1835 replies to this topic

[sebberry]

Is there a big change in the demographics of buyers now vs 15-20 years ago? Is the average age of people wanting to buy a home dropping?

[MarkoJ]

VREB Month-To-Date Statistics

Monday, October 24, 2011 8:00am

MTD October
2011 2010
Net Unconditional Sales: 358 467
New Listings: 799 976
Active Listings: 4,538 4,046

Please Note
Left Column: stats so far this month
Right Column: stats for the entire month from last year

[MarkoJ]

Is there a big change in the demographics of buyers now vs 15-20 years ago? Is the average age of people wanting to buy a home dropping?

Can't answer the average age question but one thing I have noted with my mid 20's/late 20's buyers is that they are typically very educated, savy and have solid careers. They usually have a lower downpayment (i.e. 5%) therefore to qualify they really have to be earning a hefty income.

[Mike K.]

What would you consider to be a hefty income, just out of curiosity? Are we talking $5,000/month pre-tax, $10,000/month pre-tax?

[sebberry]

Can't answer the average age question but one thing I have noted with my mid 20's/late 20's buyers is that they are typically very educated, savy and have solid careers. They usually have a lower downpayment (i.e. 5%) therefore to qualify they really have to be earning a hefty income.

Thanks. Are your clients in this age group buying condos/townhouses or SFH mostly?

[MarkoJ]

Most young couples buying detached homes that I have worked have a combined annual income in excess of $120,000 pre-tax.

There is a large division between those who can afford real estate and those who can't. I am not saying that is the way it should be, it just is.

The days were you could graduate from high school, get a secure government job and buy a home are over.

[MarkoJ]

Thanks. Are your clients in this age group buying condos/townhouses or SFH mostly?

Due to the nature of my business model (I give a portion of my commission back to the buyer) most young buyers that contact me are savvy, in business roles, and/or typically well educated; therefore, my particular clients are mostly buying SFH.

In the last year I've represented 22 buyers, 8 have been under 30 years of age, 6 SFH, 1 townhome, 1 condo.

This is not the norm thought - most younger buyers are buying condos or townhomes.

[sebberry]

Thanks Marko, I appreciate the reply!

[spanky123]

Can't answer the average age question but one thing I have noted with my mid 20's/late 20's buyers is that they are typically very educated, savy and have solid careers. They usually have a lower downpayment (i.e. 5%) therefore to qualify they really have to be earning a hefty income.

I thought that the 5% down days were over.

[Sparky]

In order to keep on topic, I have brought these quotes from the 834 thread.

I am interested in your research project. Could you be drawing a reference to how prices start out low at the pre build stage, then increase substantially as the building grows out of the ground and fewer units are available, then hit fire sale prices below what the developer was selling for in the first place?

^ Do you know of many instances of that actually happening?

I'm all ears about the fire sale prices in newer buildings around town.

This quote below is from www.hudsonliving.ca

If what they say is true, these units have been drastically reduced from their original price offering.

"The Hudson Penthouse Collection has been released. These magnificient, all-new construction penthouses start from just $585,900, with a savings of up to $670,100 off the original pricing. Affordable luxury living on top of one of Victoria’s most iconic heritage buildings is an opportunity that must not be missed.
Over 30 homes sold this summer! One-bedrooms SOLD OUT & over 50% sold out of our Two-bedrooms. Visit us now!
#301 – 770 Fisgard Street
We are OPEN every day except Fridays.

Give us a call at 250.388.0018 if you have any questions."

[jklymak]

^ Yeah, maybe. I have no idea what the penthouses there were originally offered for during the presale. But $600k for a 1300 sqft place isn't exactly a firesale.

[Sparky]

The price per square foot has nothing to do with my statement that developers will reduce their pricing from what they may have offered earlier in the project.

http://vibrantvictor...o-slash-prices/

http://www.ctvbc.ctv...ishColumbiaHome

[jklymak]

^ Sure, but not often for less than what they were offered for pre-construction. When the Hudson says crazy things about how cheap their penthouses now are, they are comparing it to the prices a month ago, not 4 years ago when the thing was just on the drawing board. I'd be surprised if their new prices were less than pre-construction, thought its possible.

[Sparky]

^ I agree. I have information that a person did purchase one of those penthouses during construction. It was around $1M. When it started to get closer to completion he got cold feet because of the market conditions.

He was able to get out of the purchase because it was not available for occupancy as construction was quite a bit behind schedule.

My point was that if someone did purchase a unit for $1M and now the developer is selling them for $600K that person that purchased earlier is now out a lot of money.

It has happened a few times in Victoria, and there were some serious devaluations in Vancouver a couple of years ago, by auction no less.

[sebberry]

Condo construction to lead the way in Greater Victoria

Contractors will end up building about 1,700 new homes and condominium units this year and construction will edge up to 1,850 units in 2012, according to a report released Friday by the Canada Mortgage and Housing Corporation.

[...]

http://www.timescolo...8572/story.html

[spanky123]

Condo construction to lead the way in Greater Victoria



http://www.timescolo...8572/story.html

Like clockwork the TC comes up with good news to offset the bad. According to BC Stats today, there are nearly 9,000 fewer people working in greater Victoria in October then there were 3 months ago. Don't know who is going to be buying all of the condos.

[Kapten Kapsell]

Like clockwork the TC comes up with good news to offset the bad. According to BC Stats today, there are nearly 9,000 fewer people working in greater Victoria in October then there were 3 months ago. Don't know who is going to be buying all of the condos.

Retirees and investors need not be fully employed to buy a condo... I can't say that my building's stats are typical, but about 1/4 of the units are investor-owned and retirees likely account for another 25% of the units.

[rjag]

Retirees and investors need not be fully employed to buy a condo... I can't say that my building's stats are typical, but about 1/4 of the units are investor-owned and retirees likely account for another 25% of the units.

Not the smartest investors if they are buying in this market....how old is your building and what part of town is it located? Does it have a rental restriction as part of the strata rules?

[Kapten Kapsell]

Not the smartest investors if they are buying in this market....how old is your building and what part of town is it located? Does it have a rental restriction as part of the strata rules?

I live in a downtown condo finished in the late 2000s. There are no rental restrictions, something our building has in common with other newer buildings. In fact, investors may be driven to newer condos by the lack of rental restrictions. Also, there are relatively few all-rental buildings being built, so individual investors cannot partner up with each other to buy (new) rental buildings like they did in the 60s and 70s.

[Schnook]

Victoria house prices up 123 per cent in a decade (TC, 7-Nov)