suddenly poorer, condo prices to fall furthest.

It looks like the ‘correction’ phase of the Canadian real estate market cycle is picking up steam and Vancouver is strapped to the front on the locomotive.  Homeowners who relied on property values to boost their net worth are discovering that they’re suddenly poorer than they were a year ago:

When Pat Webb moved to Vancouver a year ago, she didn’t think twice about buying a condo in tony Kitsilano, among the hottest neighbourhoods in the city’s booming real estate market.

But in August, the 70-year-old retiree decided to move back to the United States. She had sensed Vancouver’s market was slowing, but a neighbour’s condo had sold a week earlier, so she too tried to sell.

She listed her one-bedroom, 705-square-foot condo for the price she paid – $509,000 – on Aug. 30. Ms. Webb has since reduced that to $485,000. It still hasn’t sold.

And condo owners in downtown Vancouver are predicted to suffer the most in coming years:

Condo owners in downtown Vancouver are at greater risk for price depreciation than single-family homeowners in the suburbs, a BMO Capital Markets economic analyst said Tuesday.

“Condo prices could drop faster because of overbuilding,” Robert Kavcic said in an interview. “When you have excess in the market, that pushes prices down.”

A BMO survey released Tuesday suggested B.C.’s housing starts have to fall by about 25 per cent from current levels to return the market to sustainable numbers.

For those wondering why people would hold on to an investment that by all measures is set to decline for years, you can blame denial, which can be an incredibly strong force.  For an example of denial at work just look to the US where prices have been falling for two years and realtors still struggle to get the message to owners who believe that their property is different and is actually gaining value.

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NO -LYMPICS

Liars Poker:

Excellent Book !

That cemented my skepticism of how the system really works.

Shows how history repeats itself and much of the bubble's genesis

babzenuda

93: "Your neighbour must have overpaid."

Ya think? 🙂

Keeping an Eye on Th

It is true that the provincial government will pay public servants to work for the Olympics, with their salaries not accounted for in the tally of the games’ cost.

GORDO, traitor to free enterprise.

Tom Vu

The key to making money in real estate is to know how to locate bargain properties. Bargains are everywhere right now. To buy you have to be a doer, not a loser. Vote green for doer and red for loser!!!

Anonymous

I found this cool graph of the tsx from 1981 to 2007

http://www.cbc.ca/news/interactives/map-tsx/

patriotz

Does anyone know if it is true that the Provincial Government will pay pablic servents to volunteer?

That's an oxymoron. If they're paid, they're not volunteers.

It is true that the provincial government will pay public servants to work for the Olympics, with their salaries not accounted for in the tally of the games' cost.

Thank you Gordo.

bearette

Speaking of Ponzi Schemes (and Ponzi sailed to America on the aptly named S.S. Vancouver, no sh*t)… This excellent Michael Lewis (of Liar's Poker fame) article will scare the hide off the craggiest stock market bear. Did me. We ain't seen nothing yet. One of the best things I've read all year in my near ADD-level of house and stock bubble article browsing http://www.portfolio.com/news-markets/national-ne… "But he couldn’t figure out exactly how the rating agencies justified turning BBB loans into AAA-rated bonds. “I didn’t understand how they were turning all this garbage into gold,” he says. He brought some of the bond people from Goldman Sachs, Lehman Brothers, and UBS over for a visit. “We always asked the same question,” says Eisman. “Where are the rating agencies in all of this? And I’d always get the same reaction. It was a… Read more »

Nobody!!!!!

Sorry Bdk at 105,i forgot to tell you that your answer is located in the handle please double check it.

Nobody!!!!!

"Larry Yatkowsky is an active realtor in Vancouver"

Damn another one to join one in Florida,Wrap up your office Yatokowsky or join your brother on the front page in florida. Your Job Yatokowsky your job is going to leave your soul hold it tight.

Tom Vu

I never forget what my grandfather told me: There are two kind of people in life: the doer and the loser. Which one are you?

Nobody!!!!!

CZ,

Do you think this site will help you to sell your home?

In your own words The suffering unparalleled, cried out for Buyers.

Then Why did you list your home? Take it out off market or else your realtor will ask you to Reduce asking prices If there is no buyer what's the point of price reduction? Simply take it off before you go also tell us why were you selling this home, WHYYYYYYYY?

CZ

See YatterMatters: no sell in 12 days of van west side:

http://www.yattermatters.com/

We regret to inform you.

In the past 12 days, the Vancouver west side detached real estate market died.

Say It Ain’t So

Each day, the blushing love for Vancouver’s west side real estate faded. A total of twelve days evidenced statistical blood lying on the floor of high priced glories past. The suffering unparalleled, cried out for Buyers.

OC

Macronomics Says: > “My next door neighbour has been trying to sell their condo for 4 months now. He bought it last year at $410K. He first listed it at $420K, then cut to $400K, then cut to $370K, then cut to $330K, and now it’s at $300K.” > "Your neighbour must have overpaid. > I don’t think we’ve hit 26.8% decline yet. > Did they destroy the unit or something?" This is a misunderstanding of how markets work. You are comparing price changes on an individual home vs aggregate price changes in the market as a whole. The two do not necessarily track that closely. You should not be surprised if individual homes or neighborhoods deviate significantly from the average or median numbers. For example, even though the DOW is "only" down 35% for the year, some individual stocks… Read more »

Keeping an Eye on Th

Sorry about the spelling, I am working with a old version of Wordperfect and the spelling file is corruptedsked.

