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not just north america.

North America isn’t alone in struggling with the combined challenge of inflationary pressure and economic stagnation.  The fed recently decided to keep interest rates steady, while in the UK they are edging up.  At the same time the ‘credit crunch’ is being blamed for a downturn in Britain as retailers and house builders start to report problems:

The credit crunch hit the high street with a vengeance yesterday as shock figures from Marks & Spencer wiped £4 billion off the value of Britain’s leading retailers.

The grim news from Middle Britain’s favourite store marked a new phase in the economic downturn and threatens the high street with its worst slowdown in 20 years. Adding to the gloom, one of the country’s biggest housebuilders revealed that it was teetering on the brink of collapse. Taylor Wimpey’s value more than halved after it failed to secure rescue funding and said it would cut 900 jobs.

As the global economy is faced with more challenges can BC stay unaffected?

On a side note it’s interesting to see how competition from other locales is showing up in our housing market.  I’ve noticed recently that the ‘for sale’ section of craigslist has been listing a number of properties in Arizona, Florida, California & Ontario.

-thanks to JB for the Times story link.

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30 Responses to “not just north america.”

  1. 1
    Warren Says:
    Bill Good is up to his usual yapping on CKNW. Vancouver is an “international mecca”. He’s got some guy on there who agrees with him. They are talking about Expo 86, the Olympics, blah blah. They compare us to Seattle which is a “domestic city”.

    Sorry to take this off topic.

  2. 2
    jesse Says:
    Video from the ’90s is apropos for this post. The more things change.
  3. 3
    bdk Says:
    Bill Good doesn’t actually believe in the real estate. If he did he’d own property not rent in False Creek North.

    If anyone can afford to be speculating it should be a well paid media character like him.

    He probably knows that warehouse workers with multiple personalities will be forced to rent it to him for a fraction of the carrying costs just so they don’t go bankrupt for decades to come.

  4. 4
    Islander Says:
    I think you’re expecting too much of a news reader. His main qualification is “good hair.” Thinking is not only optional, it’s discouraged and gets in the way of reading cue cards.
  5. 5
    blueskies Says:
    Just say NO!

    refuse to watch “talking head” TV
    don’t listen to “talking head” radio

    ditch the “J6P” mentality
    and think for your self

  6. 6
    s.park Says:
    the uk is different that bc.
    we have mountains and ocean, uk has only hills and ocean.
    this is why we are immune.

    to quote one of my favorite philosophers:
    “can’t touch this.”
    - MC Hammer

  7. 7
    kabloona Says:
    Sports tards are the worst pumpers of all….I remember the dreadful pumping of Expo 86 from that idiot Al Davidson (also on CKNW, imagine that?) when I was a kid….

    By the way, now that I’m back in BC, why is Bill Good still on TV and radio? Geez, die already….. ;-)

  8. 8
    Warren Says:
    I hear about Bill Good renting a lot, and he makes mention to a house he used to live in (and I assume own) in North Van. Does anybody have the real facts on what and when he owned and sold?
  9. 9
    Drachen Says:
    Wikipedia says “recently”. It sounds as though he’s an empty nester and downsized after his kids left home. It might actually have nothing to do with his views on Real Estate. It’s possible that he sold and decided to rent purely for the convenience.
  10. 10
    read on Says:
    to be honest, I think the UK is in for a real bath over the next few years. Prices in London should be high, of course, but you’ve got outrageous prices in cities such as Leeds and Newcastle where incomes really are quite low. Still not as divorced from fundamentals as here though….
  11. 11
    Thums up2 Says:
    BDK,

    After contracting through the first three months of the year, economic growth in Canada had a modest rebound in April, and is expected to end this year at 1.4%,
    http://www.financialpost.com/story.html?id=629717

    Month over,year over,decade over,when ever what ever vancouver, b.c.
    “THE BEST PLACE ON EARTH”
    http://www.istockphoto.com/file_closeup … id=4356193

  12. 12
    patriotz Says:
    It’s possible that he sold and decided to rent purely for the convenience.

