Comments on: BC recreational property in ‘buyers market’ http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html?utm_source=rss&utm_medium=rss&utm_campaign=bc-recreational-property-in-buyers-market Bubble? What Bubble? Thu, 24 May 2012 08:06:05 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: The Pope http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19879 The Pope Thu, 12 Jun 2008 21:28:24 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19879 Richard - thanks for the link, I've added it to the free-for-all post. That article was like reading a release written by somebody arguing with themselves. They say a sharp US-style housing market correction caused by mortgage innovation is unlikely in Canada and then issue a warning about mortgage innovation in Canada and the growing number of owners with little or no equity. ...And then theres the mortgage backed securities issue you pointed out: <blockquote>Thanks to a still-solid Canadian housing market, mortgage debt has continued to grow at about a 13 per cent pace but the banks are increasingly getting it off their balance sheets by securitizing it through the National Housing Act's mortgage-backed securities program (NHA MBS). Administered by Canadian Mortgage and Housing Corp., the program buys the mortgages from the banks. The government then finances the purchases by selling bonds. The bonds have almost zero risk because the mortgage debt is insured by the government.</blockquote> No worries then! The government is taking care of it! <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19879">0</span> <small>(to vote for this comment, please visit the site)</small></p> Richard – thanks for the link, I've added it to the free-for-all post. That article was like reading a release written by somebody arguing with themselves.

They say a sharp US-style housing market correction caused by mortgage innovation is unlikely in Canada and then issue a warning about mortgage innovation in Canada and the growing number of owners with little or no equity.

…And then theres the mortgage backed securities issue you pointed out:

Thanks to a still-solid Canadian housing market, mortgage debt has continued to grow at about a 13 per cent pace but the banks are increasingly getting it off their balance sheets by securitizing it through the National Housing Act's mortgage-backed securities program (NHA MBS).

Administered by Canadian Mortgage and Housing Corp., the program buys the mortgages from the banks. The government then finances the purchases by selling bonds. The bonds have almost zero risk because the mortgage debt is insured by the government.

No worries then! The government is taking care of it!

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]]> By: The Pope http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19877 The Pope Thu, 12 Jun 2008 21:16:19 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19877 If banks forecast price declines they could be accused of causing them. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19877">0</span> <small>(to vote for this comment, please visit the site)</small></p> If banks forecast price declines they could be accused of causing them.

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]]> By: Anonymous http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19875 Anonymous Thu, 12 Jun 2008 20:12:51 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19875 "-12 will be turned into tiny text now" come on bulls ever dare to enter in bears blog you will be rewarded........ ;) -12. ;) have you ever seen thums up2 in tiny text? he will get trapped in the bearish net.-former thums up2. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19875">0</span> <small>(to vote for this comment, please visit the site)</small></p> "-12 will be turned into tiny text now"

come on bulls ever dare to enter in bears blog you will be rewarded……..
;) -12. ;) have you ever seen thums up2 in tiny text? he will get trapped in the bearish net.-former thums up2.

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]]> By: patriotz http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19873 patriotz Thu, 12 Jun 2008 19:55:31 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19873 Bank analysts <b>never</b> call price declines.At best, they will predict further price declines once a bust is already under way. <i>rents are 2-3x the cost of ownership,</i> Ack, of course I meant "the cost of ownership is 2-3x rents". <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19873">0</span> <small>(to vote for this comment, please visit the site)</small></p> Bank analysts never call price declines.At best, they will predict further price declines once a bust is already under way.

rents are 2-3x the cost of ownership,

Ack, of course I meant "the cost of ownership is 2-3x rents".

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]]> By: The Pope http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19871 The Pope Thu, 12 Jun 2008 19:55:18 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19871 I'm tweaking the comment moderation system, so ratings have been reset to zero. Comments rated below -10 will be turned into tiny text now, I'm still tweaking this, but I believe its working. Next step will be to highlight comments that are highly rated. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19871">0</span> <small>(to vote for this comment, please visit the site)</small></p> I'm tweaking the comment moderation system, so ratings have been reset to zero. Comments rated below -10 will be turned into tiny text now, I'm still tweaking this, but I believe its working. Next step will be to highlight comments that are highly rated.

