Friday Free-for-all!

You made it to the end of the work week, congratulations! It’s Friday free for all time!  Here are a few stories I’ve noticed this week:

- we just hit 20,000 places for sale in Vancouver
- but we’re still building lots of new condos
- maybe that will solve our growing homeless problem
- it’s been a bad year for forestry
- the dollar is making us expensive for foreign companies
- fortunately the loonie is predicted to fall
- When will the US housing market bailout work?

So what are you seeing out there?  Post your news, thoughts and links here and have a great weekend!

note: any conversation on Vancouver, real estate or economics is allowed, please keep it civilized. When posting articles please only quote pertinent points and link to the original instead of pasting the entire article here. Pasting a link will automatically create a clickable hot-link. Thanks!

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112 Responses to “Friday Free-for-all!”

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  1. 1
    Gadwin Says:
    Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000! Happy 20,000!

    Current score: 0
  2. 2
    Matt Says:
    Is there a reason homelessness keeps increasing in Canada? Indeed the population is increasing but I don’t think it’s increasing at the rate of 19% in 5 years.

    Current score: 0
  3. 3
    patriotz Says:
    Homelessness has nothing to do with the supply of or demand for housing. Shelter affordability for those on minimum wage (or anyone else) is no worse than it was decades ago.

    People are homeless because they have personal problems which they cannot deal with such as mental illness or drug addiction, and the reason homelessness is up is because support for such people is inadequate.

    Current score: 0
  4. 4
    islander Says:
    You get more of what you subsidize.
    Build more homeless shelters, get more homeless in your city.
    As someone who is sick of homeless bums, crackheads, juvenile delinquents and other undesirables, it’s time we CLOSED homeless shelters, youth homes and heroin shooting galleries, made vagrancy a criminal code offence punishable by 5 years in jail or a year in the military, and started rounding up unproductive members of society.

    Current score: 0
  5. 5
    Inventory Says:
    The REBGV sales for July 08 is looking horrible right now.
    July 2007 sales was 3659. As of today July 24 2008, sales
    are only at 835.
    FVREB July 2007 sales was 1700, today its at 398
    With seven more days to go, I hope it improves, but I doubt it.

    Current score: 0
  6. 6
    ReductiMat Says:
    islander, that is some might impressive logic you have there. How many cases of bud-lite did it take you to come to those hefty solutions?

    Perhaps you could do humanity a favour by writing a book on how to live such an exemplary life. That might be the only way we see the light.

    Current score: 0
  7. 7
    Anonymous Says:
    Inventory are you kidding? Only 835 sales? Where do you get that number from?

    Current score: 0
  8. 8
    alexcanuck Says:
    Islander:
    So you’re saying that if we close the mental health care facilities we will have less mentally ill receiving the care they need to keep them off drugs and off the streets? Yup, that one worked!

    Current score: 0
  9. 9
    dosh Says:
    theres nothing magical about the number 20,000.

    Current score: 0
  10. 10
    umdesch4 Says:
    Anonymous,
    835 actually sounds about right. I was adding up the numbers from Paul’s daily stats for the first couple of weeks this month, and did the math to come up with an estimated 1200 sales in the REBGV for the entire month, so this is in the ballpark, at least.

    Current score: 0
  11. 11
    anonymous Says:
    Dosh, REBGV has never recorded 20K inventory EVER. We just set HISTORY.

    Current score: 0
  12. 12
    M- Says:
    Inventory, undesch4: I keep track of PaulB’s numbers in a spreadsheet. So far this month he has recorded 1799 sales, including both condos and houses.

    Currently my model predicts 2324 sales by the end of the month, which is 4% less than last month, and down 40% YOY. And the inventory prediction: a whopping 9 months.

