Friday Free-for-all!

It’s the end of the week and that means it’s time for another free-for-all, our regular end of the week news round up and open topic economic discussion thread. Here are a few recent links to kick off the chat:

Vancouver Real Estate professionals all a-twitter
-Vancouver Real Estate explained by cartoon characters(vids)
Stress test your mortgage for higher rates
Canada’s worst spenders: British Columbia
Neil Mohindra of Fraser Institute on CMHC liabilities (vid)
Home renovations a bad investment?
BC Commercial Real Estate hits record high
Gov spends money to let people know it spent money
Alberta now home to cheap housing
US Home sales rise, prices fall
Spain hobbled by Real Estate bubble fallout

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

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CanuckDownUnder
Member
CanuckDownUnder

Thoughts and prayers with the people of Christchurch this weekend.

blueskies
Guest
blueskies

I think the current events in Libya et al
are shaping up as a really dark grey swan

AG Sage
Member
Patient in BC over at Garth's place linked to this. You want a study of Asian's buying real estate. Someone did one in the UBC condo. Interviewed 30 mothers living alone. http://www.myuna.ca/wp-content/uploads/2010/04/Ca… Read Page 6, which starts as follows: It is not unusual amongst recent Chinese and Korean immigrants, for one parent, almost always the father, to settle the family (the wife and child or children) in their home in Canada and return to his country of origin. He re- turns to work as he has to earn income sufficient to support the family and the purchased property. Work prospects in Canada for these “returnees” are a chal- lenge. Their professional or business credentials are not readily accepted in Canada. Their facility with the English language is poor. The husbands return to Canada as they can to visit with the… Read more »
vreaa
Member

Panic Buying In Local Move-Uppers

"I have friends who are panicking to upgrade before the Mainland Chinese price them out and before the mortgage rules change."

http://wp.me/pcq1o-1Uk

An anecdote about locals extending themselves even more into RE based on two beliefs –

– 1. "Prices will continue to increase."

– 2. "The mainland Chinese are going to price us out."

The first belief has driven almost all Vancouver buying for 5-6 years.

The second has increasingly affected buying by locals, even moreso this past 1-2 years.

Regardless, we have people buying for speculative reasons. (They are paying stratospheric prices based on the belief that prices will continue ever upwards, _not_ based on the utility of the property.)

Note that the sentiment mentioned is now 'panic'.

Panic buying. When does that happen in the RE cycle?

Dan in Calgary
Guest
Dan in Calgary

@CanuckDownUnder, "Thoughts and prayers with the people of Christchurch this weekend."

Yes. Earnest prayers for the people of Libya. Their freedom from an evil tyranny is coming at the cost of great pain.

silly_bear
Guest
silly_bear

Bear with oil going to $200 now that hedge fund boy step in to buy like mad vancouver downtown condo market about to take off. Anyone who buy olympic village condo about to make millions since everyone want to move downtown not use gas for work. Most rich asian don't like driving anyway bear. You lose again.

AG Sage
Member

@AG Sage: Just realized this slipped in yesterday. Didn't see it on the list above. Sorry for the duplication. And I'll add what I was going to add earlier but didn't.

Maybe I'm just an obnoxious American, but my response is "Suck it up."

You can't be all for hospices somewhere else (in response to a quote from the article). That makes zero sense. Unless you are proposing to use a shanty on an ice flow or something.

Best place on meth
Member
Best place on meth

Price change alert!!

MLS® V850984 at 4943 JOYCE ST.

After 163 days on market the price has been reduced from $685,000 to $683,888.

