Friday free-for-all!

It’s time for our end of the week open topic discussion and news round up.  Here are a few links I’ve notice lately:

Vancouver Real estate sales grind to a standstill
-November: More houses sold in Edmonton than Vancouver
Food bank gears up as layoffs begin
BC house price predicted to keep rising (March ’08)
-New Quotes have been archived in the Wiki Quote-tracker
Canadian bankruptcies jump in October
Concord Pacific chops down trees, then gets permit
-A question of priority: City residents or Vanoc?
Taxpayers will pay extra security cost for torch route
US style housing collapse could cost tax-payers plenty
Vancouver prices dropping faster than US bubble cities
Bay Area House $348k in 2006, today $79,900
Victoria sales hit nine year low
Saving money by shutting down the government

So what are you seeing out there?  Post your news, links, thoughts, predictions and anecdotes here and have an excellent weekend!

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NO -LYMPICS
NO -LYMPICS
11 years ago

Re Post # 189: Good point,(re: rentals ) but that can be a function of the given strata bylaws. Some stratas limit the number of rentals aka "investment properties" . Probably best to see what % of units in any strata you may wish to purchase are actually allowed to be rented. In some stratas it is very low. However, in the RE meltdown, I wonder if both new and old stratas alike already are , or may become ,far more liberal and flexible on the % of rentals allowed within their own stratas, which may have the negative consequences you alluded to. If you can't own it AND live in it, the next option is renters. I highly doubt many of these new condo units which remain empty in " UNused pristine condition" and collapsing in value by the… Read more »

betamax
betamax
11 years ago

"Polygon…usually 3 storey walk walk up condos…the odd apartment condos, but stay around 3-4 storeys."

4 stories or less means wood frame construction, much cheaper and quicker to build than a tower. Obviously less units, but they can bang them up quicker with less code restrictions, less skilled labour, etc.

When I went to a Polygon open-house, the first question I was asked was if I was buying an "investment property". Some of those Polygon low-rise complexes are just going to turn into rental slums in the years to come.

NO -LYMPICS
NO -LYMPICS
11 years ago

Re Surrey's Infinity towers

Province story:

http://www.theprovince.com/Concord+Pacific+finish

QUOTE:

"We're certainly delighted to have Concord Pacific finish the project," Surrey Mayor Dianne Watts said yesterday. "This announcement reinforces our confidence in the strength of Surrey's local economy."

The mayor called the Infinity development a "gateway project" for the entire city.

WARNING!!! WARNING!!!! WARNING !!!!use by any politiician of the word "gateway".

There is something in this for Concord, they didn't get successful doing charity work.

NO -LYMPICS
NO -LYMPICS
11 years ago

Post # 162 Re: Polygon refocussing on smaller condo projects and avoiding concrete towers. I was wondering about that givne the RE meltdown … some of these companies still have to keep busy. The problem with the last bubble was that firms feel literally forced to move from their normal bread and butter and compete in a newer high stakes market. This of course, exacerbates the over-supply of these units, and what is the quality of the product by this new competition?….. are they capable of delivering a quality product during their own learning curve ? Hi – rise construction and supply in any given year used to be a relativey conservative endeavour in any jurisdiction, , but the pace over the past few years was mind – boggling. I had noticed that when the market was on the upswing,… Read more »

paul
11 years ago

#53, Cold Calling is a big part of every good salesmans repetoire. You would be surprised as to how many people can't make a decision on thier own. As a kid selling real estate decades ago I personally 'called' at 200 doors a day and made an adittional 200 phone calls from my office before and after. Selling anything is a numbers game pure and simple. Introduce yourself to enough potential clients and buisness will come your way. I taught many people this strategy in my day and guarantee that it works. Don't take it personally when someone asked you to buy or sell something, it's thier business. I got rich in sales and retired at 42. Next time someone knocks on your door you should interpret the effort as coming from someone with initiative as opposed to the lazy… Read more »

patriotz
patriotz
11 years ago

"W" is going to be a symbol of the stupidity and avarice of this decade in Vancouver, just as another "W" will be a similar symbol south of the border.

NoCondoBuy
NoCondoBuy
11 years ago

I am really waiting for the Woodward Development to be completed. I think lots of people paid way over for this development given its location and a lot of units don't have any parking.

EB
EB
11 years ago

"1217 square feet

No pets and no smoking

Rent: $3500"

Good grief you can rent an entire house in British Properties in North Van for that. A nice house.

But of course I'd much rather have a concrete apartment on No. 3 road. Wishing rent.

NO -LYMPICS
NO -LYMPICS
11 years ago

Aberdeen ( Richmond condos ? )

Having extended family that once lived a few doors down from Aberdeen …these condos will be under a constant noise corridor.

We used to sit immediately East of Aberdeen and literally read the serial number off the 747's. The noise was unreal…had to pause betweeen conversations.

For some reason unknown ( though I have heard anecdotally too many times that BRIBES work in Richmond to NOT believe

them ) the City made a single exception to allow a condo development at Aberdeen in that area right under the flight path.

There is not another multi – family development for at least a half mile, only real "advantage"(?) is Aberdeen is adjacent to the RAV line. Err sorry I mean "Crime – train".

patriotz
patriotz
11 years ago

It's not a buyer's market until the buyer is making a smarter decision than the seller, and we don't get there until prices stop falling, Davey boy.