    Current score: 0
  13. 13
    wolfey Says:
    umdesch

    i don’t think it will reach 1200. only 1 weekend to go and if it is really nice outside …people will head for the beach. We have little more than 1 month of summer left before the rain starts again

    Current score: 0
  14. 14
    Mr. Simpleton Says:
    Are real estate agents in your area getting desperate too?
    In my neighborhood they randomly put “sold” stickers on For Sale signs, just to take them off a few days later later. It doesn’t seem to work though… as the for sale signs remain and actually grow in numbers…

    Current score: 0
  15. 15
    Mr. Simpleton Says:
    BTW, other than for the purpose of laundering money, which undoubtedly is a big part of our economy, who in their right mind would buy a house NOW?

    Current score: 0
  16. 16
    Drachen Says:
    US Foreclosures up 120% for second quarter.

    739,714 foreclosure filings were recorded 2nd quarter

    up 14% from the first quarter, 121% from the same period in 2007.

    One of every 171 U.S. households received a filing, which include notices of default, auction sale notices and bank repossessions.

    CNN

    Current score: 0
  17. 17
    Drachen Says:
    Dosh

    “theres [sic] nothing magical about the number 20,000.”

    Well someone woke up on the wrong side of the market this morning!

    Current score: 0
  18. 18
    Anonymous Says:
    [i]…theres nothing magical about the number 20,000…[/i]

    Given the ratio of populations, the 10k number for FVRD is IMO much more significant. How the heck can a ‘berg like Mission have 500+ listings in just it’s core area?!

    That, IMO, is where you’re more likely to find the real bargains…

    Current score: 0
  19. 19
    betamax Says:
    “theres nothing magical about the number 20,000.”

    but much that is ominous.

    I can understand being a bull during a euphoric bull market, but clinging to that position after the market turns is just delusional. There’s nothing more pitiable than someone lying to themselves. The party’s over, Jethro, time to pack it up and go home.

    Current score: 0
  20. 20
    nski Says:
    On the topic of hitting the historical high inventory of 20,000, let me be the first to say IT’S DIFFERENT THIS TIME! Cause that number sure does look different to me! :)
    Current score: 0
  21. 21
    stagnate Says:
    sales for july are higher than i would have predicted, given the bad news out there and the weather change this month. september is going to be a key month to watch.

    Current score: 0
  22. 22
    rx Says:
    Pope, when you joked about ‘the unique health hazards caused by granite..’ on this post:

    http://vancouvercondo.info/200.....ntasy.html

    Did you know that it was true? There’s a story in the NYT about radioactivity and radon gas coming from granite counter tops:

    http://www.nytimes.com/2008/07.....anite.html

    Bizarre!

    Current score: 0
  23. 23
    patriotz Says:
    it’s time we… started rounding up unproductive members of society.

    Excellent idea! Shall we start with the “usual suspects”?

    Current score: 0
  24. 24
    Drachen Says:
    stagnate

    It takes a while for psychology to turn. Most of the people who are buying now understand that the market is “correcting” but they believe it will be in the order of a 5-10% correction so if they can get a deal now they think it’s all good.

    Current score: 0
  25. 25
    umdesch4 Says:
    M:

    What?! Ok, I think I’d like to see those numbers, ‘cuz I must be reading them *drastically* wrong, or I’ve lost the ability to do basic addition.

    Current score: 0
  26. 26
    umdesch4 Says:
    Sorry, ignore my previous. It was a while ago, and I forgot that I was specifically looking at the SFH numbers only. I can still add, my memory is just completely shot.

    Current score: 0
  27. 27
    Ziggee Says:
    Bob Rennie:

    I remember an article where you opined “who are the real speculators?”, the bears on the sidelines or the bulls on the flip. My question to you is, have you put your money where your mouth is? I.E. have YOU invested in the projects you market to the public?

    Current score: 0
  28. 28
    Drachen Says:
    Ziggee

    I suppose both sides can be considered speculators.

    The difference is not in whether each group speculates or not.

    The difference is that one group believes that property values will continue upwards forever without anything to support this hypothesis except for good feelings. The other group analyses empirical data using scientific methods and historical comparisons.

    If I were to describe mutual fund managers in these terms who would you invest with? This is the question Rennie should answer, I think we can safely say he is not investing the bulk of his earnings where his mouth is, but as they say, “don’t shit where you eat”.

