7 ms·
Once you take the crazy money out of the equation, the SF Bay Area is not that appealing as a pure real estate play.
by pinaceae 11y ago
Once you take the crazy money out of the equation, the SF Bay Area is not that appealing as a pure real estate play.
- 9tx 11y agoWhys that? Year round awesome weather not good enough?
- pc86 11y agoYou've never been to San Francisco, have you?
- azinman2 11y agoRussians and Chinese are a major contributor, and they're not so affected by SV cycles.
- jonknee 11y agoIf you think SV is bad, check out the recent returns out of Russia and China!
- sshanky 11y agoWhat's SV?
- dpim 11y agosilicon valley
- tosseraccount 11y agoSuddenly Vulnerable.
- refurb 11y agoI don't know about SV, but foreign investment is pretty dam low in Victoria, BC, which could be used as a proxy for Vancouver. 97.8% were domestic buyers.[1] It's not foreign buyers driving up the market in Vancouver, it's Canadians will to put themselves into serious debt in order to buy a house. [1]http://www.greaterfool.ca/2016/01/31/of-debt-data/ http://www.greaterfool.ca/2016/01/31/of-debt-data/
- seanmcdirmid 11y agoWhat? No, the Chinese are still heavily interested in the Vancouver market. Since when is small Victoria a proxy for big Vancouver?
- msie 11y agoWell, it's been reported that foreign buyers are invested in a lot of the more expensive properties (> $3 million) in certain regions, but a lot of Canadians are STILL buying Vancouver properties. There's been a lot of concern over Canadians getting in over their heads with mortgages. It also doesn't help that Vancouver has crappy wages.
- refurb 11y agoWell the problem is, Victoria is the only city in Canada that collects citizenship information in house sales. It's the only data we have. Victoria isn't that far from Vancouver, but prices have gone through the roof, similar to what Vancouver has experienced.
- mahyarm 11y agoBut what induces the higher market? You get echo effects from places like Vancouver. Wealthy foreign buyers use high end real estate as a bank account increase the prices of top of the line housing significantly. Wealthier natives (Dentists?), now priced out of the highest end go down the scale and start purchasing lower end stuff with more money, increasing the price for everyone in a domino effect. Government, not wanting the housing market to go down, create laws to allow subprime mortgage lending and buyers buy houses without real limits on price, and the middle class can now keep up with the price boom.
- biot 11y agoActually, it is foreign investment: http://news.nationalpost.com/news/canada/in-a-six-month-period-70-of-detached-homes-sold-in-vancouvers-west-side-went-to-mainland-china-buyers http://news.nationalpost.com/news/canada/in-a-six-month-peri... "In a recent six-month period about 70 per cent of all detached homes sold on Vancouver’s west side were purchased by Mainland China buyers..." Even if those numbers are off, it's a huge influence on the market.
- mahyarm 11y agoTell that to Vancouver, BC :(
- bbcbasic 11y agoIt will be after the next ... lets call it business cycle.