What happened to the values of seniors-only condos?

Still not seeing any panic in the investors market. Investors may not be buying at the rate in the past but they are not selling in large numbers either. My insider source tells me that about 1 in every three pre-owned condos listed are likely from investors. That’s not bad and prices are stable. I would think that ratio would have to flip to say 3 in every 4 before the market would see significant decreases.

We would need to see substantially more investors selling off their properties as they leave the condo market to obtain better returns on their equity in say GICs, stocks, bonds.

The way I’m reading the condo market is that most investors will list their condo when it becomes vacant. As a tenant leaves as they have purchased a home or for better job markets, that’s when the investor list their property. My insider source says that 3 out of every 4 investment condos are being sold vacant

Probably going to be much less socially and economically okay to fly long haul for vacations in the future.

Hopefully, but I wouldn’t count on it happening any time soon. I mean, despite everything that’s going on this summer, Trudeau’s Liberals are arguing with the Conservatives over doing the bare minimum on climate change.

Unfortunately people seem to focus on climate rather than take measurable steps to lower summer forest fire risks.

Fire Weather by John Vaillant.

My understanding is that the “well intentioned” limits have been placed on doctor enrolment,

Yup! Who knew that artificial constraints on supply cause avoidable problems?

Unfortunately people seem to focus on climate rather than take measurable steps to lower summer forest fire risks.

BC does prescribed burns. Perhaps they could do more, but you can’t burn everything and high temps, droughts and erratic wind patterns are increasing. It is happening worldwide and it is very difficult and dangerous to control fire with prescribed burns. Climate change is the number one contributing factor to the increase in the number of fires in Canada and the number of wildfires in Canada is predicted to double by 2050. How many people are going to stay put in Northern BC if they have, ex. asthma, and the north is on fire for three months of the year?

I don’t think they meet the criteria for climate refugee

Of course they don’t. A refugee, by definition, is someone who has been forced to leave their home due to natural disaster, war or persecution. This is a developing situation and I stated that the predictions are that it will intensify by 2050 and we will see climate refugees in Canada. I also linked more info – but climate change is progressing faster than most predicted. In any event, 2050 is not that far off and internal and voluntary migration will come first from those who must relocate due to climate impacts or have family or connections here.

Although it is possible that people may choose to fly less in the future I have seen no evidence that that is the case.

It is my prediction if planes continue to use fossil fuels. Lets reconvene in 10 years and we’ll see where social attitudes and prices sit. In the meantime, I’m investing in heat pumps and not Air Canada.

Provinces are looking to alleviate the health care crisis by sourcing more family doctors. This will actually make things worse. Family doctors can only write prescriptions for minor ailments and detect more serious conditions requiring a specialist’s expertise to treat. The specialist needs hospital space, equipment and support staff to treat the problem. More family doctors would flood the waiting rooms of scarce specialists who would not have the time or the facilities to treat everyone. To fully accommodate this new demand would bankrupt the country or require massive increases in our taxes. Take your pick.
Educating an ignorant public on leading a healthy lifestyle is the only solution. Increasing taxes on junk food and alcohol would be a step in the right direction.

Kristan, your approach of looking at the actual data seems to make a lot of sense. My understanding is that the “well intentioned” limits have been placed on doctor enrolment, which has lead to the discrepancy you have noted to the US levels(where we are willing to send our cancer patients). Extra government regulation is rarely the solution.

Leo, when you put out the new post, if you have a few minutes do you mind including an update on affordability? That plot has been missing for a while in the updates, or maybe I’ve been an idiot and missed it!

I would agree that more financially capable people are choosing where they would better enjoy the summer (Croatia vs Victoria)(Kelowna vs Victoria). I don’t think they meet the criteria for climate refugee, otherwise all the Canadians that travel to Mexico or Florida in the winter would also be climate refugees.

Hey Leo, Maybe you can do an analysis on mortgage delinquency rates to determine what impact if any the recent rate hikes have had? I know they kicked the can down the road so the new rates are only trickling into the economy, but it does appear that the delinquency rates are increasing. Id also be curious to know if there is any data about rate of mortgage applications that are denied. cheers!

