Not so ludicrous when you travel around the world and look at how things are in other countries and cities. There's a lot of shabby and decrepit shithole cities out there.
Canada is not expensive, it is just dominated by 2 large urban areas that take up a very large percentage of sales. USA is 2x to 3x the cost when you compare equal things (NY to Tor, Van to Cal, Calg to Texas etc)..... but because USA is spread out far more (it has 10000 Winnipegs like Toledo, Sacramento, Fort Worth) that their average price is lower.... but make no mistake, that is a flaw of the average price metric and is not indicitive of like for like comparisons.
My guess is the flood of Chinese money is gone? I'm glad to see Canada is finally discouraging foreign investment in RE. All it's done is raise the cost of living for Canadians and create an army of Realtors that add no value to the economy. Houses are for living in - not making money for nothing.
The investor immigration program was shut down years ago. The immigration requirements have now changed and more focused on educated and skilled immigrants.
@@barbiedoll618whoever. Foreign inflows into the market pushing the bubble for the sake of finding return at the expense of everyday people not looking to speculate but to buy a home to LIVE in. That is the problem with QE for a decade, it has completely suppressed price discovery mechanisms and ultimately caused socioeconomic distortions across the board that lead to real world consequences. End central banks/planning (my pipe dream).
Exactly, Russian money is gone, Chinese and Saudi money on the way out. The fake real estate market, the fake tech company, the fake investment firms are getting hit with reality
Most of the DIY real estate investors are trying to unload that I meet at my retirement seminars. Cash flow is poor or negative capital gains have gone up. Bad tenants are impossible to get rid of within 12 months. The easy money train has left the station. The pain will continue immigration will be cut keeping this bubble afloat.
That's when I got my house when everyone was wishing for a big crash. The opposite happened. Now many are waiting for a crash to happen and it won't happen just because there are so many who are waiting for a crash so they can buy a house.
What these people don't realize for precons is that during a boom precons are the worst built because they just hire the greenest guys to fill boots. Ironically best time to buy a new build is during a recession cause all the best guys get paid to sit at home or they get poached while all the bad guys get laid off.
Several years ago I was working in security with a young man in his mid twenties who told me he owned a couple rental properties in Toronto. His only other source of income was a military pay, he was enrolled in the army. I knew this was not enough to become an investor, so i asked him how he was able to do this. He informed me that his family had helped him get started, they pooled their family resources to help each other get ahead. Because so many were doing the same thing, the market became saturated with this activity and grew like a cancer, overvalued by competing investors, not rich but just SO MANY DOING IT. IMO it's going to be a long process getting to a place where the people who actually want to live what used to be a normal life can afford to do that, the market has been artificially inflated because people were getting around any regulations imposed by government for far too long.
Foreign buyers are not 'missing', they still exist but they have been BANNED. They were a big reason for the creation and surge of the 3m CAD condo market and 10m CAD low rise market. So those markets will at best sit still until the foreign ban is lifted. If its not lifted soon, then they have a good chance to fall exponentially
And it's all about money laundering. They know they are overpaying for the property, but they don't care because they just want to get the money out of China and they can always steal another couple million from the company or government department they work for.
The fundamentals of the economy are still the same: more investment - means more production. Yes, it's increasing prices, but it is the very reason builders build MORE. Less investment, LESS production - Simple.
For now lol how many people are actually having kids these days? How many young families out there are having more than 2 kids? SFD is just another commodity subject to supply and demand.
Looks like the provincial governments tactics are finally bearing fruit. Keep it up as I’m tired of foreign investors buying up empty property and sitting on it.
Did these buyers pay cash and now they either hold or sell at a huge loss (then why sell?) Or are these investment properties that they have a mortgage that's now underwater? You can't just walk away since the bank will require you to repay the difference after it's sold at a loss. Foreign buyers will always be here so long as Canada is giving away PR and citizenship and accepting dirty money with open arms.
100% that's why I leave timestamps. I was thinking of doing a compilation of him pumping the market and then flipping 180° and saying he didn't pump the market.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
My Chinese friend has been telling me that Chinese people no longer are interested in living in Canada....and many are moving back. She is of the opinion that Canada is now in decline.
It’s only the ultra luxury condo buyers that are getting hurt. The flood of multi millionaire Chinese immigrants has slowed down since the investment immigration program got canceled. Majority of new immigrants are now Indians.
The Butterfly is a very exclusive project. Only the very wealthy bought into ultra high luxury presales. It doesn’t represent all that of Vancouver or Canadian real estate.
complain about 10 to 15% drop is stupid when it went up for 200 to 300% in the last 5 years. Also Luxury Condo is not really Luxury. it's poorly build, don't have alot of features that luxury condo should have and scam.
Imagine that.... Chinese money stops and housing starts to come back to some semblance of sanity. How long have realtors been touting the fallacy that they aren't the cause of Canadians not being able to afford a home? Guess this proves that argument to be horse........
👍👍I love the grounded reality of this channel! Despite the economic recession, I no longer depend on Government Grants since I acquire $40,400 weekly profits
I know Robert Marion. He platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not he outperforms. I will forever stay invested!
