5833 replies to this topic

[Sparky]

^ The law of supply and demand should now dictate that wages will rise in order for the employer to fill the vacant positions.

I just came back from a short trip out to the Langford and Colwood area and had trouble digesting the amount of multi unit residential buildings under construction and three thoughts hit me again.

Where do the people that will eventually live in these buildings live now....where are they going to work....and how are they going to get there?

There Is a lot of housing being built in the region. Maybe Mike has some stats.

[Mike K.]

And not only that, but the rents being charged in Langford are not far off from the rents in downtown.

There’s a massive pent up volume of young people living at home. Thousands of 25-35 year-olds who are a) looking for a cheap apartment or would want to move into a cheap apartment if it were available and b) who are saving up to buy a home.

The younger renters will be able to transition into apartments they can afford once the older, more well off or subsidized by the bank of mom and dad renters move into the new digs from their cheaper old digs. Where our housing market has struggled is with that opportunity for upwards transition due to a lack of new rentals since the 80’s. But now that they’re here, we’re seeing more younger people move out and into inventory freed up by those climbing the ladder.

[tjv]

^ The law of supply and demand should now dictate that wages will rise in order for the employer to fill the vacant positions.

I would agree, but wages have already gone up substantially over the past 3 years.  Margins generally speaking, at least my business in construction, have not climbed and most of my clients are not willing to pay more,  While it may look busy in construction the profits are simply not there.

[Mike K.]

The result will likely spur a lot more automation and outsourcing of jobs.

Even in construction the labour situation will likely push growth in pre-fab or off-site construction. Look at the new wood frame designs, all pre-fab. It’s just glued together once it arrives.

[Gary H]

The result will likely spur a lot more automation and outsourcing of jobs.

...

 

Like this?   Construction automation gone wrong...

 

 

From a pretty awesome CGI short film, titled appropriately enough, "Construct".  https://vimeo.com/291628768

Edited by Gary H, 28 April 2019 - 11:46 AM.

[LJ]

Everywhere I turn, in almost every store I enter, entry level minimum wage type stores are constantly advertising they are hiring

And every construction company, plumbing company, electrical company, etc. are all advertising they are hiring.

[Mike K.]

Three more acreages have sold above asking in recent days:

 

$709,850 -> $710,000 (weird, I know, but obviously this was a multi-bidder draw and the pennies on top won out)

$549,000 -> $575,000

$939,900 -> $941,000

 

Three sold for asking at $689,900, $589,000 and $1.09m.

 

It just goes to show that if a property is desirable, and priced right, it'll sell in this market for the asking price or higher.

 

Maybe someone can correct me here, but it seems like all we've seen over the last year is a step back from over-the-top asking prices with sales happening at the right price (or read, fair price) and not an overly ambitious price where listings were pushed up by $50, $75 or $100k by the sellers just because.

[lanforod]

Haven't we seen a fairly big drop dollar wise in multi-million dollar pricing? It's more the under 1 million prices that are holding, though not increasing much anymore?

[Mike K.]

For sure, as the stress test has drastically reduced the number of eligible buyers for top-end properties. But that being said, they’re still selling and fetching decent prices. You do, however, see accepted prices sometimes 10 or 15% below asking, which is either a lowered valuation by the purchaser, or the acceptance of a fair price by the seller. I don’t know which it is at this point.

[jonny]

Haven't we seen a fairly big drop dollar wise in multi-million dollar pricing? It's more the under 1 million prices that are holding, though not increasing much anymore?

 

Townhomes have really took off in value the last few years. I know of a complex where you could get in in the high 3's or low 4's 6 or 7 years ago where a unit just sold for over $600k. 

[Mike K.]

Just found another above-asking acreage sale: $836,900 -> $842,000.

[tjv]

Three more acreages have sold above asking in recent days:

 

$709,850 -> $710,000 (weird, I know, but obviously this was a multi-bidder draw and the pennies on top won out)

$549,000 -> $575,000

$939,900 -> $941,000

 

Three sold for asking at $689,900, $589,000 and $1.09m.

 

It just goes to show that if a property is desirable, and priced right, it'll sell in this market for the asking price or higher.

 

Maybe someone can correct me here, but it seems like all we've seen over the last year is a step back from over-the-top asking prices with sales happening at the right price (or read, fair price) and not an overly ambitious price where listings were pushed up by $50, $75 or $100k by the sellers just because.

care to share any details because those prices are cheap, even for bare land.  How many acres and is there a house included?

 

Tiny building lots in Central Saanich start at 450k

[Casual Kev]

Townhomes have really took off in value the last few years. I know of a complex where you could get in in the high 3's or low 4's 6 or 7 years ago where a unit just sold for over $600k. 

 

My old folks bought a townhome in the mainland for $270K 10 years ago... they sold it for $420K 5 years ago... identical homes in the same complex go for $600K-650K nowadays. Think townhouses have appreciated even faster than other types of housing because it's plenty of room for the typical modern family and a lot lower maintenance than a typical detached SFH. Not many people actually *need* a 2500+ sqft house and will readily substitute for townhomes if they can't afford the former.

[Mike K.]

care to share any details because those prices are cheap, even for bare land. How many acres and is there a house included?

Tiny building lots in Central Saanich start at 450k

If you run a search on Realtor.ca you can see all sorts of listings for acreages at those prices.

[tjv]

For 2+ acres under $1 million all I see are places on the Malahat, Sooke or Metchosin.  Makes sense I guess to be that cheap, you have to deal with a 60 to 90 minute commute each way to downtown

[Mike K.]

Keep in mind that a lot of people who live out that way don’t need to commute downtown. It’s also a very different topography/lifestyle in Metchosin/Sooke/East Sooke and on the Malahat than on the peninsula. Highlands is pretty similar but tends have properties with far more trees/forested settings.

[tjv]

true, but I do think the vast majority of people in the CRD work in the core.  no stats to back it up thou, its a guess

[LJ]

There was an article on Global Vancouver saying that house and condo prices have moderated significantly, 10-20% in some cases. They showed a realtor in UBC area trying to sell a townhouse and she is going to reduce the price by $20k every Monday until it sells.

[VIResident]

6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis

What cost are we willing to pay for lower house prices?

https://www.huffingt...ons_a_23721633/

 

'De-zone' the suburbs

Allow more suburban sprawl

Reduce immigration levels

Build large-scale community housing

Bring back incentives to build rental housing

Edited by VIResident, 06 May 2019 - 04:54 AM.

[RFS]

6 Things Canada Could (But Won’t) Do To Solve The Housing Crisis
What cost are we willing to pay for lower house prices?
https://www.huffingt...ons_a_23721633/

'De-zone' the suburbs
Allow more suburban sprawl
Reduce immigration levels
Build large-scale community housing
Bring back incentives to build rental housing

Wow. Hell must have frozen over because that's an honest and intelligent Huffington Post article