Comments on: House prices drop below 2007 levels http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html?utm_source=rss&utm_medium=rss&utm_campaign=lower-mainland-home-prices-drop-below-2007-levels Bubble? What Bubble? Thu, 24 May 2012 13:58:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: day http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-34764 day Fri, 05 Dec 2008 08:06:51 +0000 http://vancouvercondo.info/?p=592#comment-34764 never mind 2010.Lower mainland house prises are going to drop by 50% in 2009.We will be in 1995 level again. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-34764">0</span> <small>(to vote for this comment, please visit the site)</small></p> never mind 2010.Lower mainland house prises are going to drop by 50% in 2009.We will be in 1995 level again.

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]]> By: day http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-34027 day Sat, 29 Nov 2008 10:49:45 +0000 http://vancouvercondo.info/?p=592#comment-34027 house prises in lower mainland will fall about 190000.00 to 200000.00,below the city assessement 2008.Becouse city don't buy houses,and buyer's already lost money in stocks.Rent dont carry mortguage anymore,foreclousers are up,we are in RESSASION,we are loosing jobs everyday.Everything have to come down and economy have to restart again from the bottom. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-34027">0</span> <small>(to vote for this comment, please visit the site)</small></p> house prises in lower mainland will fall about 190000.00 to 200000.00,below the city assessement 2008.Becouse city don't buy houses,and buyer's already lost money in stocks.Rent dont carry mortguage anymore,foreclousers are up,we are in RESSASION,we are loosing jobs everyday.Everything have to come down and economy have to restart again from the bottom.

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]]> By: Anonymous http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-33770 Anonymous Thu, 27 Nov 2008 01:27:24 +0000 http://vancouvercondo.info/?p=592#comment-33770 Dosh Says: October 2nd, 2008 at 4:53 pm Deja, your a clown. whats your point? that some of my predictions were off? so what? Real estate is a long term investment. Your probably one of those idiots who predicted a 50% drop and prices are down less than two percent from last year. Anyone who bought in 2006 or before still has lots of equity built up.<p class="top-comments">Current score: <span class="top-comments-karma" id="karma-33770">0</span> <small>(to vote for this comment, please visit the site)</small></p> Dosh Says:
October 2nd, 2008 at 4:53 pm
Deja, your a clown. whats your point? that some of my predictions were off? so what? Real estate is a long term investment. Your probably one of those idiots who predicted a 50% drop and prices are down less than two percent from last year. Anyone who bought in 2006 or before still has lots of equity built up.

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]]> By: Anonymous http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27583 Anonymous Wed, 26 Nov 2008 17:27:24 +0000 http://vancouvercondo.info/?p=592#comment-27583 Dosh Says: October 2nd, 2008 at 4:53 pm Deja, your a clown. whats your point? that some of my predictions were off? so what? Real estate is a long term investment. Your probably one of those idiots who predicted a 50% drop and prices are down less than two percent from last year. Anyone who bought in 2006 or before still has lots of equity built up. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27583">-2</span> <small>(to vote for this comment, please visit the site)</small></p> Dosh Says:

October 2nd, 2008 at 4:53 pm

Deja, your a clown. whats your point? that some of my predictions were off? so what? Real estate is a long term investment. Your probably one of those idiots who predicted a 50% drop and prices are down less than two percent from last year. Anyone who bought in 2006 or before still has lots of equity built up.

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]]> By: cashking http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-29668 cashking Fri, 24 Oct 2008 02:17:54 +0000 http://vancouvercondo.info/?p=592#comment-29668 The irony of this for non-owners may be that when prices are finally low enough to buy in again (2010 perhaps), low interest rates will probably be no longer available. For those renting and gloating, I think you'd better get used to renting for some time to come as owning will be out of reach. Oh well, at least you can enjoy your investment returns in the meantime (not). As a home owner that has made 80% on my RE investment over the last 5 years, I can't complain about losing perhaps 20-30% on a house in kits. My wife and I are still considering selling and renting at this point (slightly over the peak), but we enjoy our home too much. We've lucked out. Look, I think we're all in for some tough times, at least those with a life (kids, careers, money). Don't wish for upper/middle-class economic disaster too much - it'll take down everyone else too. I also feel that it's not fair that we are forced to bail out the banks at times like these, but can we really afford to cut off our own legs. We're in it together - whether you like it or not. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-29668">0</span> <small>(to vote for this comment, please visit the site)</small></p> The irony of this for non-owners may be that when prices are finally low enough to buy in again (2010 perhaps), low interest rates will probably be no longer available. For those renting and gloating, I think you'd better get used to renting for some time to come as owning will be out of reach. Oh well, at least you can enjoy your investment returns in the meantime (not).

