Here is what you don’t already know about the Vancouver real estate market and the Canadian real estate market.
Before we dive into the Vancouver housing market, let’s take a step back and see what the rest of Canada is doing as of September, 2019. Here is a quick snap:
Real Estate Sales are up across the Canada.
Toronto real estate sales were up 24%
Montreal real estate and Ottawa up 15%
Calgary real estate market up 8%
Edmonton market sales up 18%.
And Vancouver? UP 23%!
July was much better than last year’s July but NOTE: an even better month than June – that is usually reversed. So, is a bottom in place?
Overall Real Estate Market in Metro Vancouver – Prices YoY September, 2019
and… Vancouver: Home Sales are up 23% and listings for houses about the same and condos. Vancouver is still in the process of bottoming, but it is very hard to predict a bottom. But perhas with this surge in sales, we may have a bottom.
Sales are up across most major Canadian urban centres and prices on the rise. It will only be a matter of time until Vancouver picks up once again.
Lower Mainland Property Sales are down – YoY September, 2019
Metro Vancouver Real Estate Sales are very strong compared to last year the same month in 2019.
Now that I have summed up all of the previous coverage, we are ready to jump into real data that your news source won’t tell you.
Worldwide – Real Estate Values are Growing
From Slovenia being up 17% in 2018 to Latvia, China, Malta, Hungary, Taiwan, Netherlands are all up 8-12% and a whole slew of countries are up 3%. Australia is the worst performer at a 5% decline but from the 56 nations reporting – 49 are higher and 40 are more than double the reported inflation rates of 2%.
More Money is being created – now more than ever.
It seems that now more money than ever is being created (record low-interest rates worldwide, even negative) and it’s headed our way. Money is flying to safety into the US and Canadian assets amidst uncertainty in Europe (Brexit, Italy), Asia (Hong Kong protests) and other parts of the world. How much demand for safety? In Germany, negative interest rate bonds in Germany are at -0.07% (Negative -.07%). That means they are paying to lend (park) money somewhere safer so that it won’t disappear.
It’s similar to storing gold bars. You need to pay for safe storage. So if you happen to have $2,3,40 million in gold and you want to park it somewhere safe, then you need to pay. Same goes now for the safety of large sums of money. What’s safer than a real tangible hard asset that is located in a safe country that obeys the rule of law? Maybe you can think of a few alternatives, but it’s clear that money is continuing to inflate real estate prices around the world. The reason? They want safety.
The end result? All real estate hard assets in desireable safe areas will be higher priced. When it will happen is anyone’s guess – but the incredible inflation of hard assets in North America – the likes you have not witnessed yet – is coming.
However, we may have to go thru the volatility, the uncertainties and the confusing government restrictions first before we can resume the upwards ride. But if not this year – then next…but it’s the availability of cheap money that will drive us higher again eventually.
And for Vancouver? It’s a time like this that presents the best buying opportunities. In 2008 we bought in Vancouver and in Phoenix in 2011. They represented the best opportunity for us.
This picture above was taken just a few hours after we placed offers on about 100 properties in Phoenix. Only a few responded back and we ended up buying them. And I did the same in Vancouver in 2009.
Why are we in a celebratory mood? Because Just like the latest housing market news in Canada is predicting doom and gloom, so were the newspapers in the USA in 2011. And we knew it was only a matter of time until the market would wake up again.
Is the Canadian Real Estate market going to crash again?
Despite the latest housing market news in Canada saying that the market housing crash has cometh, Canada real estate market is robust, with demand steady and population on the rise – record rise!
I have seen it all before. News publications like Macleans, The Economist, The Georgia Straight, The Vancouver Sun, throughout all previous historical crisis, have pumped out sensational negative news with headlines such as “Housing Market Crash!, “Canada Housing Market Collapse” and “BC Housing Bubble To Burst“.
But time and time again, all Vancouver real estate market downturns always recover after each and every crisis.
I have used the graph above for many years, (this one above is from 2008) and it has not changed. MARKET CYCLES ARE A PART OF LIFE, AND WE WILL BE HIGHER 10 YEARS FROM NOW. In 2008 we did not fall into oblivion. Every headline in 2008 was doom and gloom. That time was NOT different. And this time will NOT be different either.
Demand continues to be robust for properties across Canada and you can see above just how Toronto, Ottawa, Calgary, Montreal are all performing positively and very well in 2019.
I need to sell my home. What do I do?
And if you are a seller, fret not, because properties are selling, as long as they are priced correctly. I never argue with the residential market in Vancouver, especially in 2019. If you need to sell, make sure you price below your competition and deal with offers as they come.
Interest Rates are falling worldwide
The world’s banks tried to raise interest rates, but in an unprecedented backtracking manoeuvre, they had to drop them back down again faster than ever before. Why? The outcome was a crash in the stock market in December 2018. So what now?
The worlds banks are now “printing money” again. If you haven’s seen Zeitgeist (that old school documentary where they fear monger you into thinking we live in a conspiracy of enslavement through the creation of money), you should watch it. But not to create fear and a sense of helplessness – but to inspire you to take action and do something about it. The printing of money is devaluing your money sitting in your bank account or RRSP at unprecedented rates…. the likes of which the world has never seen. And it’s going to continue. Unless you do something about it, it will corrode your income and your savings.
Well, I suppose there is an infinite number of solutions to navigating a portfolio in a never before seen low-interest environment. But here is what I know: Buy Hard assets where people want to live (ie Lower Mainland). Why? Because as more money is printed, more of it will flock to those assets. Ratios like Price-to-income ratio have been obsolete for years (and will continue that way) because of this phenomenon of money printing.
How phenomenal? In the last 10-12 years, the world’s governments have increased the money supply by 500%. That eventually means that your money is diluted by five times, unless of course, you have a hard asset that is desirable, and people want to flock to it.
They tried to roll that back, with quantitative tightening (QT) but it didn’t work.
We are left to our own now to fend off this liquidity, and it will continue. Savers will be losers in the long run. Unfortunately, this is the cruel world we live in. I don’t make the rules. It’s a hard truth that we must confront. Life Long Renters will be the norm in the future to come. So will self-driving cars, and 3D printed houses and entire buildings!
Let’s Act! The Canadian Property Market is only half the story. You are the main protagonist!
It’s times like these that you are able to pick up the BEST DEAL possible in the Canadian Property Market. You don’t really have to take my word for it, I mean just look at the graph below:
Time and time again had you just bought during each dip, you would have thrived, and today is no difference, because as long as the world keeps printing money, the more it will circulate back to desirable assets – ie. Real Estate in Heavenly BC!
ACT TODAY! Drop your information below and let’s put a plan for you to take Action in this Market in 2019!
Canadian Real Estate Markets we like for the next 10 years
- Single Detached Homes:
- West Vancouver luxury
- North Vancouver
- Vancouver West houses
- Richmond luxury residential
- New Westminster
- Port Coquitlam
- North Surrey
- Attached Condos and Townhouses
- West Vancouver
- North Vancouver apartments
- Vancouver West condos
- North Burnaby
- Coquitlam high rise buildings
- Surrey Major
- North Surrey Whalley Condos and
- New Westminster condominiums