Thanks for finally acknowledging the foreign buyers.....now you need to come to terms that it isnt just the west side of Vancouver....its in places like Burnaby...Coquitlam..etc. Living here more than 20 years , I have seen the demographic change...dont need a graph...or gaslighting...or stories about money laundering Its about controlling immigration so it doesnt impact the Canadian standard of living.... Our prices at max should be on par with the US, When it exceeds the American house average , controls should be activated ( interest rates,,Visas..taxes) What ever it takes to cool the market We are living with what happens when the market gets neglected, Canadians, owners or renters are bleeding money just to survive, every dollar goes to housing We are only 40 million people...There are millions of wealthy people abroad, who want to buy Canadian citizenship , which drives up our prices....we will soon be paupers in our own land
i'm in Toronto and i've got a unit on my floor for sale and i've bookmarked it... got relisted 1k less and still sitting there after sitting for 3-4 months. 100% not worth the 750k its listed for... and of course its a chinese building, no 2nd 4th 13th or 14th floor... this is the chinese style real estate bubble popping... no cheap money domestically no cheaper international money either.
Without a doubt, this year will be worse than the last. I lost a lot of money last year as a result of bad investment choices that I would not have made if I hadn't been so worried about my portfolio. I kept investing, but I couldn't determine whether to start paying for a house. In the end, I sold my positions, and the house needed more work than I had planned. I'm not sure how long I can keep going like this
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
The real estate bubble is just the SYSPTOM, the real underlying CAUSE is that the Canadian economy is not productive enough in the real economy of manufacturing, high tech and high value added activities that use people's skills for meaningful and sustainable employment for good returns on investments. So, foreign & domestic hot monies see Canada as a place for speculative and even shady activities. Money ALWAYS flows to places where the returns are high, legit or not, and retreats quickly at the first sight of trouble. Money knows no country and no loyalty. It's up to Canada to create the right conditions for real investors, not speculators, to make real investments.
You should move out of pre con. That market will be dead for the next 10 years. Plus people are sick and tired to be used by pre con prices and delays. Never buy pre con people. It’s a scam
We're probably at the point where the market will shift to PBRs. Realtors will act like it's a dead market, but towers will continue to go up in markets like Edmonton and Calgary.
RE sellers can only rip people off so much. Buyers have finally started using their brains and stopped buying the lie that RE only goes up. Well, good luck to speculators from 2022, who are now stuck with a $300k loss 😂
Is it time to stop talking about a lack of available homes for Canadians. In my subdivision in southern Ontario there’s never been availability like this and all homes are at a 30% discount. Funny when they were far more expensive there were 30 offers on these homes….go figure!!
The crash is going to be magnified over the next 12 mo. as mortgage renewals continue. Big declines starting to happen if you are leveraged and have not sold you will loose even more
Investors treated our homes like a lottery and it messed everything up for our kids, professionals, and teachers. SHAME of the gluttonous buyers flipping homes 4 profit! Canadians need to live in affordable housing!
I have been in Canada for 20 years, my wage started from $9/hour at the beginning and $30/hour today. Over the past 20 years, housing has never been an affordable product because I live in metro vancouver area. I need to sacrifice my life to save money for down payment. Can you tell me when it was the time of the affordable housing at the lower mainland area?
BINGO! Vancouver is crashing in the luxury condo market! $1500 per square foot is more realistic that even $2000 these days! Lot's of people are just walking away!
Weihong Liu owner of Woodgrove Centre in Nanaimo and Tsawwassen Mills said the wealthy Chinese are done and have stopped coming to BC. With interest rates and no foreign buyers this thing is done like dinner.
@@donm2067 I was being conservative. Some analysts estimate 12x annual global GDP, and of course the BIS pegs it much lower. It looks like the pandemic money printing is still temporarily keeping the ship afloat currently, and now we're all well into paying the subsequent inflation tax, the rest of this year and next should be very interesting.
Who would be crazy to by $2000psf when local income can only support $400psf in Vancouver. Also the Capital gains tax will continue to go higher it already has.
I see the pattern of things happening gradually then suddenly the drop off! Rosenberg said the housing bubble was ¨the biggest bubble in the Universe ¨ he thought 100basis point hike would harpoon the bubble, yet with over 500basis points in hikes there is small signs of a collapse in the Dog days of summer! And, in 2025 when the bulk of loans need re financing egads it will be interesting to see where things go here!
Just like adding too much salt to cooking. You need just the right amount or it’s too bland or too salty. Now it’s way too salty for people’s taste. The BOC has tons of room to decrease the salt.
@@Observer168bad analogy, adding too much or too little salt only has for effect of being too salty or not salty enough, one variable. Interest rates variation has multi-factor effects on many levels of the economy, you can't reduce it's consequences to only one variable.
If people bought units to live in them they wouldn’t have suffered losses after owning units for 5 years or less. They would have paid what they wanted to pay to have a home. Prices coming down usually means lower property taxes, but instead cities increased property taxes, in many cases in the double digits. People can’t afford it. The new owners who could afford million dollar homes will be fine, but not those who bought when prices were realistic. Our governments need to be better with money. They’re trying hard to get blood from a stone because our economy isn’t sustainable.