As a home owner that has made 80% on my RE investment over the last 5 years, I can't complain about losing perhaps 20-30% on a house in kits. My wife and I are still considering selling and renting at this point (slightly over the peak), but we enjoy our home too much. We've lucked out.

Look, I think we're all in for some tough times, at least those with a life (kids, careers, money). Don't wish for upper/middle-class economic disaster too much – it'll take down everyone else too. I also feel that it's not fair that we are forced to bail out the banks at times like these, but can we really afford to cut off our own legs. We're in it together – whether you like it or not.

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]]> By: Nutty Professor http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27658 Nutty Professor Fri, 03 Oct 2008 13:05:06 +0000 http://vancouvercondo.info/?p=592#comment-27658 Wait a minute... "Gone Are blah, blah -0% down" Then: "-5% cashback without 5% down coming from client" Isn't that 0% down? <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27658">2</span> <small>(to vote for this comment, please visit the site)</small></p> Wait a minute…

"Gone Are

blah, blah

-0% down"

Then:

"-5% cashback without 5% down coming from client"

Isn't that 0% down?

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]]> By: markx http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27619 markx Fri, 03 Oct 2008 07:02:00 +0000 http://vancouvercondo.info/?p=592#comment-27619 OK, I mean rent equivalent based on CURRENT market rent, that is rental places that don't take a month of full time searching to find at today's vacancy rates. Even after adjusting for inflation, rent has risen since 2001, and faster than income, due to increasing labour participation rate. That's why I say rent equivalent by 2009, which would put us at 2005 prices.(I'm giving myself a bit of a margin here. Don't want to say when in 2005.) After 2010, there's really no bottom to prices, as there won't be much of a bottom for rent. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27619">2</span> <small>(to vote for this comment, please visit the site)</small></p> OK, I mean rent equivalent based on CURRENT market rent, that is rental places that don't take a month of full time searching to find at today's vacancy rates. Even after adjusting for inflation, rent has risen since 2001, and faster than income, due to increasing labour participation rate. That's why I say rent equivalent by 2009, which would put us at 2005 prices.(I'm giving myself a bit of a margin here. Don't want to say when in 2005.) After 2010, there's really no bottom to prices, as there won't be much of a bottom for rent.

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]]> By: patriotz http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27607 patriotz Fri, 03 Oct 2008 00:15:58 +0000 http://vancouvercondo.info/?p=592#comment-27607 We weren't talking about fundamental value, which is based on estimates of future rents, expenses, and interest rates, but about rent equivalence at time of purchase, which is a fact (you either have it or you don't). Fundamental value of course depends on interest rates over the long run, as that is what is used to discount future earnings. If you were able to borrow money in perpetuity the discount rate would be known, but it must be estimated. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27607">2</span> <small>(to vote for this comment, please visit the site)</small></p> We weren't talking about fundamental value, which is based on estimates of future rents, expenses, and interest rates, but about rent equivalence at time of purchase, which is a fact (you either have it or you don't).

Fundamental value of course depends on interest rates over the long run, as that is what is used to discount future earnings. If you were able to borrow money in perpetuity the discount rate would be known, but it must be estimated.

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]]> By: Drachen http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27605 Drachen Thu, 02 Oct 2008 23:27:14 +0000 http://vancouvercondo.info/?p=592#comment-27605 <b>Patriotz</b> Oh right, I don't believe interest rates really affect fundamental value significantly though... I understand why you do, I just disagree. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27605">2</span> <small>(to vote for this comment, please visit the site)</small></p> Patriotz

Oh right, I don't believe interest rates really affect fundamental value significantly though…

I understand why you do, I just disagree.

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]]> By: patriotz http://vancouvercondo.info/2008/10/lower-mainland-home-prices-drop-below-2007-levels.html#comment-27602 patriotz Thu, 02 Oct 2008 23:06:56 +0000 http://vancouvercondo.info/?p=592#comment-27602 <i>1987! (that’s around when we last saw rent equivalence Patriotz)</i> I don't think so, some properties - condos in particular - were rent equivalent in 2001-2002 and I have seen postings from buyers to that effect. Remember interest rates were a lot lower in 2001 than in 1987. <p class="top-comments">Current score: <span class="top-comments-karma" id="karma-27602">2</span> <small>(to vote for this comment, please visit the site)</small></p> 1987! (that’s around when we last saw rent equivalence Patriotz)

I don't think so, some properties – condos in particular – were rent equivalent in 2001-2002 and I have seen postings from buyers to that effect.

Remember interest rates were a lot lower in 2001 than in 1987.

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