Canada's Housing Bubble

Jul 01, 2010 HouseHuntVictoria

Tomorrow the Victoria Real Estate Board will likely release their June sales data and commentary. They may wait until Monday, but if they know anything about delivering bad news to the public they'll do it on a Friday right after a holiday right before a weekend when no one is paying attention. Of course, they'll find a way to put lipstick on the pig a positive spin on the lowest June sales volume in 8 years - by focusing on average price stability.

Thankfully readers of House Hunt Victoria do not have to subject themselves to the spin of the VREB or the lack of critical analysis by the Times Colonist - unless it's simply to mock that dying breed of journalism. Here we benefit from the excellent industry insider information and analysis by valued commentators like Double Agent. Here are the really, really, ridiculously good looking graphs and analysis for June 2010:

What do all these graphs point to? Soon-to-be falling average prices due to the overwhelmingly poor supply versus demand ratios emerging in the Victoria real estate market? Check (warning: VREB PDF). Desperate sellers willing to give up two years worth of "equity" to get out of their home? Check. REALTORS® getting called out on a mommy forum (and not by HHV) for trying to pass off a house as a "sure thing" investment? Check. Dinner party conversations changing from "buy now" to "sell now"? Check.

Times are changing. Quickly.

Happy Canada Day everyone.