ask Holts in Vancouver to comment. then visit & notice the demographic change of the once, mainly Chinese buyers. my last money = home Client import, is no longer here. he & his young family all-expenses-paid-for by Dad, vacated in 2019. when his email & phone was changed. sadly, not sure what happened to his Mcleran 570S. or the Benz SUV tote for shopping, or the wife's Tesla-matches-handbag... lol
If you do the math how much people earn, how much they are taxed, how much things cost, how long it takes to pay for things and how much interest the banks get from longer loans in this case mortgages for overpriced homes compared to shorter mortgages on affordable homes. Why this happens will make a lot of sense. You will also see that the prices for everything are off the clock many multiple higher than they should be and that prices need to come down drastically. But so many people have such large mortgages particularily baby boomers who are soon to retire or retired that can barely afford a few percent interest rate raise. That the government cant raise rates and keep them high like they should, or we will have alot of peoples entire life savings destroyed and homeless at the end of there working life when they are on fixed incomes and cant just go out and make more money. I listened to a news story today about a couple in tgeir 80s who are forced to live in a tent, and I have met elderly couples who are on fixed incomes that can barely afford the taxes utilities expense and medications while living in even in homes they own. But that being said theres going to be alot of very desperate home borrowers who made bad decisions looking to sell coming up.
Given... that it is NOT uncommon for so-called monied 'investors' to be utilizing leverage, indeed, the investor class being historically quite "emboldened" by their prior equity/capital realizations/transactions to then begin DEBT to Market 'cashflow' valuations successfuly in leveraged Tax positioning strategies.... my question would be.... how many of these now seemingly 'distressed' unsuccessful Sale attempts were under duress to "leveraged" play repayment/servicing cost impetus ? Seems the tide is indeed heading out ? and we may see exactly how far out many were swimming devoid of swim trunks ?
Hello, Steve. Looking at the housing price chart, the prices over-doubled in last 4 years, and dropped 15% recently. I’m wondering how can we see it as a good deal?
I used to think exactly like you. Then i realized Its a good deal because you're not buying at the recent peak. Canada is not like the rest of the world Think about the immigration demand on housing and the lack of housing construction. 15% is a deal indeed.
@@tomaga5856 I get the narrative, but trying to look from a local worker point of view. Say, I’m a first time home buyer with an annual income of $150K (don’t know too many people making this much, though). Average house price in vancouver is $2M. Even if I pull $500K out of my rear, my mortgage payments on $1.5M will be over $6K. I currently rent at $1500, having that down payment investment interest paying all my expenses and then some. What could possibly motivate me to buy?
The assignments are being sold by people that bought in the presale phase of the project a few years ago. The market used to be so hot that all presales would sell out in a few hours. It means the buyers have signed a contract to purchase these units and the developers can get loans from the banks to complete the project. It also allows the developer to buy more land and start the presale phase all over again.
The overall housing and land market coast to cosst to coast is ocervalued by at least 30 yo 50%. If you actuslly look at the finsncisls to region to who lives/works in these areas. Am Inl missing something?
If people bought units to live in them they wouldn’t have suffered losses after owning units for 5 years or less. They would have paid what they wanted to pay to have a home. Prices coming down usually means lower property taxes, but instead cities increased property taxes, in many cases in the double digits. People can’t afford it. The new owners who could afford million dollar homes will be fine, but not those who bought when prices were realistic. Our governments need to be better with money. They’re trying hard to get blood from a stone because our economy isn’t sustainable.
Home buyers hold all the leverage now. If you decline a reasonable offer, you will likely have to accept a lower price after waiting another two months. This shift signifies the return of a buyer's market, unequivocally. The traditional measure of months of inventory versus sales, typically indicating a buyer's market at over 4%, is outdated for today's real estate market in GTA Ontario and its surroundings. This classification system of seller's, balanced, and buyer's market needs an urgent update. I have clients and doing daily business in over 30 cities in Ontario. I know very well what I am saying.
Hey Steve, there was this Asian guy with long hair from Vancouver that you interviewed with about 6-8 years ago. He made videos in his mom’s house and he had a lot of posters on his walls. He also played the guitar. Do you still talk to him? You should make more videos with him. He had an interesting view on the market and he is a great contrarian indicator!!!
That dude tried to time the market by selling a home he inherited and is now totally priced out. He’s been predicting a crash since 2008. He thought 2008 was the top of the real estate market. Why would anyone even listen to him?
Steve makes a great point about the fact that there should be a discrepancy between a good investor and a bad investor. Everyone who owns real estate thinks they are a fragging genius because 'line go up'. (The same goes for stonks.) Risk has been absent for a very long time.
I wonder why a realtor i know keep sending me houses that are sold at prices above asking prices in Richmond bc? I will contact you Steve when I sell some Stocks. Brokers who send me listing is not knowledgeable like you! The sellers/buyers impasse should be resolved once we are faced with a recession. The lagging effect of interest rates hikes will eventually dawn on the economy like a tornado. The problems are simmering though and will experience a sudden drop off. Until then it is still too high to consider buying. Thanks to the Canadians government and politicians from all sides' foolishness.
Do you think a future conservative govt, with all of it's presumed austerity, still have a BoC that will cut rates (to stumulate anemic econony) and not enough construction starts, will still result in another reinflation of RE bubble?
why do you keep talking about prices relative to all time highs? this kind of language is part of the problem. stating prices relative to long term averages would be beneficial as well.
The 85 storey condo at Yonge & Bloor in Toronto went into receivership due to 1 billion in unpaid loans and that’s just 1 development out of many others in the same boat
Nothing can stop what's coming. It's all going to end in tears. There is no place to hide. When the tide goes out, you will see all the ones that were swimming naked. The rest will be jumping out of there new hi rise condos or burning down there homes.
