West Vancouver may soon curb “monster homes” via zoning and building bylaw changes

West Vancouver may soon curb “monster homes” via zoning and building bylaw changes 

Consultation at city hall Sept 15 at 7pm.

This news was widely discussed in local Chinese forums. Some speculate that the new rules will drive down property/lot values in West Van.
Though some also speculate this rule change will drive up existing monster homes’ values.

CMHC could force banks to pay deductibles on mortgage insurance

http://business.financialpost.com/2014/09/08/cmhc-could-force-banks-to-pay-deductibles-on-mortgage-insurance/

The Canada Mortgage and Housing Corp. is looking at a new formula to push some of its losses on to financial institutions, essentially forcing them to pay a deductible on mortgages insured with the Crown corporation before claims are paid, according to sources.
The Financial Post has learned the Office of the Superintendent of Financial Institutions is involved in discussions with CMHC, which it oversees, while the Canadian Bankers Association is said to be against the measure.

Investors in Brampton house development hit with $30K bill

Via City News

09/05/2014
"Investors in a Brampton house development are suffering from a severe case of “sticker shock” after they found out the homes they purchased — originally scheduled to be completed in 2012 — will cost them an extra $30,000 in closing costs now that they are finally done.

Fernbrook Homes is telling the investors in the Castlemore development that if they want the keys to their new homes, they’ll need to pay up.

The buyers are upset since Fernbrook did not apply for a building permit until March of 2013 – one full year after the project was to be finished – and now they have to foot the very large, and unexpected, bill."

Caveat Emptor

Is Vancouver West High-end Demand Really Weaning?

It's been a while since I posted due to life events, travel, and busy work schedule.
Good to be back!  I did continue to post daily stats and noteworthy news on my twitter account (@greaterfoolvan) however!

Globe & Mail today had this piece

"Is the dip in high-end house sales in Vancouver just a summer blip?"

"He says listings are up in certain segments while sales are looking stagnant. The figures for single detached homes on Vancouver’s west side in the $3-million to $3.5-million price bracket – which is certainly high-end but not quite “luxury” – show 106 active listings and just nine sales, compared with 73 listed homes and 7 sales during July, 2013.“Right now, these numbers are showing blood in the water – and the sharks haven’t sniffed yet,” Mr. Kurland said."

I got my hands on the sales-by-price-range charts of Van West and Burnaby for 2012-2014, figure I'll do some quick math. Here goes:

Jan-July 31 Sales
Vancouver West

>3M

2012: 175

2013: 214

2014: 321

Jan-July 31 Sales
Burnaby

>2M

2012: 13

2013: 13

2014: 19

We can see thus far in 2014, cumulative from Jan-July there has been more high-end sales than previous 2 years in Van West and Burnaby.

However from some other data sources, there are some indications that the high-end sales are softening in the last 2 months (especially in Burnaby).  Based on the asking vs sold price differential, there seem to be increased bargaining room in the higher end (1.5M+).

China's CCTV reports on Canada's high priced housing market, June 2014

Youtube: China's CCTV on Canada's RE

Also, Remember the announcement of IIP cancellation? It’s finally in effect:

Terminated programs: Federal Immigrant Investor and Entrepreneurs
On June 19 2014, Bill C-31 became law, and applications still in the backlog of the federal Immigrant Investor Program and Entrepreneur Program were terminated.

Almost two-thirds of typically insured homeowners have a downpayment of less than 10%

CMHC decision to disclose more mortgage data wins applause

 May 30, 2014 
"almost two-thirds of typically insured homeowners have a downpayment of less than 10%."

“Someone with only 5% down would be left with 88% loan to value after five years of regular mortgage payments,” Mr. McLister said. “With a correction over 10%, many 5%-downers would be left underwater. In other words, it would be difficult or impossible for many to sell their home and generate enough equity to pay off their mortgage, cover expenses and move.”

See what Kyle Bass – a US investment heavyweight thinks about Canadian housing

Hayman Global Outlook Pitfalls and Opportunities for 2014 by Kyle Bass

Start at 35:30