This confirms what we have all been thinking. the upper end is still buying. And only a small % is off-shore money. There are always folks in this town making serious money. It used to be the Dot com guys, until they were Dot Gone, then Developers cashing in on the Olympics, and now it is the resource guys (yes they are mostly men) who are making very big chunks of dough.
Here is the list of the 100 biggest earners in BC.
Here is the article that goes with it.
Then there are lots of people making high 6 figure to 7 figures- business owners and professionals and of course stock-brokers and yes some Real estate agents too.
So dropping a couple of Million or three on the family pile is not such a big deal. Whereas I suspect the entry level and lower priced properties are dealing with the rise in variable rates, the CMHC changes and economic uncertainty.
If this is true, we should see this reflected in the HPI numbers. HPI is supposed to account for more expensive houses selling.
BTW- the list/sales numbers are suddenly very bullish today. 80% or so in some areas.
ReplyDeleteBTW- with Larry's West Van numbers above- there were some very large sales. One for nearly $9 Million but still $3 Million under asking, so that will skew the numbers.
ReplyDeleteSold for 9 million, 25% off asking? Any idea of the listing history? Previous sales? Comparables?
ReplyDeleteThat could be an interesting snapshot of the high-end market.
Sorry Alex- you will have to get all that from your Realtor.
ReplyDeleteWhat's up in Abbotsford?
http://vancouver.en.craigslist.ca/van/reb/1980011446.html
Hey Fish Conrad Scum was back in court today with a new Million Dolllar lawyer. lets see if he can buy his way out of jail?
ReplyDelete"That could be an interesting snapshot of the high-end market. "
ReplyDeleteProperties in the stratosphere probably don't tell you much about the market in general. High end properties will sell all over the map and can take years to sell. Often list price is barely looked at; guys with that sort of $ to drop on this property could care less what "list" is, as they're likely smart enough to do the math themselves.
It's interesting looking at these high end properties, though. Unless you're speculating, the same principle should apply to all properties: who gives a f%^& what other people are paying?
Anon- I say that. Who says money cant buy everything.
ReplyDeleteJesse- I have been looking at the very expensive homes and they are priced with no apparent metric. The buyers are who-ever is making a mint right now. Ten years ago Resource company CEO's were getting paid nothing- now they dont know what to do with their money.
Even so, the very expensive homes are being sold with a few Million taken off the list.
Now to your point - I agree 100%. You buy a house or any investment (a home is the single biggest investment for most Canadians) based on your own criteria. Rent/buy, income projection, interest rate, need etc.
You dont buy based on other people's angst. How did that work out when the herd rushed into Nortel?