Flaherty warns of rising rates

Flaherty is cracking the bullwhip again and warning that recent mortgage rate increases by TD, RBC and CIBC are just the beginning. If certain Canadian cities were to experience a downturn in their housing markets both Flaherty and Carney are now firmly set up for the ‘we warned you’ speech.

All three banks have increased the posted rate for a five-year closed mortgage by a quarter of a percentage point, to 5.44 per cent.

RBC also raised its special fixed rate offer for a five-year closed mortgage by the same percentage amount, to 4.39 per cent.

Finance Minister Jim Flaherty said he’s not surprised.

“The recent increase by a couple of the banks is exactly what we expected,” Flaherty told reporters in the foyer of the House of Commons.

And more increases should be coming, Flaherty predicted, since lending rates have been hovering close to historic lows.

“We’re likely to see higher interest rates as we go forward because interest rates are still very low.”

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painted turtle
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painted turtle

hilarious… or pathetic?
http://www.globaltvbc.com/video/index.html?releas

Hot Asian Money again…

painted turtle
Guest
painted turtle

This is fun too!

“Home buying is an incredibly important decision,” says Karen Kinsley, CEO of CMHC. “It should be your home first and an investment second. It doesn’t matter if mortgage rates are 21 per cent or three per cent. The bottom line is you’ve got to make sure you can afford what are getting into.”

http://www.globalnews.ca/story.html?id=4245937

REIC is watching us
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REIC is watching us

This is the sleezebag behind the helicopter stunt:

http://ca.linkedin.com/in/camgood

I bet he pays people to line up for condos too.

May he end-up behind bars.

blueskies
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blueskies

Hot Asian Money

……..grasping at chopsticks!

Keeping An Eye On Th
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Keeping An Eye On Th

Let’s accept the fact the bulls will get nasty, brutish and rude.

The bubble has been kind to them.

Mortgage brokers for example, need to be able to add, subtract and do decimal operations on a calculator.

But perhaps I should not demean them, they also have to learn to use a multi line phone, and dial 9 to get an outside line.

They also have to master sending and receiving emails, not an easy skill to learn for many of them.

And while these intricate skills are valuable and likely to be transferable to other ventures such as selling cell phones, and water coolers, I doubt it will pay as well as pimping mortgages.

Keeping An Eye On Th
Guest
Keeping An Eye On Th

hilarious… or pathetic?

@painted turtle:

It's both, I understand Global is a business and has to make money, I understand the RE pimps are in it for the money, and everyone likes to feather their bed-fair enough.

But, somewhat suspicious that a crew just happened to be there, and that there was room for a filming crew in the helicopter.

Somebody from the CRTC should investigate, and determine if this is news or an infomercial.

I have nothing against infomercials, it’s a perfectly legitimate, although cheesy, but it should not be passed on as news.

RE infomercials should have bikini chicks.

LY
Guest
LY
painted turtle: Hot Asian Money again… For 5 years I rent in Richmond refusing to face reality that rich asians can keep Vancouver real estate prices sky high defying fundamental logic. Correction will come but not the big correction most bears are expecting as long as China continue to grow at 8-9 GDP. According to our friend who live in White Rock, in her church, it seems that she is the only mom that is working. Other moms just stay at home because husband sends over money from China. They also buy houses in cash. There are also plenty of asians here in Toronto. But most of them are working class, not the rich types who prefer to stay in Vancouver which is closer to China, Taiwan, Hong Kong. That is why houses in Toronto are cheaper than overpriced bubbly… Read more »
Keeping An Eye On Th
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Keeping An Eye On Th

@LY:

LY let's keep it in perspective.

A staged media event of 5 sales by specuvestors and pimps, in a metro area of over 2.5 million people.

No we are not running out of land, no the Chinese cannot keep the bubble afloat forever, no this bs is not unique to Vancouver.

Anywhere you go these are standard canned lines.

In Kelowna it's the super rich oil barons of Alberta, in the USA it was the rich Koreans, in x place it's the x people…etc etc.

Pretty standard hype, in a standard everyday bubble.

Bear Patrol
Guest
Bear Patrol

@LY: It may seem odd for your circle but the vast majority of families in Vancouver CMA don't have husbands working in China, and neither do astronaut families make up the majority of purchases.

If locals stop buying prices will fall. Maybe they drop 35% instead of 40% due to the China factor. The tail doesn't wag the dog.

VHB
Member
VHB

Here are some leaked deets on the Oly village relaunch.

"In the last-ditch effort to sell what has become Vancouver’s financial albatross, the Olympic village receiver is due to file a plan with the court Thursday that includes a new name, price reductions of up to 50 per cent on a new phase of condo sales, and a $7-million sweetener for buyers that will pay off the health-club mortgage and the hefty lease costs for the project’s signature energy-use monitors."

