Vancouver might have just burst it's own housing bubble

[applegrove]

Vancouver might have just burst it's own housing bubble

by Wolf Richter at Business Insider

http://www.businessinsider.com/vancouver-burst-its-own-housing-bubble-2016-8

"SNIP..............

The Canadian province of British Columbia may have gotten what it asked for in instituting the now notorious15% transfer tax on home purchases involving foreign investors.

Benchmark prices of Vancouver still exhibit astounding year-over-year increases, with apartment prices up 27% and detached house prices up 38%, now at C$$1,578,300. But overall sales plunged to 3,226 homes, down 27% from the record in June and down 19% from a year ago.

“This is the first time since January 2016 that home sales in the region have registered below 4,000 in a month,” admits the Real Estate Board of Greater Vancouver. While apartment sales dropped “only” 7% year-over-year, sales of detached homes plummeted 31%!

And it’s spreading beyond Vancouver. For example, housing-refugees make their way to the Fraser Valley, which borders Metro Vancouver. The formerly bucolic and more affordable Langley Township is now highly developed and getting more so:



................SNIP"

[Warpy]

1. Vancouver had to do something and other areas will have to follow

unless they want to become (mostly) Chinese owned ghost towns. San Francisco had also better pay close attention.

This site is years old and illustrates how nuts it's been in Vancouver for so many years: http://www.crackshackormansion.com/

[applegrove]

2. Yes. They definitely did the right thing. And it seems to be working.

[HEyHEY]

4. The problem is the tax is just a speed bump the BC libs will use to rake in cash....

...to make up for their other failings.

They need to ban ownership in Vancouver if you aren't a PR or citizen or on some kind of visa where you work and pay taxes in the country. They also need to get Quebec to fall in line on its QIIP program.

[KT2000]

3. I have wondered why the US

doesn't do something like this. Seattle has the problem of foreign investors buying with cash and leaving the house to just sit. They edge out new home buyers and anyone who needs a loan. I don't blame the buyers - it is the government that needs to step up.