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China real estate bubble
Steve Saretsky -

How China’s Real Estate Bubble Overflowed Across the Globe As foreign buyers start to dwindle in Vancouver (new data shows foreign buyers are diminishing) we are left scratching our heads, bewildered, how could the typical detached home suddenly cost over 1.4 million. Did Governments and policy makers not see this coming? Foreign Capital fleeing China is no secret. In recent years it has become a global phenomenon, widely publicized for helping push real estate prices to euphoric new highs in other cities such as New York, Miami, Seattle, Sydney, London, Stockholm, and Munich the list is endless. Perhaps most ironically, China has inflated a real estate bubble of their own. China has been on a debt binge, a credit expansion post 2008 financial crisis. Which has resulted in them inflating their own real estate bubble. It’s become so obvious that even those within the industry are concerned. Chinese billionaire Wang Jianlin who made his fortune developing real estate in China calls the current situation the “biggest bubble in history.” Things have gotten so out of control Beijing recently announced it would takes steps to keep home prices from spiking further by raising the down payment required for second homes and suspending some housing

Steve Saretsky -

How much have Detached House Prices Moved? Always a heated debate, just what the heck are detached prices doing these days? The truth is, it’s up for interpretation. Some people think the sky is falling, others can’t see the forest past the trees. So let’s get factual. Detached prices are down, that is a fact. By how much exactly is up for debate. Depending on the metric you use, whether it’s average, median or the MLS Benchmark. I’ve highlighted my concerns with the MLS Benchmark here. Data shows it tends to lag by as much as 6 months behind the average sales price. Which is why most real estate investors and analysts will use the average sale price when studying a market, such as Ozzie Jurock. As of February 2017, the average sales price for REBGV (Greater Vancouver) is down 3.1% year over year. Again this is a year over year price drop. So although the average sales price fluctuates signficantly month over month, we have a rolling one year data set which should eliminate any flaws. The median sales price paints a similar picture. The median sales price shows a 2.4% price drop year over year. So essentially, as

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The Canadian Economy

Steve Saretsky -

How China’s Real Estate Bubble Overflowed Across the Globe As foreign buyers start to dwindle in Vancouver (new data shows foreign buyers are diminishing) we are left scratching our heads, bewildered, how could the typical detached home suddenly cost over 1.4 million. Did Governments and policy makers not see this...

Steve Saretsky -

How much have Detached House Prices Moved? Always a heated debate, just what the heck are detached prices doing these days? The truth is, it’s up for interpretation. Some people think the sky is falling, others can’t see the forest past the trees. So let’s get factual. Detached prices are...

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The Saretsky Report. December 2022