The economy in Canada need change the houses not possibel be a investment for speculation, if people want investing the money good invest in companies or open the company and give a job a people , houses and food need stop for speculation, houses is for people leave and food need affordable for people and children's eating not for speculation, the government need start a make law protect the vulnerable people in price the houses and the price the food too .
Because it's the brokeanogan, some Albertan, lower mainland or Ontarian will bid it up. Fools and their money. I could have sworn Kelowna was having a hard time moving units, castanet had some articles on it.
@@donm2067 The rest of the valley is very ok. The prices across the board are higher than Calgary. I'm a boomer and have never seen anything like this before. Something went very wrong and I believe I know what a great deal of it was/is. Don't ask as this is a no tell thing. As for Kelowna, the prices went crazy high for a reason and peaked for a reason, the rest is history. I should have excluded Kelowna as I knew better. Thanks for the reminder
This type the economy in Canada is economy the 3 world , Canada need more companies and less food and houses speculation for the better and solid economy.
The thought that canada deserves the status of being the most expensive housing market in the world has and will always be ludicrous.
It’s not Canada, it’s Vancouver and Toronto
Two metro areas. Vancouver is very nice, but only 600-700k people live there, it's very exclusive. Another 2 million pretend to live there lol.
Not so ludicrous when you travel around the world and look at how things are in other countries and cities. There's a lot of shabby and decrepit shithole cities out there.
Most houses in Vancouver are made of cheap vinyl , wood ,or stucco @@kqh123
Canada is not expensive, it is just dominated by 2 large urban areas that take up a very large percentage of sales. USA is 2x to 3x the cost when you compare equal things (NY to Tor, Van to Cal, Calg to Texas etc)..... but because USA is spread out far more (it has 10000 Winnipegs like Toledo, Sacramento, Fort Worth) that their average price is lower.... but make no mistake, that is a flaw of the average price metric and is not indicitive of like for like comparisons.
You know how Florida is penalizing buyer/seller/realtor when it comes to foreign Chinese buyers. Canada should’ve done it since 2005🙄.
Our Realtor lobby or fake experts like Steve lobbied against it. Or Vancouver Trashy Mayor Robertson would have called you Racist.
My guess is the flood of Chinese money is gone? I'm glad to see Canada is finally discouraging foreign investment in RE. All it's done is raise the cost of living for Canadians and create an army of Realtors that add no value to the economy. Houses are for living in - not making money for nothing.
The investor immigration program was shut down years ago. The immigration requirements have now changed and more focused on educated and skilled immigrants.
Dirty money 💰
so sad! you think only Chinese buying property in Canada. That is Russian, the middle east and Indian
@@barbiedoll618whoever. Foreign inflows into the market pushing the bubble for the sake of finding return at the expense of everyday people not looking to speculate but to buy a home to LIVE in. That is the problem with QE for a decade, it has completely suppressed price discovery mechanisms and ultimately caused socioeconomic distortions across the board that lead to real world consequences. End central banks/planning (my pipe dream).
Exactly, Russian money is gone, Chinese and Saudi money on the way out. The fake real estate market, the fake tech company, the fake investment firms are getting hit with reality
Most of the DIY real estate investors are trying to unload that I meet at my retirement seminars. Cash flow is poor or negative capital gains have gone up. Bad tenants are impossible to get rid of within 12 months.
The easy money train has left the station. The pain will continue immigration will be cut keeping this bubble afloat.
I love it when greed is punished. “Be fearful when others are greedy, and greedy when others are fearful.”-Warren Buffet
That's when I got my house when everyone was wishing for a big crash. The opposite happened. Now many are waiting for a crash to happen and it won't happen just because there are so many who are waiting for a crash so they can buy a house.
@@vancouverlife1040 we hope you can hold on.
What these people don't realize for precons is that during a boom precons are the worst built because they just hire the greenest guys to fill boots. Ironically best time to buy a new build is during a recession cause all the best guys get paid to sit at home or they get poached while all the bad guys get laid off.
Several years ago I was working in security with a young man in his mid twenties who told me he owned a couple rental properties in Toronto. His only other source of income was a military pay, he was enrolled in the army. I knew this was not enough to become an investor, so i asked him how he was able to do this. He informed me that his family had helped him get started, they pooled their family resources to help each other get ahead. Because so many were doing the same thing, the market became saturated with this activity and grew like a cancer, overvalued by competing investors, not rich but just SO MANY DOING IT. IMO it's going to be a long process getting to a place where the people who actually want to live what used to be a normal life can afford to do that, the market has been artificially inflated because people were getting around any regulations imposed by government for far too long.
Foreign buyers are not 'missing', they still exist but they have been BANNED. They were a big reason for the creation and surge of the 3m CAD condo market and 10m CAD low rise market. So those markets will at best sit still until the foreign ban is lifted. If its not lifted soon, then they have a good chance to fall exponentially
And it's all about money laundering. They know they are overpaying for the property, but they don't care because they just want to get the money out of China and they can always steal another couple million from the company or government department they work for.
The fundamentals of the economy are still the same: more investment - means more production. Yes, it's increasing prices, but it is the very reason builders build MORE.
Less investment, LESS production - Simple.
Single detached is King. Condos are a Ponzi
Yup
Vancouver is a Ponzi.
For now lol how many people are actually having kids these days? How many young families out there are having more than 2 kids? SFD is just another commodity subject to supply and demand.
