Friday Free-for-all!

Hey everybody! It’s the end of yet another work week and that means it’s time for our weekend news round up and open topic discussion thread! Here are a few recent links to kick off the chat:

OV condo bargains: 1 bdrm 790 square feet now only $590k! (video)
OV suites so close “it will be like non-stop reality TV.”
Ready to lose money taxpayers?
Vancouver house shopping? Welcome to the money pit.
Earn good money lining up for condos!
Apparently only chinese language media interested in lineup story
50% increase in mortgage delinquency
What’s going on with Vancouvers west side?
Household debt surpasses six figure mark
Housing market implications of BCs age structure
Olympic white elephants?
34% of Seattle houses now worth less than their mortgages

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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GSP
Guest
GSP
5 years 6 months ago

Housing envy and the ‘Joneses’…How a realignment in consumer expectations will pull at aggregate Canadian house prices

http://financialinsights.wordpress.com/2011/02/17

blueskies
Guest
blueskies
5 years 6 months ago

Beware the ides of March

Rocker guy
Guest
Rocker guy
5 years 6 months ago

I was in Spain earlier this week, Barcelona in particular. A few years ago, Barcelona had a Vancouver-style housing bubble. Now everyone there is hurting and their system of regional savings banks is ready to go under. Spain is a beautiful country, but a property bubble will be their fiscal undoing.

scullboy
Member
5 years 6 months ago

@Dave:

Um, seriously? I've always been pretty scrupulous about *not* taking a strip off you. I don't agree with you but I at least respected your right to hold an opinion and left you alone.

None of you have seen me at my worst, not even Grampy. Getting him riled up was entertainment.

If you feel like mixing it up… bring it, son.

Just remember that you asked for it.

Patiently Waiting
Member
Patiently Waiting
5 years 6 months ago

http://www.courts.gov.bc.ca/jdb-txt/SC/11/01/2011

The courts seized two grow-op houses that belonged to a housing developer. There was actually three houses involved, adjacent to each other on the 5000 block of Boundary Rd.

I'm not really clear why the developer got to keep one of the houses, as they seemed to be one operation spanning all three properties.

Extremely rich Van h
Guest
Extremely rich Van h
5 years 6 months ago

These are houses that first-timers who can't bear to leave the {city are investing in, to raise their families and build their futures. Houses like the 100-year-old Vancouver east-side fixer-upper that recently sold for $800,000, which was $151,000 over its list price after a bidding war.

Read more: http://www.vancouversun.com/life/Buying+house+Van

BEAR LISTEN NOW AND REPEENT YOUR CRIME WHICH MISLEAD MANY FIRST-TIME BUYERS FEW YRS AGO AND THEY ARE NOW BE PRICED OUT FOREVER.

yOUR CRIME ARE UNIMAGINABLE DISGUSTING;WHERE IS THE FREAKING 50% CORRECTION? YOUR DEAD FEET STILL STICKING OUT FROM THE COOOKING POT IN DEFIANCE?

Extremely rich Van h
Guest
Extremely rich Van h
5 years 6 months ago

@Patiently Waiting:

WHAT DOES IT RELEVANT TO THE RED HOT MARKET;WILL THIS PC OF SHIT UTTERING WILL DAMPEN THE SPIRIT OF CHINSE BUYERS. TAKE YOR MED NOW.

Extremely rich Van h
Guest
Extremely rich Van h
5 years 6 months ago

@Rocker guy:

WHAT DOES IT RELAVENT TO VANCOUVER?

Kuboo
Guest
Kuboo
5 years 6 months ago

"OV condo bargains: 1 bdrm 790 square feet now only $590k!"

My question is for that price, whos cum stains do you get? They'd have to be at least silver medal cum stains.

scullboy
Member
5 years 6 months ago

Extremely poor house owner:

Dampen Chinese spirits? Really? I thought the official line was that nothing could slow the purchasing power of Magic Flying Asians. Are you saying they read this blog and invest accordingly?

Honestly if they did I wouldn't be the least surprised. I mean who can predict what Magic Flying Asians are going to do next?

Dave
Member
5 years 6 months ago

@scullboy:

No, it wasn't srsly. Just a joke. Sorry if it wasn't taken as such.

