- "Squamish developer Douglas Day says home buyers want to wait until the HST is completely scraped to avoid paying the extra tax... Right now home buyers pay HST on newly constructed homes until the Province unwinds the controverisal tax and goes back to the former PST/HST system. Developers say that's causing home buyers to sit on the wallets right now and wait."
Rationalizations for last month's results abound. Curiously no one locally, except the blogosphere, is suggesting the bubble may be ready to pop.
Speaking of realtor-created, media-infused, jingoistic marketing crap, take a look at this realtor's site for an example of the hype which reinforces the notion that the Vancouver market is being driven by wealthy Chinese buying up real estate here.
Some of the content is re-printed below:
- Continually ranked and voted as the “Most Livable City in the World,” Vancouver, BC is still relatively inexpensive compared to other top global cities.
Vancouver has seen a decade of real estate price appreciation and new developments. The price of multi-million dollar estates, state-of-the-art Downtown Luxury Penthouses, and Waterfront Dream Homes have risen dramatically in the past 10 years. Some people call it a real estate bubble; I like to call it sustainable demand for arguably the best city in the world.
The Chinese influence on Vancouver real estate has been a huge factor in the substantial home values increases since the turn of the new millennium. However, in the past 6-8 months the number of Chinese home buyers coming from mainland China and Hong Kong has intensified and boosted some home prices by up to 50% in the past 2 years, with their focus being on Richmond, Vancouver’s West Side, and now West Vancouver.
Vancouver West Side is a very prestigious part of Vancouver with excellent schools and safe neighborhoods. It has also been the hottest Real Estate in Vancouver over the past several years, driven by offshore Chinese buyers and investors. Since August 2009, Chinese Real Estate Companies have been arranging tours of Chinese Buyers coming to Vancouver for a few days that often resulted in them buying multiple properties with cash offers. The average detached home price in Vancouver’s West Side is $1,698,925, up 46% from the January 2009 figure of $1,165,007. There have been many cases of homes in communities such as Point Grey, Kitsilano, Dunbar, and Shaughnessy listing and selling within days for $300,000 or 25% over asking price in some multiple offer scenarios.
Chinese buyer interest in the Vancouver real estate market will continue to be driven by Canada and British Columbia’s strong benefits. Investors know that Canada’s stable banking system makes a US type over-lending disaster improbable. British Columbia’s rich natural resources are creating wealth and securing long-term interest in BC. Our safe and desirable multi-cultural lifestyle, superb educational system from Elementary to University and the fresh mild climate make Vancouver one of the most sought after and highly demanded global cities worldwide.
There is more happening here than just the HST.
Lower Mainland September Statistics
Fellow blogger fish has posted stats for September over on his blog Vancouver RE and then some.
Of note, in Greater Vancouver sales rank as the third lowest in the month of September over the last 10 years. Months of inventory sits at 7.2.
In the Fraser Valley this is the third month in a row based where lower sales have combined with a higher influx of new listings. Months of inventory sits at 8.7.
In Victoria months of inventory has climbed to 10.8.
And on the Sushine Coast, months of inventory is a stunning 17.5.
Of course prices have not begun to fall yet. With rising inventory, how long before the Real Estate industry starts to beat the drums that this is a 'buyers market' and that you need to support the market by buying now.
But if prices are still well above what local incomes can support, what can entry level buyers do?
Hmmm... perhaps it's time for yet another example of realtor-created, media-infused, jingoistic marketing crap.
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