Connect With Us To Talk Real Estate: 📆 calendly.com/thevancouverlife _________________________________ This episode delves deeply into the housing affordability crisis in Canada, a critical issue that remains at the forefront in 2024. With persistently high home prices, elevated interest rates, and a rising cost of living, homeownership is becoming increasingly unattainable for many Canadians. The data tells a sobering story. Homeownership rates in Canada have declined from 69% in 2011 to 66% today, with younger generations facing even greater challenges. For Canadians aged 25 to 29, the homeownership rate has dropped sharply, from 44.1% in 2011 to 36.5% in 2021. This decline underscores the growing barriers to entering the housing market. The struggles extend beyond prospective homebuyers. Developers are contending with soaring construction costs, skyrocketing municipal development fees, and high interest rates, creating a hostile environment for new projects. These challenges have led to a surge in shelved developments, land sell-offs, and insolvencies within the sector. Projects like "The Riv," a 37-story condo tower planned for Toronto, have been canceled due to insufficient buyer interest and unsustainable pre-sale thresholds. These setbacks highlight a looming crisis in housing supply that could worsen the affordability challenges Canadians already face. Adding to the complexity, Oxford Economics projects that housing affordability will not return to reasonable levels until 2035. Their Housing Affordability Index, which evaluates factors like home prices, wages, and interest rates, reveals that homes were affordable between 2005 and 2020 but became increasingly unaffordable, peaking in 2023. While affordability has started to improve slightly, it remains far from sustainable. For many Canadians, the prospect of waiting more than a decade for improved affordability is daunting, particularly in historically expensive markets like Vancouver and Toronto. The episode also examines affordability across Canada’s cities. While major hubs like Vancouver, Victoria, and Toronto are firmly in the unaffordable category, more than half of Canada’s cities, including Regina, Saskatoon, and Quebec City, remain affordable options. However, relocating to these areas is not feasible for everyone, leaving many Canadians grappling with limited choices. Recent data from StatsCan challenges the narrative that home flipping significantly contributes to housing unaffordability. In British Columbia, only 3% of properties were flipped within a year in 2021, with minimal impact on overall market prices. While flipping can influence price volatility in overheated markets, its role in Canada’s broader housing crisis appears overstated. The core issue remains the chronic mismatch between housing supply and demand. This episode also explores the November Greater Vancouver real estate statistics, offering insights into market trends. While total sales decreased by 20% month-over-month, they were up 29% year-over-year, signaling a potential shift. Inventory dropped to a seven-month low, though it remains 26% above the ten-year average. Despite elevated inventory levels, prices in some categories have remained stable or even increased, reflecting the market’s resilience. Looking ahead, the episode discusses the Bank of Canada’s upcoming December meeting and the potential implications of a rate cut. While a reduction could stimulate an early spring market in 2025, questions persist about whether it would genuinely address affordability or merely fuel demand without resolving supply constraints. This episode provides a comprehensive analysis of the forces shaping Canada’s housing market, from declining affordability and stalled development projects to shifting market dynamics and policy challenges. It offers viewers a deeper understanding of one of the most critical economic issues affecting Canadians today.
You make an excellent point. The Property Transfer Tax (PTT) in British Columbia was initially introduced in 1987 as a form of a "luxury tax," aimed at taxing the wealthiest individuals purchasing high-value properties. At the time, only the most expensive homes were affected, aligning with the original intent of targeting luxury real estate. However, over the years, as property values across the province have skyrocketed, the tax now applies to nearly all home purchases, even those far from what anyone would consider "luxury." This shift has turned what was meant to be a targeted tax into a broad one that impacts virtually every buyer, from first-time homebuyers to families simply looking to upgrade or relocate. The fact that the tax is calculated as a percentage of the home's value means that even modest homes in today's market come with significant PTT costs. The current structure of the PTT no longer reflects its original intent and disproportionately affects buyers at all income levels. This has sparked ongoing debate about whether the system needs reform to make it more equitable and better aligned with today’s housing realities. What do you think would be a fair solution? A tiered system with higher thresholds for the tax? Exemptions for first-time buyers? There’s definitely room for improvement.