Squished by Squatchi
Guest
Squished by Squatchi
5 years 6 months ago

@Patiently Waiting:

That "developer" was a slum lord that allowed his houses to be used as grow-ops. So says: Kim Bolan: http://communities.canada.com/vancouversun/blogs/

I wish it was a developer.

scullboy
Member
5 years 6 months ago

@Dave,

That's why I always ask "Are you *sure* you want to get into it? It avoids misunderstandings. 🙂

specialfx3000
Member
specialfx3000
5 years 6 months ago
Driving in to work this morning and CBC radio had a segment with some OV on-site interviews…. 1. Existing owner: "Not concerned that others will purchase at lower price. Like buying a dress today and it goes on sale in a couple weeks. That's how it works around here". Translation: Ya, I got duped but have no grounds to sue so I'll just suck it up. 2. Ontario visitor: "Heard about it and just wanted to see what the OV was all about. Sure, I'll consider a unit". Translation: Just hunting for Sidney's stains and hell no, I will not… Read more »
Anonymous
Guest
Anonymous
5 years 6 months ago

can someone please explain what the heck that graph in 3rd link from the bottom means? I can't understand it. what is the x axis supposed to represent?

fixie guy
Guest
fixie guy
5 years 6 months ago

15 Anonymous Says: "what is the x axis supposed to represent?"

Percent of population.

vreaa
Member
5 years 6 months ago
Onni Pamphlet [thanks to VillageWhisperer]: Developer Pamphlet – "3 Reasons To Buy In 30 Days" [before prices drop] http://wp.me/pcq1o-1RM Developers 'Onni' lay out why we should all rush to buy ASAP. If you pause for a moment, of course, you'll realize that tightening requirements will restrict you and everybody else after 18 March, and thus put downward pressure on prices, and thus you'll very likely save even more money by simply waiting. But, then, Vancouver buyers aren't well known for letting logic get in the way of a good speculative buying opportunity. Race you to the sales desk!
vreaa
Member
5 years 6 months ago

ooops… sorry, my html command seems to have bolded the whole thread… please undo if possible, Pope

[actually, this action can be traced to servers in China…]

Patiently Waiting
Member
Patiently Waiting
5 years 6 months ago
@Squished by Squatchi: "3. He is also a property developer. He has built duplexes, townhouses, and a recently completed multiplex in Vancouver in April of 2009. He developed his first project in 1993, and estimates that he has developed between 25 and 30 duplexes, townhouses, or homes. In addition to his full-time work as a longshoreman, he works full-time as the general contractor and foreman of his development projects. Family members also help on the sites. When a project is underway, he does not sleep much, as he simultaneously maintains full-time work as a longshoreman." Further down it mentions the… Read more »
jesse
Member
5 years 6 months ago

Hong Kong curbing of house flipping coincides with local real estate boom

The Ming Pao Daily, in a joint investigation with The Richmond Review, has learned that the local boom coincided with the introduction in Hong Kong of a special duty intended to curb speculation in residential properties

Ahhhh. Now THAT explains it LOL

A "joint investigation" now means reading Bloomberg and Reuters news headlines? Wow that's Woodward and Bernstein caliber stuff, that is.

Anonymous
Guest
Anonymous
5 years 6 months ago
I was talking to a friend last night and he mentioned they're trying to sell their coquitlam condo – they're out of room and want to have another kid. They bought 5 years ago and have tried selling it two times last year with no luck. The unit is up for sale once again, and yesterday they reduced it down to the same price they bought it for 5 years ago. They cannot afford to reduce it anymore, so if they cannot sell they've come to the realization that they're basically trapped – potentially for 5+ years depending on where… Read more »
Eddie
Guest
Eddie
5 years 6 months ago

Anonymous Said: "tried selling it two times last year with no luck."

As Patriotz often points out, luck plays no role here – they were simply asking too much. From here on in they will get less and less for it. IE sell now or be priced in forever.

kansai92
Guest
kansai92
5 years 6 months ago

How much of a drop in price in Seattle did it take

to result in the 34%??

Probably not that much. Maybe just a correction of sorts.

Signs of things to come my friends.

Best place on meth
Guest
Best place on meth
5 years 6 months ago

@jesse:

I was talking to a friend of mine yesterday, he's local Chinese and sells real estate on the side mostly in Burnaby, Coquitlam and VE.

