Politic and Real Estate: THE WORLD HAS CHANGED BUT YOU HAVE NOT!
Warning~ Long Email Ahead!
As COVID as significantly impacted each of our lives over the last 2+ year. I bet you are curious about the impact on COVID and the real estate market. Please feel free to connect directly with me for a deeper dive into the conversation!As the world continues to turn, I am very blessed to be living in Canada. We all wish we could all live in a world with peace and harmony, yet the fact remains we are living in an imperialist vs Communist era. In 2016 we began to observe an escalation of the current situation and have been living in all kinds of uncertainty. Add to that COVID and now a full-on war between Ukraine-Russia. Uncertainty is the “New Normal".
THE WORLD HAS CHANGED BUT YOU HAVE NOT!
In my 30-year real estate career I have not seen the real estate market this crazy as we have in the last couple of years. With the recent frenzy of domestic home buyers, it makes the Chinese buying spree in the past few decades look comparatively small. NDP had sworn they would improve the housing crisis but as we can see by the real estate market statistics it is the complete opposite. The NDP government has had to FINALLY admitted that for all if their government interventions it did not have the intended results. In the last 3 years we have not have foreign national buyers in Vancouver. The Government has once again miscalculated how to find affordability housing. By imposing an Empty Home Tax & Speculation & Vacancy Tax the Government have in effect our policies in place for them to loose millions if they continue keep these 2 policies in play.
The end result has been a significant loss of revenue from the property transfer title tax as we have observed less transaction. The core issue is "lack of supply". Politicians have continue to try and manage the narrative by brain washing us through the media and again during their political campaign for more voters.
REAL ESTATE MARKET RECIPE FOR DISASTER
COVID + record low interest rate + record low inventory + desire for homeownership = COVID Real Estate Phenomenon.
- Canada to dramatically increase immigration to more than 400,000 per year
- Interprovincial immigrants; people with work permits; international students; refugees
Currently listing activity has not kept up with demand throughout the pandemic period. As a result, we started 2022 with the lowest level of active listings on record. In order to normalizing of the number of buyers and sellers in the market will take 18 to 24 months for the listings inventory to recover from the severe drawdown that’s occurred in the market since the fall of 2020.
Watch my AM1320 interview with Brendon Ogmundson, BCREA Economist on "Will the housing bubble pop in BC?"
This is a bilingual (Cantonese/English) interview I did on my AM1320 weekly real estate radio program. So be patient while you watch it!
I've been interviewing industry elites around the world on my AM1320 weekly real estate radio show since 2007. Highly recommend you to follow me on my Facebook Business page for my live streaming interviews and all real estate updates.
- Buyers are paying a premium for space.
- Suburb housing prices have jumped to an unbelievable level.
Chilliwack is leading the way, highest population growth together with the housing price
Eg: 10116 Fairview sold at $543k in 2020 and now just sold for $1.405m
Click Here to View Listings
- Urban housing prices appear to be very reasonable as the price is less affordable to begin with. You can easily do a comparison on B.C. Assessment website.
- Baby boomers are facing the choice of what it right-sizing. COVID has delayed their moves and are holding the key to unlocking supply
Presale construction is going to continue to be strong! As Parents are helping their kids with down payment to provide a cushion for their children to have a few more years to save more money. However, with the supply chain issue, who can guarantee their completion dates? I'm pretty sure the interest rate will be higher by then.
Does Bank of Canada Raising Rate Means Housing Price Will Drop?
The media loves to brain wash the public with all kinds of "assumptions". They say we are all heavily in debt because of the housing mortgage but they don't tell you the differences between Good Debt vs Bad Debt.
The Bank of Canada has just raised its key lending rate by 25 basis points. The increase to your mortgage payment per $100,000 is approximately $12-$13 per 0.25% increase in prime on a 25 year amortization.