    Current score: 0
  29. 29
    Numbersman Says:
    The 20K figure is only important symbolically. The 20K figure is no where near as scary as previous highs when you take into effect how much larger the total inventory of units is. We are a much bigger city now and 20K is nowhere near as significant as it would’ve been 20yrs or even just 10 yrs ago.

    Current score: 0
  30. 30
    Anonymous Says:
    #29,
    Very well said.

    Current score: 0
  31. 31
    Dave Says:
    Ziggee, what makes you think that Rennie reads this blog?

    Current score: 0
  32. 32
    bdk Says:
    The first person to be rounded up for five years should be Islander, he’s clearly a juvenile delinquent

    Current score: 0
  33. 33
    dingus Says:
    29 and 30. Are you sure about that? Numbersman, do you have actually have numbers, or is this just a hunch?

    When expressed as residents per listing, I’d hazard a guess that we are probably at historically high levels. On Pauls blog we had a discussion that noted that residents per listing in the lower mainland (1:85) is squarely in ths same zone as southern california and arizona. To me, this is not insignificant.

    Current score: 0
  34. 34
    jesse Says:
    M- “Currently my model predicts 2324 sales by the end of the month, which is 4% less than last month, and down 40% YOY.”

    The sales numbers compared to June don’t look that bad. Be prepared for uberspin: sales in the traditionally slow summer months ONLY fell 4% compared to June!!! If you go back to 1999 and 2000 you can see how much further sales have dropped in recent memory: roughly another 30% less than current expected July sales and that was a time when valuations were reasonable, even with higher interest rates.

    Do we really have memories that short? Sales are still strong historically and there is nothing stopping them dropping even more, possibly to unprecedentedly low levels if prices do not quickly correct. I hear some calling for inventories above 30K for REBGV. If sales do dry up to levels seen last decade, it would not surprise me at all.

    Current score: 0
  35. 35
    Drachen Says:
    Numbersman

    Yeah, we’re 11% bigger than 10 years ago. The inventory is far more than 11% greater than it’s ever been before.

    ***BZZZT*** wrong answer!

    Current score: 0
  36. 36
    RJB Says:
    I feel sorry for anybody who bought a condo near the intersection of Cambie and Robson. The guys who live in the Catholic Men’s Shelter have already taken over the new bus shelter and ledges in front of the new buildings.

    Current score: 0
  37. 37
    Brittanny Says:
    Satv, Thumbs up 2. Where are you? Join the I-20K party!

    Current score: 0
  38. 38
    Rob A. Says:
    god … my realator phoned me and told me about an offer on my appartment that was 60% below asking price. I think people in Vancouver have gone insane :(
    Current score: 0
  39. 39
    Anonymous Says:
    Which neighbourhood has the most “for sale” signs?

    I might even bring an iced coffee and leisurely stroll and pleasure read the realtors signs. Maybe they should bling them up a bit, it could be like x mas.

    Where are the sign forests? Not too hilly neighbourhood please. :) Thanks!

    Current score: 0
  40. 40
    scullboy Says:
    Islander:

    So let me get this straight…. you want to round up all the mentally ill, the drug addicts, and dispossessed, then give them WEAPONS AND TRAINING and turn ‘em loose?

    BRILLIANT, I say! Have at ‘er! Instead of dodging people too zonked out to cause much harm , all those yuppie speculators who bought into the W development can dodge gunfire on the way back to their “luxury accommodations”. And let’s not forget, all those ex-vagrants and ex-soldiers would have much better aim.

    I F**CKING LOVE IT! Let’s set ‘er up!

    Your tax dollars will STILL go into paying these people. As employees of the government I believe they’d be entitled to…. oh let’s see, full medical and dental, a paycheque, a government pension.

    By all means, let’s make vagrancy a crime too. f course since we’re all equal citizens under the law that means everyone has to carry papers. Even if you’re dressed well and have good teeth, you could still be a vagrant so if you get press ganged into the Navy or whatever, it’s all for the god of everyone else.