Browntown's her
Browntown's her
11 years ago

"Home sales are not keeping pace with the positive economic conditions in BC," said REBGV president, Dave Watt. "That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market."

yaa
yaa
11 years ago

This is hysterical, why rent at shangri la when you can rent on no.3 in richmond…

Location: Aberdeen Residence (Cambie Rd & No 3, Richmond – right next to Aberdeen Centre)

this building is great if you love airplanes. when the wind is blowing the wrong way, you get to hear airplanes taking off right over your head all day long! though i understand they may have put in "extra-special" glass to reduce the thunder of the old cargo hauling clunkers that take off in the evening… my guess is that this building is popular with hong kong people who long for kai tak, the old hong kong airport, but that's only my guess…

Tulip-Mania
11 years ago

Lothian Vasquez, I do see your point, however, what happens if the massive injections don't work.

So far it hasn't worked, resources etc are falling hard.

Lothian Vasquez
Lothian Vasquez
11 years ago

Deflation is actually a very good thing, to be hoped and prayed for, or, more constructively, brought about as a matter of policy. Money regains value, frugality and productivity is rewarded, efficiency reigns and stability (everntually) returns.

But it ain't on. Not beyond a little recession/correction-induced asset and price deflation due to end shortly before the recession does and MASSIVE amounts of new digital money makes its way through the pipeline, circa late 09, early 10.

Then, perhaps not hyper, but certainly mass, inflation is the name of the game…

Tulip-Mania
11 years ago

Actually deflation forces productivity. You cut your employee's wages, or you invest in automation, or you import more from third world countries, and reduce the amount of manufacturing you do locally.

Either way, you know the bus loads of people going to those low paying jobs in Richmond, are going to decline and so will the wages, but not the giant debt load on that leaky shoe box sized condos.

Yeah these poor modern day slaves are Rennie’s victims who listened intently to the Bill Good Show, and used to post bullish posts on Rob Chipman’s blog.

patriotz
patriotz
11 years ago

That's not the reason. If the real yield on capital is greater than the real interest rate, that's an incentive to invest money even if prices are falling.

The reason there is a lack of investment during deflation is lack of consumer demand for the output of capital.

Also, one more time, do not confuse asset price deflation, better known as a bear market, with consumer price deflation. They are two different things,

J
J
11 years ago

Re: Deflation.

I'm not an economist, but IIRC the problem with deflation is that no capital investments are made. There's no point for a factory or business to invest, say in new equipment (indeed, spend ANY money), when siting and waiting makes money.

bdk
bdk
11 years ago

John, are you renting condos now?

This is hysterical, why rent at shangri la when you can rent on no.3 in richmond…

Location: Aberdeen Residence (Cambie Rd & No 3, Richmond – right next to Aberdeen Centre)

1 year concrete hi-rise

2 bedroom + den (can be third bedroom)

Bright South facing unit

Stainless steel appliances, 9 ft ceilings, central air-conditioning

1 locker

1217 square feet

No pets and no smoking

Rent: $3500

AVAILABLE NOW!

Call John at 604-671-1818

Anonymous
Anonymous
11 years ago

I get a kick out of the media calling deflation "dangerous" and a "virus".

What's wrong with an economy that rewards the prudence of a saver and

gives your paycheque more spending power? I suspect that the highly leveraged

are the only ones that miss inflation.

Have a safe, prudent, responsible, cash-only Christmas!

Matt
11 years ago

Pope, I enjoy reading the comments on this blog as well as your posts. I'm concerned that as the market gets worse, your comments are going to be seeded with more and more astroturf. We've seen dosh/browntown/etc. do it for the past 2 years and now I suspect we're going to see it a lot more. This friday free for all is full of "WELL I HEARD FROM A LITTLE BIRD THAT CONDOS IN ALPHAVILLE DROPPED 80% IN PRICE…". Your comment rating system is a good start but I'd like to see baldfaced lies removed. Malicious rumour mongering doesn't benefit anyone regardless of whether they are bearish or bullish as it falsifies information about the market.

greely
greely
11 years ago

CKNW occasionally has a quick blurb on how it wants to hear from "you the listener" to hold the accountable.

I sent them a scathing opinion on their "spend your money like drunken sailors" propoganda crap they are spewing out. They are sounding more and more like an audio version of the Enquirer.

Here is their comments email link. I encourage anyone here offended by their Rennie adds to let them know.

comments@cknw.com

Lothian Vasquez
Lothian Vasquez
11 years ago

Anybody else hearing informally or otherwise, that real prices for middle of the range West Van properties are now down nearly 25%?

I have heard this now soooo many times I now believe it is beyond anecdotal, and means that even if the "average" drop in the Greater Vancouver area is 14 – 17% so far, the West Van factor is dragging the overall numbers down considerably. I am also hearing that West Van residents have so far been the most willing to delist altogether… for now!

Anybody care to confirm or deny?

Lothian Vasquez
Lothian Vasquez
11 years ago

If the B o C reduces interest rates any more than they already have, Canada will follow the US into mass inflation beginning in early 2010. When high inflation hits, private lenders begin jacking interest rates to protect themselves from a depreciating currency. This will kill whatever is left of Vancouver housing for a decade or more to come.

Van-zee
Van-zee
11 years ago

"With REBGV members and prospective sponsors/exhi-bitors currently facing economic challenges, we believe forgoing the 2009 edition of our event is a prudent and responsible measure at this time,"

Good find betamax. I guess they don't believe in a spring sales bounce then.