Edmonton sellers slashing prices.
Looks like the boom has gone bust in Edmonton:
“There’s no sense reducing any product by 5% because it just doesn’t work. We’re seeing reductions of 10% and more,†he said.
Jon Hall, with the Edmonton Real Estate Board, said 85% of single family homes that sold over the past 30 days went for less than the asking price. On average, the final figure was nearly $12,000 less than the seller was seeking.
Condos didn’t fair much better, with 79% going for less than the asking price.
This is interesting because much like major US markets two years ago the market is dropping despite a very healthy economy.
RSS 2.0 comments feed. Both comments and pings are currently closed.Pratt said she’s also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.
Keith Mackie, fleet director for Budget Rent-a-Car, sees it every day. He said demand for moving trucks going to Saskatchewan from Alberta and B.C. has recently increased three-fold.
“It seems like a lot of people are going home,†said Mackie, who’s based in Edmonton. “There’s no doubt about it, it’s a significant number.â€
August 29th, 2007 at 12:07 pm
August 29th, 2007 at 1:28 pm
Vancouver is:
A world class financial center i.e. Van Stock Exchange
A world class tourist destination
A world class manufacturing centre
A world class IT center
A world Head Office Center
Vancouver also has:
Millions of new immigrants coming each year.
NO sub-prime borrowers
NO drug problems
NO gangs
NO violent crime
Very little rain, or traffic,
Miles and Miles of sandy beaches
Its own currency and monetary policy, administered by the Real Estate board.
And oh yes, let’s not forget we ran out of land about 20years ago.
August 29th, 2007 at 1:50 pm
the ones that pertain to both cities
sub-slime loans in canada have been climbing at alarming rates
50% in 2006..and 40% this year
but its all changing now
tinyurl.com/2bztc6
and then 2 more left
tinyurl.com/2yo8sf
August 29th, 2007 at 1:52 pm
August 29th, 2007 at 2:13 pm
August 29th, 2007 at 2:28 pm
August 29th, 2007 at 2:32 pm
“land reclamation”
“housing bubble”
“bubble”
“tick tock”
They don’t like bubble-talk, and DEFINITELY don’t want to give any Dutch land developers any bright ideas…
August 29th, 2007 at 2:32 pm
The common estimate I’m seeing is approx 5% of Canadian loans are subprime, but I’m guessing they aren’t evenly distributed. Anyone seen a provincial or city breakdown for those subprime numbers?
August 29th, 2007 at 2:38 pm
August 29th, 2007 at 2:59 pm
as i am a calgarian..and you know your city much better then i ever will
how ever you guys are facing the same crap as we are in calgary
the one i hear the most for calgary are the tar pits..800 km away..and 65% built by outta province/foreign labour
its just crap
all i ever hear about vancouver
is they are running outta land
and the Olympics are coming
first off..if you are running outta land
there must be huge problems elsewhere in the world
consider this
population per sq mi
vancouver…13,000
nyc………26,000
tokoyo……36,000
paris…….64,000
manhatten…66,000
thats that myth busted..tinyurl.com/e223f
as far as the olympics
so what..they will come..they will go
just like calgary in 1988
in may edmonton..real estate was on fire..going up by the thousands monthly
and 12 weeks later..its busted
calgary will blow soon..prices down $18,000 so far this month
inventories are through the roof
i dont know why it will be different there..no idea
its just the people with financial motives that make it appear so
just my 2 pennies..good luck
August 29th, 2007 at 3:00 pm
Yeah, Chicken Little is the one that they want. But look what happened in the U.S. when Lereah used it. The sky fell AND the wolf came.
August 29th, 2007 at 3:08 pm
August 29th, 2007 at 3:19 pm
granted..vancouver is a splendid city..your parks and recreational options are out standing
but who can afford to live there
your on a perpetual path to serfdom
tinyurl.com/2rwp9f
hows your east side doing..has the traffic and transit problems been addressed..dose it still rain everyday..no city is perfect
and i agree that calgary will crash harder (not sure if its a dump though)
read this and try and dispute it
tinyurl.com/2rwp9f
this guys in san franscico
if you can dispute even one point with a counter point
it would be nice to hear it
August 29th, 2007 at 3:25 pm
tinyurl.com/444qj
August 29th, 2007 at 3:40 pm
August 29th, 2007 at 3:44 pm
I think Calgary, is a great place, and the people are just fantastic.
