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Friday Free for All!

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107 Comments

Its Friday and that means free-for-all time here on Vancouvercondo.info. This is when we do our weekly roundup of news stories on real estate and economics. Here are a few stories to get you started:

– US Housing market woes bad for BC
– BC Credit union predicts strongest growth since 1985
– Fewer tourists coming to BC
– Video: Dan Rather on the Downtown Eastside
– Canadian home prices almost double in last decade
– Immigrants struggle in wealthy countries
– Gas prices predicted to hit record highs by summer
– Some expect oil to fall on growing supply
– The tell-tale signs of a recession
– Stagflation?

And last but not least:
– Coco News, an economic news blog!

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Michael Randallbard

Long term gold market drivers have not changed: A secular bullish perfect storm trend for precious metals continues. Rapidly escalating global investor demand, easier participation by investors via ETFs, conversion of Middle East petroleum dollars to gold, rising new demand from Asia, possible central bank buying partially offsetting central bank selling, conversion from dollars to gold by large U.S. dollar denominated foreign exchange reserves, declining gold production, increased political and NGO interference to bring new sources on line, rapidly escalating costs to produce, delays and shortages of equipment and manpower, previous two-decade bear-market-induced shortage of intellectual capital for miners, safe-haven buying to hedge strong, reckless, competitive dilution of under-backed fiat paper currencies, probably continued de-hedging and continued troubling global political and religious tensions are just some of the factors contributing to the long-term bullish winds now blowing. In real terms… Read more »

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Rob Chimpman

Let's just hope Mr. Obama has more brains than Mr. Danza. I feel a massive wave of protectionism coming on for the US and that does not bode well for BC.

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Drachen

Hey Krrish, don't go messing with Tony Danza. He's the Boss! Or at least he vied with a woman to be "the Boss".

In fact you could say he was like the Obama of the early '90s

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Vanman

The Sophia development is 85% complete, but the developer is opting out of the deal to complete the project.

Very interesting, but also very troubling as well, but not unusual. As I said in my earlier posts, I suspect that the "walking away" mentality will become the norm.

If the situation is not in favour for a developer or an investor, they can choose to walk. What if the situation becomes grim and many developers do walk away from unfinished projects or speculators abandoning their agreements.

Very interesting times.

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Vanman

Krissh1, I don't doubt some people in BC make good money. I know a few, but you seemed to make it sound like a lot of them do which is not true. Secondly, why would somebody so rich and well off be willing to spend more than 70% of his or her income in housing? What is there to show for? There are other expenses as well that are more pressing, like a vacation, bills for your car, student loans (yes a lot of us borrowed money to get degrees and need to pay back) and the works. All of us are not obligated to reserve 70 to 80% of our pay towards housing. The reason a lot of these people do that now is because, they are in a bunker mentality. They know their properties are going up and… Read more »

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blueskies

Do you think he ran out of money and all the banks said no thanks, because he had no equity left? I don’t understand how he couldn’t get a loan to finish the job and get all his money from the pre-sales contracts.

Credit markets must be getting really bad if you can’t get the last 15% completed.

DING!

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Rob Chimpman

Rob Chimpman=tony danza

So?

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bdk

"Krissh did you know that the reason you are a warehouse worker is because your intellect is of no value to society? Think about that before you post and waste our time."

Nicely worded!

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krrish2

Rob Chimpman=tony danza,

New Jersy and New York is waiting for you go!bravo!go.

BDK,

you can take some rest.

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Rob Chimpman

Krissh did you know that the reason you are a warehouse worker is because your intellect is of no value to society? Think about that before you post and waste our time.

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Rob Chimpman

Krishh how do you know what a doctor earns? If you have a household income of 300k you can, pre-credit bubble, SAFELY borrow about 950k which would allow you to buy any property worldwide? Boy, you need to stop smoking your own product.

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BDK

Krissh, if you make top 5% (doing manual labour) then a doctor couldn't be making much more than you (top 5% , get it). But since you are stupid and latched onto the only weakness I'll simplify it down for your retarded self. You claim you make top 5% If you are top 5% and proudly proclaim you can buy a $300k condo. Who is going to buy the thousands of $800,000+ units? There are another 9,000 hitting the market in the downtown peninsula in the next year and a bit. Will your company hire ten thousand new employees at $120k a year to start? Will three "top 5%" share a 2 bedroom? Is that what living in a world class city is all about? If you ever left Vancouver you'd be surprised what engineers in Southern California can afford… Read more »

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krrish2

Single doctor makes more than 120-150k anually then 2 can make what?

doctors and dentists have no issue of affordaility the can buy any property worldwide.if you refering to recent news I do not beleive that.

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bad-debt-bet

They say its 85% complete vanman. After they canceled the first two you would think finishing sophia wouldn't have been a big deal, I'm guessing they couldn't sell the land from the first two. Credit markets must be getting really bad if you can't get the last 15% completed.

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Vanguy

I drove by Sophia yesterday – as all curious housing doom/gloomers should do – and it sure is close to being finished.

