Mortgage crisis spreads beyond sub-prime
Condohype just sent in this link to the main story in todays New York Times: Mortgage crisis spreads beyond sub-prime. This story will be of interest to anyone who believes that our local economy is affected by the US, our largest trading partner.
As home prices fall and banks tighten lending standards, people with good, or prime, credit histories are falling behind on their payments for home loans, auto loans and credit cards at a quickening pace, according to industry data and economists.
Chip posted this link to a government of canada site in the previous thread which I believe neatly ties into why US economy stories relate to Vancouver real estate prices:
RSS 2.0 comments feed. Both comments and pings are currently closed.Canada’s economy is less than a tenth of the US economy and it is highly dependent on the US economy. Eighty-five percent of Canadian exports are destined for the US and about fifty-nine percent of its imports come from the US.
February 12th, 2008 at 9:36 am
February 12th, 2008 at 11:17 am
Hmm, I wonder what all the talking heads who say there is no subprime in Canada would think of this quote.
February 12th, 2008 at 11:52 am
February 12th, 2008 at 11:59 am
Think? No sir, they don’t do that here. Isn’t it something like 90% of first time buyers in vancouver are going for a 40 year mortgage term? If that isnt unusual I don’t know what is. It won’t take much to put a lot of recent buyers underwater here.
February 12th, 2008 at 12:18 pm
September was over 4 months ago. Prime mortgages in trouble with similar price run-ups as Vancouver. I’m running out of excuses for this market.
February 12th, 2008 at 12:32 pm
http://www.msnbc.msn.com/id/23118645/
Is this really going to help? You’ve got someone who hasn’t payed in 90 days and can’t afford their mortgage and you’re going to give them another 30 days while lenders try to figure out ways to ‘make it more affordable’ for them? Geez the whole ‘making it affordable’ excuse is why they have subprime, zero down 40 year mortgages in the first place. that worked well!
February 12th, 2008 at 1:30 pm
http://tinyurl.com/33uvqu
February 12th, 2008 at 1:30 pm
Buy Now Or Be Priced Out Forever
February 12th, 2008 at 1:39 pm
Record levels of personal debt sure doesn’t put us in a much better situation than in the US.
February 12th, 2008 at 1:44 pm
February 12th, 2008 at 2:29 pm
February 12th, 2008 at 2:57 pm
“1212 Howe”
this is an older building being refurbished
on the corner of Davie and Howe in the Fitness World complex….. starting high $300,000
No GST!
February 12th, 2008 at 4:00 pm
I am not claiming I knew it wouldn’t. I just remember talking to some very bright, high paid, younger guys who had the same enthusiasm then about the market and said things like
“I’m saving $1,000 a month, I’ll be retired in five years!” “the internet is here to stay” “It is going to go up forever!” and when questioned would say “forget the old timers and their coca cola stock… what do you think the internet is a fad or something??!”
It’s all the same, the internet didn’t go away and neither will the condos. But the stock price of Nortel is still 1/10 of what it was at it’s peak?
February 12th, 2008 at 4:00 pm
February 12th, 2008 at 4:04 pm
http://tinyurl.com/38pect
February 12th, 2008 at 4:04 pm
February 12th, 2008 at 4:16 pm
February 12th, 2008 at 4:20 pm
February 12th, 2008 at 5:06 pm
Next year this can be re-written. Just replace California with BC.
February 12th, 2008 at 6:17 pm
just ask satv/k
http://tinyurl.com/yvgyfr
They don’t like to tell you, but we see kids come in who are in their early 30s with a nice home and no mortgage,
February 12th, 2008 at 7:43 pm
Try 1/100.
February 12th, 2008 at 7:49 pm
Semantics. The land is more productive. For some interesting glimpse of what the future may bring, google “contour crafter”. This thing essentially “prints” a house with concrete, much like a bubble jet printer prints on paper. In theory, it could build a floor a day, at a far lower price. To date, construction technology has improved, but the inflation adjusted cost per square foot has not gone down. If that changes, the whole equation will be altered.
February 12th, 2008 at 7:54 pm
Oh and don’t forget those pesky special assessments.
February 12th, 2008 at 7:58 pm
Subprime Mortgage and Mortgage is different that’s what makes Canada free of mess.
February 12th, 2008 at 7:58 pm
February 12th, 2008 at 8:01 pm
BTW where is 23 year old underware friend disappears and that recent one from Toronto, why I am asking is because I like to move it move it.
February 12th, 2008 at 8:10 pm
February 12th, 2008 at 8:30 pm
I’m sure there aren’t THAT many people in that situation. I have a friend whose parents are in their fifties. Their mortgage (on a house in Surrey) is $400k. They tried to sell last year for $800k. It didn’t go, despite being on the market for almost a year. Their rational for having such a big mortgage? “It cost us $400k to build, we’ll be able to sell for at least $600k.” Hope to God I’m not 50 years old with such a huge mortgage!
