RBC: market irrational, painful correction possible

In case you missed his post in the forum, vanpro linked to the latest RBC affordability report:

The RBC Measures climbed by between 1.0 percentage point for condominium apartments and 3.4 percentage points for detached
bungalows, moving closer to their all-time highs reached at the start of 2008. We fear that the Vancouver market is becoming increasingly disconnected from local demand conditions and vulnerable to a painful correction, especially once interest rates resume their ascent.

Such strained conditions warrant close monitoring for any sign that the Vancouver and B.C. markets have become dangerously disconnected from prevailing local housing demand fundamentals.

Check out vanpros post in the forum and the original report PDF here.

This post was submitted by The Donald.

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61 Responses to “RBC: market irrational, painful correction possible”

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  1. 61
  2. Ravishing Rick Says: Reply to this comment

    @Li Kai Shing

    Cut the Music!

    Before I give you a Karate Chop to your one and only descended testicle, I want you to listen up: Firstly, the Ravishing one doesn't take advice on romancing the ladies or tips on safe driving from the likes of you.

    Secondly, I told you for the last time to stay out of Whalley, this is my neighborhood and the people here are painfully misunderstood. Take it from the Ravishing one, the Whallians are a hard working industrious people when legitimately employed.

    That's it… I'm dragging you down to UBC tonight and getting a buddy of mine by the name of Passaglia to punt you back to hong kong. If you land anywhere between Tokyo and Taiwan it counts as a field goal and I win a case of Pilsner.

    Hit the Music!

    Current score: 2
  3. 60
  4. MM Says: Reply to this comment

    @whydoItry: Condos may last a few years more. Different story for townhouse complexes, some of those haven't seen an engineer since they were built 20 years ago.

    Current score: 2
  5. 59
  6. Li Kai Shing Says: Reply to this comment

    Ugrry tluth

    I help Rick a lot

    But he velly jearous type.

    I have velly intimate dinner in Surrey 5 -star restaurant( aka dive)..then Rick crash and insult maitre'- dee .

    This is survelliance video

    http://www.youtube.com/watch?v=Z5oNb7WZXiw&fe

    Velly embarrasing.

    Owner velly apologetic…gave me Newton in compensation for spilled drink.

    Rick still not get rucky…cried and bought Olympic condo. Both leak when get wet.

    Current score: 1
  7. 58
  8. Patiently Waiting Says: Reply to this comment

    The answer was Tsur BTW

    Current score: 3
  9. 57
  10. Li Kai Shing Says: Reply to this comment

    @Ravishing Rick:

    Rick

    I give you lots of free advice on women

    You not listen

    Pool cleaning not rocket science (like pool table cleaning).

    I thought the floating chocolate bar was piece of sh*t

    How you have time to post ads like this ?

    http://vancouver.en.craigslist.ca/van/m4w/2402093

    Maybe you tell mommy to get face lift and not chase parked cars.

    No wonder you not get date.

    Current score: -4
  11. 56
  12. Li Kai Shing Says: Reply to this comment

    @Girlbear:

    Hubba Hubba

    Thank you for overly sincere compliment(pay cash no HST)

    Concubine # 379 in Army and Navy shoe sale line-up for 2012.

    I have Hummer convertible.

    I can be single for as long as you want.

    Rick the dick can your fix high heels…..he has much practice doing his own.

    See you at feminist meeting, I one on 3 wheeled Harley rickshaw and " I Rove Mom " tattoo.

    Current score: -3
  13. 55
  14. Best place on meth Says: Reply to this comment

    @real_professional:

    The Chinese are buying EVERYWHERE, trying to get their money out of China before the economy tanks there.

    Dubai times 1000.

    Current score: 9
  15. 54
  16. real_professional Says: Reply to this comment

    Bloomberg: The Chinese are buying in London… this makes sense the British Pound hasn't been beaten down this bad since the Nazi Luftwaffe air bombed the crap out of it it. Buying in Vancouver defies logic – Adam Smith couldn't have explained this behavior.

    http://www.bloomberg.com/news/2011-05-25/hong-kon

    Li Ka-Shing, who controls developer Cheung Kong (Holdings) Ltd., last week warned property speculators that the jump in Hong Kong’s home prices may not be sustainable. The city’s property price rally is nearing an end and may drop as much as 20 percent next year and a further 10 percent in 2013, Barclays Capital Asia Ltd. said last month.

    Current score: 10
  17. 53
  18. Girlbear Says: Reply to this comment

    @Li Kai Shing: Li Kai….you HAVE GOT to take this show on the road!! Hilarious.

    Current score: 2
  19. 52
  20. Ravishing Rick Says: Reply to this comment

    Cut the Music!

    @ Li Kai Shing

    Sorry to break it to you Li Kai… your global real estate empire is crumbling.

    From the Teranet data:

    Calgary down 13% from the highs

    Ottawa and Toronto down almost 2%

    Halifax flat slightly negative

    Montreal and Vancouver are the last Jello towers standing.

    Volume is shrinking, much like your manhood.

    I'm also sorry to tell you that the last time I was visiting your old lady I used your tooth brush to comb my very manly mustache

    … and by mustache I mean pubes.

    Hit the music!

    Current score: 4
  21. 51
  22. Patiently Waiting Says: Reply to this comment

    Looks like someone joined the bear cause.

    Guess who said this about the Vancouver real estate market:

    "It's not sustainable."

    Current score: 3

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