Give yourself a shake
Finally! Some optimistic news to balance out the doom and gloom that has dominated the news lately:
OK people, it’s time to shake your-selves out of that funk you’re in. What has happened to the housing industry in the United States will stay in the United States, for the most part.
Canada has seen its new and resale sectors soften, but because our lending regulations are so much more stringent than those to the south of us, we will easily avoid the financial pitfalls that have reined in the home ownership dreams of buyers and battered sellers forced to drastically cut prices and/or go into foreclosure.
Please note that Canada is not the USA, and Vancouver is not Canada. When you’ve finished shaking, you can read the rest of the article here.
February 5th, 2009 at 11:11 am
Well, since Craigslist killed the classifieds section of newspapers, I'm sure real estate is the highest advertising revenue source. Its no wonder they won't print anything questioning the bubble or mention anything about returning to sane 2002 levels. One look at the REBGV chart and any idiot can figure out 2002-08 is the anomoly.
February 3rd, 2009 at 1:55 am
This is true. However failure on the governments part (ie consolidation of ownership) has lead to this "marketing front." I don't disagree with you but unfortunatly the system is broken and I only think it will get worse as time progresses.
February 2nd, 2009 at 8:53 pm
You no longer get paid for your own opinion
Journalists are not supposed to be paid for their opinions. They are supposed to be paid for finding out the facts.
February 2nd, 2009 at 7:53 pm
I'd imagine journalism is a tough job these days. You no longer get paid for your own opinion but instead for printing the "views" of an individual that you are interviewing. The papers are now esentially a proxy for anyone trying to sell anything and investigative journalism goes unrewarded.
February 2nd, 2009 at 6:58 pm
NO -LYMPICS:
Just how detached are they? The article from the TO star gives you some insight
Toronto mortgage broker Ranjit Dhaliwal says credit is "most definitely" tightening in Canada, noting that he's turning down many prospective home buyers because they don't qualify for a mortgage. On top of that, defaults are also skyrocketing.
"People were always able to turn to private lenders when the banks turned them down. But as a private lender, I've pulled back and a lot of others are, too.
"Basically nobody wants to lend and if they are, they're charging much higher rates (above the prime rate), which makes it unaffordable for more people," he explained.
He said he has seen a 50 per cent increase in defaults in the last three months in his business, adding that he has personally worked recently with people who were forced to sell their homes or file for bankruptcy in the current troubled economic climate.
"Before, they could get their property refinanced, but housing prices are going down so that's not an option for them," he said.
February 2nd, 2009 at 6:41 pm
Campbell stated he had (2) choices
He could
(i)make cuts to balance the budget
or
(ii) run a deficit to maintain services
Translation:
Given wages tend to be the largest portion of the budget for each given Civil Service within each ministry , Campbell is into countermeasures re: the threat of Civil Service unrest and prior to the Olympics.
The California "Governator' has already been pro-active via mandating state employees take Unpaid days off in order to balance the budget.
However, Campbell seems hell bent to deficit financing to placate an nouveau elite class, the Civil Service that has achieved wage increases the private sector won't ever see now or in the future, instead of sharing the pain.
I wish Elvis was around, didn't he shoot the TV when things he didn't like came on(such as these BCTF and other Civil service ads?) I don't know who is more delusional and detached from reality, them or the Realturds.
February 2nd, 2009 at 6:21 pm
squidly77:
I am constanly wowed by the fact that so many people can't see through the BS perpetrated by the local media. Thanks for the support Garth.
February 2nd, 2009 at 6:17 pm
squidly77:
Great Garth quote from todays blog
Contrary to realtor belief, a 10% or 20% price reduction does not constitute a buying opportunity when there’s another 30% bomb waiting to explode. The fact is Canadians allowed real estate values to inflate through herd buying. Then they rolled over as their government relaxed mortgage standards, turning the market into a blaze. Now they’re paying the price.
