Friday Free-for-all!
It’s Friday and that mean open-topic time! Here’s a round up of recent news stories:
-House prices drop nation-wide, Calgary leads with -10% YOY
-Western Canadian markets hit hard by housing downturn
-Market correction not a calamity
-Buy our BC home, we’ll give you cash
-Dreams of proper compensation for a huge inconvenience
-Olympic fever and the post games let-down
-New mortgage rules: Ignorance breeds contempt
-US foreclosures up 55% in July
-Higher inflation brings lower standard of living
-Home owners in denial about realty value?
-Another buy one new home get one free offer
So what are you seeing out there? Post your news, links and anecdotes here and have an excellent 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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August 15th, 2008 at 12:41 am
“But analysts expecting an Olympic rally were perplexed, scrambling for explanations and settling on the likelihood that sentiment was sobered by the realization that a two-week festival for the world does not change economic fundamentals.”
August 15th, 2008 at 5:41 am
You had me at the 4th link (buy our BC home, we’ll give you cash), and the last one really cracked me up (buy one new home, get one free)! How do you see the future of the Canadian RE market?
I think this autumn’s gonna be a great one!
Cheers from ReMax Vancouver,
Jay
August 15th, 2008 at 7:32 am
August 15th, 2008 at 7:37 am
August 15th, 2008 at 7:37 am
August 15th, 2008 at 8:18 am
I have a friend in Salt Lake City who’s been laughing at the same sort of people when they were hoping for the same thing a few years ago. Most of the houses (some of which were incredibly built just before the big spectacle on the premise of recovering some of the cost thru “olympic” rentals) remained empty. That’s right, nobody actually bothered renting them out.
And of course, as everyone knows those “olympics” did absolutely nothing to Utah’s economy apart from overinflated egos of some business/real estate owners and the following realization that it was just a dream that never came true.
I guess, once again, history will teach us nothing…
August 15th, 2008 at 8:46 am
August 15th, 2008 at 8:50 am
So nice to see you here again.
Here is an example of when you suggested the Olympics would boost real estate:
http://tinyurl.com/6fb3q9
Don’t you remember?
August 15th, 2008 at 8:51 am
August 15th, 2008 at 9:07 am
BC is blessed with many great things. This province is filled with unbelievable beauty and plentiful resources. There is no reason why BC and Vancouver cannot have the highest standard of living of any jurisdiction in the world. We have only just scratched the surface of our potential here and we are just getting started.
Rich Asians do like BC. They are even building a Vancouver resort in Shanghai!
You might not believe it, but I do. Time will prove me right. You’ll see. Give it 25 to 30 years.
August 15th, 2008 at 9:14 am
August 15th, 2008 at 9:16 am
Based on what, other than wishful thinking, after peak spring sales were so dismal. While during the boom years, fall sales typically pick up after the summer slowdown, 2008 is clearly not a boom year. Even if sales do pick up slightly (debatable), they’d still be far down from previous years.
Reminds me of US realtor Gary Watts’ claim last year that seasonal sales would be “inverted”, with the peak in the fall rather than the spring. Why? Merely because he hoped it would after spring sales obviously tanked.
Jay’s all hyped up on Koolaid and his latest re-reading of “The Secret”, and he mistakenly thinks mindless bluster will carry the day. Keep whistling past the graveyard, Jay.
August 15th, 2008 at 9:26 am
August 15th, 2008 at 9:26 am
August 15th, 2008 at 9:31 am
uh…because our economy can’t achieve that, let alone sustain it?
Oops, sorry for the momentary intrusion of reality. Carry on.
August 15th, 2008 at 9:33 am
“The greatest incentive of all, of course, is a home listed at a fair price.”
No… really?
August 15th, 2008 at 9:38 am
They even talk about renting it out for the full 21days of events - but doesn’t that include Paralympics? It’s a bit of stretch to think thousands are going to flock here for three full weeks - after six days I’m starting to get bored by the Summer ones and there is a lot more going on in them.
Finally - “A relative of a friend answered the door to their place in Whistler, and someone offered them $35,000 on the spot,” Mr. Dyck said.
A relative of a cousin who works with this guy…BULLS**T! People are so naive…
August 15th, 2008 at 9:43 am
Vancouver has the highest cost of living in Canada with incomes at the bottom of major Canadian cities. We are a long way from having the highest standard of living in Canada let alone the world.
