{"id":5800,"date":"2019-05-09T13:59:53","date_gmt":"2019-05-09T20:59:53","guid":{"rendered":"https:\/\/www.stevesaretsky.com\/?p=5800"},"modified":"2019-05-22T14:36:44","modified_gmt":"2019-05-22T21:36:44","slug":"property-flipping-slowing","status":"publish","type":"post","link":"https:\/\/www.stevesaretsky.com\/2019\/05\/around-vancouver\/property-flipping-slowing\/","title":{"rendered":"Property Flipping Slowing Across Greater Vancouver"},"content":{"rendered":"

As is typical in every housing cycle, property flipping escalates as prices and sales increase, allowing for profit maximization. According to a Bloomberg article<\/a> today, US homes flipped within a 12 month period surged to 6.5% of total sales in Q4 2018. This was the highest share in seasonally adjusted data going back to 2002, according to real estate data firm CoreLogic<\/a>. However, with the US property market now slowing and liquidity contracting, property flippers are feeling the pinch.<\/p>\n

Meanwhile, in Vancouver, property flipping has taken a nosedive as panicked investors hit the sidelines amidst deteriorating margins and falling home prices. Properties flipped within a 12 month period hit a cycle high of 4.6% in January 2017 and have since fallen to just 1.4% of total sales in April.<\/p>\n

\"Vancouver
Properties flipped within 12 months as a percentage of total sales.<\/figcaption><\/figure>\n

Given the dramatic rise in home prices one would think property flipping would consume a greater portion of total transactions. Perhaps we need more HGTV exposure here in Canada.<\/p>\n

Don’t expect flipping activity to pick up anytime soon especially when the head of CMHC takes a bearish stance on the multi decade long housing boom. In an interview with Bloomberg Siddall suggested, “In places like Paris and Sydney and Hong Kong and Buenos Aires [and New York], people rent. Whereas here [in Canada] we glorify homeownership. We think it\u2019s the only vehicle for savings. This party ultimately comes to an end, and the people who are going to get hurt are young people.”<\/p>\n

Not exactly something a speculator wants to hear from the man controlling the Canadian mortgage market…<\/p>\n