In general if the contributory value of the property constitutes less than 15% of the entire property’s value then it is a tear down and the remaining economic life will be that of a holding property to be redeveloped within say 5 years.

Agree with this. And yet, these properties can be both great investments (as you’re paying most of your money for the land, ie. the appreciating part of the investment) and great places to live. We’ve lived in several of such properties, old houses in first-rate neighbourhoods where we spent say 50k on cosmetic fixes and lived happily for years, while the neighbourhood around us was being rebuilt.

How’s the homeless situation in Croatia?

Not sure, I never see homeless people on the street. Just the occasional gypsy asking for money but I don’t think they are homeless.

I personally wonder what is going to happen to the summer tourism industry in places like Italy and Greece in the next couple years. Probably not a good thing to invest in. But where will those tourists go? Perhaps Iceland, Greenland, Denmark? Things are changing…

Hmmm, the tourist season in Croatia is only 60 days (July/August) for all intents purposes. I think that will remain despite heat challenges with younger folks and with climate change I think it actually might extend tourism into spring and fall. In most of Croatia it snows in the winter time. It can only be uncomfortably hot in July/August, unlike places like Dubai which go year around.

Croatia has been a pretty brilliant investment last 10 years. There is no annual property tax, there is no income tax on short term rental income, and there is no capital gains.

For example, you could buy a Villa 10 years ago for 800k euros. Rent it for 500 to 1000 euros per day for 90 days/year +/-, no tax. Sell it now for 2 million euros, no tax on the $1.2 million profit.

Latest government statistics show 36% of buyers in Croatia are foreign right now but the media presents it as a positive (like we are an attractive country to purchase in). I am lobbying for vacant property tax to start but even the locals think I am crazy, insult me, etc. HHV is very tame compared to the Croatian equivalents I participate in 🙂

Prices aren’t dropping with near 6% interest rates, what is going to happen if we happen to go back down to 3-4%?

I guess we just need to see what the September interest rate bump brings for the market. With sovereign debt defaults on the rise across the globe and big consumer debt loads here, the demand for higher return premiums on buying debt won’t be falling anytime soon. Folks will start to see a 6% as a hopeful baseline. For those dreading more increases, they can find comfort in that there should be a rate pause after September until the new year.

They call it climate change for a reason, the climate is changing everywhere.

My parents aren’t spending summers in Croatia anymore due to extreme heat, prefer to stay in Victoria for July/August so I do think we are already seeing behavioral changes.

1721 Oak Shade Ln

3.668

How crappy does a house have to be? I’ll give you the short version.

Dry rot, cracked foundations, dilapidated roof, not in rentable condition, no working sanitary or septic, etc, etc, Where the cost to repair the home is in excess of the value it would receive if those repairs were done. Imagine a 1,000 square foot rancher in Oak Bay. The cost to repair the home could be $250,000 which would not be fully recoverable in the market place as the dwelling would remain an under improvement in size for the neighborhood.

In general if the contributory value of the property constitutes less than 15% of the entire property’s value then it is a tear down and the remaining economic life will be that of a holding property to be redeveloped within say 5 years. That’s why you will find 4,000 square feet homes demolished on waterfront properties and office towers are demolished in downtown cores. Exceptions may be for buildings that have a heritage status such as the Empire State building. Churches in urban cores are another example.

If the land is zoned at a higher density then the Highest and Best Use of the property would be vacant for development not as improved. The house would have no value and no or little remaining economic life. This happens from time to time in Victoria when you have a house on a large lot that may be severed. The house straddles both potential lots and would have to be demolished or moved to a different part of the site and then renovated at great expense.

The key word is “economic” not physical. It is possible to have a ten year old home in good condition that would not provide any economic value to the property because the land has been rezoned to hi-rise.

The analysis is not as subjective as you think. However, there are times when the property is just on the cusp of being a tear down or being a fixer upper. Then it can be a flip of a coin.

