Green MLA Andrew Weaver asks finance minister what he's doing to prevent a housing bubble from bursting

by Charlie Smith on July 16th, 2015 at 3:20 PM

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The only Green party member of the legislature has raised the spectre of a housing crash in Vancouver.

Speaking in the house, Andrew Weaver asked Finance Minister Mike de Jong what the government is doing to prevent a bubble from bursting.

It came after Weaver had introduced a private member's bill to amend the Land Title Act. If it is approved by a majority of MLAs, it would enable the B.C. government to determine foreign-investment flows in the real-estate market, as well as the extent of corporate buying of property.

"Earlier this year we learned that the U.S. short-sellers are betting on a Canadian housing crash, calling it an accident waiting to happen," Weaver said, according to Hansard. "One article quoted a high-profile U.S. short-seller who described the Vancouver housing market as 'a mix of money laundering, low interest rates'. And he went on: 'A house is something you live in, but in Vancouver you guys are trading them like penny stocks on Howe Street.' "

De Jong replied that Americans are fascinated with the Canadian housing market.

"I think it derives in large measure from their own experience and the trauma that they suffered after 2008," the finance minister added. "I think, further to that, it derives from the belief that if it happened there, it is destined and, therefore, must happen elsewhere."

He went on to say there are "fundamental differences" between what happened in the U.S. in 2008 and what's happening in B.C. today.

"The levels of equity that are involved in home ownership in British Columbia are, on average, very, very different than American markets," de Jong stated. "The rate of default and arrears thus far is very small, and the general stability of our banking system is different."

The finance minister also claimed that the province is "examining measures that may encourage first-time homebuyers to enter the market.

"We are, as well, through B.C. Housing, working to gather more information and more data," de Jong said. "And I'm alive to the private member's bill that was tabled today. We are also seeking to work with local governments to address issues around density that are a key part of the puzzle of addressing housing affordability."

Mike de Jong says there are key differences between B.C. and U.S. housing markets.

Weaver responded by noting that the Chinese consul general in Vancouver has "suggested that the blame for the situation lies with 'officials who monitor buyers, sellers and real estate developers'." The Green MLA also said that nobody is regulating this area.

"Her point is that government must ensure that housing remains affordable and the bubble does not burst," Weaver said. "Now, the first step towards formulating good housing policy is to ensure that the necessary information is available for analysis."

De Jong responded that "officials representing the government of the People's Republic of China may have an affinity for centralized control and management that I do not share".

"But be that as it may, I think there is value in gathering additional data, which is why I’m pleased the minister responsible for housing, through B.C. Housing, is working with agencies to gather additional data," de Jong said. "I mentioned earlier some of the other steps that the government has taken—I do believe, matters relating to density. I can provide the member with data and statistics about the average price of housing in Vancouver, which is actually lower than many people think. You can still purchase a home in Vancouver for under $400,000. About 30 percent of the homes that are exchanged or sold are sold for less than that."

Comments

8 Comments

Matthew Helliwell

Jul 16, 2015 at 8:52pm

It's becoming increasingly clear to me that Andrew Weaver is the only sane one in that Legislature.

Bruce

Jul 16, 2015 at 10:22pm

Prevent? No, no...make popcorn!

And DeJong is such a transparent shill for the Real Estate sector he sounds like their lobbyist.

Cariboo Dan

Jul 16, 2015 at 10:42pm

$400,000 !!!!
About 30 percent of the homes that are exchanged or sold are sold for less than that !!!!!

Oh yeah, he's talking Abbotsford, eh?
Another hometown boy.

Hah

Jul 17, 2015 at 12:53pm

Naturally the Chinese consul general would be against any effort to determine who is buying all the property in Vancouver. Does anyone really wonder why??? My question is "Why the hell does the opinion of the Chinese consul general even factor in at all"??? Oh yeah, Canada has sold out to the Chinese. And you thought you hated the Americans - just wait.

Hank Boggart

Jul 17, 2015 at 1:41pm

Wait why is a green party member worried about whether the housing market correcting itself? A housing correction is exactly what the Lower Mainland needs in the first place. Very confusing especially when the party doesn't even have a real economic policy.

Westminster

Jul 17, 2015 at 4:26pm

There appears to be about 12% average in Condos (single houses same or higher) with some Condos at 30% Foreign Ownership. Currently in downtown Vancouver on a per square foot basis some developments are at $1,400+ per sq foot, an outrageous amount.

In Canada we allow any foreign Tom, Dick and Communist to buy property, Australia just limited Foreigners to New Developments recently.

Communist Chinese money is perverting Real Estate prices in the US, Australia and Canada as well as most EU Countries.

We need to limit Foreigner ownership of property to at least only New Condos or not at all.

Communist China does not allow easy Real Estate or Commercial property ownership to us or any Foreign national, why should we allow them free unfettered access?

Under FIPA (the China Free Trade Agreement) signed in Vladivostok Russia and ratified into Law in the fall of 2014 by the current Canadian Government Canada...;

1. Canadians have become second class Citizens and have less rights than any Communist China Corporation to our own natural Resources and LAND!,

2. Any Land and/or Natural Resource that Communist China wants under FIPA allows them to get it without ANY Canadian Court allowed to hear or rule on their demands,

3. Under FIPA any Communist Citizen of China and / or their Corporations can demand and get any Canadian Land and/or Resource,

4. Any dispute is decided in an offshore Tribunal (either Russia or in Communist China) not Canadian Court can or will have authority under international Trade Law or FIPA to intervene,

5. Canada has given it's Sovereignty to Communist China via FIPA, which is incredibly stupid,

6. If any Canadian Government blocks or enacts any rules or Court order to stop any Communist China Corporation from owning anything in Canada we Canadians pay them a Penalty decided by them in secret just like NAFTA!

- Under NAFTA Canada is the most sued nation in that Trade Deal & we Canadians pay regardless of your politics or whom you vote for! $5 Billion and counting to date!

This allows unfettered OWNERSHIP of Property & Resources by any Communist China national anywhere in Canada! If we refuse we pay them Penalties under FIPA!

This is why we need to change the majority Dictatorship that is our Westminster system maybe some form of proportional rep.

That's why minority parties are useless under our Westminster majority rules system!