Jul 162015
 

Earlier this year a Vancouver house with a $5 million assessed value was put on the market forĀ $6 million. Guess how much it ended up selling for? Hint, it’s in the upscale Shaughnessy neighbourhood. šŸ™‚

15-07-8-million-vancouver-home-rate-cut

After 12 days and multiple bids from 10 prospective buyers the 78 year oldĀ home was sold for $8 million, lol. Welcome to Vancouver. You’re welcome to buy a houseĀ here, as long as you’re willing to pay $2 million over the asking price. šŸ˜›

Our hot real estate market is about to getĀ even more extreme because yesterday morningĀ the Bank of Canada announced another 0.25% rate cut.Ā Holy pumpernickel! Now it will be even harder to raise rates in the future without pricking the bubble.Ā 📌

The Effects of the Rate CutĀ āœ‚

The overnight lending rate was lowered toĀ 0.5%Ā in an attempt to boost capital expenditure and driveĀ companies toĀ spend more on hiring and manufacturing.Ā However this will also unintentionally persuade already heavily indebted consumers to take on even more debt.

The problem with monetary policy is that it affects the entire country even though places like Vancouver really don’t need any further easing of credit.Ā A better solution would have been to address the faltering economy in some parts of Canada, like Alberta, using targeted fiscal policy instead of a blanket rate cut. But that’s just my personal opinion.

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Mar 282015
 

According to aĀ Financial Post report the average price of detached homes in Toronto passed the $1 million mark for the first time lastĀ month. šŸ™‚ The GTA has experienced a housing bull market for almost 2 decades and there is no sign of itĀ stopping.

I want to congratulate Torontonians for reaching the $1 million milestone. Welcome to the club. šŸ™‚ Meanwhile the average detached home in Vancouver now stands atĀ about $1.4 million. But hey,Ā it’s not a competition. šŸ˜‰ And extreme casesĀ like the Point Grey mansion that was sold a few months ago for nearly $52 million will skew the average results. Can you imagine the commission real estate agents make around here?

We often hear complaints about how unaffordable housing is in Canada. But there are two sides to each coin. My friend’s parents bought a home for $70,000 over 40 years ago. They have since paid off their mortgage, and their home is now worth over $1 million. šŸ˜€ They plan to sell their house soon in order to downsize and will become liquid millionaires. That sounds greatĀ to me. The majority of Americans and Canadians are home owners. So financially speaking rising home prices should benefit most of us. šŸ™‚

Recently a Vancouver house sold for $567,000 over the asking price.Ā It wasĀ listedĀ forĀ $1,600,000, but sold at $2,167,000. People are even making jokesĀ about how insane the housing market is. Below is a short video IĀ found of a Vancouver real estate agent talkingĀ about his inexperienced clients. It captures the ridiculous nature of the current market around here. šŸ˜†

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