Supply of condos is exceeding demand
Study: Housing prices are driving many buyers out of the market
Paul Luke, The Province
Published: Friday, January 26, 2007
"Rising prices for condos across the Lower Mainland have triggered a jump in the number of unsold units in new developments, PricewaterhouseCoopers says"
""Consumers have to have a higher income to be able to afford the average product and we very quickly have a diminishing pool of potential buyers.""
"The supply of pre-sale condo units in new developments jumped by more than 55 per cent from 2,780 units in January, 2006 to 4,350 units at the end of December 2006, Hennigar said. In the high-rise category alone, unsold units in pre-sale inventory jumped almost 75 per cent between December 2005 and December 2006." Full Article.
Subscribe to:
Post Comments (Atom)
5 comments:
Thanks to Vancouver Condo Blog for the lead.
There is no way I would be paying $500,000 for a Condo in Vancouver right now.
It just makes me shake my head how people have become completely disconnected from reality when it comes to RE.
It looks like fundamentals,eg. affordability, are starting to matter again.
Here's a qoute I came accross, "The old saying, ‘Something is only worth what someone is willing to pay for it’ is clearly lost on many in the Real Estate community. Perhaps reducing the ‘artificially inflated and unsustainable’ current price levels may stimulate some buying activity.”
As long as interest rates only ever go down not up, and the average Vancouver income doubles in the next couple of years we should be just fine.
Imagine if our almost record low interest rates were to drop to a negative interest rate - the bank would pay YOU to take out a loan!
Dare to dream.
The problem is that there is just so much "hot money" out there. When this dries up, prices must be supported by real money - i.e. incomes.
When appreciation ends, the hot money heads for the exits.
Great investment opportunity in Costa Rica: costa rica beach, costa rica beach condos,Jaco Beach Apartment. Visit us for more info at: http://www.jaco-bay.com/
Post a Comment