Keeping an Eye on Th

John Furlong of Vanoc, tells how we could do our civic duty and help out during the Olympics buy shutting down some of our businesses, and take, or mandate holidays so that we can reduce congestion and perhaps volunteer our time.

I would like to volunteer to look after our female visitors “needs”; I prefer females early 20’S,

But will settle for mid 20’s if athletic and rich.

http://www.canada.com/vancouversun/news/story.htm

Sadly, there are fools who will actually go along with this.

Does anyone know if it is true that the Provincial Government will pay pablic servents to volunteer?

Does anyone know if they are looking for volunteers with my special talent?

macchiato

“My next door neighbour has been trying to sell their condo for 4 months now. He bought it last year at $410K. He first listed it at $420K, then cut to $400K, then cut to $370K, then cut to $330K, and now it’s at $300K.”

What I've noticed:

I've been following a few, West Side, and I've seen one go from 399K to 325K. another on the same street is 319K, it would have gone for >400K at peak. So, the whole street has been pressured to re-price downward … problem is, no one is buying. Everything is just sitting.

Then there are the jokers who are just wasting time, like this 390sq/foot studio in Kits/Arbutus for 289K, hilarious.

NO -LYMPICS

Dingus:

Not disagreeing.

Read the link below. Canada is mentioned as well.

http://network.nationalpost.com/np/blogs/fpcommen

The pendulum swing of correction by desperate Gov'ts

In a reducto ad absurdum sense….too much of a good thing can be = too much of a bad thing.

Alexcanuck

Dingus: Yes, of course debt can and is used wisely. But we appear to have a systemic collapse brought on by far too much bad debt. We CANNOT fix it! Either the debt get inflated away, or it gets defaulted away. Either way the current economic model is dead for a while, and we are in for a deep, nasty recession. Right now it looks like Mish is right, and we are in a deflationary collapse of debt. A total freeze-up of credit markets is a very, very bad symptom to have in an economy. But it is a symptom, NOT THE DISEASE! The ONLY people accepting more debt right now is the last ones you want to have it. With my lack of ANY debt, and fair cash reserves I could singlehandedly make more contribution to the Vancouver Westside… Read more »

dingus

alex and N-O We are talking different things. Overextending and incurring debt that can't be paid off is bad bad bad. But credit and debt aren't evil or morally repugnant in and of themselves. What do you think happens to the money you put in a savings account, and why does it earn interest? All businesses operate with credit, whether it's vehicle or equipment leases, lines of credit, or financing of asset purchases. It's not that scary. Imagine if you had to save up the entire cost of a house. Or if someone who wanted to start a business had to finance the whole nut through personal savings. Purchase all your equipment as a 100% outlaid capital cost. Collect your accounts before you pay salaries. It can't be done. One of the problems of the 30s was the people refused… Read more »

Drachen

Richard

Harper and Flaherty are such idiots. Yeah, great idea guys, let's sell off national assets at a time when we're sure to get bottom dollar for them simply for a short term political gain.

Good job Canada re-electing that pack of thieves.

Anonymous

LOL, things are so bad, the government is selling off Canada! Good find richard

Macronomics

Anonymous said

"My next door neighbour has been trying to sell their condo for 4 months now. He bought it last year at $410K. He first listed it at $420K, then cut to $400K, then cut to $370K, then cut to $330K, and now it’s at $300K."

Your neighbour must have overpaid.

I don't think we've hit 26.8% decline yet.

Did they destroy the unit or something?

richard

considering selling national assets.

that can't be good. i'd better stop reading the papers. all this bad news is starting to get to me. i guess we'll all find out how bad it's going to be soon. good luck everybody.

Alexcanuck

Like it or not, the economy runs on credit. When that credit evaporates, the engine seizes, and we’re back in the 30’s. A scary thought indeed! But what if the old stories that warn against living on credit are true? It's sure looking a lot like the lead-up to the great depression, which is what "they" are positive they can avoid this time. "They" also said we didn't have a problem to begin with. "They" were wrong then. Like it or not, what I see out there looks like what Mish is describing more than it looks like what "they" are repeating like a mantra.. What if he's right? Here is a key, older post on "Peak Credit". "Peak credit has been reached. That final wave of consumer recklessness created the exact conditions required for its own destruction. The housing… Read more »

NO -LYMPICS

If it WALKS like a ponzi scheme ….TALKS like a ponzi scheme …and LOOKS like a ponzi scheme..it IS a ponzi scheme.

Of course the system runs on credit.

However, credit should be run like a control valve but not on par with a Titanic-esque leak .

Those at the top either took advantage of the situation or were ignorant of the potential.

The saying "Gov't can NOT go broke " was made a few decades back by an insightful party as the world became more and more addicted to credit and most at the top of the system who are often the greatest beneficiaries from such voodoo economics have never forgotten that Gov't can NOT go broke.