    You remind me of an uncle of mine. He was forever complaining about high taxes going to education, until he had an autistic kid. Now he expects everyone to fund special education. He complained about taxes till he got cancer, then he complained about how underfunded health care is.

    Why are so many “conservatives” greedy with their own money until they need some form of public assistance (education, health care, whatever) , then they complain bitterly.

    Islander, you’re greedy, selfish short sighted and God love you, not very bright. Have a good weekend.

    Current score: 0
  41. 41
    bdk Says:

    I feel sorry for anybody who bought a condo near the intersection of Cambie and Robson. The guys who live in the Catholic Men’s Shelter have already taken over the new bus shelter and ledges in front of the new buildings.”

    That’s where Krissh/Satv/Time/Browntown bought, at TV TOWERS

    I guess he wanted to make new homeless friends.

    Current score: 0
  42. 42
    Drachen Says:
    Rob A

    “my realator phoned me and told me about an offer on my appartment that was 60% below asking price.”

    That was YOUR place?

    Current score: 0
  43. 43
    Via Says:
    People often say the reason why Vancouver real estate will always go up is eager immigrants moving here.

    Well:

    Immigrants turn backs on Vancouver

    Current score: 0
  44. 44
    Drachen Says:
    Scullboy

    “you want to round up all the mentally ill, the drug addicts, and dispossessed, then give them WEAPONS AND TRAINING and turn ‘em loose?”

    And don’t forget, in his world homosexuality is a mental illness.

    Enjoy Cornwallis buddy! Write me a letter.

    Current score: 0
  45. 45
    RealityCheck Says:
    Here is the reality. You have a beautiful little gem like Vancouver that the rest of the world doesn’t really know much about.

    You all of a sudden expose it with winning the Olympic bid.

    You now throw a dash of optimism and excitment and you get the boom we see or should say saw.

    Prices start going through the roof…people want to buy here as we are very cheap compared to the rest of the world. Ok, granted, bargainville. In comes the foreign buyers.

    Reality check: People that have been working and living here most of their lives get kicked in the ass as all those pennies you’ve been saving to buy your little shack with white picket fence has just got a price tag of that mansion you laught at owning in Richmond.

    Enter the second reality check. I don’t know about the rest of you but my wages have not increased 300%..therefore I can’t affort the house and I refuse to pay 300-800k for those Shitshacks they call condos downtown. Gah, have people gone retarded paying those kind of prices for 900 Square foot bachlors?

    It is a simple matter of math. If the market grows beyond the populas’ abitlity to sustain it it will crash down to affordable levels, otherwise you have people leaving the province and going to more affordable and better paying locations.

    I am not saying you will see the homes drop to 300k like they use to be..but that shitbox that people are trying to sell for 800k…I think the wakeup call is gonna hit them so hard they are gonna go back in time.

    I will be looking to buy in 2 years when the Condo and Housing market get into the real range..more like 450-550 range..not 700k-1M … right.

    We now return you to your regularly schedule program……

    Current score: 0
  46. 46
    moldcity Says:
    That’s where Krissh/Satv/Time/Browntown bought, at TV TOWERS. I guess he wanted to make new homeless friends.

    Yes, It’s all part of his plan, didn’t you know the best way to get cheap childcare is to “find a decent looking homeless person”
    :lol:

    Current score: 0
  47. 47
    Via Says:
    “Yes, It’s all part of his plan, didn’t you know the best way to get cheap childcare is to “find a decent looking homeless person”

    LOL. At least he didn’t suggest slavery as the way to afford child care and a house.

    Current score: 0
  48. 48
    Anonymous Says:
    I want to hear all of the real estate boosters publicly pledge that the market is correct in whatever it does and there will be NO REAL ESTATE BAILOUT anywhere in Canada.

