Friday April 16th Free-for-all
Well, it’s the last weekend before the new CMHC rules come into effect, anyone out there going to any open houses? Lets do our regular end of the week news round-up and open topic economic discussion post. Here are a few recent stories to kick things off:
-Housing may have peaked
-Home sellers rush to market in record numbers
-Sharp increase in number of BC mortgages in arrears
-Canadian sales, listings and prices all rise in March
-House listings hit March Record
-The big one: earthquake or RE market collapse?
-Canada housing bubble: Its not different this time
-Frustrated couples crackshack quiz targets million$ homes
-Vancouver spent more than $550 million on winter games
-James Chanos on Chinese real estate bubble.
-US foreclosures surge, on pace for 1 million this year
-S.E.C. accuses Goldman Sachs of fraud
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
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April 19th, 2010 at 8:13 pm
Are you even following the thread of this conversation. Do you even read this stuff, before you come out shooting at the hip.
You’re a twit, not an appraiser.
April 19th, 2010 at 7:59 pm
Wow Gordon, got anything to say about that?
April 19th, 2010 at 7:17 pm
Gordon,
For you to suggest that the cost approach is appropriate for the valuation of a typical strata property pretty much says it all. Go run that one by your mentor and see what they say.. if you are getting this information from your mentor, I am being totally honest when I say think about finding another.
The “cost approach” included on a typical CRAL form is an afterthought and serves only to illustrate a general demarcation of land vs building for the bank underwriter and is almost never relied upon to determine value in the case of a detached property, let alone a strata interest. Further, I have never, even once in my life, seen anything resembling an income approach applied to a single-family property, even as a validation of the direct comparison approach.
The only thing in question is whether your mentor actually signs off on the types of theories you are proposing on these boards.
And where exactly do you see me trying to “muzzle” the discussion? I love the discussion and find that many of the arguments proposed resonate with me, since I happen to think property values in the Lower Mainland are stretched beyond any semblance of rational thought. What I take exception to is you holding yourself out as some type of representative of the AIC. The words you typed and which I quoted are flat out misleading and inappropriate, end of story.
Hope to see you at the meeting Thursday, even candidates should vote.
Cheers and honestly, nothing personal.
April 19th, 2010 at 3:53 pm
I am an appraiser and that is my real name. But, I do challenge whether you are what you imply. As an accredited appraiser would never try to muzzle an open and free discussion on real estate. And an accredited appraiser would NEVER use their professional designation as an acronym on a blog in an attempt to berate another appraiser because that is unprofessional.
Your taking pot shots from a concealed position. You’re just a sniper.
April 19th, 2010 at 12:39 pm
Gordon C you state previously :
“For valuing strata and single family homes, typically only two approaches are used. The market approach as briefly explained above and the cost approach which I hope is self explanatory. A third approach known as the Income Approach is rarely used on homes, and if it is, then only as a cross check to the final estimate. It is highly unlikely that you will find an appraiser concluding a value on a GRM or Price Earnings Ratio for a single family home or condominum. The body that governs appraisal practice in Canada, the Appraisal Institute of Canada, would likely consider disciplinary action against that appraiser for doing so.”
I usually welcome juniors into the profession with open arms but reading some of your thoughts in this thread, I must respond. I would suggest that you stop throwing around excerpts from your Busi 330 entrance level appraisal text because to be honest, there are readers here who would possibly be under the impression that you are an actual working appraiser. Or worse, that your knowledge is somehow representative of an accredited member’s.
For reference, I have been in the business for the better part of the decade and cut my teeth completing several thousand residential appraisals before moving into the industrial / commercial side of the business. If anyone has questions related to appraisal, I will try to chime in.
April 19th, 2010 at 9:56 am
Well, I posted this on PaulB’s site but, of course, he deleted it. Maybe it will receive more respect over here. I’m trying to understand the appeal of PaulB in these circles. He was (WAS) a realtor locally here who decided it was just too rich for him and ran off to the East Coast where he could get his palace on the water for the same price as a crack shack here, right? Now, all of a sudden, he is back. Though he is not a realtor anymore and is instead going to school. So he comments on the market with ZERO insight as he is not in the field and so many here eat it up. Why?
Seems to me he failed as a realtor here and I guess he failed as a realtor in the East. Gavin, the guy who took over for him for a while did 5 deals (or at least worked with 5 clients) from the old PaulB site so it couldn’t have been all bad being the Bear’s realtor.
So can someone explain to me why a Garth Turner wannabe and a realtor never will be is so popular?
April 19th, 2010 at 4:34 am
@Anonymous:
Indeed no correlation between house prices OR interest rate and rents:
http://cuer.sauder.ubc.ca/cma/.....couver.pdf
April 19th, 2010 at 4:29 am
@Gordon C.: “Most landlords increase rents when their costs are going up not because house prices are going up. If they refinanced at a lower rate, their costs have gone down.”
Landlords raise rent when they think can get away with it. It has nothing to do with house prices, landlords expenses, or even what the tenants can afford.
My landlord has faced increasing taxes, a new roof, and a new clothes drier in the last year, but has DECREASED our rent by almost five percent. Why? Because he was afraid we would move to get a better deal and he can’t easily replace us with other quality tenants at this time. All the increases in costs are coming out of his pocket alone.
And refinancing is not even a factor for those landlords who own outright or nearly so. There is no connection between mortgage rates and rent increases.