Comments on: Friday Free-for-all!

By: No Longer Looking

No Longer Looking — Mon, 15 Mar 2010 12:11:13 +0000

Vancouver home resales decline rapidly MOM while they're flat or growing in most of the rest of Canada.

http://www.vancouversun.com/business/Home+resales…

We have hit the ceiling and are bouncing off.

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By: onehorse

onehorse — Mon, 15 Mar 2010 11:12:53 +0000

Yes, that's right nutslaps! In the city's real estate prices and fundamental imbalance. No matter what Dave said that wages have not kept pace with inflation. Rent may rise, but not in the same order of magnitude, renewable energy prices. Now buy a house is a brick tied to the ball, shut it down buildings. onehorse said: "Now purchase, you are a fool"

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By: vreaa

vreaa — Mon, 15 Mar 2010 07:10:05 +0000

@superduperbulltime: "It’s clear to me that bear despondency has peaked." --- The frothing at the mouth bulls really have no understanding of markets. When the bears are despondent or even capitulate, the bulls should get scared of a market top, but they see it as some sort of victory. --- PS Good posts re the central importance of housing in our economy, bubbly, thanks. It's sick! The cure will be painful.

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By: rp

rp — Mon, 15 Mar 2010 00:39:18 +0000

@superduperbulltime: Despondency? This is downright entertaining now. At first I was very amused, then I was concerned, then I was very concerned, but now I'm watching it all with great interest. How high can it go, I wonder? This is better than the Olympics. If a Vancouver special hits $10M I will smile and cheer it on. You really can't change anyone's mind at this point. Everything has been said. People are going to do what they're going to do, myself included, and for that our fates are sealed. I'm simply here for the spectacle now. I think this is the biggest housing bubble in the western world, and like the Olympics, I don't think Vancouver will disappoint. So here's to a great 2010. Let us hold no grudges nor say I told you so if such a time should come. I wish everyone good health.

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By: superduperbulltime

superduperbulltime — Sun, 14 Mar 2010 21:17:03 +0000

It's clear to me that bear despondency has peaked. How could it not? The real estate market continues to go up at a rapid pace and they've lost their chance forever.

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By: Mark Downs

Mark Downs — Sun, 14 Mar 2010 20:36:08 +0000

Check out this old NFB documentary: CMHC deals with blight in the downtown eastside... in 1964! http://www.youtube.com/watch?v=A2xdYUk4iAY

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By: Drachen

Drachen — Sun, 14 Mar 2010 18:11:30 +0000

@observer: It's turning now. Inventory is the leading indicator and it's even more traumatic than '08. In 08 prices stopped rising in early spring I believe.

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By: domus

domus — Sun, 14 Mar 2010 17:23:53 +0000

Thanks bubbly 67, excellent post. @bubbly I guess it is the voting baby-boomers who might be having a disproportionate gradient on politicians. Who knows. But it is true: unaffordable home prices are seen as a success (sic!) rather than a serious problem. It is insanity, but it is still going on.

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By: bubbly

bubbly — Sun, 14 Mar 2010 16:28:43 +0000

Inspiration for Canadians: http://www.keenwalk.com.au/

[A] protest about the manner in which keeping property prices high has come to dominate economic policy in Australia.

Similarly, in Canada, the whole economy is now dominated by housing. High real estate prices are a priority for our governments (both, liberal and conservative) and record unaffordability is considered a success, while any decline in home prices would be considered a catastrophe. Pure insanity.

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By: observer

observer — Sun, 14 Mar 2010 15:41:40 +0000

Anyone want to call how high the next peak will be before the downturn? I guess that it cannot be more than 25% above the trough price in 2008 because this is the maximum of what the interest rate stimulus can provide. It is more likely to be less than that because of lingering negative macroeconomic forces. So we are pretty close to the ceiling now.

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