    I’m glad to see responsible Americans getting angry about their bailout situation:
    http://www.msnbc.msn.com/id/25836850/

    Current score: 0
  49. 49
    M- Says:
    Anon#41: Westwood Plateau in Coquitlam. It’s a veritable forest of realtor trees. Sorry, it’s hilly, but I was out there a couple months ago, and I’ve never seen anything like it before.

    Current score: 0
  50. 50
    Drachen Says:
    BDK

    “That’s where Krissh/Satv/Time/Browntown bought, at TV TOWERS

    I guess he wanted to make new homeless friends.”

    He probably believes the old wisdom that you tend towards the same level of success as the company you keep. He wants to move up in the world, currently one of his best friends is being shipped of to Delta and the other is developing a bad case of cardboard rot after the incident with the sprinkler system.

    Current score: 0
  51. 51
    jesse Says:
    “Where are the sign forests? Not too hilly neighbourhood please.”

    Not my neighborhood. I’d say 1 in 50 houses are for sale — I have seen many more in past years. There are about 1M dwellings in the Lower Mainland so even 33K won’t look like much in most neighborhoods.

    Current score: 0
  52. 52
    scullboy Says:
    Drachen:

    If homosexuality is an illness, I’m going to call in queer to work on Monday!

    Current score: 0
  53. 53
    patriotz Says:
    As more Americans feel those ripple effects, some are realizing that it’s not just foreclosure victims who stand to lose out, Zandi said.

    Victims? Foreclosure is supposed to be some natural disaster or something?

    Memo to reporters: a mortgage loans advances money to the borrower with a lien on property as security to the lender. If the lender does not get paid back, he has a contractual right to exercise the lien and take possession of the property.

    The real victims are the responsible homeowners who find themselves living next to a derelict house as a result of an irresponsible mortgage borrower and lender.

    Current score: 0
  54. 54
    teak Says:
    “In my neighborhood they randomly put “sold” stickers on For Sale signs, just to take them off a few days later later.”

    I’ve seen that too! In kits, there are a bunch of apartments that have had ’sold’ stickers on them for a few days and then the stickers go away. Could they be offers that fell through?

    The weird thing is the sticker are put on in strange half-assed ways, like hanging part way off the sign or folded in half around the edge. I don’t think realtors are doing this, but I don’t know why anyone would. it makes no sense.

    Current score: 0
  55. 55
    Bubble Lad Says:
    I think Patriotz slant is more accurate. You saved your whole life, you paid your mortgage, you held down a job…and now you’re living next to an abandoned house/crack den because the so-and-so next door wanted to make a ton of cash flipping their piece of crap home by taking on a ninja loan and a line of credit to buy a bunch of crap they don’t even need - HARD CHEESE!

    Current score: 0
  56. 56
    Bubble Lad Says:
    teak

    In kits there are a lot of for sale signs that have been up since early May. A few of them came down (unsold), but it seems like they’re still showing the house…is this some kind of new “stealth” sale to avoid having three or four for sale signs on the same block? It makes no sense.

    Current score: 0
  57. 57
    arit Says:
    I saw the same in Richmond. “Sticker-flicker”.

    And there is also a pair of McMansions on the same crossroads: No4 and Francis. Two corners of the same intersection.

    Both had for sale signs one year ago. Then they went off (sold?), and now they are for sale again. They have been for sale like 3 months. I do not know what to make of it (the northern one was built two years ago).

    Cheers,

    arit

    Current score: 0
  58. 58
    Bubble Lad Says:
    arit, did you coin that term “sticker flicker”? I love it.

    Current score: 0
  59. 59
    Anonymous Says:
    It must be very annoying for the re agent that somebody is taking their heard earned “sold signs” off. I should help them with writing SOLD on the sign with a fat permanent marker. No body can “steal” this sold off the sign. :)
    Current score: 0
  60. 60
    arit Says:
    Bubble Lad,

    LOL, apparently I just did. Not on purpose. Sticker-flicker!

    But I have seen the actual flicker myself. Bob Sethi is the realtor. A big one in Richmond.
    Regards,

    arit

    Current score: 0

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