2702 replies to this topic

[johnk]

Seems to be a lot less panic in the air this year.

[SimonH]

There's a lot less on sale ? Possibly a lot of the stock is unwanted stuff ??

Edited by SimonH, 20 March 2017 - 03:32 PM.

[johnk]

Both, IMO.

[LeoVictoria]

Seems to be a lot less panic in the air this year.

 

Just as much panic, if not more.  Thing is it's been an ongoing state of panic for so long that it's tough to keep up the energy.   Months of inventory will still likely be at a record low this month.   

[Mike K.]

I think John is right, though. People are not freaking out like they were in years past.

 

Remember the bubble bursters and their non-stop finger pointing and uber-calculated implosion countdown clocks? Or the folks who were going on ad nauseam about how unaffordable Victoria was? There isn't as constant of a negative drone today as there was five, even ten years ago when folks were waking up to the new reality of living in Victoria. Now, among most folks, the sentiment is such that if you want to get into the market, find a way to get into it, or stop complaining.

 

We're all facing the exact same hurdles/struggles/market/inventory crunch/affordability issues/rising real-estate costs, but some folks might be facing them on a different tier of the market but the basic principles of supply and demand are still in effect.

[VicHockeyFan]

I do not know how new this is, but Realtor.ca will now send you daily updates based on parameters you set.

[LeoVictoria]

I think John is right, though. People are not freaking out like they were in years past.

 

Remember the bubble bursters and their non-stop finger pointing and uber-calculated implosion countdown clocks? Or the folks who were going on ad nauseam about how unaffordable Victoria was? There isn't as constant of a negative drone today as there was five, even ten years ago when folks were waking up to the new reality of living in Victoria. Now, among most folks, the sentiment is such that if you want to get into the market, find a way to get into it, or stop complaining.

 

We're all facing the exact same hurdles/struggles/market/inventory crunch/affordability issues/rising real-estate costs, but some folks might be facing them on a different tier of the market but the basic principles of supply and demand are still in effect.

 

Young people have just given up I think.   Go to a place with a younger crowd (reddit) and read the conversations about real estate.   Lots of "I'm never going to be able to buy anything".  

[Mike K.]

Right, folks who are not even in a position to buy for a myriad of logical reasons, complaining they can't buy.

It's like my buddies who finished university and expected they'd be driving a Lexus two years later. Ain't gonna happen. I'm 34 and have not been in a position to buy until this year, and it's a studio!

[Nparker]

...I'm 34 and have not been in a position to buy until this year, and it's a studio!

But the local market is definitely less affordable than it used to be. I bought my first property at the age of 31, and at that time it was priced at about 5 times my annual income. Today that same property would likely sell for about 10 times my annual income. My salary has kept up with inflation (more or less), but residential property values have far exceeded wage increases.

[FirstTimeHomeCrier]

 I'm 34 and have not been in a position to buy until this year, and it's a studio!

 

And that doesn't strike you as a problem we should try to fix?

[VicHockeyFan]

And that doesn't strike you as a problem we should try to fix?

 

Like make him younger some how?

[Mike K.]

No, not at all. I've never considered owning real-estate as a priority. I can do it now, but that's because the level of certainty is higher.

I have friends who got into the market because they thought they had to or their friends insisted they needed to and now they're house poor with stress and a financial burden. Yes, they have a home, yes, they have equity, but they long for the days when they rented and that broken faucet or fridge wasn't their responsibility and rent controls protected them from a changing market.

We've got to shed the "must buy" mentality. Owning real-estate is not for the faint of heart nor has it been a logical move for many people, hence why even when prices were ridiculously low compared to the present day 70% of Victorians rented (just like they do now).

[LeoVictoria]

No, not at all. I've never considered owning real-estate as a priority. I can do it now, but that's because the level of certainty is higher.

I have friends who got into the market because they thought they had to or their friends insisted they needed to and now they're house poor with stress and a financial burden. Yes, they have a home, yes, they have equity, but they long for the days when they rented and that broken faucet or fridge wasn't their responsibility and rent controls protected them from a changing market.