February 12th, 2008 at 8:35 pm
February 12th, 2008 at 9:03 pm
Thanks for the link but it’s very difficult for me to disscuss on this issue because of people from different culture and their life style.
I just like to say this is a responsibility of the parents toward child to provide them ‘three essential eliments’ of economy those are food,shelter,and education depend on income and family size that help is vary.
My parents were renting to raise our family,when we got job every single member of my family own a home for each,we never have to borrow loan for education.
only this much from my family tree and all of us are connected with each other for freequent visit and family get together. help can come and go with exchange of C$,USA$ and UK # Sterling.
February 12th, 2008 at 10:26 pm
“Does anyone here have any articles written by people who thought the tech market was going to go up forever even when it started to become obvious that it wasn’t going to?”
How about a book, “Irrational Exuberance” 1st edition. 2nd edition focuses on real estate.
By the way do you know your handle is also the nickname for a serial killer? I hope that isn’t why you picked it.
His full nickname was “Bondage Torture Kill” for his M.O. but he was usually just referred to as BTK.
February 13th, 2008 at 4:22 am
This is yet another red flag - people who are effectively speculating on their own residences. They buy the very biggest house they can, with maximum financing, in the hopes of cashing out and downsizing into another property with minimal debt. Works fine if you get in and out at the right time, but not if you don’t.
Very, very common in the US. It represents additional pent-up supply that is missed by the statistics.
February 13th, 2008 at 7:21 am
cash is king!
http://tinyurl.com/2gj32h
Based on the interpretations and implications
from this chart, after the Aug/07 credit crisis
the US Fed opted to protect the dollar and
let hard assets deflate.
They basically flipped the bird to the big banks
and started draining liquidity from the system.
The way they are handling the systemic risk is
to remove the punch bowl and drain the swimming pool.
Cash is king, hard assets (incl RE) are deflationary toast.
Leveraged RE bulls just took one in the shorts!
Sunshine and blueskies this AM with a touch of fog.
also posted this on chipmans site:
February 13th, 2008 at 9:35 am
February 13th, 2008 at 9:38 am
Link
Of course we have great weather, the ocean, olympics, blah blah blah.
February 13th, 2008 at 9:38 am
Too bad I went to B school and put the SO through Pharmacy, we don’t make nearly that much after slogging it for 5 years in Vancouver.
February 13th, 2008 at 9:45 am
http://tinyurl.com/22wcwb
February 13th, 2008 at 9:48 am
February 13th, 2008 at 9:49 am
February 13th, 2008 at 10:03 am
(there is a video on the left hand side you can watch)
http://tinyurl.com/2xcewv
February 13th, 2008 at 10:23 am
http://tinyurl.com/34fxx5
February 13th, 2008 at 10:33 am
The 23 year old underwear friend IS my boyfriend who is from NJ, you drooling idiot. Do your parents let you out of the house without a helmet?
Tony:
I can check with him for you. If I have any info I’ll pass my contact info on to you. The bf’s ex just bought a place in NYC so I may in fact have userful information for you.
And frankly I just got back from there. You can’t believe how nice the places are just a mile from the bridge (George Washington, I think). You can buy a beautiful three story brick place in a nice neighborhood for the same price you’d pay for a 500 sq. f. sh*tbox in Yaletown. I’m neither kidding nor exaggerating.
You can now buy a condo in Manhattan for about the same price as a condo in Yaletown or Cole Harbour.
As soon as the bf graduates I may be leaving as well. While I love the surroundings in Van, the prevailing attitudes about homeowning are getting to be just too much.
February 13th, 2008 at 10:35 am
Dolt.
February 13th, 2008 at 11:32 am
yep SOFIA you don’t know why right?
a desperate attempt to cover their losses?
yes from subprime mess in the usa.
February 13th, 2008 at 11:43 am
February 13th, 2008 at 11:43 am
February 13th, 2008 at 11:46 am
February 13th, 2008 at 12:09 pm
February 13th, 2008 at 12:13 pm
Is that related to housing sector?why don’t you post your opinion regarding the topics even your first comment was not making any sense on this board are you alright?.
I was driving by broadway and cambie I saw road block and a seen of recent explosion at 686 WB some matterial from above residential units were down under to commercial units of Starbucks and Taco time here is the story:
http://www.cbc.ca/canada/british-columb … blast.html
February 13th, 2008 at 12:14 pm
Ok here we got some thing to WATCH http://www.cbc.ca/national/blog/video/i … dry_1.html
Crabman,btk,sofia and to whom else it may concern………