Visit toronto. They have more, do more, spend more, earn more, travel more, invest more, save more, are better able to pay for cars, education, housing. They have a much higher standard of living on average than vancouverites.
August 15th, 2008 at 9:44 am
“I think this autumn’s gonna be a great one!”
Wow, I’m glad you agree, but it will be even better once property prices have fallen 60% or so! As an ex premier used to say, Faaaaantastic!
August 15th, 2008 at 9:49 am
“Rich Asians do like BC.”
They may like it but they don’t buy property here. Less than 1% of sales in the last few years in BC have been to people who are Asian residents. That argument is even weaker than the Olympics one you sneer at.
August 15th, 2008 at 10:07 am
Incase you haven’t noticed, about one half of the people who live in the GVRD are immigrants. Of those, a large percent are from Asia. If you assume 2/3rds home ownership, that adds up to a pretty large number.
August 15th, 2008 at 10:11 am
You ask some interesting questions. I’m not a RE expert/professional, so it would be kind of you to share your thoughts, as to when and how to identify the absolute trough.
Your comment is awaiting moderation.
August 15th, 2008 at 10:15 am
More to do? Please…
I have been to every major Canadian city, including Toronto.
August 15th, 2008 at 11:06 am
dave the troll is spanking john the troll!!
whilst koolaid jay should be updating his “ass”book profile…
gonna be an interesting friday all in all
August 15th, 2008 at 11:07 am
Hmm…let’s see as for sports Toronto has
basketball- Raptors
baseball - Blue jays
football- Argonauts
Soccer-toronto FC
Hockey - maple leafs
cool stuff
Toronto Carnival- Caribana 2008
much music
Business
TSE
American express -Canada
Apple Canada
Hewlett Paackard- Canada
major business HQ are all back here in the East
Bc has only 3 major sport venues. What major HQ is in BC. whaat happened to VSE- stock market…
Toronto has alot of employment to support the economy
August 15th, 2008 at 11:07 am
Hanging out in the airport doesn’t count. I’m no fan of Toronto but that’s where the action is (as another poster likes to say). All of the banks’ head offices are there. They have the TSE. They have most of the country’s head offices.
And I hate to school you but they ALSO have most of the immigrants. People coming to Canada don’t land and drop a zillion bucks on a house for themselves and their families. Generally they go where they can earn MORE money and spend HALF what they would here on a house. One of Toronto’s major problems is massive sprawl, but the fact it it’s easier and cheaper to live there.
I’ve lived in every major Canadian city. Even *halifax* has more to do then Vancouver does! Kitchen parties, anyone? Van’s really pretty an all but it’s amazing how few people have spent any amount of time in the other Canadian cities.
And your assumption that 2/3 of “Asian immigrant” is a number pulled 100% out of your ass.
Nice try though.
Oh and Jay Banks: If you think the fall season’s going to be great then for God’s sake, go out there and SELL SELL SELL!
That’s my polite way of saying fuck off.
Bitter renters? Are you *kidding*? You can live in the same property for about 1/3 to 1/2 the cost, which frees up money for saving or investing…. or hell, these days just paying the grocery bill.
I’m an expert cook (I’m starting a business giving cooking lessons to cash strapped condo owners…. my marketing tagline is “so many granite countertops, so few chefs”). Every time I hit the grocery store I am a bit stunned by the costs of groceries. I keep thinking “Wow, thank God I’m not maxed out on expenses!”
August 15th, 2008 at 11:20 am
Too much truth?,hit a raw nerve?
22Real Estate Bull Says:
August 15th, 2008 at 10:11 am
Real Estate Bull { 08.15.08 at 9:08 am } Rob, thanks for the new fresh thread-quick shift this time, some of the bitter renters would attribute the quick change over to some sinister and alternative motive on your part.
You ask some interesting questions. I’m not a RE expert/professional, so it would be kind of you to share your thoughts, as to when and how to identify the absolute trough.
Your comment is awaiting moderation.
August 15th, 2008 at 11:49 am
Screw the single parent who has been priced out of a secure place to raise children.
(Speculator’s greed is more important)
Screw the young family who is trying to put roots down, and has to move before the school year is over.
