The rise in housing costs is due to our out of control fractional banking system. There is not enough capital in this country to cover the dollars they are supposed to represent. This is not simply a housing issue, but a monetary one. Housing prices never should have risen to the level they were at. Artificially low interest rates allowed more and more Canadians to borrow fiat dollars, which drove up demand in that particular market. How can a country as wealthy as Canada have the majority of its workers, who create its capital, in debt to those who simply hold the promissory bank notes that represent it?

People need to look beyond what they see, a basic and fundamental idea to economics. The British North American act does not permit the Bank of Canada to exist, it is illegal. It is the federal governments job to create money in this country, not a private bank. We’re all being robbed of our money through a steady decrease in purchasing power of the Canadian dollar, through high taxation, and now through the devaluation of equity in our homes. It’s just the start. Educate yourselves and demand change from your local representatives!

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Full article:

http://www.reportonbusiness.co.....iness/home

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Thanks for your thoughts. Let’s get you a gig on talk radio…

A couple of corrections – I’m not talkin any sort of peak land theory. I believe we’re in for a significant correction in Vancouver real estate (35%-45% is a given).

Second, Hubbert’s Peak theory is all about supply and demand. It proposes that the world is reaching the limits of its ability to continue to grow oil production, that this peak is reached at the point where we have consumed half the recoverable oil endowment, and that this peak follows oil discovery peak with a lag. The oil supply curve is inelastic in both the short and long term. Demand has to adapt – including through continuous demand destruction as supplies declines year to year.

short story – while there will be demand destruction, demand will be constantly bumping up against supply

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Peter Ladner said that Vancouver may now has to dip into its contingency fund(whatever that means)to asssit the project .

The project has to complete before the Olympics. Fortress got propped up a bit, but for how long? So is Ladner implying an iceberg on the horizon? If this project starts to collapse, in an already glutted market, what next Fire Sale? or hold out?

Vancouver taxpayers will revolt if they end up being the “bank of last resort”to complete the project (ie tax increases). Fire Sale means low tide for all ships, ie set a new “below sea level” benchmark price.

Some choice. Toss a coin? Or bet they’ll Fire Sale them ! Other developers will be pissed, having to compete against a sinking Gov’t backed enterprise with politicians trying to save their own bacon.

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Oil is subject to the laws of supply and demand like any other commodity. Hubbert’s peak does not impact the price of oil, supply and demand does.

We’re not making anymore land in Vancouver (peak land?) but that won’t prop up real estate prices as long as there is more supply than demand.

One other point, who do you expect to pay higher prices for oil when the there is a global recession? What are they going to use the oil for? If you haven’t already you may want to pick up an Econ 100 text and look up “supply and demand”.

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I was involved on bidding for some residential & commercial assets last year. Here’s what I gathered to the best of my recollection:

1) Court appointed Receiver uses a Broker, who lists the property at market.
2) Broker collects all bids (if none, will keep dropping listed price, until bids come in)
3) Broker delivers all bids to court (6 weeks after 1st bid comes in)
4) Court will usually (but not always) select highest bid.
5) Winning bid must pay in full. No subject period.

If you’re the only bidder at court, you get it. I think you can submit bids right up until court time. If there’s a tie, the Judge has discretion to ask bidders to re-submit higher bids.

Hope that makes sense.

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A couple of observations….first, hats off to the many Vancouver real estate bears.

Second, I’ve noticed that in recent days (either on this site or others similarly focussed), comments that indicate people are raising the prospect of a bottom approaching in the equity markets. Let me be clear, few are actually calling a bottom in the equity market, but I think it’s worth noting when people start to discuss a bottom because it may signal a turn. Also, I don’t in any way suggest I or anyone else is remotely ready call a bottom in Vancouver real estate, where the rout has just begun (even if equity markets stablize and signal a shallow or at most difficult but not calamitous recession).

I do think there is a possibility of a very hard economic landing, but I’m not convinced we’re locked into that path yet. If the swaps market (CDS) splinters, then that is the next leg to drop and I think the economy then could be in for a very bad fall. The CDS market has taken some losses, is frozen, but relatively intact thus far (based on my conversations with participants; intact meaning it’s a cluster#@%# but it hasn’t blown everyone to bits, yet). Here’s the scenario I’d like anyone to comment on: difficult and/or shallow and/or stagnant economic growth worldwide for a period of years(developed countries suffer more than developing, but of those in the latter category it will depend on their current account deficit levels and ability to self finance growth – China will be ok, India ok). We continue like this for some years. In the meantime, oil prices begin to spike back up – i believe oil is oversold…believer in Hubbert’s Peak. I also believe it’s too late to prepare for a peak oil world, so once oil prices resume their climb, we have to go back to dealing (again) with rising transportation/trade/energy and general cost of living costs. That’s when the shit hits the fan – increasing cost of living, credit continues to contract (25 yr credit growth cycle is over, at least in the West.

Bringing it back to Vancovuer real estate – I believe the above scenario would mean we go through a period of falling prices, then at best stagnant recovery (inflation fueled, so perhaps no real returns).

Appreciate any comments from the peanut gallery

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http://biz.yahoo.com/ap/081028.....tdown.html

If American consumer confidence and consumer spending remain extremely low, it will have a large impact on the Canadian economy. If the Canadian economy takes a beating, the real estate market here will just decline that much more.

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The seller should offer a bigger discount than the current average. Face reality, and minimize the loss, which is more like avoid being stubborn grabbing every penny.

This may piss off the other sellers, but it is every seller for themselves as there is no honour amongst speculators.

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http://vancouver.en.craigslist.....06101.html

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Vanman Mon, Oct 27, 08 at 08:08 AM
Vancouver real estate will not drop anymore, interest rates are on the free fall, the US dollar will buy more property here, the Yanks are already buying up here. Panick will get you know where.

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As for tax sales, don’t hold your breath. No mortgage lender will allow a property to go to a tax sale – they will pay the taxes to preserve their lien on the property. I think those tax sales that do happen involve owners whose reasoning is impaired to such an extent that they won’t just sell the property. During the Great Depression tax sales (or forfeitures to the city) happened when property because almost worthless – this happened to Champlain Heights. But it’s not going to happen this time.

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Do Canadian LENDERS accept short sales to avoid foreclosure?

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Ok, I think I get it now, it’s explained pretty well here:

http://www.foreclosures.ca/rea.....mbia.lasso

It sounds like borrowers are given a fair amount of time (6 months) to sell the property to redeem the mortgage.

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