Just another friction cost we add to the sale price. Realtor costs, land transfer, permitting, anything else the city screws us out of. All just friction costs we add to the final price.
Great episode guys. In the UK I saved and battled against rising housing costs in London during the bubble years to buy my first apartment. Like you it was a decade of hard work and sacrifice to finally get there. Regarding the municipal housing costs quoted - how are these not headline news along with provincial and federal government ineffectiveness in tacking this issue ? I don't understand how they escape the scrutiny they deserve. You really are left bewildered by the incompetence - I hope as many people as possible get their hands on these figures and put together some kind of organised opposition to challenge and embarrass bureaucrats and the media towing the government line . On paper it should be a goldmine of opportunity for investors, developers and first time buyers - with the numbers of people coming to the country who are willing to work and get on in life. If only these layers of government would simply put their heads together and work for their people - it seems like low hanging fruit. These municipal charges per unit are purely inflationary, creating shortages, undermining potential development and ultimately putting skilled people out of work.
It’s a compelling argument, and there’s no doubt that buying a home in cities like Toronto and Vancouver feels almost unattainable for many first-time buyers today. The gap between renting and owning has grown significantly, especially as home prices have surged and interest rates remain high. Renting can indeed offer more flexibility and a lower upfront financial burden, particularly when homeownership costs like property taxes, maintenance, and rising mortgage rates are factored in. Historically, however, homeowners in Canada have often come out ahead financially in the long term. Real estate in major Canadian markets has consistently appreciated over decades, making it one of the most reliable ways to build wealth. While renting allows for investments in other areas, the forced savings of paying down a mortgage and the long-term equity gains often tilt the scales in favor of ownership over time-especially in a market where home prices have traditionally risen faster than inflation. That said, the current market is unique. The historically high prices and slower price growth we’re now seeing, coupled with higher borrowing costs, mean the old “buying is always better” argument doesn’t apply as universally as it once did. Renting might be a smarter short- to medium-term choice for many, allowing people to save and wait for the market to adjust. Ultimately, the decision depends on personal circumstances-your financial position, life stage, and long-term goals. In cities like Toronto and Vancouver, where affordability is stretched to the breaking point, renting could very well be the saner choice today. But for those able to buy and hold for the long term, the equity gains could still prove significant. It’s a tough balance and definitely a decision that requires careful consideration in this challenging market.
Great show as always. I do find there is a grey area between asset classes when it comes to family size condos and smaller town homes. Both exist for example in the Burnaby Edmonds area where you see 1,100 sq.ft 2 bed / bath + den in condos as well as townhomes. I would guess to say that those types of condos will remain in a seller's market too and are quite different then the typical 700 to 800 sq.ft 2 bedroom condos in town centres like Brentwood and Lougheed.
On the BoC rate cut that's a tough call. I'm going with - 50 bps coming up. I was going with -25 but based on the latest unemployment data down to 6.8% and I see many on social media saying the job market is brutal, I'm thinking we need to drop 50 IMO.
The crashes are in slow motions. A soft landing is taking places. We pray for the young families in the middle class. There will be a long and hard time ahead.
@@DTrent-uy1wl I'm printing $ with my principal paydown on my cash flow neutral rental properties ATM. Easy peasy, not to mention my home run on PLTR(DTrent loves hearing about this). Investing in real estate was, is and always will be the best way for a Canadian to retire wealthy
New multiplex rules in BC are supposed to to provide missing middle housing. What does Burnaby do, ups their development fees. Costs are around $80k per multiplex unit. So for a 4/6 plex, that’s upwards of $480k of after tax income to be paid by a buyer when these fees are passed on by the developer. Cities have become addicted to these fees to artificially keep tax increases low. In decades past, the increased tax base revenue from new density going forward paid for city improvements. Not development fees. Cities need to get their budgets under control. I live and own in Burnaby, the waste I see is unbelievable, plus they always cave to union wage increases. When was the last time city workers went on strike? I can’t recall.
