Stalled Vancouver house sales offers a signal for Sydney and Melbourne: Robert Gottliebsen
A major slowing trend was emerging internationally with three key real estate markets showing the same nervous signs.
Vancouver, Sydney and Melbourne were the key cities, according to The Australian columnist, Robert Gottliebsen, who pinpointed a reduction in Chinese buying and reluctance by the non-Chinese locals to buy at the high prices.
"The slower real estate sales combined with no rises in non-public servant salaries is causing motor and retail sales to stall," he reported on the local economic consequences.
"The share market is clearly nervous.
"And we are just at the start of the process," he wrote today.
"Traditionally, once dwelling buyers lose the flower of abundant confidence there is a period of much lower volumes because sellers are reluctant to meet the market.
"That’s what we are seeing in Vancouver."
He suggested Vancouver was ahead in timing which would help understand what could happen in Melbourne and Sydney.
"A series of clamps and higher taxes have been imposed on overseas investors in Vancouver.
"Accordingly, Vancouver has seen an easing of prices but, more importantly, volumes have been slashed because sellers can’t move their stock.
"In April the volume of detached Vancouver houses sold fell a staggering 50 per cent."