Other examples are homes that are contaminated from being a crack lab, oil leaks, asbestos, or have been stigmatized by a horrific event such as a high profile murder(s) or in the worst case the violent deaths of children. ie OJ Simpson or the mass murder at a fast food outlet.

40 years ago when you were a young lad, things were different. Appraisers had a lot more latitude. Today, appraisals are highly regulated. As they should be as the appraisals are instrumental in lending billions of dollars every year in Canada. Items from economic life to words such as good, average, poor have been defined through court cases. That means that there is far less subjectivity involved today. If an appraiser states that a property is in good condition, then they have to show evidence of why it is in good condition and not just average condition for its age.

I too hope that some day, some one will invent an AI program. Many have tried but the programs lack quality assurance tests. When such an AI program is developed that is falsifiable – then I’m buying in big time.

Housing prices are high in Victoria in large part to Canadian climate refugees escaping the typical long and cold winter, so it seems unlikely that global climate refugees will choose to move to Canada primarily to escape extremes elsewhere.

They call it climate change for a reason, the climate is changing everywhere. The PNW and areas around the Great Lakes are predicted to be relatively good places to live as the weather becomes more extreme.

Internal migration in many countries due to climate will likely lead to competition for scarce resources and it is expected that there will be increased conflict creating more conventional refugee claimants who find themselves in war zones.

Some of the biggest effects are predicted globally to hit post 2050, but we appear to be ahead of schedule.

https://news.climate.columbia.edu/2021/05/13/climate-migration-an-impending-global-challenge/

Housing prices are high in Victoria in large part to Canadian climate refugees escaping the typical long and cold winter, so it seems unlikely that global climate refugees will choose to move to Canada primarily to escape extremes elsewhere. Also there are 4.5 million people living in greater Phoenix (smoking hot), so clearly not a lot of people make an effort to avoid hot places.

Determining remaining economic life (REL) is a math calculation based on observed condition, diminished utility derived from the marketplace, and land to building ratios.

REL is included in every residential appraisal report.

Sometimes you can ask for an appliance package (or upgrade) if not included, or the back to be landscaped etc. etc.

Lol you can ask for anything you want, you can ask for the seller’s wife you want to. There is nothing stopping you other than what you feel is appropriate.

Alexandracdn, how are you accounting for GST in those sale prices. Do they include GST or not?

It would be interesting to see how you choose to slice up the market into different market segments.

I can take a stab of a guess why the bottom tier has more properties selling at below assessed value. These are likely properties with the majority of value in the land component and are appealing mostly to developers wanting to tear down the house and rebuild. In that scenario developers want to buy the property at land value less the cost to demolish. Hence the property sells for under its assessed value.

Those buying for home occupation at the lower tier have an option of either buying a old starter home that usually needs repairs or buying a new(er) condominium of similar livable square footage. They are also faced with the challenge of having additional funds or obtaining financing to make those repairs.

Obtaining financing may also be difficult as lenders have regulations that the remaining economic life of the building must be in excess of 30 years. With the old, small homes in need of immediate repairs the lender may pass on approving a mortgage or cut back the loan to value ratio from 80% to 65%.

Sure will add to end of month post. It’s always a little dicey though because once you start slicing sales into different segments the numbers get pretty small and median sales/assessment less reliable.

I just took a brief look for the last couple of days in my other post, seems like quite a few going under assessment in the below 1.5M range.

Over asks around 10% of sales in the last 2 weeks.

are you able to do a sale price versus assessment for different price ranges?

Whatever, you should do a comparison of house sales with suites versus without and use price per sqft as the unit cost. Be interesting to see how much of a premium a suite commands.

For older white males it might have been better 50 years ago.

Please, back to housing!

You’d think Frank would learn something, getting schooled as often as he does.

I think Frank is just a troll living in a basement suite somewhere.

totoro- 50 years ago women had every advantage to further their education and pursue any career they chose.