Federal accelerator fund rewards municipalities to increase density. Muni’s have been blanket re-zoning and pocketing the funds. If a first time homebuyer buys home for
The moral of the story is, if you’re young the GTA and GVA is a financial death trap. Move to Alberta. Alberta is going to be an economic powerhouse over the next 10 years and the real estate is still cheap for now.
Alberta been declining for the the last 20 years (incomes going up less relative to everywhere else, the income gap used to be much larger).... and when oil gets phased out in 25 to 50 years it will only get worse. The last place you want to go is Alberta. I know a great many people that moved to Alberta.... they are all back in BC.
@ GDP per capita in BC is $22,000 less than Alberta. Max mortgage fraud took place in the GTA and GVA. These markets at best going side ways if not down. Alberta is pushing to doubling oil output, US is looking to buy. GDP per capita growth rates are cute but don’t matter if the disparity in GDP per capita is so large.
@@pravgrewal3384 if Albertan incomes are going down over time, that means housing prices gonna be going down (relatively, aka flat to down).... you might as well buy in Saskatchewan which is half as much as Alberta with relatively the same income... and much better fundamentals. Incomes in BC and Ontario are the things actually going up, which makes real estate cheaper and makes affording the high prices easier, pushing up prices more. GDP per person doesn't matter... because if you add 100 immigrants your GDP went down but did your purchasing power actually go down... no it didn't. Way to use stats which have absolutely no effect on the thing you are trying to pump. Oil output will be going down, not up... as oil prices drop from orange man tariffs and the US economy stalls.
@@pravgrewal3384 oil output will be going down, not up as oil gets cheaper over time and Alberta is a high cost zone. GDP per capita is not a useful stat to use with all the immigration fugding the numbers.... bringing in 100k immigrants pushes down the average but did any of the other citizens actually drop in output? Nope.
@ you couldn’t be more wrong. US is nearly at their peak, most of their fields are already in a terminal decline. Canada has relatively cheap and abundant oil
Canadian household debt just reached the $ 3 trillion mark. Canadian household credit card debt is at the highest level in history. Bloomberg and the IMF as examples have called the Canadian real estate bubble the biggest in the world. Household income versus average house prices in Vancouver are at multiples of 22. The ideal multiple is 4 to 6. The BoC is doing everything it can to save the market and it all starts with the CPLie. Sell if you can, buyers keep your hands in your pockets.
Terrible analysis of home flipping by using a 1 year metric and 3% figure. Your definition of flipping may be technical but look at the 2-3 year resale rate or create an eleastic matrix and you will find velocity of resale indeed a valid variable that requires focus and policy reform affecting affordability equation, as do variables like municipal fee, foreign sales, lack of job market alternative, etc etc. Affordability is a 10 headed hydra not a 1 headed beast. A few of the bigger heads relate to immigration, money supply especially recent QE and too much money sloshing in the system. But the biggest culprit to me on the affordability of housing is the other side of the coin or income to price ratio which is about education, canadian competitiveness, productivity, jobs, trade relations, and GDP. unfortunately affordability cannot be analyzed simply from a housing cost and supply percepective but needs to be assesed against canadian GDP and purchasing power. And GDP that is rooted in the manufacturing of global housing commodity is a double edged sword or dog chasing its own tail.
When we expand to the 2 year flip amount, it actually goes even lower. In fact, total flips as a percentage of sales is the lowest in at least 25 years. (The most data available) View this chart to see how low it is: i.ibb.co/D9SRyzz/Ge-Ya-NBLb-IAAnt66-1.jpg Do you have data you can share to the contrary?
@@TheVancouverLife 10% ... 15%! Those are historically large percentages. Downplaying home flipping in the affordability equation by cherry picking the 3% trough is misleading characterization of the market condition. Take any multi year average and you are not less than your 3%. You are double or even triple that. Your own graph shows that. What the graph says instead is that from 2020 to 2024 the policy levers that disincentivize flipping seem to be effective against flipping as they're is a hard downward trend showing up. Anyhow, the way your podcast so casually downplayed flipping was insightful in exposing some of the wonky bias I'm seeing in this analysis. I also realize you're both realtors trying to make a living by selling housing product so now I get there would be some bias showing up. All good - wish you and your show well and more power to you - in this format, it's not for me. Will check back later.