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]]> By: chip http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19869 chip Thu, 12 Jun 2008 18:58:19 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19869 These bank analysts are truly ridiculous. Did any of them call the spike in inventory for Vancouver, the price declines in Alberta? <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19869">0</span> <small>(to vote for this comment, please visit the site)</small></p> These bank analysts are truly ridiculous. Did any of them call the spike in inventory for Vancouver, the price declines in Alberta?

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]]> By: patriotz http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19866 patriotz Thu, 12 Jun 2008 18:39:09 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19866 Not "now", it has been doing it for years. <i>"A sharp housing market correction, similar to that in the United States (ie: driven by subprime-mortgage innovation) is unlikely in Canada," the bank said.</i> Sigh. If prices are 8x incomes and rents are 2-3x the cost of ownership, <b>that's the cause of the correction in itself</b>, not the fine points of the mortgages. As as for properties in the Interior, once again, pricing will be determined by fundamentals. But what makes these Interior towns so shaky is that they have no economy other than RE and tourism. Take away the RE bubble, and you have an employment bust and falling incomes and rents. That's the extra hit to RE valuations. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19866">0</span> <small>(to vote for this comment, please visit the site)</small></p> Not "now", it has been doing it for years.

"A sharp housing market correction, similar to that in the United States (ie: driven by subprime-mortgage innovation) is unlikely in Canada," the bank said.

Sigh. If prices are 8x incomes and rents are 2-3x the cost of ownership, that's the cause of the correction in itself, not the fine points of the mortgages.

As as for properties in the Interior, once again, pricing will be determined by fundamentals. But what makes these Interior towns so shaky is that they have no economy other than RE and tourism. Take away the RE bubble, and you have an employment bust and falling incomes and rents. That's the extra hit to RE valuations.

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]]> By: richard http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19865 richard Thu, 12 Jun 2008 18:14:02 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19865 so does this mean the <a href="http://tinyurl.com/5m5z8q" rel="nofollow">chmc is now buying mortgage backed assets</a>? that just sucks. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19865">0</span> <small>(to vote for this comment, please visit the site)</small></p> so does this mean the chmc is now buying mortgage backed assets? that just sucks.

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]]> By: Anonymous http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19864 Anonymous Thu, 12 Jun 2008 16:27:35 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19864 L8Bloomer, Merritt is certainly nice, in fact it is closest place to Vancouver with decent weather. But there are much more reasonably priced properties than Ranchlands. Look for a 10 acre lot not in ALR for around $200k- you can still find some of those. Not only it's half the price of what you pay at Ranchlands, but you actually get 10 times more land that you can call your own. It is better to get those now actually because the selection is limited (you might want to monitor the market for the next 6 months to see if the right property comes up) and even if they go down in price slightly you likely won't be able to find a clean lot you like a few years from now as most nice lots get built over. If you buy a 10 acre property, make sure it is not heavily covered with pines or the next purchase you'll have to make is a chainsaw due to pine bug infestation. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19864">0</span> <small>(to vote for this comment, please visit the site)</small></p> L8Bloomer, Merritt is certainly nice, in fact it is closest place to Vancouver with decent weather. But there are much more reasonably priced properties than Ranchlands. Look for a 10 acre lot not in ALR for around $200k- you can still find some of those. Not only it's half the price of what you pay at Ranchlands, but you actually get 10 times more land that you can call your own. It is better to get those now actually because the selection is limited (you might want to monitor the market for the next 6 months to see if the right property comes up) and even if they go down in price slightly you likely won't be able to find a clean lot you like a few years from now as most nice lots get built over. If you buy a 10 acre property, make sure it is not heavily covered with pines or the next purchase you'll have to make is a chainsaw due to pine bug infestation.

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]]> By: Anonymous http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19863 Anonymous Thu, 12 Jun 2008 16:23:21 +0000 http://vancouvercondo.info/2008/06/bc-recreational-property-in-buyers-market.html#comment-19863 "What goes up comes back down" Last week i went to park my car in a parking lot on robson and denman i was surprised to see that Safeway is making new store on the lot,by reading the comment above i can stand by there with my engine runing unless the store return back to parking lot.Drachen? <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-19863">0</span> <small>(to vote for this comment, please visit the site)</small></p> "What goes up comes back down"

Last week i went to park my car in a parking lot on robson and denman i was surprised to see that Safeway is making new store on the lot,by reading the comment above i can stand by there with my engine runing unless the store return back to parking lot.Drachen?

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