Plus it’s not household income.

Real wages or not, gain or not, this wage isn’t terribly helpful to your case vis house prices. ‘Sides, Statscan is reporting what’s *really* earned, and you can find it for metro vancouver, which matters – since the wages in Prince George don’t really mean anything to Vancouver’s housing market.

Your chart shows lower wages than Statscan, being BC wide.

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None of that is true.

Year over year, the average income in BC is up 2.5%, which is greater than the inflation rate.
———

Dave, you an illiterate retard.

I said between 2000 and 2005, as they are the most recent relaible data available – as “kill dave” quoted.

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The point Dave, is that if incomes were stagnant in Vancouver in real terms from 2000-2005, why have house prices increased, say 60-70% in real terms in the past 7 years.

A point of reference in regard to Purp’s point. If house prices increase at 5% nominal per year and incomes increase at the rate of inflation, say 2.5%, in 30 years house price growth will have doubled income growth. Anyone wishing for ever-increasing house prices (above wage growth) is implicitly wishing for new home buyers to be impoverished.

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Isn’t it obvious?

The point is that ‘real’ dollars are imaginary dollars. In the real world, people get paid in nominal dollars.

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The question is when and how fast? I’m concerned that government will do everything in their power to keep this thing going as long as possible.

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Do you know anybody who gets paid in nominal dollars?

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Wages and wage growth:

http://www.bcstats.gov.bc.ca/p.....pdf#page=3

Use any mortgage calculator to see what $9000 per year can get you at the five year rate. ING Direct has a good one. http://www.ingdirect.ca

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http://www12.statcan.gc.ca/eng.....0&d5=0

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Great, average wages increased 27%…how much did the price of RE increase in that time frame? Much more than wages!

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maybe we should. maybe dave is a realtor. or he could be working for the CMHC, or the BOC, or some other place he could get data. of course, he could still be pulling numbers out his @$$ and he could still be a shill.

i don’t believe his numbers though. i know my pay hasn’t gone up 2.5% every year for the past few years.

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TD pointed to recent statements by the central bank that hinted that it would seek to lean against signs of emerging asset bubbles.

http://ca.news.finance.yahoo.c.....es-td.html

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asalvari, are you saying that:
1. they are creating more land;
2. wages will stop growing or that the phenomena of inflation will go away; and/or,
3. our population / total number of employed will stop its long term growth trend?

Dream on indeed.

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None of that is true.

Year over year, the average income in BC is up 2.5%, which is greater than the inflation rate.

The average wage in 2000 was $639 and is now $810, a 27% increase. Over the course of the year that is an extra $9,000 in each and every pocket. Or in mortgage terms, that would finance about $170k worth of mortgage at the current five year fixed rate.

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http://www.vancouversun.com/ne.....story.html

The Mohans, acting on their own behalf, also named the owners of the rented suite in which the murder took place, the strata corporation that owns the highrise Balmoral Tower and Atira Property Management, the company that looks after the building.

“The illegal activities of Mr. Lal in Unit 1505 were known to the defendants Caesar and Myrna Tiojanco [the owners of the apartment], to the defendant Strata Corporation, and to the defendant Atira, but notwithstanding this knowledge, and the knowledge that this illegal activity gave rise to heightened risks of violence and injury for the immediate neighbours of Unit 1505, neither Caesar or Myrna Tiojanco, the Strata Corporation nor Atira warned Christopher Mohan or his family of Mr. Lal’s activities in Unit 1505,” the suit says.

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Dave, are you saying now that:
A) the prices will not go down ?
B) the prices will not go down and the interest rates would go up?
C) the prices will not go down and the interest rates would stay low on current level?

If you have picked A), B) or C) you are living in your dreams dude. It has been elaborated enough why neither A) B) or C) is very unlikely.

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Insurers dropping Chinese drywall policies

http://news.yahoo.com/s/ap/200.....se_drywall

…Because mortgage companies require homeowners to insure their properties, they are then at risk of foreclosure, yet no law prevents the cancellations…

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+1
Spot on.

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“Employees in Singapore also get 25 days, while Chinese employees get 21 and Canadian employees only get 19. Excluding public holidays, workers in Canada and China each get just 10 days, the lowest allotment of any countries in Mercer’s study.

http://finance.yahoo.com/news/.....0&.v=4

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Further conversation revealed that most buyers thought they’d be priced out later primarily because of rising rates, though none of them seemed to consider that they’d have to pay those rates at some point anyway.

When fear is running the market then you know a correction is still nigh. Yes, it’s been a long time coming, longer than most of us thought or would like, but I think that when the market finally corrects it will not be a Japan-like decline but a rapid fall when expectations of constantly rising prices aren’t met and the bottom falls out of this fear-based demand.

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- average incomes in Vancouver dropped between 2000 and 2005, and we are now in a deflationary environment re salaries and wages. While some (maybe even most) people will increase due to career progression, many really won’t.

It will be very interesting to see how this all pans out.

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I guess most recent FTBs are expecting some semblance of annual raises, enough to “limit” the downside if rates rise a few 100 bps. Prices falling are of little concern to these types because the desire to own now is so high. Having such a constraint is turning out to be extremely expensive.

That said, nobody mentions the risks with a 25+ year debt commitment. Death, divorce, job loss, or sickness all would be devastating yet many don’t let that stop them. That’s why many FTBs report it being so “scary” when buying. It is for a reason: some don’t make it or will need to sacrifice their lifestyles for years to come.

Many commenting on this blog chosen not to risk owning at high prices and rent instead, despite their (sometimes overwhelming) preference to own. Owning seems a gamble with huge downside risk but is apparently “manageable” for those who have bought in the past few years (and avoid coming up craps).

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