The local media and real estate industry spokespeople suffer from an old malady commonly referrd to as " he couldn't say shit if his mouth was full of it". The reporter baited Garth saying " aren't you positive about anything?" as if it was of some benefit to the readership to pick up some kind of sugar coated one liner as opposed to having to tell the ugly truth.
Now today as speculated by many bloggers the Provincial government admits to having to run a major deficit. As if we couldn't see that one coming. They didn't announce any efficiencies, just more debt. I can only imagine how many hospitals, schools, roads, bridges, new text books and librarys for the school kids, hospice beds, de-tox centers, social workers , homeless shelters and social houses and one or two new universities etc., we could have built and supported if we hadn't blown that 6 billion on the Olympic party for a few fat cats. It's enough to make you cry. What if the LIBs had built a sewage treatment plant and a cheap power grid for BC. What about a real transpo system? God damn, what a waste.
February 2nd, 2009 at 6:11 pm
Vansanity:
Good point:
I'm sure that these Real Estate Marketers ( REALTORS ) regardless of the locale, read out of the same standard global sales manual with the same knee-jerk BS for a given "best- case" to "worst- case" scenario situation .
For anyone to believe the contrary is an certifiable "OMG"!!!
They are disciples of the mantra of consumer confidence at any cost , even if the FACTS speak otherwise.
They best lay low or the old saying about "removing any doubt about being a fool is removed" when their lips move and press releases are released to the Public.
February 2nd, 2009 at 6:04 pm
and garth shoots back
So, a professional sadness of mine is the apparent whoring of the Canadian media.
February 2nd, 2009 at 6:03 pm
NO -LYMPICS:
A good quote from the condohype site, it's a doozy.
The BCREA forecasts a 13 per cent price dip across in the province. In Greater Vancouver, the projected dive is 14 per cent. While this may seem modest, even optimistic, give the pumpers points for making it to the party. Their forecast report calls this collapse “some additional downward pressure.” You have to laugh at the language. Downward pressure? What is this, a back massage?
Here’s the spin-free version: The BCREA expects the average home value in Greater Vancouver to decrease $7,147 a month, every month, in 2009.
February 2nd, 2009 at 6:02 pm
garth gets combusted (well almost) by a vancouversun reporter
http://www.greaterfool.ca/2009/02/02/market-updat…
February 2nd, 2009 at 5:41 pm
Here's the comment I posted to the comments section below the article. I wonder if they'll get the snark.
"This is fantastic news! I applaud the author for writing a piece that's balanced and presents both sides of the story–the realtors' and the builders'!"
February 2nd, 2009 at 5:39 pm
Drachen, good to see you on here again. Been a long time.
I have family in California and over the last couple of years we have discussed real estate ad nauseam. What's so interesting about it, is that the same quotes were being said there years ago as they are now here. My family down there are killing themselves laughing when I give them a realturd quote or a Rennie beauty. The quotes are almost verbatim! It's hilarious!
They think Canadians would have to be some bonafide idiots to believe this BS after watching it happen in the US. That's when I tell them "we're different here". They reply with a laugh and say "I've heard that one before!" LOL – Indeed, we all have.
Believe what you want. It will take more than a sunny disposition to reinflate such an overinflated asset.
February 2nd, 2009 at 5:07 pm
Affordability ?
It is " affordable " if the economy stayed the same but the RE prices either plateaued or dropped….ie people can catch up with the same or higher income.
However, if one's means to afford is gone,ie unemployed or has less income , affordable becomes a relative concept.
Translation:
"Affordable " is realturd babble-speak nomenclature for the market is tanking !
February 2nd, 2009 at 5:02 pm
jrochest:
Garth Turner includes some info about the woman Pres from calgary in this article
http://www.greaterfool.ca/2009/01/24/realtors/
February 2nd, 2009 at 4:40 pm
"Affordability is coming back to the marketplace. Mortgage rates are going down, house prices are holding or even decreasing, and there is a selection of homes that hasn't been this strong in years."
