The bubble isn't bursting
The Canadian housing market was hit with tougher mortgage standards, taxes on foreign buyers and higher interest rates but nothing is stopping it.
The Vancouver real estate board reports that prices are up 6.7% year-over-year. That sounds like a modest amount but 6.7% on $2 million is another $134K that somehow a buyer needs to find.
For instance, this home with 1166 square feet of living space on a 100x33 lot in the Kitsilano neighbourhood is currently listed at $2.89 million.
It's one of those things that so far away from anything remotely reasonable that it has to be a bubble and yet here we are in a world where the value of this home went up more than $200K in the past year.
Despite the price rises, there are still some worrying signs. Sales were down 30.1% y/y and prices down 0.6% m/m. Turnover was at the lowest since 2000. So maybe it's just a matter sellers holding out a higher prices before it all starts to break apart at the seams.