August 29th, 2007 at 3:51 pm
in fact i kinda liked it
all we ever here is that..calgary is special..we have mountains 40 miles away..lots of jobs..undervalued real estate..calgarys a great place to live
quite honestly..i dont think calgarys special..but you can hardly blame the public with thinking it is..its all you ever hear and read..like its pounded into your brain..until you believe it
frankly..vancouver is about as special now..as it was when you could buy a house for $200,000
dosnt look any different to me
the only change is….you perceive it as being special..but its the vancouver it was 10 years ago
August 29th, 2007 at 4:04 pm
dosnt look any different to me”
I truer word has never been spoken. This is what I try and tell people who don’t think there is a bubble.
The only thing that has changed is the mind set of people and the bloody stock promoters, umm sorry I meant RE hypsters.
Vancouver is a great city but was MUCH nicer pre 2001 when it was relaxed and modest. Now it’s arrogant and pretentious.
Sure it’s nicer than places like Calgary( Nothing wrong with cowtown)so there will always be a small premium over Calgary. But as Calgary pops and falls so will Vancouver.
August 29th, 2007 at 4:14 pm
August 29th, 2007 at 4:24 pm
tinyurl.com/36cmjg
August 29th, 2007 at 4:30 pm
you got awesome collection from this poor writer thanx to remember me.
satv
August 29th, 2007 at 4:42 pm
tinyurl.com/2fphpx
reasons to get out now..if you can
tinyurl.com/ytndae
August 29th, 2007 at 4:56 pm
FAMILY DOG JUMP TO SAVE KIDS FROM HUNGRY BEAR.
STATISTICS
———-
EDMONTON:
Average resale home price from mls.statistics $353,919(july 2007)
UP 38.0%
CALGARY:
Average resale price from mls.statistics $436.739(july 2007)
UP 22.1% from july 2006.
VANCOUVER:
Average resale price from mls.statistics $581.108(july 2007)
UP 12.2% from july 2006.
now look at all figures you will find where price credit is due (Vancouver) 12.2% up is very gradual,and where credit is not due is up22.1% and 38.0%.these 5% or 10% under the list is nothing because 22.1% consume 10% back still they are equal to vancouver.then edmonton’s 38.0%-10%=28% still 18% more than Vancouver.
I wanted to say don’t be excited take out that pin out of that ball and get that fix with super glue.
I also request all the experts to make good translation of current market situation,in my understanding we would be able to see clear picture in jan, 2008 on this situation.
with best regard
satv.
August 29th, 2007 at 5:30 pm
but i do understand human behaviour
people with a financial interest in profiting from other people have been running a very successful campaign of fear mongering..for financial gain
in calgary
better buy now or be priced out for ever
that are not making any more land
if you dont buy now..you may never again be able to
and so on and so on
at the same time these same people operate in a very secretive pack
hoarding all forms of statistical information
only releasing small amounts at selected times..the general public are so happy to have any information..that no one questions the numbers given
this information is then grasped by the msm..and for no fee..printed as fact
to this day the consumer is challenged to find alternate sources of information..but its held in a cloud of secrecy
paranoia..could be
but tell me this
are vancouvers real estate open to a buyer at a time he may wish to make a purchase..
didnt think so..its all a great big secret
August 29th, 2007 at 5:31 pm
August 29th, 2007 at 5:45 pm
heres a question for you
are the statistics held secretly..and only accessible with a password
and if they are..why is that ?
August 29th, 2007 at 5:46 pm
Whats the different between you and those secret agent.
your links says that all,bubble bust-inside the link price fall,inside sellers having hard time to sell 5-10% under the list.
thats like you sound the alarm for city ,and city found nothing wrong.then every body have same question.
where is squidly77?
August 29th, 2007 at 5:53 pm
I am not a realtor, but sorry I can not tell you the source.
one thing I can tell you,you don’t need a password to access thats info.
this is vancouvercondo.info i work on info not on source its depend on user to beleive or not because info is always one sided source are good to win arguments.
August 29th, 2007 at 5:53 pm
who are these secret agents you speak of ?
bubble bust inside link ?
sorry dont understand
no alarms for your city..its different here i am told..although i am not quite sure why
August 29th, 2007 at 5:54 pm
August 29th, 2007 at 6:12 pm
edmontons busted
tinyurl.com/36pjm3
8/28/07 3:31 PM
squidly I am talking about this.I am not a realtor ,but there is no source for link.
