While we lose another night's sleep tossing and turning over whether the U.S. Fed will begin rate "normalization" tomorrow, here is a look for anyone not familiar with Vancouver's bizarre real estate market.
By the way, even if the Fed does raise 25 beeps, it still ain't normal. Normal is when you have the ability for price discovery. At the moment it's punters fishing for the credulous.
The 2 images are the number of single family detached houses for sale starting with a list price of $2,000,000 and houses for rent for a minimum of $6,000/mo.
On the for sale graphic (source: www.realtor.ca) there are +/- 1500 houses for sale starting at $2,000,000 up to $37,000,000. On the for rent graphic (source: vancouver.craigslist.ca) there are +/- 100 houses for rent starting at $6,000/mo up to $30,000/mo.
On my Affordability Page, notice that Demographia who looks at hundred's of cities housing and economic metrics globally defines affordable as "...the ability for any urban household to be able to rent a dwelling for less than a 25% of its monthly income, or to buy one for less than about three time its yearly income!"
On that scale, one would need an income of $24,000 per month to rent a $6000/mo house; that's easily accomplished by only 12 of those imported foreign workers (2 or 3 to a room) that we subsidize corporations with to flesh out their labour pool. Why export a low wage job when high wage jobs are easier to export and that's the Canadian will.
And on the same Demographia scale one only needs $666,666 in annual income to buy a $2,000,000 house - that's only 28 of those imported foreign workers banding together in joint ownership. That's only a half dozen or so workers per bedroom. I bet the refugee swarm scaling the new walls of Europe would easily do that if given the chance.
Oh ya, I forgot we are afraid of terrorists, but not so much of the peer pressure and institutional mountebankers that have exposed so many Canadians to so much risk in only a decade.