    Renting instead of buying because it is more convenient is an economic choice, and is one of the reasons why renting is (or is supposed to be) more expensive than buying.

    They compare us to Seattle which is a “domestic city”.

    Take that, Microsoft!
    Who do you think you are, Boeing?
    Who drinks Starbucks?
    Who shops at Costco anyway?
    You’re a nobody, amazon.com!

    You’re just a bunch of homeboys! Lululemon rules!

  13. 13
    Spincycle Says:
    Isn’t this global economic downturn just like receiving the bill after living off credit cards for too long? Was it really unexpected?
  14. 14
    Warren Says:
    I think Seattle was considered “domestic” and Vancouver “international” because there are a lot of rich jet setters who have apartments here they don’t use, etc.

    I’m sure there are some, but I don’t think they impact RE on any significant scale.

    Who knows, typical Bill Good BS. He mentioned his “friend” Bob Rennie told him lots of international people are buying up Vancouver RE. Didn’t Rennie already go on record saying less than 10% of pre-sale buyers were from out of BC?

  15. 15
    Spincycle Says:
    Jesse that spitting image video is hilarious! I hope you don’t mind, I posted that in the forum here.

    The more things change the more they stay the same.

  16. 16
    Spincycle Says:
    Someone forgot to tell Seattle that they’re “domestic” and not “international”

    http://www.msnbc.msn.com/id/24882849/

    Peter Oh, a Seattle real estate agent, is planning to open a showroom to market 21 condominium buildings in the Puget Sound region. But he’s not looking for a storefront location in downtown Seattle, nor is he planning to locate among the many new high-rises in nearby Bellevue across the lake.

    Instead, he’s creating a marketing office 5,000 miles away — in South Korea.

  17. 17
    bdk Says:
    Drachen, i agree it’s more convenient and costs 1/3 of the carrying costs of a mortgage plus it won’t go down in price for decades to come, especially TV Towers.
  18. 18
    mk-kids Says:
    My hubby found “Mr. Housing Bubble” online yesterday and thought we’d all get a kick out of him. I have linked here to a 2005 article in USA today because it profiles Mr. Housing Bubble and reading the date on the article made me laugh… August 16, 2005. What was “timely” in the US in 2005, is finally “timely” in Vancouver 3 years later.

    http://www.usatoday.com/money/perfi/hou … bble_x.htm

  19. 19
    patriotz Says:
    Instead, he’s creating a marketing office 5,000 miles away — in South Korea.

    When the local market runs out of greater fools, look for them abroad. Same old, same old. Like Phoenix marketing to Albertans, etc.

    Won’t work for Vancouver though because we’re the last ship to go down.

  20. 20
    Anonymous Says:
    Vancouver’s architectural style in spotlight at London exhibit-The Vancouverism exhibition is scheduled for Paris this fall, and then will be shown in other parts of Europe and Asia. It could return to Vancouver for the Olympics in January and February 2010.
    http://www.cbc.ca/canada/british-columb … ml?ref=rss
  21. 21
    Van-zee Says:
    Patriotz says.

    ” They compare us to Seattle which is a “domestic city”.
    Take that, Microsoft! Who do you think you are, Boeing?
    Who drinks Starbucks? Who shops at Costco anyway?
    You’re a nobody, amazon.com!
    You’re just a bunch of homeboys! Lululemon rules!”

    This echos something that has been bothering me about the Canadian and Vancouver economy. The City may be “international” but our brands and businesses are quite domestic. Where are our great Canadian brands of international stature? We can’t just flip condos to each other, sell our resources and pimp out our education system and thrive. We need more innovative businesses that can compete globally or become increasingly redundant as a country.

  22. 22
    Drachen Says:
    Pretty simple exhibition to put on Anonymous.

    “You’ll note over on the right we have a sieve and on the left a Vancouver condo. At first you may notice little difference, they’re both the same size, they both let water pass through as if that was their design and they both smell of Kraft Dinner. The real difference is that people pay $1.99 for the sieve and $599,000 for the condo.”