I make a living “flipping houses” in Vancouver. I’m not sure what the new definition of flipping is? It takes me a year to line up permits and design/engineering on a flip. 2 to 5 years from purchase to sale. I don’t try to flip contracts or assignments. Is that what people refer to as flipping these days? There’s too much risk V reward. If you’re adding value, buying a roasted detached character in east van. Doing $300k to $500k in Reno’s. This won’t show up in a year. Can’t be done, min 2 most will take 3 to 5
No mention of the high cost to sell as in realtor fees. No offence, but really the cost per transfer to list and sell is hardly warranted. It is the same amount of work to sell a house in PEI as it is in Vancouver. To have to pay a years salary for one transaction and if you look at the amount of work per sales transaction, is that warranted? May times have I have told friends that the realtor fees can be put towards a renovation instead of moving. As far as development costs, I paid for them and the people before me paid them, why should I pay for someone else’s? I assume that most realtors would like the free market and having other taxpayers fund other people’s development costs would be wrong. The prices are too high and what happens the people don’t buy and developers won’t build and sellers won’t sell. The only problem right now are the boomers are sitting on too much mortgage free land. They are selling because they don’t need to. Affordability will be a problem til land gets cheaper. That ain’t happening anytime soon
One thing easier than buying a foreclosure. Go on zealty, make an account. Find a seller that languished on the market for a long period of time. 200 plus days. Then expired. No longer listed. Knock on their door. Make a low ball offer minus the realtor commissions. You HAVE to do your leg work, know the market, be able to comfortably do your own CMA and be comfortable closing a sale with your lawyer (realestate agents don’t do that much) If you do this you don’t need to shop foreclosures. You can get there before the bank does. I’ve done it 6 or 8 times. Easy money
Yea you say that as a foreigner buying in Canadian dollars. Go live and work in a third wild Country for third world wages and let us know how that works out for you
I make a living “flipping houses” in Vancouver. I’m not sure what the new definition of flipping is? It takes me a year to line up permits and design/engineering on a flip. 2 to 5 years from purchase to sale. I don’t try to flip contracts or assignments. Is that what people refer to as flipping these days? There’s too much risk V reward. If you’re adding value, buying a roasted detached character in east van. Doing $300k to $500k in Reno’s. This won’t show up in a year. Can’t be done, min 2 most will take 3 to 5
my experience as well, I don't flip, I buy and hold. I've only ever sold 3 properties in the past 20 years. Two of them were last year to reduce debt exposure to fixed variables.
Connect With Us To Talk Real Estate:
📆 calendly.com/thevancouverlife
_________________________________
This episode delves deeply into the housing affordability crisis in Canada, a critical issue that remains at the forefront in 2024. With persistently high home prices, elevated interest rates, and a rising cost of living, homeownership is becoming increasingly unattainable for many Canadians.
The data tells a sobering story. Homeownership rates in Canada have declined from 69% in 2011 to 66% today, with younger generations facing even greater challenges. For Canadians aged 25 to 29, the homeownership rate has dropped sharply, from 44.1% in 2011 to 36.5% in 2021. This decline underscores the growing barriers to entering the housing market.
The struggles extend beyond prospective homebuyers. Developers are contending with soaring construction costs, skyrocketing municipal development fees, and high interest rates, creating a hostile environment for new projects. These challenges have led to a surge in shelved developments, land sell-offs, and insolvencies within the sector. Projects like "The Riv," a 37-story condo tower planned for Toronto, have been canceled due to insufficient buyer interest and unsustainable pre-sale thresholds. These setbacks highlight a looming crisis in housing supply that could worsen the affordability challenges Canadians already face.