Line ups commence tomorrow at 10:00 am.

jesse
Member

@Best place on meth: "4943 JOYCE ST"

Gem in the heart of prime Collingwood.

coastal
Guest
coastal
That first link to the agent chat was hilarious. This is the perfect catalyst to a crash. A dozen delusional agents clammoring to a chat room in late February with sub zero/snow covered province means they don't have anything better to do and business must be very slow. Meanwhile the world around us in complete turmoil and unknown effects ahead, and they pump out all that crap/worn out euphenisms to scare us that renters are losers. These people have never experienced a real crash and were in diapers if not even a genetic formation last time around. I have no doubt now it is coming soon to your neighborhood. These tools talking shit like this at the worst market point of the year is what we want to hear. Beware the Ides of March, it will ring loud and clear.
Dave
Member

@coastal:

How are the Ides of March different than the Ides of:

– The Global economic meltdown

– The Fall 2008 correction

– The 'post-Olympic crash'

– Increasing overnight rates by the BOC

– Olympic Village meltdown

– Five year fixed rate qualification requirements

– Changes to refinancing rules (95 to 90%)

– 20% downpayment on investment real estate

Can't fault you for having hope.

Best place on meth
Member
Best place on meth

@jesse:

According to the description it's near a coffee shop, and we all know the Chinese love their coffee.

data junkie
Guest
data junkie

@Best place on meth: That might well be the funniest thing I have ever seen.

specialfx3000
Member
specialfx3000

@Dave:

Dave, how about the Ides of:

-Debt problem in Canada, especially in BC

-Increase of employment in Canada, except in BC (Whoops)

-Increase in income, but BC among the lowest of all provinces

-Realtors like you having too much time on the hands and keeps blogging to stay oblivious

specialfx3000
Member
specialfx3000

@Best place on meth: It'll be at 8:08am with coffee in hand.

Dave
Member

@specialfx3000:

How about the Ides of:

– More employment now than pre-recession levels

– Lower unemployment

– Strong growth in wages

– Recovery in the forest sector

– Strong immigration stats

– Stronger government revenues and a pending return to balanced budgets

– Oil prices up

– Strong natural gas sales in the North East

– US economic recovery

– Strong imports from China

It's a great time to be alive!

Best place on meth
Member
Best place on meth

@Dave:

Awesome, with all those fabulous economic indicators it's a great time to raise interest rates.

Dan in Calgary
Guest
Dan in Calgary
@blueskies, "I think the current events in Libya et al are shaping up as a really dark grey swan" imho, you're right! Many people are likely missing it (not referring to bloggers here). It's not Libya that concerns me, but rather the "et al" you referred to. We're watching political domino unfold, and it may reach a scale our generations have never seen. The trendy phrase "double-dip recession" may turn out to have been an optimistic forecast. I'm not predicting it, but I won't be surprised if there are so many "dark grey" swans coming our way that we forget that swans are supposed to be white! —- @coastal, "That first link to the agent chat was hilarious…. A dozen delusional agents…. Meanwhile the world around us in complete turmoil and unknown effects ahead…." Yours is a thoughtful summary, especially… Read more »
jesse
Member

@Dave: I agree, Dave. The economy looks to be slowly improving. Hopefully the Libya fiasco comes to an end quickly. It will be a great day when rates start rising again and unemployment drops, hopefully at the same time in the case of BC. High unemployment and rising rates would suck @ss.

4SlicesofCheese
Guest
4SlicesofCheese
Westside Hag
Guest
Westside Hag

If you want to have a laugh/raise your blood pressure this morning, read Douglas Todd's rather confused assessment of the Mainland Chinese situation in Vancouver.

He seems to be saying that we are not doing enough to accommodate them and if we don't start pandering to them more they might head back to China.

(At least, that was my interpretation of the piece.)

DaMann
Member
DaMann

@Westside Hag:

Linky?

Westside Hag
Guest
Westside Hag
VanRant
Guest
VanRant

@Westside Hag: I thought real estate agents are doing a good job by flying them around and driving them to open houses in their Mercedes.

Dave
Member

@Westside Hag:

I thought it was a good idea for an article, but it was poorly formulated. It's an interesting observation, but the causes of it were not explored.

The biggest problem in my opinion are poor verbal and written english language skills. Education and skills mean little when you are unable to communicate effectively. Credential recognition is very overrated as a root cause. All the professional associations have mechanisms in place for foreign trained people. If you don't have the language skills to navigate your way through a system, you aren't going to make it through.

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