Agree. There is simply no scenario which supports current prices. Zero inflation is actually the scenario which results in the smallest price declines, with both deflation and inflation resulting in larger drops.

Current score: 4 (to vote for this comment, please visit the site)

Don't forget that when the economy gets better, interest rate will start rising. With prime back up to 6-7%, many people cannot afford their payments. I don't think the real estate market will recover for at least 10 yrs.

Current score: 5 (to vote for this comment, please visit the site)

Who cares what the 'REAL'(inflation adjusted) value is….people only care about todays' value 'cause their paid in today's dollars!

What frickin' loon…..

Current score: 3 (to vote for this comment, please visit the site)

So it will be very interesting to see where we sit with rental rates this fall. I'm not betting against increased rents, myself. Who would be moving from renter to owner in this market? Well some people, obviously, but most of us renters aren't happy to do that knife catching trick.

Current score: 2 (to vote for this comment, please visit the site)

Dave is just a ficticious anecdote himself who has never been right about anything and has nothing to say.

If anyone here listened to him last summer they’d be out $150k!

When you see a post from Dave click the down arrow and move along, there is no value to reading it’s crap.

Current score: 9 (to vote for this comment, please visit the site)

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You and your anonymous sparing partner could both be right. CMHC tracks purpose-built rentals exclusively, does it not? Hollyburn is unlikely to drop rents substantially, and will probably raise them on current tenants on the assumption that people would rather pay a bit more than move. So there is your official CMHC rent increase. Investors renting out individual houses or condos are an entirely different category though, and this is where the real rental softness appears to be. There was that one Shangri-La posting here a few months back at just under $2/sf, for instance. That is Vancouver's new hotness for cheaper than much of Hollyburn's old and busted. But CMHC won't notice.

Current score: 6 (to vote for this comment, please visit the site)

#73 Observer, maybe those flickers of light are reflections coming off the fools running up the tunnel who are wearing mirrors on the backs of thier heads due to thier inane propensity to constantly look backwards. Getting closer you may see a few bumper stickers which read " Don't follow me , I'm lost".

Obviously the deniers and the whoreish MSM believe that you can be herded when afraid. They seem to think that by sending out counterindicatory farts of nonsense gas that you may somehow stop believing what you see and instead start believing what they would have you believe.

The facts prove that the real estate market is in a death spiral. There are many parties whose survival depends on your not believing that. They are desperatley trying to disuade you thinking clearly and so obfuscate the facts and spin the stories into ridiculous disparate nonsense. It's an attempt at sewing confusion, they believe it may work long enough to get themselves out the jam they are in.

We are in a war, they want you to lose.

Current score: 7 (to vote for this comment, please visit the site)

Who will pay the mortgage after layoffs?

Yesterday saw in CBC about real estate prices in different parts of US. Florida- 2yr old 4 bedroom house with swimming pool down to $95000 from $350,000. There was another town near Detroit where foreclosures were selling for few thousand dollars (5000-20000).

When there are no jobs, no one can afford mortgage, condo fee, taxes, insurance.

Lets wait until the job front gets better-then decide whether to buy or not.

Current score: 9 (to vote for this comment, please visit the site)

Current score: -20 (to vote for this comment, please visit the site)