Yup.
Can't walk to BC Place or Rogers Arena from a SFH.
Looks like the provincial governments tactics are finally bearing fruit. Keep it up as I’m tired of foreign investors buying up empty property and sitting on it.
Great job Steve😊
Yep when the tide goes out, we are now seeing which property investors have no swim suits on.
Did these buyers pay cash and now they either hold or sell at a huge loss (then why sell?)
Or are these investment properties that they have a mortgage that's now underwater? You can't just walk away since the bank will require you to repay the difference after it's sold at a loss.
Foreign buyers will always be here so long as Canada is giving away PR and citizenship and accepting dirty money with open arms.
Wasn't Steve bullish on real estate?
Hind sight a b*tch for everyone since no one has a cristal ball.
100% that's why I leave timestamps. I was thinking of doing a compilation of him pumping the market and then flipping 180° and saying he didn't pump the market.
Steve is part of shenanigan
And now he’s playing honest guy explaining us what is obvious
@alexbek Exactly. Steve is just another clown like 90% of agents. I'm sure he screwed over alot of clients himself.
pretty sure people can change course based upon evidence.
You live in a bubble and you think you're all experts.
The details you're dwelling on atm are temporary.
Are you telling the truth? Do you have the latest price history?
Shift to the right (I assume you were referring to Europe) is not shift to nationalistic this-or-that - it's a shift back to common sense.
First!
14%? You wish. Now do it in real terms Steve, like a real business person.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
My Chinese friend has been telling me that Chinese people no longer are interested in living in Canada....and many are moving back. She is of the opinion that Canada is now in decline.
I don’t think China is flourishing either😢.The world is a mess.
Fools and their money are quickly separated.
Lots of RE geniuses about to find out they were lucky. Luck eventually runs out in a casino.
Couldn't agree more. Leveraging up huge on historically low interest rates doesn't make you smarter than the herd.
It’s only the ultra luxury condo buyers that are getting hurt. The flood of multi millionaire Chinese immigrants has slowed down since the investment immigration program got canceled. Majority of new immigrants are now Indians.
The Butterfly is a very exclusive project. Only the very wealthy bought into ultra high luxury presales. It doesn’t represent all that of Vancouver or Canadian real estate.
How many buyer's, or what percentage, do you think will get burned?
@@kqh123only Steve would know but there’s around 300 units and Steve only gave a few examples.
A 14% drop is nothing in my opinion when prices are up almost 100% in the last decade !
My area is 2-4x value of 2019, if you live in town it's doubled, if you have an acre or more it's quadruple.
complain about 10 to 15% drop is stupid when it went up for 200 to 300% in the last 5 years. Also Luxury Condo is not really Luxury. it's poorly build, don't have alot of features that luxury condo should have and scam.
Imagine that.... Chinese money stops and housing starts to come back to some semblance of sanity. How long have realtors been touting the fallacy that they aren't the cause of Canadians not being able to afford a home? Guess this proves that argument to be horse........
👍👍I love the grounded reality of this channel! Despite the economic recession, I no longer depend on Government Grants since I acquire $40,400 weekly profits
Great news! how did you get that?
It's all thanks to Robert Marion
trading under proper guidance remains the best way to succeed in today's crypto market
I know Robert Marion. He platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not he outperforms. I will forever stay invested!
Yeah, $60k from Robert Marion, looking up to acquire a new house, blessings 🙌
Thanks for finally acknowledging the foreign buyers.....now you need to come to terms that it isnt just the west side of Vancouver....its in places like Burnaby...Coquitlam..etc. Living here more than 20 years , I have seen the demographic change...dont need a graph...or gaslighting...or stories about money laundering
Its about controlling immigration so it doesnt impact the Canadian standard of living....
Our prices at max should be on par with the US, When it exceeds the American house average , controls should be activated ( interest rates,,Visas..taxes) What ever it takes to cool the market
We are living with what happens when the market gets neglected, Canadians, owners or renters are bleeding money just to survive, every dollar goes to housing
We are only 40 million people...There are millions of wealthy people abroad, who want to buy Canadian citizenship , which drives up our prices....we will soon be paupers in our own land
Real estate is vastly overpriced.
i'm in Toronto and i've got a unit on my floor for sale and i've bookmarked it...
got relisted 1k less and still sitting there after sitting for 3-4 months.
100% not worth the 750k its listed for... and of course its a chinese building, no 2nd 4th 13th or 14th floor...
this is the chinese style real estate bubble popping... no cheap money domestically no cheaper international money either.
I don't want to live in a building built by superstitious people.
@@bryankerr9174 I'm currently looking to move lol
King Blue Condos??
1k down on 750k, is it being sold by a child?
@@edubmf China mentality, probably leveraged a lot.
Without a doubt, this year will be worse than the last. I lost a lot of money last year as a result of bad investment choices that I would not have made if I hadn't been so worried about my portfolio. I kept investing, but I couldn't determine whether to start paying for a house. In the end, I sold my positions, and the house needed more work than I had planned. I'm not sure how long I can keep going like this
We've all made mistakes at some point. You should consider financial planning
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
Do you mind sharing your financial planner ?
