Bloomberg Business Week - Vancouver's Real Estate Bubble Trouble

It's not too often that US news media pay attention to what happens north of the border, so when Bloomberg Business Week features an article on Vancouver's real estate market, it's worth a read.

The article quotes a number of sources such as Tracie McTavish, President of Rennie marketing Systems, which is overseeing the sale of Millenium Water. McTavish is quoted as saying: "Real estate is like a sport here." Millenium Water is the Olympic Village which housed the athletes during the 2010 Winter Oympic Games and has been converted into luxury condos which sell for over $1,000 per square foot. In Vancouver, new developments are pre-sold via 'assignment letter' or committments to buy, and these assignment letters are being flipped multiple times. "The minute I actually heard a taxi driver taling about flipping assignments, I knew something had to give." says Grant Connell of Sotheby's. Real Estate brokers are getting paid like rock stars, and they're acting like it too. Going forward, we'll keep an eye on the real estate market and report on any shifting trends.

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