You are my parents’ age then, although, unlike them, you are university educated and should know better than to confuse your anecdotal evidence with the substantiated facts. As a side note, annoying someone who is not a woman (or insert person of colour or sexual orientation or neurodiverse) feels entitled to say just how equal and good it was for women based on how much fun they had with women in the 1960s and 70s and how their mother seemed okay.

If we look at the facts, 50 years ago things were much worse for adult women in terms of status in Canada than now. There was not equality of opportunity and very few women occupied any positions of note. In 1968 a Royal Commission on the Status of Women was directed to look into these questions in Canada. They found, among other things:

1. in 1970 only 3.9% of managers were women and men within organizations were promoted at a much faster rate and this was part of policies in the public service or chartered banks, for example;
2. in 1970 13% of university ft faculty were women and overrepresented in nursing, education, and teaching;
3. although 8 out of 10 provinces had equal-pay laws, women were still paid less than men for doing the same work;
4. two thirds of people that were on welfare were women;
5. married women were not entitled to enlist in the military; and,
6. women could not be RCMP officers.

As a result, there were 167 recommendations to address the unequal position of women in Canadian society and the discrimination based on gender they experienced. It was not until 1977 that the Canada Human Rights Act was created and provided legal protection from gender based discrimination.

Things changed, but relatively slowly. Canadian women in 1996 earned 66% of what men earned. Sexual harassment was a real occupational hazard and protections against this did not come into the workforce until the 1980s.

And your math is off, had I been a middle-aged woman 50 years ago in 1973 instead of today, I would have been university-aged in the 50s, not the 60s or 70s which still were not great for women in terms of substantive equality. In the 50s, coming from a disadvantaged background and being a woman would have meant almost zero chance of becoming a professional or financially independent.

Apart from the movement towards equality of women, it is technological change since 2000ish which has had the biggest impact on opportunity imo. It has levelled the playing field on access to information for many.

totoro- 50 years ago women had every advantage to further their education and pursue any career they chose. That’s when I started university and had relationships with young women who had zero desire to be barefoot and pregnant. The pill was readily available and parenthood was not high on their list. Some did have small families and continued working most of their lives. That also created a decreasing birth rate which necessitated increasing immigration to maintain population growth. BTW- I was raised by a single mother, andI am well aware of the disadvantages this posed in the 1960’s. Somehow, she was able to provide me a very happy childhood, family support helped. Day care basically was nonexistent, families took care of each other with little government support.

It isn’t a tradeoff though.

Not the point. The point is about whether today my quality of life is better than it would have been 50 years ago. Not better for me overall. For older white males it might have been better 50 years ago.

Still, lots of good things about what was and what is. Not so sure about what will be.

It isn’t a tradeoff though. There’s no inherent connection between the technological advances of the last 50 odd years, or improved rights for women and minorities, and current problems such as housing affordability and health care shortages. If anything technological advances should make solutions to these and other problems more feasible.

When I was a poor student in the 1970’s, I could go to any restaurant, concert, sporting event, go on trips to the U.S. on long weekends, it was dirt cheap. Given the cost of living now, you’re looking at hundreds, even thousands of dollars to do anything. It’s ridiculous. $100,000 for a vehicle? That was a nice house less than 40 years ago. Things are not better now (unless you’re ultra rich), and in another 40 years it’s going to be chaos.

A friend of mine in Vancouver saw the Beatles in ’64. It cost $5.

Even adjusting for inflation that’s a far better deal than you get these days. Just like housing.

Frank, trends in building styles are easy to determine. You just have to look at the housing in say Oak Bay that has been built in the last decade. The predominate style is west coast contemporary and modernist and not so much early 20th century character or California bungalow .

Leo- Were you around 60 years ago? I was at a party last night (all boomers 65+) and one of my friends from school has a ticket stub from a Grey Cup game (can’t remember the year), it was $12.50.

Property Tax amounts on listings are also often “old.” I always check on BC Assessment because assessments and property taxes can really take a jump sometimes and in some cases I think can be a factor in a seller deciding to list. I’ve looked up a few that were shockers in terms of the difference between one year and the next.

