That's what's been happening since 2016.
2M plus market is not the same as under 2M. If immigration and foreign buyers are effected it will certainly mean problems with the West side...the over 2M homes
I'm inclined to agree with Eyes here.
Buyer pool for under 2 million seems more like locals with equity money from a townhouse or condo looking to move up. Equity money typically wont be getting you into a house over 2 million on income alone.
I realize this is a generalisation, locals buy over 2 million. This is more based on the type of demographic I been seeing at open houses around the $1.5 mark.
The x-factor would be a more punishing decline in the luxury segment. I don't see how steep haircuts there eventually wouldn't translate down to lower levels.
What is already more evident is builders offloading lots and future projects. Seen a few boarded up houses being listed and sitting.
I keep track of the sales on under 2M market. The floor has not moved - not one bit. You still cannot get a decent home on a standard sized lot for under about 1.2M...this is pretty much the same as 3 years ago.
There are currently 1494 detached properties for sale in Vancouver proper. Only 340 of them are under 2M. With developers also scrambling to buy those properties it makes for a pretty tight squeeze.
Vancouver might be the #1 city in the world with homeowners who would not sell their home no matter how much money you offered them.
Agree on all points but one.
I don't think builders are nearly as active in the market at the moment - maybe HaraHomes can elaborate. The way I read it - there are no "deals" at the low levels that would justify buying, when properties over 2 million are generally sitting.
If you buy a lot at $1.2, you need have a $2.5 house on there to make money. Not sure there is the appetite for that risk right now among the builders.
Edit: Here is an example:
This is listed at $2.1
https://www.realtor.ca/Residential/Sing ... bia-V5C2Y3
They bought lot for $1.3, 2 years ago.
Carrying costs, building costs, permits etc - say $650,000
Realtor commission, assuming it sells for asking, what does that net the builder $100,000?
Don't think that's a deal I would be making.