  23. 23
    betamax Says:
    I think you’re expecting too much of a news reader. His main qualification is “good hair.” Thinking is not only optional, it’s discouraged and gets in the way of reading cue cards.

    LOL. Harsh but true. Most journalists have an arts degree and/or 2-yr journalism diploma. They can’t do math and know nothing about economics. Bill Good is either pimping for sponsors or just too stupid to realize his own hypocrisy.

  24. 24
    dingus Says:
    Speaking of journamalism, the snowball at the Sun is picking up speed…

    Greater Vancouver house prices drop slightly
    Derrick Penner , Vancouver Sun
    Published: Thursday, July 03, 2008
    VANCOUVER — Lower Mainland house hunters are now in a buyers market with prices that have eased slightly off of earlier-year highs in many markets, according to the latest report from the Real Estate Board of Greater Vancouver.
    The region saw 2,425 sales registered through the Multiple Listing Service in June, the board reported, a 43-per-cent decline from the same month a year ago.

    At the same time, owners listed 6,546 properties, an 18 per cent increase from the same month a year ago.

    At June 30, Greater Vancouver’s inventory of unsold properties stood at 18,260, a 54-per-cent increase from a year ago.

    And while so-called benchmark prices in June were still up over the same month a year ago, in many markets typical prices were down slightly from benchmark prices in May.

    The Greater Vancouver benchmark price for a detached house was $765,654 in June, up 7.3 per cent from the same month a year ago, but down from the May benchmark of $771,250.

    In the Fraser Valley, realtors recorded 1,418 MLS sales, a 31-per-cent decline from the same month a year ago. At the same time, 3,236 new listings hit the market, bringing the valley’s total inventory of unsold homes to 11,295, a 47-per-cent increase from the same month a year ago.

    The Fraser Valley’s average detached house price hit $561,771 in June, a six per cent increase from the same month a year ago.

    http://www.canada.com/vancouversun/news … 5a692e3a5d

    Odd that they reported on a MoM decline when YoY is still positive, doncha think? Very un-Sunlike.

  25. 25
    snark Says:
    Pshaaw - house prices always drop a little in the spring and summer. Just wait till we get to the hot winter selling season, then prices are sure to pick up again.

    Wait? House priced dropped? In Vancouver?! In June?!?

    Ok everybody, please proceed to the exits in an orderly fashion and repeat after me “there is no bubble.. everyone wants to buy here.. its different this time”

  26. 26
    freako Says:
    I hear about Bill Good renting a lot, and he makes mention to a house he used to live in (and I assume own) in North Van. Does anybody have the real facts on what and when he owned and sold?

    Don’t when or if he sold, but many many years ago, he lived in a house in the Montroyal area, on or just off Cliffridge/Ranger I believe.

  27. 27
    browntown Says:
    hey bdk nutbagger! spend more time talking to mortgage broker and less time fantasizing about this krish? and watching “fight club” movie! tv towers ready for next show-next leg up! when everyone talking time to sell it means time to buy! ready go corner office money bags!
  28. 28
    ulsterman Says:
    I noticed in Chapters yesterday LIFE Magazine has a special edition all about the 100 best places to see on earth. It’s broken down into various categories: spectacular cities, romantic locations, natural wonders etc. Guess what? They forgot to include the Best Place on Earth! The only Canadian entry was Nova Scotia. Surely there must be some mistake?
  29. 29
    bdk Says:
    I think smart guy and rich I am and buy many condo to make rich I thought but now market go down and I work second job as deliveryboy because best place and 1% foreigner buyers come and make price go down 53% on earth who is krish?
  30. 30
    alexcanuck Says:
    Not only did the Vancouver Sun say DROP along with HOUSE PRICE, it appeared as a teaser on the front page! I just love that moment at the top of a roller coaster, before your stomach jump into your throat! Just a little drift gently down, this won’t be so bad, will it?