

This chart shows the detached housing prices for Vancouver, Calgary, Edmonton, Toronto, Ottawa* and Montréal (*Ottawa are combined residential).

 

In November 2011 Canadian real estate prices were stronger the further east of the Rockies you traveled (Scorecard). In Toronto SFD prices hit a new record high although strata prices ticked down M/M. The credit markets in Europe have awakened after a long binge on unrepayable Sovereign and private debt and the vigilantes are riding range. At the moment Canadian yields remain boot stomped. What’s your yield?

Vancouver, the hottest market has turned:

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(click on chart or HERE for larger image)

This chart shows Vancouver detached, attached (townhouse) and apartment (condo) prices. In November 2011, detached house prices ticked up 0.6% M/M as inventory dropped over 31% for the month. SFDs are 1.3% below their peak set 5 months ago in June. Strata units are over 2% below their summer highs with condos trading in prices from 18 months ago and only 2.6% above what they were 3.5 years ago in May 2008. It took 7 years to run the average SFD prices up from the flat price channel of 2001 to the first peak in April 2008. Then an 8 month 16% decline and a loss of $123,000 in equity led to a relief rally beginning in January 2009 which zoomed for 16 months but then blew out in April 2010. The April 2010 high was replaced with the new June 2011 spike high fueled by low cost high risk leverage designed by the Federal government insured by the taxpayer (CMHC). Vancouver is the most unaffordable place to own real estate out of 325 international cites according to Demographia. The average earnings in BC are falling (peak set in June) and are 3.4% below Canada’s national average (Earnings Chart) and have been trailing the national trend for 23 months. The “Green Hornet” keeps a Youtube archive of Vancouver Real Estate News here. The VREAA aggregates the word on the street here.

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In my select study the “Vancouver Bubble Deflator Index” sellers are still pricing high. But buyer expectations have moved from “buy high, sell higher” to “what’s the rush?”.

 

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Real Estate, Furniture and Sex ads  in the weekly print alternative The Georgia Straight, real estate advertisers peaked in ad spending back in April. Slumping ad sales are reflecting dropping real estate sales.