Well, maybe we can put reasonable in scare quotes. Heh. In relative terms, sure, but in absolute terms.. and at 6% rates..

For @Kristan,

Just saw this house near UVic, well maintained with reasonable asking price, may be worth checking out (open house tomorrow). See:
https://www.realtor.ca/real-estate/25879514/3715-palo-alto-st-saanich-mt-tolmie

Therefore, the current price of $1.17 millions can take a hair cut perhaps 10-15% off immediately to get back to the mean.

If ur looking at averages then it was already at the mean in December 2022 when it was under 1M I believe

Totoro, when it comes to natural disasters, Vancouver Island has been lucky.

When you look back through its history, Vancouver Island is a dangerous place to live with tsunamis (1946), earthquakes (1964), fires (1922), snowfalls (1996), droughts.

Over the 100-year period from 1550-1650, practically the entire island burned tip to tip. On January 26, 1700 an earthquake hit the island that lasted four hours and mountaintops slid into valley bottoms, a giant wave swept villages into the sea and wiped out everything 20 meters above sea level. In 1966 a tornado ripped through Ucluelet. In 1975 Port Alice was evacuated as the mountain landslides threatened the town.

We have just been lucky.

The 2019 average price for greater Victoria sfh in pre pandemic was rougly $750K.

Average yearly housing price inflation is roughly 6%, plus 7% jump of COVID inflation, would indicate sfh price should be somewhere around $1.015 millions.

Therefore, the current price of $1.17 millions can take a hair cut perhaps 10-15% off immediately to get back to the mean. Or, price would drop back to the mean if the market flattens out for the next 2 to 2.5 years.

I recall there was a pretty good bull market in stocks before the great US RE bust of the mid-2000’s.

2000s housing and stock market crashed pretty much at the same time thanks to subprime mortgages, and since then the government has figured out how printing money can elevate it (inflation anyone). Hence, we had a stock market crash last year and is now in a recovery mode.

And, think about it. We got a bear stock market last year so if anything the condition would be ripe for a housing crash currently, however it is not happening because we have pent up demand from spike in population, free money still is floating around and demand from COVID, unemployment rate is at its lowest level ever thanks to shortage of workers, etc…

In the past, I recall receiving a notice from the Board that they have updated their system to the current authenticated assessment roll and current taxes. I don’t recall receiving a notice this year, but the taxes have only been out for a month.

Statistically it isn’t a big deal as most of these old listings would be outliers, but it does underscore why a Sales to Assessment Ratio should be calculated over a large data base and less or little reliance on an individual property basis. Better to calculate the SAR over 100 properties rather than pick three properties and use their mean SAR as a gauge of a property’s market value.

For example, last month their were 82 house sales in the Victoria Core . The SAR ranged form 0.7 to 2.68. Once you toss the outliers the range is now between 0.85 to 1.30 over 72 sales with the majority of properties selling around the median SAR of 1.06 times their current assessed value. If the property that you’re looking to purchase is typical for the Victoria Core then the SAR would a reliable cross check after comparing the property you are looking to purchase with houses that have sold in the neighborhood. The SAR is only a cross check.

When looking at a property, there are many reasons why the SAR can be lower than the typical such as the home has had little to no updating performed. Conversely a high SAR may indicate a home that has recently been updated. If the home is atypical for the neighborhood, the assessments can just be wrong. BC Assessment performs mass appraisals using a sophisticated program but it can’t capture some of the nuisances of property that a human can. Bonus rooms over garages come to mind. The program will assess the value of say a 400 square foot bonus room over a garage as having the same utility as the rest of the home. While the market place places a lower value to a bonus room as being similar to storage space (lower utility) than livable space.

The great thing about using a SAR is it is quick, easy to use and most people have a basic understanding of what it is.

Marko is still testy, I see.