August 29th, 2007 at 6:19 pm
how would you come to know the crash.
seems like you work so hard to provide the link.
but you have no source of genuine information whats going on.
you are not alone last month there was 72,000 price drop on west vancouver no body has any clue.
HOW WOULD AND WHEN WOULD YOU CELEBRATE?
without info,without clue.do you really know what is bubble,baloon,and ghost.
August 29th, 2007 at 6:19 pm
why are your sources a secret
August 29th, 2007 at 6:26 pm
you must live in a bubble world where only vancouver exists
do you not read man..have you any idea what kinda storm is heading your way..you cant see it..cause you dont want to
thats your problem..i have no intention battling housing bulls in vancouver..that vancouverites problem..whether calgary..edm..vcr
your all the same..you like telling stories..scaring young families..stating facts with no back up links..you all blow hot air
your lusting for free money at the expense of others..will destroy the good city of vcr..and you guys will run like rats
August 29th, 2007 at 6:37 pm
lol don’t make fun of your self. I am trying to help you to keep quite,most of user might getting angry on you as most of them knows where to get the source.
more you will respond more you will paralyzed your commentary.sorry squid I don’t mean to hurt you,wish you all the best keep on coming for rant you owe.
August 29th, 2007 at 6:44 pm
i am concerned for you
anyhow..leave with a bit of humour
tinyurl.com/yfw62g
August 29th, 2007 at 7:06 pm
those many links you have provide I can earn $400.00 if i pick extra shift,while reading that.
opinion or arguments are easy to beleive because this is blogs means we can share something that can not be written on national news paper,links are good for administrators to run topic for response.
80-90 links per post is very much equal to 8hours of search and read for all individuals.
August 29th, 2007 at 7:09 pm
The lowest interest rates in tandem with the lowest unemployment rates probably since the 20’s, and yet prices are starting to come down.
Of course this combo of low interest rates and low unemployment is an aberration.
And so one is left to speculate just how bad will it get when the macro scene gravitates to some sort of normality, and then just how much worse will it get for housing when the economy goes into recession/stagflation?
August 29th, 2007 at 7:11 pm
A friend of mine is convinced there are hundreds of planes landing in Vancouver everyday full of Asians who are ready to buy everything. I’m not convinced that’s happening anymore.
Thanks for your help guys.
August 29th, 2007 at 8:49 pm
That’s only looking at the demand side. People seem to have forgotten that in a market with unlimited supply, price = marginal cost in the long run. Like in Florida, Arizona, CA Central Valley, etc.
August 29th, 2007 at 9:05 pm
Well wouldn’t ya know, that’s what they were saying in 1981 too. Indeed such people did exist, but it didn’t stop the market from crashing.
In fact rich Asian immigration (or more precisely net immigration - a lot of the richies go home once they get their Canadian citizenship) is lower now than in the 80’s and early 90’s. That has a lot to do with economic growth in China and the successful handover of Hong Kong in 1997. There’s simply a lot more money to be made over there than here these days.
It is also IMHO one of the factors behind the bear market of the late 90’s, although a lot of people just blame it on Glen Clark.
In fact net population growth today is just as low as in the dark days of Glenocchio, and only half the 2% rate which had prevailed since the end of WWII.
August 29th, 2007 at 9:15 pm
Quick Facts
Population % change on one year ago
BC 1.3
Canada 1.0
http://www.bcstats.gov.bc.ca/
August 29th, 2007 at 10:21 pm
Hmmmm. Look closer. Vancouver CMA is 1% YOY. Almost all the growth is Surrey, Pitt, and Maple. In absolutes, pop growth is less than half that seen in the early-mid 90s. %wise, even worse.
Remember new housing always leads population growth. Recent household formation, to maintain current price momentum, requires a marked increase in population growth. Or lots of vacation homes for rich Edmontonians.
August 29th, 2007 at 10:32 pm
Just got my paper copy of Real Estate Weekly.
The headline is reassuring:
Roaring home sales “just tip of iceberg”
The first paragraph continues in the same spirit:
Unprecedented residential real estate sales across B.C. represents just the “the tip” of a retirement demand curve that will continue for years, according to the BCREA.
Retirement demand curve to the rescue it seems.