Adding to the complexity, Oxford Economics projects that housing affordability will not return to reasonable levels until 2035. Their Housing Affordability Index, which evaluates factors like home prices, wages, and interest rates, reveals that homes were affordable between 2005 and 2020 but became increasingly unaffordable, peaking in 2023. While affordability has started to improve slightly, it remains far from sustainable. For many Canadians, the prospect of waiting more than a decade for improved affordability is daunting, particularly in historically expensive markets like Vancouver and Toronto.
The episode also examines affordability across Canada’s cities. While major hubs like Vancouver, Victoria, and Toronto are firmly in the unaffordable category, more than half of Canada’s cities, including Regina, Saskatoon, and Quebec City, remain affordable options. However, relocating to these areas is not feasible for everyone, leaving many Canadians grappling with limited choices.
Recent data from StatsCan challenges the narrative that home flipping significantly contributes to housing unaffordability. In British Columbia, only 3% of properties were flipped within a year in 2021, with minimal impact on overall market prices. While flipping can influence price volatility in overheated markets, its role in Canada’s broader housing crisis appears overstated. The core issue remains the chronic mismatch between housing supply and demand.
This episode also explores the November Greater Vancouver real estate statistics, offering insights into market trends. While total sales decreased by 20% month-over-month, they were up 29% year-over-year, signaling a potential shift. Inventory dropped to a seven-month low, though it remains 26% above the ten-year average. Despite elevated inventory levels, prices in some categories have remained stable or even increased, reflecting the market’s resilience.
Looking ahead, the episode discusses the Bank of Canada’s upcoming December meeting and the potential implications of a rate cut. While a reduction could stimulate an early spring market in 2025, questions persist about whether it would genuinely address affordability or merely fuel demand without resolving supply constraints.
This episode provides a comprehensive analysis of the forces shaping Canada’s housing market, from declining affordability and stalled development projects to shifting market dynamics and policy challenges. It offers viewers a deeper understanding of one of the most critical economic issues affecting Canadians today.
land transfer tax already punishes flipping unfairly. Also punishes everyone else unfairly!
You make an excellent point. The Property Transfer Tax (PTT) in British Columbia was initially introduced in 1987 as a form of a "luxury tax," aimed at taxing the wealthiest individuals purchasing high-value properties. At the time, only the most expensive homes were affected, aligning with the original intent of targeting luxury real estate. However, over the years, as property values across the province have skyrocketed, the tax now applies to nearly all home purchases, even those far from what anyone would consider "luxury."
This shift has turned what was meant to be a targeted tax into a broad one that impacts virtually every buyer, from first-time homebuyers to families simply looking to upgrade or relocate. The fact that the tax is calculated as a percentage of the home's value means that even modest homes in today's market come with significant PTT costs.
The current structure of the PTT no longer reflects its original intent and disproportionately affects buyers at all income levels. This has sparked ongoing debate about whether the system needs reform to make it more equitable and better aligned with today’s housing realities. What do you think would be a fair solution? A tiered system with higher thresholds for the tax? Exemptions for first-time buyers? There’s definitely room for improvement.
Great comment and perspective. It’s a double tax
Just another friction cost we add to the sale price. Realtor costs, land transfer, permitting, anything else the city screws us out of. All just friction costs we add to the final price.
@@TimBer-y3y 100,000 was insane in 1980, 1,000,000 is insane in 2024, what will be insane in 2068?
Great episode guys. In the UK I saved and battled against rising housing costs in London during the bubble years to buy my first apartment. Like you it was a decade of hard work and sacrifice to finally get there. Regarding the municipal housing costs quoted - how are these not headline news along with provincial and federal government ineffectiveness in tacking this issue ? I don't understand how they escape the scrutiny they deserve. You really are left bewildered by the incompetence - I hope as many people as possible get their hands on these figures and put together some kind of organised opposition to challenge and embarrass bureaucrats and the media towing the government line . On paper it should be a goldmine of opportunity for investors, developers and first time buyers - with the numbers of people coming to the country who are willing to work and get on in life. If only these layers of government would simply put their heads together and work for their people - it seems like low hanging fruit. These municipal charges per unit are purely inflationary, creating shortages, undermining potential development and ultimately putting skilled people out of work.