"For first-time buyers, the time is right to take the plunge. Bonnie Wegerich, the newly-installed president of the Calgary Real Estate Board, recently told a break-fast audience of 1,000 realtors that while a slowdown is taking place, Calgary is working its way back to a more stable, balanced market"
Well lets just interpret this statement in 'true speak' shall we.
1) "Affordability is coming back into the market" means prices are crashing from absurd levels with no bottom in sight.
2)"Mortgage rates are going down" because people are waking up to the fact that we're in the beginning stages of a long global recession and they've been suckered before and now even free money won't fool them again. Most people know that the Global recession is getting uglier by the day and thier jobs may be on the line. Most people can see with thier own eyes that real estate prices are in free fall while inventories skyrocket and sales are down more than 50% in 90 days. It's that obvious.
3)"Selection is strong" means developers are dumping massive inventory overhang into the market and fully intend to depreciate current value in the market to the detriment of current owners. Owners are listing properties higher than current market value because they stand to lose huge amounts of money and the overpriced inventory is piling up.
Finally
Bonny Wegerich , newly installed President of the CALGARY REAL ESTATE BOARD , has been castigated and is regularily being called a liar publicly and a proven liar in print and a manipulator of the facts by members of her own Real Estate Association and the general public. She has been proven to be the worst type of cheap tout and enemy of the public good that even Garth Turner has published her goofy prognostications in his blog without fear of liable accusation. Apparently the public wouldn't be shocked to hear the truth in court.
In Australia they have a quaint custom used against shitheads , cowards, miscreants, malcontents, swindlers and thieves, it's called the "Dick Wag". The men take thier penises out of thier pants and 'Shake it' at the miscreant. It's considered the biggest form of insult an Australian can make.
You deserve a good cyber space aussie 'DICK WAG' from everyone for your mendacity.
February 2nd, 2009 at 4:40 pm
I'm liking this BCREA press release:
Recessionary Conditions Slow Housing Market
“A continuing imbalance between supply and demand will put some additional downward pressure on home prices this year,” added Muir.
Sounds like old Cam finally got religion
February 2nd, 2009 at 4:40 pm
Repeat after me:
The housing market crash is due to the imbalance in actual housing prices and housing prices that can actually be supported. Lending practices were only fuel to the and a symptom of the disease. Canada (BC and Vancouver in particular) will fall because of prices, the responsibility or irresponsibility of the banks is irrelevant to the size of the fall.
February 2nd, 2009 at 4:38 pm
Yeah yeah right
blah blah blah
Bunch of TOOLS
How can people be SO DUMB!
February 2nd, 2009 at 4:35 pm
Forque that BS !!!
I'll stick with reading VCI etc. and what info we Poster can dig up, share , discuss and debate communally etc.
Thank God for the Internet.
BTW :
I just saw my 1st SOLD sign in 2 months.
I don't consider that a positive, more indicting of the market and the overall economy, in contrast to the B.S. the so- called experts keep flogging.
February 2nd, 2009 at 4:24 pm
CanWest is in a tragic state, I wouldn't doubt to see that pop up in the Sun now. Terrible product.
February 2nd, 2009 at 4:10 pm
Househunting.ca has an interesting habit of removing all date specific information from articles. Turns out the original is from the Calgary Herald and was published January 31st, 2009:
http://www.calgaryherald.com/Homes/Time+give+your…
February 2nd, 2009 at 4:05 pm
You can tell it's an unbiased article because it's posted on the Househunting.ca pages, of course, and they have no motivation to lie about the state of the market.
It's a great time to buy!
February 2nd, 2009 at 4:04 pm
nice balanced reporting !
way to really present one side of the story !
makes your parents glad you went to journalism school !
what's that? oh.
They buy how much advertising in this paper? Oh, well then..
February 2nd, 2009 at 4:04 pm
This "article" is the journalistic equivalent of a full-frontal lobotomy, without the blissful after-effects.
February 2nd, 2009 at 4:01 pm
Is this a recent article? I can't find a date anywhere.