August 29th, 2007 at 11:37 pm
It looks like we are still seeing a decent number of people arriving from Asia, although it looks like YVR was a lot busier during the 90’s.
August 30th, 2007 at 1:36 am
Um, you mean lags, don’t you? Or do you believe in “build it and they will come” like in Florida, etc? What’s the outcome there?
August 30th, 2007 at 5:30 am
No that’s not what I meant: there must be more dwellings than there are families to fill them or there would be homelessness. If population grows by 20K per year minimum this requires about 7K more dwellings breaking ground today to fill next year’s demand. This does not preclude overbuilding.
Phoenix is a good example of where significant population growth (~4% YOY or so) can justify higher house inventories as % of total population but I think they got a bit carried away recently.
August 30th, 2007 at 6:39 am
is it possible these people are tourists and business types traveling here on business… that maybe they don’t have a suitcase full of money to buy yet another small shoebox apt in order to keep the party going?
August 30th, 2007 at 7:25 am
“The crisis in the U.S. housing market was originally expected to be limited, but is now spreading from Wall Street to Main Street, George Magliano, director of North American automotive industry research for consulting firm Global Insight, said Wednesday.”
“Now that the crisis is damaging the broader economy, Mr. Magliano said, there are reports of auto companies tightening up on auto loans.”
Aren’t you glad we live in Lotusland where these sorts of things don’t affect us? And hey, how about them new Canucks jerseys?
August 30th, 2007 at 7:53 am
I think here in Vancouver we think of Calgary and Edmonton as essentially the same city. Calgary is full of oil and corporate money (read: National head offices), and has a better climate (the odd chinook wind). Edmonton is essentially a place for oil workers to live, shop (giant mall), and where they get 6 hours of light in the winter.
I would never leave in either place, but don’t confuse them. When I saw that graph of Edmonton outpricing Toronto, I think they were challenging Vancouver for the title of “most overpriced in Canada”. Now it looks like they lost. Go Vancouver!
August 30th, 2007 at 7:54 am
August 30th, 2007 at 8:09 am
I would have to agree with Freako on this. However its a myth that retirees want to move elsewhere from their children.
August 30th, 2007 at 8:25 am
do you have microscope at home,your place is THA BOMB I have melt my heart there so many times.how do you manage things here you might be a millionire,not less than 10.can’t stop my self saying all this.if you like to share your biography……
August 30th, 2007 at 8:36 am
August 30th, 2007 at 8:59 am
Now that is what i’d call a contradiction in terms…
August 30th, 2007 at 9:21 am
Shall I “snap up” some RE here in anticipation of the spread of bubble? The economy is mediocre, and apartment vacancy rate is high here. But maybe Uncle Bob would take a vacation here? “Be bold or move to Newfoundland”?
Jokes aside, I think this bubble won’t have much to go, if only for the completion of new construction. Hopefully I will return in 2009 to a better and saner Vancouver. After living in Montreal just for a few days, I can see the merit of rapid transit and high density housing. That doesn’t justify the wish rents asked on Craigslist, though.
August 30th, 2007 at 9:26 am
August 30th, 2007 at 9:36 am
August 30th, 2007 at 9:46 am
Oh come now. The demand side is more flexible than that. Average household size grows with declining affordability. Grandma/Grandpa or kids move in with Mom and Dad, singles get roommates, etc.
Extreme case is places like Ft. McMurray and Whistler. People go where the jobs are, not where the vacant housing is.
August 30th, 2007 at 9:51 am
People here in Victoria think that retirees will keep real estate propped up even though most average famlies can’t afford to buy anything. It is almost as if people suddenly decided to retire and retiring is something new.
My parents retired 20 years ago and bought a condo in Arizona. Friends parents bough in Florida.
Not everyone wants to buy in Victoria or wants to go to BC for that matter. Sure, some will, some will go elsewhere and many if not most will stay put and travel. People actually want to be close to their families. People have been retiring here since the 60s - it is not something new.
People were also more frugal back then than the Baby Boomers of today.
Our banker in Toronto could not believe how many Baby Boomers close to retirement are taking out mortgages to pay for 2nd properties and trophy houses. She was wondering what is going to happen in the future with all this Baby Boomer debt. She had never seen people in their 50s and 60s with so much RE debt before and thinks it is going to be bigger than the sub prime problem.
People think very one over 55 is filthy rich and that is just not true. They were the first generation of none savers and one day the chickens will come home to roost.