You have to be insane to be a first-time homebuyer in Canada today. Especially in Toronto and Vancouver. Renting is a much better financial decision.
It’s a compelling argument, and there’s no doubt that buying a home in cities like Toronto and Vancouver feels almost unattainable for many first-time buyers today. The gap between renting and owning has grown significantly, especially as home prices have surged and interest rates remain high. Renting can indeed offer more flexibility and a lower upfront financial burden, particularly when homeownership costs like property taxes, maintenance, and rising mortgage rates are factored in.
Historically, however, homeowners in Canada have often come out ahead financially in the long term. Real estate in major Canadian markets has consistently appreciated over decades, making it one of the most reliable ways to build wealth. While renting allows for investments in other areas, the forced savings of paying down a mortgage and the long-term equity gains often tilt the scales in favor of ownership over time-especially in a market where home prices have traditionally risen faster than inflation.
That said, the current market is unique. The historically high prices and slower price growth we’re now seeing, coupled with higher borrowing costs, mean the old “buying is always better” argument doesn’t apply as universally as it once did. Renting might be a smarter short- to medium-term choice for many, allowing people to save and wait for the market to adjust.
Ultimately, the decision depends on personal circumstances-your financial position, life stage, and long-term goals. In cities like Toronto and Vancouver, where affordability is stretched to the breaking point, renting could very well be the saner choice today. But for those able to buy and hold for the long term, the equity gains could still prove significant. It’s a tough balance and definitely a decision that requires careful consideration in this challenging market.
If you can afford buying a first-time home, and then buy one, that makes you insane? Makes sense!
You mean tenting
Prices are dropping and gaining momentum this is hard to watch and the misery to come I feel bad for these people
@@DTrent-uy1wl you’re so out of touch it hurts to read your comments
Great show as always. I do find there is a grey area between asset classes when it comes to family size condos and smaller town homes. Both exist for example in the Burnaby Edmonds area where you see 1,100 sq.ft 2 bed / bath + den in condos as well as townhomes. I would guess to say that those types of condos will remain in a seller's market too and are quite different then the typical 700 to 800 sq.ft 2 bedroom condos in town centres like Brentwood and Lougheed.
On the BoC rate cut that's a tough call. I'm going with - 50 bps coming up. I was going with -25 but based on the latest unemployment data down to 6.8% and I see many on social media saying the job market is brutal, I'm thinking we need to drop 50 IMO.
Interesting perspectives!
Thanks for listening and tuning in!
The crashes are in slow motions. A soft landing is taking places. We pray for the young families in the middle class. There will be a long and hard time ahead.
Yes, this is spot on!
Ryan, you are finally admitting the inevitable. It took you two years but never too late. Good for you boy
@@DTrent-uy1wl I'm printing $ with my principal paydown on my cash flow neutral rental properties ATM. Easy peasy, not to mention my home run on PLTR(DTrent loves hearing about this). Investing in real estate was, is and always will be the best way for a Canadian to retire wealthy
I heard that everyone saying there will be a big housing market crash when covid just happened. 😂
@ We all hoped that the economy of Canada keeps going well 🙏🏼
Good talk
Thanks for tuning in
New multiplex rules in BC are supposed to to provide missing middle housing. What does Burnaby do, ups their development fees. Costs are around $80k per multiplex unit. So for a 4/6 plex, that’s upwards of $480k of after tax income to be paid by a buyer when these fees are passed on by the developer. Cities have become addicted to these fees to artificially keep tax increases low. In decades past, the increased tax base revenue from new density going forward paid for city improvements. Not development fees. Cities need to get their budgets under control. I live and own in Burnaby, the waste I see is unbelievable, plus they always cave to union wage increases. When was the last time city workers went on strike? I can’t recall.
City of Burnaby is also corrupt. Building inspectors allegedly get paid an under the table cash pmt.
Super informative video. Well done!
Increasingly challenging is a heck of an understatement.