We've got to shed the "must buy" mentality. Owning real-estate is not for the faint of heart nor has it been a logical move for many people, hence why even when prices were ridiculously low compared to the present day 70% of Victorians rented (just like they do now).

 

Renting is perfectly fine if there are rental options that are secure.   Outside of the 60s apartment blocks (which we happily rented for many years) there just isn't anything.   Bunch of amateur landlords that are now cashing in on the market and throwing out their tenants.   I think if people had secure rentals they wouldn't be so anxious to buy. 

[VicHockeyFan]

400 new rentals coming on in next 8 months, no?  Hudson... and when is Yello done?

[dasmo]

Renting is perfectly fine if there are rental options that are secure. Outside of the 60s apartment blocks (which we happily rented for many years) there just isn't anything. Bunch of amateur landlords that are now cashing in on the market and throwing out their tenants. I think if people had secure rentals they wouldn't be so anxious to buy.

Exactly this. I don't think anything is being built that is family friendly....

[FirstTimeHomeCrier]

Like make him younger some how?

 

I was thinking make housing more affordable. I'm just trying to figure out why so many people seem to be okay with the situation.

[UDeMan]

there is lots of purpose rentals being built in Langford now. 

 

and houses have always been expensive in Victoria compared to average income. 

 

only thing that has changed is the rock bottom interest rates and all these competitive lenders out there.  they will lend more money and give a lower rate of interest if you have a high ratio mortgage.  It really doesn't make sense to me.

[LeoVictoria]

there is lots of purpose rentals being built in Langford now. 

 

and houses have always been expensive in Victoria compared to average income. 

 

only thing that has changed is the rock bottom interest rates and all these competitive lenders out there.  they will lend more money and give a lower rate of interest if you have a high ratio mortgage.  It really doesn't make sense to me.

 

Makes perfect sense.   The taxpayer is taking on all their risk for insured mortgages, so of course they will give you a lower rate.

[FirstTimeHomeCrier]

No, not at all. I've never considered owning real-estate as a priority. I can do it now, but that's because the level of certainty is higher.

I have friends who got into the market because they thought they had to or their friends insisted they needed to and now they're house poor with stress and a financial burden. Yes, they have a home, yes, they have equity, but they long for the days when they rented and that broken faucet or fridge wasn't their responsibility and rent controls protected them from a changing market.

We've got to shed the "must buy" mentality. Owning real-estate is not for the faint of heart nor has it been a logical move for many people, hence why even when prices were ridiculously low compared to the present day 70% of Victorians rented (just like they do now).

 

Fair enough. If you weren't interested in buying when you were younger, then it wasn't a problem. But for some of us, it is a problem. I posted a link in another thread to a CBC article on how impossible it is for new buyers to break into the market. Not only will many of us who are financially stable end up buying studio apartments in our thirties, but we won't have the opportunity to move up to larger spaces the way our parents did.

 

Many of the older people I talk to are under the impression that things are still working the way they used to. That a person simply needs to work hard, save some money, and get their foot in the door. Things have changed. You can't pay for a University education with a summer job. If you don't have scholarships or help from parents, you go into debt. Most employers are looking for some kind of post-secondary education, so you don't have much choice. Even after graduation, you work at entry-level jobs earning just above minimum wage. Even if you are lucky enough to get a good job within a few years of graduation and pay off your debt, you can't buy a starter home. Starter homes don't exist anymore. The $100,000 fixer-upper my parents bought in Fernwood in 1989 (estimating $200,000 after inflation) would cost at minimum $600,000 now. Wages have not tripled in 27 years. They tend to go up about 1 or 2 per cent annually. They've kept pace with inflation and not much better.

 

I'm not satisfied with "move away" or "get over it" as an answer. I really think we can do better.

[VicHockeyFan]

I was thinking make housing more affordable. I'm just trying to figure out why so many people seem to be okay with the situation.

 

Maybe a lot of us are going to inherit parents' homes?  I am, provided I live long enough.