(Speculator’s greed is more important)
Screw the senior citizen who fought the war, and now has to make way for the wrecking ball.
(Speculator’s greed is more important)
But, Realtor X isn’t a speculator, it’s just a coincidence his business plan works on the basis that price appreciation must be perpetual.
August 15th, 2008 at 12:14 pm
Distinguish “rich immigants” from “rich foreigners”. I agree there are some of the latter but Drachen is right that there are very few of the latter. I would look at the recent trends of immigration to Vancouver. Fewer come from the more affluent countries compared to last decade. I am not certain the money is there like it used to be. My friend coined rich immigants as the “deus ex machina” agument.
August 15th, 2008 at 12:21 pm
They can thank him when they lose future business.
August 15th, 2008 at 12:38 pm
Well, maybe. I like to entice potential clientele by ruffling up their hair and giving them tips on weight loss. It works for me! Also, if I was selling houses, I would be sure to put a picture of my head floating above some…boats. I like my floating head to be smiling and friendly. It keeps people confused, because at first the think I am interested in building a friendly relationship, and then I say something to alienate them. They are so off balance, that they will pay ANY price. Also, I can tell you that markets never operate in cycles. They are completely random and sometimes go in the same direction for infinity. Yay! Jay!
August 15th, 2008 at 12:58 pm
a. is interested (even obsessed in WoW’s case) in real estate
b. is interested in saving/financial planning/investing (ie building up cash reserves)
c. have not yet bough a home in a very saturated market.
so, yes, I would think this is a group to keep in your back pocket for a rainy day. however, I cannot question Jay, if you check his bio you will find that real estate is “his destiny”.
I really did enjoy the laugh, though. But now my sandwich is finished and I have to go back to work!
August 15th, 2008 at 1:22 pm
A few things for you, if you do not mind:
1. It is smart of you to dis-allow comments in your blog. The costly mistake Jean Gibson made caused her to shut down the blog. I strongly do NOT recommend you to allow comments as there are a few people here including myself who would definitely comment in your blog.
2. You have been a realtor for 16 years. Your wife, family, friends, parents and relatives are all realtors. I really, really hope you saved some of those 6% for a rainy day and did not spend all the money on kayaks and golf. When “the day comes” (it came already), who is going to support your family? Who has a REAL income in your circles?
3. In addition, I highly suspect that you have been drinking your own cool aid. If you own presales or flips, better start brushing your “clothes salesman” skills, you are going to need them, or you could always try to convert your experience to sell used cars.
4. The SQL query in your blog is broken, broken, broken. Try finding an unsold house for less than 400,000 in Richmond and you get sold houses over 4 million. The “select all” command for the checkboxes does nothing.
If you need a professional software engineer to fix those small issues, we can arrange something for 6%.
5. Exposing your family (including your daughter’s wife) to the net in a real estate blog is a sin. You have to keep them separated! Work is work, family is family. Would you want your daughter to be verbally hurt by some insensitive bear like those we see here???
Best regards,
arit
August 15th, 2008 at 1:26 pm
It’s already been established the Hong Kong Chinese stopped moving here a decade ago and stopped investing about four years ago.
So that leaves Vancouver with a few buyers from the Middle Eastern Countries who are looking to park their money somewhere “safe”
They will absorb at least a few dozen of the upcoming 10,000 units that will hit the market so there is nothing to worry about.
No bubble here, move along, Vancouver has de coupled from the Global Economy because it’s so great it’s off the Map!
Buy now or be a bitter renter for life.
So if I have this right it’d be better to own a studio in Chilliwack than live in a new water view unit with concierge, pool, gym and be a five minute walk from work and still save $2,000 per month?
Does this make me a bitter renter?
I have co workers taking 1.5 hours to get to work and 1.5 hours to get back, is pride of ownership when the house they live in costs twice as much and will drop thousands per month , on paper, for years really that worthwhile?
How is calling a landlord and having them pay for repairs a bad thing?
Hmmm, I want to paint so if I do the painting the paint is free. Again how is this a bad thing?
If the new neighbours suck I can move to the newer building across the street for the same price.
Are any of us early 30’s quasi professional people really going to still live in the same unit in 40 years?
Are any of these people going to be keen to pay the assesments when they leak?
What about paying mutliple assesments on top of subsidizing the renter by $2,000/month and being underwater on the mortgage and therfore unable to sell without taking a loss of several hundred thousand per unit.
