jad n rich

With the thought the visa must come one day...... I decided to look into property prices in Canada.

Confusing reading, 17% up in greater vancouver in 2011 to 17% down in Toronto in 2011.

Sounds like some wild fluctuations no idea which articles would be accurate or RE spin.

Would most likely settle around the Langley area of vancouver or the North shore.

Anyone, in particular in BC care to give me a better idea.

MarylandNed

This is an interesting article that gives the reasons why a housing price correction is on the way:

http://www.theglobeandmail.com/globe...articlecontent

I've read many similar articles and, overall, the general consensus does seem to be that Canada is due to a serious housing price correction. However, there are often regional variations to the general trend and so local markets might well behave somewhat differently to the national trend.

Atlantic Xpat

I'd go further. Regional variations are everything. The housing market in Vancouver might be unsustainable while that in St. John's, Nlfd might be. I don't forsee a national correction or slump anymore than we have a national recession. What we are seeing are regional issues e.g. ON struggling while resource based economies in AB and NL boom. So the OP needs to investigate further what is happening in BC, the North Shore and Langley. What is happening in AB, QC or anywhere else they don't plan to buy, is, largely irrelevant.

MarylandNed

It's not quite as simple as that. There are ripple effects within any economic system.

The oil sands project has created thousands of jobs OUTSIDE of Alberta. For example, much of the equipment needed is actually manufactured in Ontario and elsewhere.

There is freedom of movement within Canada. So, for example, if a family is selling up in Toronto to move to Vancouver, what they get for their Toronto property affects what they can pay for the next property in Vancouver.

Whenever there are policy/rule/law changes (e.g. stricter borrowing standards) these are often applied nationally. An overheated housing market in one area can lead to changes in borrowing practices that affect other parts of the country.

el_richo

In my opinion, areas like Langley, Coquitlam, Maple Ridge, etc will be hit harder than others when the correction comes into play.

North Van has always been over priced

If you're new to the country, it makes sense to rent in your chosen area for a while anyway.

ExKiwilass

who knows.

I think prices could come down a bit but to truly 'affordable' levels, close to downtown? No. I don't see it.

I guess I agree with el richo...the outlying areas are more likely to see price drops.

acer rose

Really variable I'd say. We live within spitting distance of Vancouver, albeit with a dog of a commute on transit (about 90 minutes). In my area, properties in the low to mid range do not move quickly and prices have not recovered from the 2008 drop. For example, the house we bought last year had been on the market for over 2 years and prices have continued to decline, if you believe the assessed values.

It's difficult to believe that prices won't drop in the suburbs around Vancouver.

Aviator

[quote=acer rose;10021984 if you believe the assessed values. [/quote]

Don't, they rarely have any connection with market prices.

Boy d

Who knows......they have been calling for a correction here for close to a decade....it never comes. When does it stop being a bubble?

Canada won't see a US style melt down, maybe more of a slow puncher? Personally I feel we are a good 20 percent over-flatted and a correction is likely when interest rates go up. But a total collapse is wishful thinking.

Even though I own, I welcome a correction, the re here has had a negative impact. I left vancouver when it was apparent that a decent house was a pipe dream, and that was with close to a half million down payment and close to 200 k household income!

The burbs are not bad though really, when compared to downtown. Our house is a good 60 - 70 percent cheaper than the west side.

ExKiwilass

wow, it's very different where I live...prices for family homes have kept going up up up. (sadly). IMO that's just due to proximility to Van.

Tony-the-Tigger

I've given up looking at anywhere that's less than 1 hour drive to downtown T.O (on a Sunday).

Resigned to the fact that I'm just going to have to shave my head and learn to play the banjo.

lwilli63

I can't comment on Langley and Maple Ridge. As far as Coquitlam is concerned I've been looking at property in and around Heritage Wood, Port Moody, Westwood Plateau and a new development: Burke Mountain.

I keep hearing the same story from realtors: asian buyers are snapping up houses and a lot of them are paying cash. I quite liked a house I saw on Sunday: made an offer yesterday and was told that someone had offered full price and cash.

Also I understand that quite a few families are moving from the north shore to Burke Mountain and once again the houses there are selling like hot cakes.

I guess you could argue that the above are the classic signs of a bubble but whilst asian buyers keep coming I can't see a correction happening.

I've been considering renting for another year but I think interest rates will probably rise during this period.

All IMHO of course.

el_richo

The Chinese bubble is begining to deflate so just have patience on that one. Maybe it'll be taken up with another.

No idea when rates will go up but i doubt it will be this year. Who knows.

It's a tough call though because if there is a correction, who's to say the increase between now and then won't outperform the dip.

All my own guesses.

We'll be buying once we find a place we'll be happy in for a very long time no matter what the market is doing. Haven't found it yet though, although we're only casually looking.

ExKiwilass

don't you get more land for your $$$ on Westwood Plateau. I "heard" the lots on Burke are very small.

MarylandNed

That's a bit drastic. Why not the guitar?