Leah Foster Alderman
You are most likely to find more info when you look her up
The real estate bubble is just the SYSPTOM, the real underlying CAUSE is that the Canadian economy is not productive enough in the real economy of manufacturing, high tech and high value added activities that use people's skills for meaningful and sustainable employment for good returns on investments. So, foreign & domestic hot monies see Canada as a place for speculative and even shady activities. Money ALWAYS flows to places where the returns are high, legit or not, and retreats quickly at the first sight of trouble. Money knows no country and no loyalty. It's up to Canada to create the right conditions for real investors, not speculators, to make real investments.
You should move out of pre con. That market will be dead for the next 10 years. Plus people are sick and tired to be used by pre con prices and delays. Never buy pre con people. It’s a scam
We're probably at the point where the market will shift to PBRs. Realtors will act like it's a dead market, but towers will continue to go up in markets like Edmonton and Calgary.
Nothing gets built without pre sales. 😊
Canada has Zero bang for your buck, No investors from other countries wanna invest here!
Bring in the capital gains and even Canadians won't want to invest here!
This is what I want, less competition. True investors know what’s up.
They invest enough to get their citizenship. That's it
Why would you when capital gains tax just increased lol idiots man socialist government
RE sellers can only rip people off so much. Buyers have finally started using their brains and stopped buying the lie that RE only goes up. Well, good luck to speculators from 2022, who are now stuck with a $300k loss 😂
stock market ticker only go up.
It's funny but everyone I tried to warn called me jealous
houses need repairs, 1-300,000 . figure that into your buying costs. realtors wont talk about that
@@butwhytharum
Hostorically... stock market valuations are a lagging indicators only 'responsive' after the fact to asset corrections
Unless if you bought in Calgary in 2022. You're now up $100s of thousands
Is it time to stop talking about a lack of available homes for Canadians. In my subdivision in southern Ontario there’s never been availability like this and all homes are at a 30% discount. Funny when they were far more expensive there were 30 offers on these homes….go figure!!
Many families have left the province or the country,
> go figure
that's literally the sign of a pyramid scheme
CANADA- 3 STAR HOTEL CHARGING 5 STAR PRICES
😂
@@bpd9660 ok, Andrew
Never seems to amaze me. Go back 40 yrs and wow! 12% is nothing a real housing crash.
No tears shed for these “investors” loosing everything. Even less for foreign buyers money laundering with zero intent to live in the homes.
The crash is going to be magnified over the next 12 mo. as mortgage renewals continue. Big declines starting to happen if you are leveraged and have not sold you will loose even more
raise the rates!
Only people that missed the party want others to crash and burn. Owners want prices to go to the moon and renters want prices to crash. Nothing news……
Rate goes up ->mortgage payment goes up -> put that on to tenants by raising rent.
Raise the rent!!
@@vancouverlife1040rent control says no
@@SW-li7gd They already do to the max. regardless of the rate.
Investors treated our homes like a lottery and it messed everything up for our kids, professionals, and teachers. SHAME of the gluttonous buyers flipping homes 4 profit! Canadians need to live in affordable housing!
I have been in Canada for 20 years, my wage started from $9/hour at the beginning and $30/hour today. Over the past 20 years, housing has never been an affordable product because I live in metro vancouver area. I need to sacrifice my life to save money for down payment. Can you tell me when it was the time of the affordable housing at the lower mainland area?
Just look at the expensive towers and see how many lights are on or off at night and compare to ordinary people towers
BINGO! Vancouver is crashing in the luxury condo market! $1500 per square foot is more realistic that even $2000 these days! Lot's of people are just walking away!
They're walking away cause their ponzi purchase depreciated
Some developments are offering, on case by case basis, incentives for buyers to complete, with nda signed
Weihong Liu owner of Woodgrove Centre in Nanaimo and Tsawwassen Mills said the wealthy Chinese are done and have stopped coming to BC. With interest rates and no foreign buyers this thing is done like dinner.
Good
Didn't you get the memo? Foreign buyers have been banned recently.
Well, the Chinese property market is crashing and their economy is rapidly slowing too so that probably plays a role.
Theres no more money left to steal.
Meanwhile, the derivatives market is currently worth 4x the annual worldwide GDP.
That's a very low number
@@donm2067 I was being conservative. Some analysts estimate 12x annual global GDP, and of course the BIS pegs it much lower.
It looks like the pandemic money printing is still temporarily keeping the ship afloat currently, and now we're all well into paying the subsequent inflation tax, the rest of this year and next should be very interesting.
Who would be crazy to by $2000psf when local income can only support $400psf in Vancouver. Also the Capital gains tax will continue to go higher it already has.
Real estate is local. Always local. There is no “Canadian” housing market.
keep coping
I'd be curious to see how bad the reality is for the same Luxury Condos in L.A is currently?
I see the pattern of things happening gradually then suddenly the drop off! Rosenberg said the housing bubble was ¨the biggest bubble in the Universe ¨ he thought 100basis point hike would harpoon the bubble, yet with over 500basis points in hikes there is small signs of a collapse in the Dog days of summer! And, in 2025 when the bulk of loans need re financing egads it will be interesting to see where things go here!
The government doesn’t want a collapse. We have tons of room to drop interest rates if things get bad.
Just like adding too much salt to cooking. You need just the right amount or it’s too bland or too salty. Now it’s way too salty for people’s taste. The BOC has tons of room to decrease the salt.
@@Observer168bad analogy, adding too much or too little salt only has for effect of being too salty or not salty enough, one variable. Interest rates variation has multi-factor effects on many levels of the economy, you can't reduce it's consequences to only one variable.