Here is my fave: "The plan also outlines a strategy of holding back 140 of the most expensive condos until the luxury market is better"

oneangryslav2
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oneangryslav2

@LY:

"According to our friend who live in White Rock, in her church, it seems that she is the only mom that is working. Other moms just stay at home because husband sends over money from China. They also buy houses in cash.

Following the 1984 US Presidential election (in which Ronald Reagan won every state but Minnesota [he won DC also]), an Upper East Side Manhattanite lamented "I don't understand how Reagan won; every single one of my friends voted for Mondale."

painted turtle
Guest
painted turtle

Regarding HAM and hospice ghosts:

For what it is worth, I just wrote to my MP giving examples of the local media dangerously fueling a racist sentiment in Vancouver and wondering about the potential consequences.

oneangryslav2
Guest
oneangryslav2

Oops! Reagan of course (like every Republican for generations) LOST DC in 1984.

painted turtle
Guest
painted turtle

@LY: the 2006 census says White Rock has a population of 18,170. 165 people do not speak English nor French. 1,160 speak a non official language at home. 1300 immigrants came after 1991. 195 non permanent residents. 1,080 non Canadian citizens.

You are only providing anecdotal evidence. The only conclusion we can draw from your friend's testimony is :"In White Rock there is a church in which the stay-at-home-Mom population is increasing." And she has not done a rigorous survey…

Let's wait for the next census data 😉

Best place on meth
Member
Best place on meth

White Rock is the new Richmond, Cam good is the new Chipman.

http://www.thekey.com/

Does this sound familiar?

"We are a real estate marketing group that thinks differently."

Best place on meth
Member
Best place on meth

Some more Chipmanesque bullshit from Cam:

"Our slogan represents the contradiction that percolates at The Key.

It represents the unbridled creativity that swarms and overcomes all obstacles. We look at ALL options at ALL times. We use dumb ideas to inspire great ideas. We lead in all new technologies. If it's out there in the industry and working, we're all over it.

However, it also represents the old-school, bread and butter, dialing for dollars, door knocking sales systems we've mastered and married to newly invented systems to build strong relationships with people quickly and ultimately find people for homes and homes for people."

Playground of the So
Guest
Playground of the So

@REIC is watching us:

What's the helicopter stunt?

McLovin
Guest
McLovin

"includes a new name"

I though Rennie said that was the whole point. Something about you could get into a cab and everyone knows where the Olympic Village is.

What a joke.

paulb.
Guest
paulb.

RBC calls for stable real estate market in spite of forecasted 250 BP rate increase. Wow

http://www.theglobeandmail.com/report-on-business

Anonymous
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Anonymous

@painted turtle: Notice it was sponsored by Remax! Not a surprise.

Best place on meth
Member
Best place on meth

@paulb.:

It doesn't work that way.

A 250bp rise in rates will destroy the real estate market, especially in Vancouver.

An improving economy won't change that one bit.

registered
Member
registered
@#7 LY Says: "Other moms just stay at home because husband sends over money from China. They also buy houses in cash. There are also plenty of asians here in Toronto. But most of them are working class, not the rich types who prefer to stay in Vancouver which is closer to China, Taiwan, Hong Kong. That is why houses in Toronto are cheaper than overpriced bubbly Vancouver." This is straight from the RET playbook, I've seen this 'reasoning' a hundred times. High quality Asians choose BC, work-a-day riff-raff settle in Ontario. Why though would anyone publicly theorize the market will be inexorably and permanently supported by what they claim are an influx of social parasites and tax cheats who draw from Canada's social safety net while making fabulous undeclared riches off-shore? Sounds like someone needs a walk to clear… Read more »
LY
Guest
LY

just sharing what we were told by this friend who lives in White Rock a month ago. Accurate or not, that was her observation based on her association with her fellow church members. I don't expect her to waste her time to do a scientific survey how many Asian moms are working/not working in whole White Rock.

jesse
Member

@LY: "just sharing what we were told by this friend who lives in White Rock a month ago"

Thanks for sharing, LY. It's worth remembering that other parts of the world are producing significant amounts of capital. It's a relatively new position for Canada, where swaths of immigrants are arriving significantly richer than the incumbents.

That said, rich immigrants arriving from Asia are nothing new for Vancouver. I'll try to dig up a Vancouver Sun article from 20 years ago with the same anecdotes you're describing.

Pumpers will say any
Guest
Pumpers will say any

@LY:

>>>>>>I don’t expect her to waste her time to do a scientific survey how many Asian moms are working/not working in whole White Rock.<<<<<<<<

Sure, who needs science, we will just take your friend's word at face value, and perhaps even join a bidding war based on the hard evidence.

We had a regular bear who always said:

In God we trust all others, please bring data

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