Vancouver might have just burst it's own housing bubble

Vancouver might have just burst it's own housing bubble

by Wolf Richter at Business Insider

http://www.businessinsider.com/vancouver-burst-its-own-housing-bubble-2016-8

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The Canadian province of British Columbia may have gotten what it asked for in instituting the now notorious15% transfer tax on home purchases involving foreign investors.

Benchmark prices of Vancouver still exhibit astounding year-over-year increases, with apartment prices up 27% and detached house prices up 38%, now at C$$1,578,300. But overall sales plunged to 3,226 homes, down 27% from the record in June and down 19% from a year ago.

“This is the first time since January 2016 that home sales in the region have registered below 4,000 in a month,” admits the Real Estate Board of Greater Vancouver. While apartment sales dropped “only” 7% year-over-year, sales of detached homes plummeted 31%!

And it’s spreading beyond Vancouver. For example, housing-refugees make their way to the Fraser Valley, which borders Metro Vancouver. The formerly bucolic and more affordable Langley Township is now highly developed and getting more so:



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