He told me that the lastest spike in sales in VW and Richmond is due to new regulations in China that bans the purchase of third homes in all major cities.

http://www.marketwatch.com/story/beijings-crackdo

For what it's worth he absolutely hates these offshore Chinese, but then again he doesn't sell real estate in either of those 2 areas.

Renting
Guest
Renting
5 years 6 months ago
They cannot afford to reduce it anymore, so if they cannot sell they’ve come to the realization that they’re basically trapped – potentially for 5+ years depending on where the market goes. It is always interesting to see how many people who have bought over the past 5 years can't even break even. With all that spin coming from the cheer leaders you would think they could at least sell for what they paid. I guess if they were going to buy a more expensive house then maybe not selling is a blessing in disguise. If they can't afford to… Read more »
Troll
Guest
Troll
5 years 6 months ago

@Best place on meth:

I was talking to a friend of mine yesterday, he’s local Chinese and sells real estate on the side mostly in Burnaby, Coquitlam and VE.

YOU have a realtor friend?! Do you call him a worthless cheerleader to his face? I call bullshit on this anecdote.

IT__Pro
Guest
IT__Pro
5 years 6 months ago

@vreaa: RE:“3 Reasons To Buy In 30 Days”

I'm a bit confused. One of the reasons given for buying before March 18th is to avoid paying a larger deposit. Where did this come from? There's no increase in the min DP in the new rules. The only thing I can think of is potentially a closing of the cash back loophole which allowed for 0 down. Thoughts?

DaMann
Member
DaMann
5 years 6 months ago
@Anonymous: "I was talking to a friend last night and he mentioned they’re trying to sell their coquitlam condo – they’re out of room and want to have another kid. They bought 5 years ago and have tried selling it two times last year with no luck. The unit is up for sale once again, and yesterday they reduced it down to the same price they bought it for 5 years ago. They cannot afford to reduce it anymore, so if they cannot sell they’ve come to the realization that they’re basically trapped – potentially for 5+ years depending on… Read more »
browntown
Guest
browntown
5 years 6 months ago

Meth quote-I was talking to a friend of mine yesterday, he’s local Chinese and sells real estate on the side mostly in Burnaby, Coquitlam and VE.

hey Meths! image of you shattered! you havve friend who is Realtard! Maybe he can get you job! Theres a test though nutslap! haha

fixie guy
Guest
fixie guy
5 years 6 months ago
25 Renting Says: "With all that spin coming from the cheer leaders you would think they could at least sell for what they paid." A humorous exercise would be to track that spin. When I first entered these forums a few years back it was 'everyone wants to live in BC, BPoE.' Over the years that 'best place' first discarded the rest of the province, then the lower mainland, then anything west of Boundary, and now it's shedding specific housing components within that. Today's short cheerleader answer to the Coquitlam condo problem would no doubt be "obvious: should have bought… Read more »
Best place on meth
Guest
Best place on meth
5 years 6 months ago

@Troll:

Actually he's not a cheerleader, he sees the writing on the wall regarding debt levels and rising interest rates and believes the market is going to tank. I talk to him once in a while to get some perspective on the market.

Also, he just does this on the side so he's not dependent on screwing people over to get a commission.

Troll
Guest
Troll
5 years 6 months ago
@Anonymous: I was talking to a friend last night and he mentioned they’re trying to sell their coquitlam condo – they’re out of room and want to have another kid. They bought 5 years ago and have tried selling it two times last year with no luck. The unit is up for sale once again, and yesterday they reduced it down to the same price they bought it for 5 years ago. They cannot afford to reduce it anymore… Something doesn't add up with this anecdote. Benchmark is up 30% in 5 years, they've paid down some principal over 5… Read more »
fixie guy
Guest
fixie guy
5 years 6 months ago

28 DaMann Says: "This makes no sense. If they bought 5 years ago they should surely be able to sell for a profit."

It would surprise me. Today's MLS listings show over 200 units for sale within a kilometer of Pinetree and Guilford.