Don’t worry guys, the realtor says it’s different here. Buy now or pay half the price later!!!!
August 15th, 2008 at 1:50 pm
good points arit:
i would be willing to comment also
as Ms. Gibson so willingly enabled me
to do….
August 15th, 2008 at 1:58 pm
If you had half a brain you would realize that Toronto is the only major Canadian city. LOL!
Population of Vancouver - 587,891 (2006 Est.)
Poulation of Baltimore - 637,455 (2007)
Polulation of Toronto - 5,113,149
Population of Missisauga -668,549
August 15th, 2008 at 2:03 pm
“Incase [sic] you haven’t noticed, about one half of the people who live in the GVRD are immigrants. Of those, a large percent are from Asia. If you assume 2/3rds home ownership, that adds up to a pretty large number.”
Are you trying to say that our Asian immigrants are less savvy about real estate matters and more likely to overpay than immigrants of European descent or people who were born here? That’s a pretty racist mind you’ve got there bud.
However, if you look at the immigration figures, ‘rich’ Asians do not figure prominently. To hazard a guess it’s under 5% of immigrants are worth several million or more and hail from Asian countries. At best that bumps the “Rich Asian” quotient up to about 2% of purchases (including residents and non residents).
August 15th, 2008 at 2:09 pm
August 15th, 2008 at 2:25 pm
Yes
August 15th, 2008 at 2:40 pm
August 15th, 2008 at 2:54 pm
August 15th, 2008 at 2:58 pm
a) Grow dope
b) Smoke dope
c) Build condos
d) flip condos
e) talk about condos
The real pros can combine all 5 at once!
August 15th, 2008 at 3:00 pm
The more recent immigrants aren’t significantly wealthier than anybody else and it could be argued are less wealthy overall. Maybe they aren’t declaring their wealth. That must be it.
August 15th, 2008 at 3:03 pm
http://www.canada.com/vancouve.....5582a375a1
August 15th, 2008 at 3:03 pm
August 15th, 2008 at 3:11 pm
August 15th, 2008 at 3:18 pm
Well that does explain a lot about our friend Jay Banks!
August 15th, 2008 at 3:41 pm
Home prices to outpace inflation, CMHC says
Don’t be drinking anything while you read it, ‘cuz it’ll likely spray out of your nose.
August 15th, 2008 at 3:45 pm
August 15th, 2008 at 4:05 pm
Dave, I agree with you here. We should all aim to have a higher standard of living. From Wikipedia:
In the past 30 years income inequality has increased, the poverty rate has increased, and real income is flat to falling. I share your desire to make things better but the track record is not so good. It’s worth thinking about how to turn it around and what is really required to pull it off. That’s the best way of increasing and sustaining long term property values. Repeating platitudes and improving one’s state of mind only improve perceived quality of life, not standard of living.
August 15th, 2008 at 4:26 pm
I’ve moved 3 times in 5 years. Each time the place gets nicer.
Currently pay $1400/month right now for a place worth $530K.
Almost new building, pkg, full amenities, h/w floor, view, concierge, you name it.
August 15th, 2008 at 4:58 pm
Yeah right Muir, gas goes up a few pennies, while the RE bubble packed on a few hundred thousand to the price of homes, and it’s the gas price to blame.
August 15th, 2008 at 5:16 pm
August 15th, 2008 at 6:19 pm
Did I just dream that?
August 15th, 2008 at 6:34 pm
August 15th, 2008 at 6:52 pm
Have I mentioned how happy reading the news makes me this summer. It’s been a long time coming…
August 15th, 2008 at 6:53 pm
Have I mentioned how happy reading the news makes me this summer? It’s been a long time coming… but revenge is so, so sweet.
August 15th, 2008 at 7:39 pm
August 15th, 2008 at 7:51 pm
i came across the phrase
“the bears were right!”
i felt a moment of giddiness
almost zen like …..
after a long tough wilderness
experience i was home….
the bears were right!
the bears were right!
the bears were right!
the beer:
The Tinwhistle Brewing Co.
peach cream ale
the moment: priceless
August 15th, 2008 at 8:23 pm
Do you really believe we will be in Oz by autumn?
All the realtors in town couldn’t shovel that pile of inventory in a month if we tried.