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Originally Posted by whatnext
Hopefully nobody here will get burned on these, like Miami in 2007:
...Fast forward twelve years and we’ve arrived in Vancouver. New annual home completions just reached a record high, dumping just a shade under 25,000 units onto the market at the end of 2018. The much needed supply is perhaps a blessing and a curse, providing a relief to home prices but cornering speculators who have bet on rising prices.
Per the official MLS benchmark price, condo prices in Greater Vancouver have slid 6% since the month of June, an unprecedented decline following years of double digit price inflation.
Research from MLA Canada, a Real Estate advisory service working alongside developers suggests investor demand has largely dominated the pre-sale condo scene. Measuring pre-sale buyer activity in the Burnaby area of Brentwood and Metrotown, real estate investors made up 67% of all purchases in 2018, up from just 11% in 2012...(bold mine)
https://vancitycondoguide.com/shades-of-miami-2007/ |
I found this interesting, kinda deflates the idea that Vancouvers' beauty will keep it's real estate flying high indefinitely. Miami arguably has much more appealing, colourful architecture.
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Foreigners are largely to blame. Real Estate analysts say South Florida drew a barrage of investors. “Between the Latin American influence and the out-of-state buyers who have a love affair with Miami because of its ambience,” said Jack McCabe, a consultant in Deerfield Beach who tracks the South Florida housing market, “they flocked to it and pushed it to the point where about 70 percent of all sales were to investors.”
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and an interesting chart shows changing purchasing patterns have created a more unstable market by not having enough end users and instead investors (speculators) purchasing the majority
Purchaser intentions in Brentwood/MetroTown
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