pricedoutfornow
Guest
pricedoutfornow
5 years 6 months ago

Huh. I recently heard that my American cousin in Washington DC bought a house. I emailed her to congratulate her, and mentioned something about a bubble here in Vancouver. She emailed back that yes, she bought a "house"-well this turns out to be a 676 square foot row house, for the sum of $355k. Yikes! I guess real estate prices haven't dropped in Washington, DC yet. Just goes to show that real estate really is local, though we hear stories of $50k houses in Arizona, this apparently doesn't apply to every single city in the US.

fixie guy
Guest
fixie guy
5 years 6 months ago

Ooops, "wouldn't" surprise me.

fixie guy
Guest
fixie guy
5 years 6 months ago

34 pricedoutfornow Says:"I guess real estate prices haven’t dropped in Washington, DC yet. Just goes to show that real estate really is local…"

Nice try, pumpboy. Have you heard of this new fangled 'Google' thing?

http://blog.redfin.com/washingtondc/2010/03/case-

jesse
Member
5 years 6 months ago

@Anonymous: "yesterday they reduced it down to the same price they bought it for 5 years ago."

There a real possibility the benchmark prices are not telling the whole story due to how they are calculated.

Best place on meth
Guest
Best place on meth
5 years 6 months ago

@pricedoutfornow:

D.C. has high incomes, Vancouver does not.

jesse
Member
5 years 6 months ago

@pricedoutfornow: Depends on what area of DC but maybe that's a good price considering the rents and incomes.

fixie guy
Guest
fixie guy
5 years 6 months ago

38 Best place on meth: Low tier Washington DC properties fell 50% between the springs of 2007 and 2009 and presumably are back to the same downward trajectory as the rest of the country. 'pricedoutfornow' is full of shit, and none too bright for believing that information couldn't be trivially uncovered.

browntown
Guest
browntown
5 years 6 months ago

@Best place on meth: hey meth youre not helping vancouver income levels! ha haha

Anonymous
Guest
Anonymous
5 years 6 months ago

Mayor of Detroit offering homes to police officers for $1000/down.

http://ca.news.yahoo.com/detroit-mayor-offers-cop

Alum
Guest
Alum
5 years 6 months ago

I hate when negative comments are censored.

This blog is biased.

Patiently Waiting
Member
Patiently Waiting
5 years 6 months ago

@jesse: There are several new condo towers around Coquitlam Centre, many partly empty. I can see how this would both boost the benchmark and make it very difficult to sell used condos. I don't have this faith in the benchmark that some people do.

Devore
Member
Devore
5 years 6 months ago

@Troll:

Something doesn’t add up with this anecdote. Benchmark is up 30% in 5 years, they’ve paid down some principal over 5 years and they can’t sell for what they paid? Impossible unless they made some very very bad decisions along the way.

It's certainly not impossible. Check out the listings in the area to see what they are competing against. Also it is possible they, like many owners who were feeling suddenly wealthy, took out lines of credit or refinanced against their paper gains.

vreaa
Member
5 years 6 months ago

"This makes no sense. If they bought 5 years ago they should surely be able to sell for a profit. I think the real story is that they can’t sell it and make a $100k or whatever they want."

—–

Or… they may mean that appreciation has been at a lower pace than their HELOC withdrawals, so they'll walk away with less/nothing.

Troll
Guest
Troll
5 years 6 months ago

@Devore: Exactly, the only way this is possible is if they HELOC'ed the bejeezus of their property, hence made poor financial decisions. This type of situation shouldn't be used as an indicator of the market as a whole since you will always be able to find people who did dumb things with money.

vreaa
Member
5 years 6 months ago

@Devore: you beat me to the HELOC point.

Troll
Guest
Troll
5 years 6 months ago

@Patiently Waiting: Really bears, you are questioning benchmarks now too? Are you seriously implying that the market in Coquitlam has been flat for 5 years? Please provide some, any kind, of stats which could support such a proposterous bald faced lie.

jesse
Member
5 years 6 months ago
@Patiently Waiting: "don’t have this faith in the benchmark that some people do" I would characterize the benchmark as offering a better idea of price changes than would the average or median, but is not as good as same-unit sales data, for which we have no breakdown for condos specifically without mining MLS or LTO data, and we all know the entire data set is not readily available to mere mortals. If certain properties with high quality finishing are selling better than lower quality stock, then the benchmark will likely not track the reality on the street. Benchmark prices are… Read more »
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