@@Broprotatoagreed. We will be paying $20 for a pound of butter and we will have the weakest currency in the G7.
If people bought units to live in them they wouldn’t have suffered losses after owning units for 5 years or less. They would have paid what they wanted to pay to have a home. Prices coming down usually means lower property taxes, but instead cities increased property taxes, in many cases in the double digits. People can’t afford it. The new owners who could afford million dollar homes will be fine, but not those who bought when prices were realistic. Our governments need to be better with money. They’re trying hard to get blood from a stone because our economy isn’t sustainable.
ask Holts in Vancouver to comment. then visit & notice the demographic change of the once, mainly Chinese buyers. my last money = home Client import, is no longer here. he & his young family all-expenses-paid-for by Dad, vacated in 2019. when his email & phone was changed. sadly, not sure what happened to his Mcleran 570S. or the Benz SUV tote for shopping, or the wife's Tesla-matches-handbag... lol
If you do the math how much people earn, how much they are taxed, how much things cost, how long it takes to pay for things and how much interest the banks get from longer loans in this case mortgages for overpriced homes compared to shorter mortgages on affordable homes. Why this happens will make a lot of sense. You will also see that the prices for everything are off the clock many multiple higher than they should be and that prices need to come down drastically. But so many people have such large mortgages particularily baby boomers who are soon to retire or retired that can barely afford a few percent interest rate raise. That the government cant raise rates and keep them high like they should, or we will have alot of peoples entire life savings destroyed and homeless at the end of there working life when they are on fixed incomes and cant just go out and make more money.
I listened to a news story today about a couple in tgeir 80s who are forced to live in a tent, and I have met elderly couples who are on fixed incomes that can barely afford the taxes utilities expense and medications while living in even in homes they own. But that being said theres going to be alot of very desperate home borrowers who made bad decisions looking to sell coming up.
Given... that it is NOT uncommon for so-called monied 'investors' to be utilizing leverage, indeed, the investor class being historically quite "emboldened" by their prior equity/capital realizations/transactions to then begin DEBT to Market 'cashflow' valuations successfuly in leveraged Tax positioning strategies....
my question would be....
how many of these now seemingly 'distressed' unsuccessful Sale attempts were under duress to "leveraged" play repayment/servicing cost impetus ?
Seems the tide is indeed heading out ?
and we may see exactly how far out many were swimming devoid of swim trunks ?
Vancouver house prices have a long way to fall without Chinese buyers
The only way to fix it is to force all current foreign owners to sell within a year ( if fail to sell, automatic auction)
Most of rental marker owed by foreigners ....look at rents? Look how much Toronto lost!??! Absolutely hate this city. I hide in my codo!
Good news .. no more wealth immigrants.. bad news . Only poor immigrants lining up at food banks 😅
The prime time to live in Canada is over
Hello, Steve. Looking at the housing price chart, the prices over-doubled in last 4 years, and dropped 15% recently. I’m wondering how can we see it as a good deal?
I used to think exactly like you. Then i realized Its a good deal because you're not buying at the recent peak. Canada is not like the rest of the world Think about the immigration demand on housing and the lack of housing construction. 15% is a deal indeed.
@@tomaga5856 I get the narrative, but trying to look from a local worker point of view. Say, I’m a first time home buyer with an annual income of $150K (don’t know too many people making this much, though). Average house price in vancouver is $2M. Even if I pull $500K out of my rear, my mortgage payments on $1.5M will be over $6K. I currently rent at $1500, having that down payment investment interest paying all my expenses and then some. What could possibly motivate me to buy?
Agree, 15% is just the beginning.
@@tomaga5856 Go for it and buy, we haven't seen the bottom yet
@@tomaga5856 For every one percent the real estate market drops, Trudeau will import 100k Indians
Interest rates must be reduced to at least 4.5 percent for home buyers. If not Canada is heading for disaster as a country.
Easy to blame foreigners..yet Canadians benefit from increase but blame foreigner..
The fifth-column ... is short on pocket change. Hence the drop in demand.
Will I prefer living in a Condo or a doghouse ? Hmmm I prefer living in a dog house
Some people say better, some people say worse.
The further it plummets, the better it gets.
Right Steve values are down seems people have lost confidence
I told my boomer parents it was a good time to sell their 40 year old McMansion at the top and they thought i was crazy.
It's their home.
I'm not selling mine either.
Even though it will be worth much less in 2 years.
@@Stormshfter okay boomer
How come developers selling new projects if prices on assignments below or equals to what was purchased 2-4 years ago.
The assignments are being sold by people that bought in the presale phase of the project a few years ago.
The market used to be so hot that all presales would sell out in a few hours. It means the buyers have signed a contract to purchase these units and the developers can get loans from the banks to complete the project.
It also allows the developer to buy more land and start the presale phase all over again.
The overall housing and land market coast to cosst to coast is ocervalued by at least 30 yo 50%. If you actuslly look at the finsncisls to region to who lives/works in these areas.
Am Inl missing something?
Vancouver and Toronto is expensive because of billions of dollars in foreign money
@Observer168 and fraud and money laundering and crime. All play a role in the crazy towns, which are throughout canada these days.
Steve you need to make calgary video
Canada....1st fourth world country?!!
Good
Expensive government causes everything expensive.
Great news!!! Keep it up.