Federal accelerator fund rewards municipalities to increase density. Muni’s have been blanket re-zoning and pocketing the funds. If a first time homebuyer buys home for
The moral of the story is, if you’re young the GTA and GVA is a financial death trap. Move to Alberta. Alberta is going to be an economic powerhouse over the next 10 years and the real estate is still cheap for now.
Alberta been declining for the the last 20 years (incomes going up less relative to everywhere else, the income gap used to be much larger).... and when oil gets phased out in 25 to 50 years it will only get worse.
The last place you want to go is Alberta.
I know a great many people that moved to Alberta.... they are all back in BC.
@ GDP per capita in BC is $22,000 less than Alberta. Max mortgage fraud took place in the GTA and GVA. These markets at best going side ways if not down. Alberta is pushing to doubling oil output, US is looking to buy. GDP per capita growth rates are cute but don’t matter if the disparity in GDP per capita is so large.
@@pravgrewal3384 if Albertan incomes are going down over time, that means housing prices gonna be going down (relatively, aka flat to down).... you might as well buy in Saskatchewan which is half as much as Alberta with relatively the same income... and much better fundamentals.
Incomes in BC and Ontario are the things actually going up, which makes real estate cheaper and makes affording the high prices easier, pushing up prices more.
GDP per person doesn't matter... because if you add 100 immigrants your GDP went down but did your purchasing power actually go down... no it didn't.
Way to use stats which have absolutely no effect on the thing you are trying to pump.
Oil output will be going down, not up... as oil prices drop from orange man tariffs and the US economy stalls.
@@pravgrewal3384 oil output will be going down, not up as oil gets cheaper over time and Alberta is a high cost zone.
GDP per capita is not a useful stat to use with all the immigration fugding the numbers.... bringing in 100k immigrants pushes down the average but did any of the other citizens actually drop in output? Nope.
@ you couldn’t be more wrong. US is nearly at their peak, most of their fields are already in a terminal decline. Canada has relatively cheap and abundant oil
Canadian household debt just reached the $ 3 trillion mark. Canadian household credit card debt is at the highest level in history. Bloomberg and the IMF as examples have called the Canadian real estate bubble the biggest in the world. Household income versus average house prices in Vancouver are at multiples of 22. The ideal multiple is 4 to 6.
The BoC is doing everything it can to save the market and it all starts with the CPLie.
Sell if you can, buyers keep your hands in your pockets.
We need chamath palihapitiya to create and lead DOGE in Canada.
Terrible analysis of home flipping by using a 1 year metric and 3% figure. Your definition of flipping may be technical but look at the 2-3 year resale rate or create an eleastic matrix and you will find velocity of resale indeed a valid variable that requires focus and policy reform affecting affordability equation, as do variables like municipal fee, foreign sales, lack of job market alternative, etc etc. Affordability is a 10 headed hydra not a 1 headed beast. A few of the bigger heads relate to immigration, money supply especially recent QE and too much money sloshing in the system.
But the biggest culprit to me on the affordability of housing is the other side of the coin or income to price ratio which is about education, canadian competitiveness, productivity, jobs, trade relations, and GDP.
unfortunately affordability cannot be analyzed simply from a housing cost and supply percepective but needs to be assesed against canadian GDP and purchasing power. And GDP that is rooted in the manufacturing of global housing commodity is a double edged sword or dog chasing its own tail.
When we expand to the 2 year flip amount, it actually goes even lower. In fact, total flips as a percentage of sales is the lowest in at least 25 years. (The most data available) View this chart to see how low it is: i.ibb.co/D9SRyzz/Ge-Ya-NBLb-IAAnt66-1.jpg Do you have data you can share to the contrary?
@@TheVancouverLife 10% ... 15%! Those are historically large percentages. Downplaying home flipping in the affordability equation by cherry picking the 3% trough is misleading characterization of the market condition. Take any multi year average and you are not less than your 3%. You are double or even triple that. Your own graph shows that.
What the graph says instead is that from 2020 to 2024 the policy levers that disincentivize flipping seem to be effective against flipping as they're is a hard downward trend showing up.