Proposed 17-storey James Bay tower deemed too high, sent back for redesign

https://www.timescolonist.com/local-news/proposed-17-storey-james-bay-tower-deemed-too-high-sent-back-for-redesign-7341121

I recall there was a pretty good bull market in stocks before the great US RE bust of the mid-2000’s.

In fact bear markets in both stocks and RE tend to happen after bull markets. Think about it.

Nanaimo family moving to Alberta as housing crisis, inflation continues

https://www.cheknews.ca/videos/64c467ac3eef1d000197b491/nanaimo-family-moving-to-alberta-as-housing-crisis-inflation-continues

“Short term rentals in Victoria have been further restricted.”

A great philosopher (Joey Shithead) once said “talk minus action equals zero”

Once again more rules. No enforcement. No punishment. Like the joke derelict boats act. 4 years in place. Two fines total.

Those lot prices have to come down before housing becomes less expensive.

It’s the prices buyers are willing to pay for finished houses that determine lot prices.

Sweet, going for 50 points on 6 September.

They are talking about the “neutral” rate which is neither restrictive nor loose. All they are saying is that neutral rate needs to be 0.5% higher than before. In prior cycles (last 30 years), if a policy rate of 3% was considered neutral, now it has to be 3.5%. Adjusted for inflation, the ideal “real” neutral rate is generally thought to be 1%. Since inflation is at 3% currently, the real rate is 2% (nominal is 5%) right now, which is restrictive.

10 years of QE, Operation Twist and other shenanigans (before Covid) kept the real rate at 0% or even negative. This enabled excessive speculation and formed bubbles in many areas including real estate.

At the neutral rate, the monetary policy is neither stimulative (as in a recession) nor restrictive (to cool inflation and overheating), just right or goldilocks. I don’t see a 0.50% rise in September – no change in the rate or 0.25% hike is possible for September.

4153 Beckwith sold for 1.251M. Surprised me, I thought they priced low for bidding war. Suppose the market has spoken. Assessment is 1.45M, the MLS assessment is wrong.

Might be interesting, note the crossed out plural of kittens.

According to TD, if Canada’s population boom continues, the neutral interest rate – which is sometimes described as the Goldilocks level of interest that neither stimulates economic demand nor holds it back – will need to rise by 50 basis points, or half a percentage point, compared with under earlier assumptions about how Canada’s population growth would unfold.

From: https://www.theglobeandmail.com/business/article-canada-interest-rates-affordability-predictions-td/

Sweet, going for 50 points on 6 September.

I guess someone hasn’t heard of account receivables. Monthly interest expenses are as common as rent, utilities, salaries, etc… Some businesses are run off of credit cards. It’s a cost of doing business, and deductible.

Lines of credit for businesses have gotten expensive and are now into double digit interest. That’s tough on most businesses that rely on a revolving line of credit. They will have to find ways to reduce their variable costs which may include reducing staff. Businesses may be entering into a credit crunch again.

5 year bond yield over 4% again…..

Wow, that’s quite the move in a day. I was looking at it yesterday and it was just 3.85..

5 year bond yield over 4% again…..

At this sales rate for a balanced market we would need 3500 listings

Leo, would you say a balanced market more or less should be prices going up at inflation? We are now at ~2500 inventory and prices have stagnated and some would argue trending down again. So if we are at 3500 listings or “balanced market” with the current sales then prices should crater as that adds 40% more inventory compared to now with the same sales…

Parents, have you thought of selling half your home to your adult kids and then sharing the space?

https://www.theglobeandmail.com/investing/personal-finance/article-parents-have-you-thought-of-selling-half-your-home-to-your-adult-kids/

PDF: https://docdro.id/cwh5AHB

Everything being built recently is built as cheaply as possible. It reminds me of the 1970’s. This housing we desperately need will not last more than 50 years. We’re just chasing our tails.

Lmao, I guess it’s my imagination all these houses in gh are built in the 70s.

I’ve noticed most new apartments are 4 storey, probably to avoid installation of elevators.”

4 storey is the max height for conventional wood framing and is the cheapest way to build. You can do 4 storey wood over a concrete first floor which is another common building form usually with the first floor being commercial. Mass timber framing can go up to 12 storey but the cost goes up significantly.