They really need to fall another 30--40%
If people bought units to live in them they wouldn’t have suffered losses after owning units for 5 years or less. They would have paid what they wanted to pay to have a home. Prices coming down usually means lower property taxes, but instead cities increased property taxes, in many cases in the double digits. People can’t afford it. The new owners who could afford million dollar homes will be fine, but not those who bought when prices were realistic. Our governments need to be better with money. They’re trying hard to get blood from a stone because our economy isn’t sustainable.
Home buyers hold all the leverage now. If you decline a reasonable offer, you will likely have to accept a lower price after waiting another two months. This shift signifies the return of a buyer's market, unequivocally. The traditional measure of months of inventory versus sales, typically indicating a buyer's market at over 4%, is outdated for today's real estate market in GTA Ontario and its surroundings. This classification system of seller's, balanced, and buyer's market needs an urgent update. I have clients and doing daily business in over 30 cities in Ontario. I know very well what I am saying.
Hey Steve, there was this Asian guy with long hair from Vancouver that you interviewed with about 6-8 years ago. He made videos in his mom’s house and he had a lot of posters on his walls. He also played the guitar. Do you still talk to him? You should make more videos with him. He had an interesting view on the market and he is a great contrarian indicator!!!
That dude tried to time the market by selling a home he inherited and is now totally priced out. He’s been predicting a crash since 2008. He thought 2008 was the top of the real estate market. Why would anyone even listen to him?
@@Observer168 👏
@@Observer168 That's Bill Ferguson and his silly little censored Facebook group of misinformation.
Glad to hear the foreign money is leaving. Can't happen fast enough.
Steve makes a great point about the fact that there should be a discrepancy between a good investor and a bad investor. Everyone who owns real estate thinks they are a fragging genius because 'line go up'. (The same goes for stonks.) Risk has been absent for a very long time.
I wonder why a realtor i know keep sending me houses that are sold at prices above asking prices in Richmond bc?
I will contact you Steve when I sell some Stocks. Brokers who send me listing is not knowledgeable like you!
The sellers/buyers impasse should be resolved once we are faced with a recession. The lagging effect of interest rates hikes will eventually dawn on the economy like a tornado. The problems are simmering though and will experience a sudden drop off. Until then it is still too high to consider buying. Thanks to the Canadians government and politicians from all sides' foolishness.
Do you think a future conservative govt, with all of it's presumed austerity, still have a BoC that will cut rates (to stumulate anemic econony) and not enough construction starts, will still result in another reinflation of RE bubble?
why do you keep talking about prices relative to all time highs? this kind of language is part of the problem. stating prices relative to long term averages would be beneficial as well.
As an investor why would i invest in a province that can change the rules so quickly,im thinking about the short term rental laws in BC tbh.
Toronto Vancouver house prices ll go down %85 imminent
😂😂😂😂😂
More than half of the homes are mortgage free so very unlikely. Only a small fraction of the homes were bought in the last 5 years.
@@Observer168A lot of those mortgage free homes have been used as ATMs though HELOCs. Not as stable as you think.
@@Jo-mf2vu lol even with the HELOC it wont crash 85% that is just absurd and unrealistic.
@@Jo-mf2vuit’s extremely hard to get a mortgage in Canada. People aren’t as over leveraged as you think.
The 85 storey condo at Yonge & Bloor in Toronto went into receivership due to 1 billion in unpaid loans and that’s just 1 development out of many others in the same boat
Chinese money?
Chinada, BC. 😂
Finally
Oh no, his glorious artificially inflated RE market is turning into s... Buckle up, brother 😂
Nothing can stop what's coming. It's all going to end in tears. There is no place to hide. When the tide goes out, you will see all the ones that were swimming naked. The rest will be jumping out of there new hi rise condos or burning down there homes.
"Luxury Condos Facing Million Dollar Losses",
Good!
What is the average house price in Canada if Vancouver and Toronto are excluded? Is there a site showing these averages?
c'mon steve
The economy in Canada need change the houses not possibel be a investment for speculation, if people want investing the money good invest in companies or open the company and give a job a people , houses and food need stop for speculation, houses is for people leave and food need affordable for people and children's eating not for speculation, the government need start a make law protect the vulnerable people in price the houses and the price the food too .
Stable or better in the Okanagan Valley for some reason
Because it's the brokeanogan, some Albertan, lower mainland or Ontarian will bid it up.
Fools and their money.
I could have sworn Kelowna was having a hard time moving units, castanet had some articles on it.
@@donm2067 The rest of the valley is very ok. The prices across the board are higher than Calgary. I'm a boomer and have never seen anything like this before. Something went very wrong and I believe I know what a great deal of it was/is. Don't ask as this is a no tell thing. As for Kelowna, the prices went crazy high for a reason and peaked for a reason, the rest is history. I should have excluded Kelowna as I knew better. Thanks for the reminder
This type the economy in Canada is economy the 3 world , Canada need more companies and less food and houses speculation for the better and solid economy.
Good we can do without foreign buyers.
Good luck trying to find the buyers from China and getting them to close.
$1000 per square foot! in a city's per capita income less than $40000
Just live in 40 square foot house. Ez pz solution 😂
It's just laundered money anyway, they don't care.
Dont buy in Toronto.. prices still way to go lower... wait...
i really appreciate how insightful you are about shit that has become so obvious...you gotta say this shit 2 years ago...why are you even talking lol
we ALL know this