Anyhow, the way your podcast so casually downplayed flipping was insightful in exposing some of the wonky bias I'm seeing in this analysis. I also realize you're both realtors trying to make a living by selling housing product so now I get there would be some bias showing up.
All good - wish you and your show well and more power to you - in this format, it's not for me.
Will check back later.
I make a living “flipping houses” in Vancouver. I’m not sure what the new definition of flipping is? It takes me a year to line up permits and design/engineering on a flip. 2 to 5 years from purchase to sale.
I don’t try to flip contracts or assignments. Is that what people refer to as flipping these days? There’s too much risk V reward.
If you’re adding value, buying a roasted detached character in east van. Doing $300k to $500k in Reno’s. This won’t show up in a year. Can’t be done, min 2 most will take 3 to 5
glad i have 3 properties since 2012
Now, who are we going to blame next?
No mention of the high cost to sell as in realtor fees. No offence, but really the cost per transfer to list and sell is hardly warranted. It is the same amount of work to sell a house in PEI as it is in Vancouver. To have to pay a years salary for one transaction and if you look at the amount of work per sales transaction, is that warranted? May times have I have told friends that the realtor fees can be put towards a renovation instead of moving. As far as development costs, I paid for them and the people before me paid them, why should I pay for someone else’s? I assume that most realtors would like the free market and having other taxpayers fund other people’s development costs would be wrong. The prices are too high and what happens the people don’t buy and developers won’t build and sellers won’t sell. The only problem right now are the boomers are sitting on too much mortgage free land. They are selling because they don’t need to. Affordability will be a problem til land gets cheaper. That ain’t happening anytime soon
Why sacrifice when all you need is a rich Chinese parent?
Get on that treadmill and out of your mind!
Real house flippers buy and sell 2 + years later. To avoid capital gains tax.
If they change it to 5 years, flipping would stop
Canada has become way too expensive. I can barely afford to eat. Only home owners are rich.
There are many home owners that are struggling too my friend.
I saw a one bedroom for one million😂😂😂😂😂
The highest priced 1 bedroom unit available today in all of GVRD is listed at $2,980,000!! 500 1410 BUTE STREET.
@TheVancouverLife
Amazing deal ✌
@@nimo6972😂
Is that how u wear earpodn lol.
Is that how you spell?
Buying a house during the global monetary switch from Fiat to Bitcoin is a good idea, you need psychological help.
Godspeed, you all smarten up ASAP.
One thing easier than buying a foreclosure. Go on zealty, make an account. Find a seller that languished on the market for a long period of time. 200 plus days. Then expired. No longer listed. Knock on their door. Make a low ball offer minus the realtor commissions.
You HAVE to do your leg work, know the market, be able to comfortably do your own CMA and be comfortable closing a sale with your lawyer (realestate agents don’t do that much)
If you do this you don’t need to shop foreclosures. You can get there before the bank does.
I’ve done it 6 or 8 times. Easy money
CANADA IS DYING. #TEAMCANADAMENEXODUS FOREIGN PROPERTY BETTER PRICE
Yea you say that as a foreigner buying in Canadian dollars. Go live and work in a third wild Country for third world wages and let us know how that works out for you
Only homeflippers would talk that sheeeat, of course you guys push it up, 🤡🤡🤡🤡🤡
Neither of us have flipped a home. But thanks for the accusation!
I make a living “flipping houses” in Vancouver. I’m not sure what the new definition of flipping is? It takes me a year to line up permits and design/engineering on a flip. 2 to 5 years from purchase to sale.
I don’t try to flip contracts or assignments. Is that what people refer to as flipping these days? There’s too much risk V reward.
If you’re adding value, buying a roasted detached character in east van. Doing $300k to $500k in Reno’s. This won’t show up in a year. Can’t be done, min 2 most will take 3 to 5
my experience as well, I don't flip, I buy and hold. I've only ever sold 3 properties in the past 20 years. Two of them were last year to reduce debt exposure to fixed variables.