Despite the fact that people generally like having access to cheap food, most people don’t understand that higher fossil fuel prices means higher fertilizer costs, farming costs, and transportation costs.

Also, increase housing costs, though supplies and services. And, any restriction would multiply exponentially in price increase, because everyone has to a profit.

Okay Patriotz let’s move away from seller’s motivation to which I was speaking to buyer’s motivation.

An investor looking to buy a vacant condo will be able to lease up the unit at full market rent. However, if it is already leased at close or at market rent then it makes little difference to them. A tenant occupied condo would then be more desirable. A bird in the hand is worth two in the bush.

How about someone wanting a condo to live in? It may make a difference for those that are looking for immediate occupancy rather than occupancy in a month or two. But I would guess most buyers need time to get their stuff together. Either to sell their home or give notice to leave their rental. How important would the condo being vacant to them be then?

Generally speaking a home that is being sold vacant conveys a feeling of desperation that the sellers want a quick sale.

But you may google the question if vacant homes sell for less than occupied homes. Depending on the source of the data, you are likely to get two different answers. I would probably side with the unbiased sources that conducted a study rather than those that gave a gut feeling.

As I have written before, investors are key to the current market. Have investors shifted from being net buyers to net sellers? If they have shifted to being net sellers then a lot of pre-owned condos can come back onto the market quickly.

Although investors motivation to sell at a lower price may be greater if the condo is being sold vacant.

It’s only going to be vacant if the owner wants it that way. Seems to me a vacant condo is going to appeal to a wider buyer cohort and is likely to sell for more than an occupied one, especially one occupied by a tenant.

One or two months rent is just noise in the context of a sale.

Seller’s motivation is an important part of a real estate transaction.

For example, Is there a difference in sale prices for one-bedroom condominiums built in the last decade between home occupation condos versus condos owned by investors?

I think there is. Home occupiers are more likely to hold out for a better price while investors are more motivated than home occupiers to sell and move on. I wouldn’t expect the difference to be significant say under 3 percent. Although investors motivation to sell at a lower price may be greater if the condo is being sold vacant.

So all these buildings will not be wheelchair friendly? Looks like a human rights violation to me.

I’ve noticed most new apartments are 4 storey, probably to avoid installation of elevators. I don’t know how many Canadians are capable of walking up to the top floor as in this case. Even most 20 somethings would be challenged. Can you imagine lugging groceries up that distance. It’s one thing to build a bunch of apartments, it’s another to find physically able renters. Take a look around,

If they paid me $79,999 to live there, I wouldn’t do it.

I’m sure they’d give you more than that to leave.

Does anyone know what 1723 Richardson Street sold for?

It’s possible to tease out the data of owner occupied versus investor owned for individual condominiums that are listed and sold, but one has to make assumptions of what constitutes an investment property based on the condominiums occupancy and/or possession date.

You can’t determine if a property is an investment by considering intent. You don’t know what is in their minds. But you can look at their actions and if they are selling a property subject to tenancy or available for immediate occupancy (vacant) then that would define those properties as an investment.

Interesting analysis Leo. I would have tried to use a repeat sales method of the same unit before and after legislation. But there would be little to no repeat sales data available. It’s always a challenge of quantity versus quality in the data.

Victoria is a small pond to go fishing for data.

I also read earlier that in some cities, up to 80% of new condos are purchased by investors. I believe London, Ontario was one of the cities.

Anyone know what 3931 Cadboro Bay sold for? Assessed at $3.5m, recently listed at $6m and now has a sold sign.

Sold for $5,750,000; 15 DOM.

Leo, another couple of key points that you didn’t take in account for most condo’s built in the 1970’s and early 80’s are most of those 2 bedroom condo’s don’t have a full ensuite bath, i.e. no shower/bathtub, they have common washer and dryers usually located on the entry level floor, and most do not allow animals especially dogs and much of the parking is outside and not secure.