Do you think he ran out of money and all the banks said no thanks, because he had no equity left? I don't understand how he couldn't get a loan to finish the job and get all his money from the pre-sales contracts.

Maybe he only sold less than 50% at pre-sales, and didn't want to spend the next six months trying to sell the rest off.

Are credit markets that tied up? Or was he relying on 'investors' in his companies and they have all tightened their wallets.

It just doesn't make sense to me to be that close to being finished (and spent all that money) and then just shut her down.

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Rob Chimpman

If you believe what SATV says and all his buddies are making $30-$50 an hour for moving boxes around then you also have to believe that Vancouver is not a desirable place for immigrants or labourers. How many Mexican illegals and Asian boat people do you think would be coming here for these $50 hour warehouse jobs? Or would they rather pick apples for $3 an hour in Washington just half an hour away? If immigrants were coming here (and they would if these high paying jobs were as plentiful as we're led to believe) then labour rates would fall like a stone.

So which is it SATV/Krisshhh everyone wants to live here or so few people want to live here that our businesses need to pay $90k a year for someones back? Don't bother responding the question is rhetorical.

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patriotz

Will the Vancouver landscape be littered with half-complete buildings?

Only if the market price falls so much that the cost to complete exceeds the market price of the finished units. This actually happened in the early 80's crash.

But cost overruns in the absence of price declines are another matter. Obviously someone with deep pockets can buy the building for some price, complete it, and turn a profit. The original developer takes a loss, but that's sunk cost. Going forward all that matters is the cost to the new builder, cost to complete, and the market price.

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-A-

FOR THOSE WHO ARE LOCKED OUT OF ROB'S BLOG,OR DON'T WANT TO VISIT, THIS IS ROB'S LATEST NUMBERS: For the week ending February 23 there were 1,303 new listings (down) and 598 sales (down more), for a sell/list of 45.89%. Average list price was $577,303 (up), while average sales price was $567,296 (up), a difference of $10,007, or 1.73% (down). Average DOMs was 36 (down). 74, or 12.37% of all sales went over list price (both down). Average list price of overlists was $714,786, while average sale price of over lists was $743,764, an average difference of $28,978, or +4.05% (all three up). Average DOMs for overlists was 15 (down). Listed for more than average, sold for more than average, in less time. Of the overlists, 27 were in Vancouver West, 15 in East Van, 6 in Richmond, 2 in… Read more »

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Patiently Waiting

"The CBC report also said that EVERY SINGLE NEW PROJECT BEING BUILT IN VANCOUVER NOW IS OVER BUDGET"

Yeah, I heard that. First, my jaw dropped. Second, I tried to figure out who is going to be screwed. I guess some projects will limp to the finish. How many loses can the developers take? How often will they turn on the pre-sale owners? Will the Vancouver landscape be littered with half-complete buildings?

I think we will be doing some serious popcorn munching this year.

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bdk

So someone who claims to make top 5% wages can afford a $300k condo?

So two doctors can afford a $600k condo?

Does this mean that the price will go up more when another 10,000 newer units hit the market?

A house in East Van is more than $600k.

So if two doctors buy it today for $600k, are you presuming more doctors will move here next year and pay $800k?

Are you saying it's more affordable for two doctors, or people who make top 5% wage to move to Surrey or Langley?

If the top 5% can't afford Vancouver prices then who will pay even more for them later?

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Michael Randallbard

"Bank executives, meanwhile, warn that the mortgage mess is much broader than people with subprime loans. Problems are mounting almost as rapidly in so-called Alt-A mortgages, made to people with good credit scores who did not document their incomes and borrowed far more than normal underwriting standards would allow."

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krrish2

BDK,

In the genuine post I have mention about some people/some not you can include all the makers and exempt all that don't fit.

One more thing with the type of income actually you are looking at some perticular part of vancouver but you are not looking at other part like eastvan,langely ,surrey etc.

I have no problem to deal with issue when ever I am free but you have to think about it, if you think the crash exist then wait otherwise move according to your affordability.

Now with more data it's more clear that lots of people can purchase multiple units and lots just depend on crash you can choose what ever for your money.

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Michael Randallbard

"“Vancouver developer pulls out of 3rd project.”"

The CBC report also said that EVERY SINGLE NEW PROJECT BEING BUILT IN VANCOUVER NOW IS OVER BUDGET

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bdk

So if Krishh is making $89k a year, he couldn't afford to buy a two bedroom in the Woodwards project, in the poorest postal code in all of Canada. Yes Safeway did change their contract for new hires but the point was the ratio of home prices to income, it seems to have whizzed right over your head. In the 1970's cashiers were making $30k+ a year and could buy a house in Dunbar for $50,000. Now that same cashier is making closer to $50,000 plus automatic time off and whatever other perks you'll focus in on to try to disprove this valid theory. That same cashier making $50k would be looking at a minimum of $1.2 million to buy the same house. How have wages risen here? By the way, what do you do? You're claiming to make as… Read more »

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