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One swallow doesn’t make a summer. Seasonality of Real Estate in Vancouver

One swallow doesn’t make a summer. Seasonality of Real Estate in Vancouver

Spring is the season when flowers bloom, birds migrate, and people buy and sell real estate, or so people think. Does the data back this up? ...
An arm and a leg. What determines the price of real estate?

An arm and a leg. What determines the price of real estate?

Supply and demand dictate prices. When the supply is low, and the demand is high, prices go up. When the supply is high, and the demand is low, prices go down. I find it incredible that when I discuss prices of houses with people, I realize that many of them don't believe this. So let's look at some stats to prove that this is true for Real Estate as well. ...
When thy neighbour’s house doth burn, then look to your own. What should we expect? Part 2

When thy neighbour’s house doth burn, then look to your own. What should we expect? Part 2

Are we in a bubble? What has happened in other markets? Is this time different? ...
What goes up… What should we expect? – Part 1

What goes up… What should we expect? – Part 1

The best we can do is to learn from our own history and those from other countries and try to understand what could happen in Vancouver, given the anomalously high prices in real estate. We'll get there, but first I'll begin discussing debt and where we are for the factors discussed in my last blog posts. ...
Up up and away. The history of Vancouver real estate prices. Part 2

Up up and away. The history of Vancouver real estate prices. Part 2

Now that we have discussed that the credit cycle has played a major role in the drive for high prices, we should narrow down on Vancouver. The credit cycle we discussed applied to all of Canada, but the big boom in prices was unique to Vancouver (and to some extent Toronto). Why? Why is Vancouver different? ...
Up up. The history of Vancouver real estate prices. Part 1

Up up. The history of Vancouver real estate prices. Part 1

I have often heard people explaining the high prices of Vancouver Real Estate by making a simple story around one factor. For example, some people think that foreign investment is responsible, and cite immigration programs or anecdotal evidence of the presence of Chinese investors in condo pre-sales. Or, some other people blame low interest rates, and think that if interest rates go up, prices will collapse. The truth is that you cannot look at one factor alone to explain what is happening. ...