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.

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Ravishing Rick
Ravishing Rick
9 years ago

@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!

MM
MM
9 years ago

@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.

Li Kai Shing
Li Kai Shing
9 years ago

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.

Patiently Waiting
Patiently Waiting
9 years ago

The answer was Tsur BTW

Li Kai Shing
Li Kai Shing
9 years ago

@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.

Li Kai Shing
Li Kai Shing
9 years ago

@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.

Best place on meth
Best place on meth
9 years ago

@real_professional:

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

Dubai times 1000.

real_professional
9 years ago

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.

Girlbear
Girlbear
9 years ago

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

Ravishing Rick
Ravishing Rick
9 years ago

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!

Patiently Waiting
Patiently Waiting
9 years ago

Looks like someone joined the bear cause.

Guess who said this about the Vancouver real estate market:

"It's not sustainable."

Li Kai Shing
Li Kai Shing
9 years ago

I buy Hollywood

Make movie "To Tsur with Love":

Quote:

Why it might suddenly be happening now, however, was hard to say, he noted. Somerville scoffed at the notion, floated by Landcor in an interview with the North Shore News last month, that it could be attributed to the Olympics, or to Canada's recent designation as an approved destination by the Chinese government. "I would be very shocked," said Somerville. "The approval by China affects tourism here; that's not the same thing."

Read more: http://www.nsnews.com/business/Bidding+wars+house

========================================

I not like this.

I own West Van.

Trophy wife hunting with money laundering overnote millionaires.

Full of assh*les (aka round eyes poser limeys…. redundant)

I negotiate swap with Surrey, no one tell difference anyway, especially when I buy Lions Gate bridge and put toll on.

paulb.
paulb.
9 years ago

New Listings 279

Price Changes 117

Sold Listings 169

Keeping An Eye On Th
Keeping An Eye On Th
9 years ago

@McLovin: "Question for the group: When Florida and Vegas hit the top of their bubbles were they huge bidding wars as well or are we even further in uncharted bubble territory?" Absolutely, and it is documented, check out Ben Jones Blog, The Wall Street Journal, and Patrick.net Search some of Rich Toscano’s early reports, as well as Paul Krugman. The RE Pimps explained it much like our local low lives, ie Bill Slut, Levy, Muir, Tsur and Rennie. Running out of land, can you imagine, Vegas was running out of land? They went on to say that they had a housing deficit because "everyone" wanted to live in Vegas; the thriving entertainment business was attracting people from all over the world. Then there was the Florida pimps, who claimed everyone was going to retire there, the rich baby boomers, the… Read more »

Li Kai Shing
Li Kai Shing
9 years ago

Where is Lavishing Lick

Cue the gong

Insolent pool cleaner

cue the hounds

Li Kai Shing
Li Kai Shing
9 years ago

Next hot area is Whalley Newton

I got my full patch, tatoo, Harley and beer belly

Not sure if I should run for Surrey Mayor.

Girlbear
Girlbear
9 years ago

@Girlbear: Sorry, just HAD to vent ! Vangrl's fault after I read that article on West Van bidding wars…

Girlbear
Girlbear
9 years ago

Honestly, with this endless dreary weather combined with the absolutely insane cost of living I am moving Vancouver to my personal TOP TEN WORST PLACES TO LIVE! 🙂

Devore
Devore
9 years ago

@whydoItry:

The oldest purpose built condominium complexes in Vancouver were built almost 40 years ago. These wood frame buildings might last another 60 years, so for most of us it may be a non issue. Of course a hundred year old condo complex is gonna be really ugly by then and you may find large insurance companies buying out the owners and redeveloping the land with concrete high rises.

Oh, I don't know that any condo will live that long. After a certain point, maintenance expenses will be too high, especially if the building has been neglected for a decade or so, like most condos today. Either that, or like you say, the property will be destroyed to make way for higher utilization.

CanuckDownUnder
CanuckDownUnder
9 years ago

The hits keep on coming in Australia – arrears on mortgage repayments hit a record high in the first quarter of 2011.

According to the Reserve Bank this isn't really a problem because borrowing patterns have changed since the 1990s (i.e. household debt has ballooned) and that people are simply more sensitive to changes in interest rates. This logic can only make sense to central bankers.

http://www.smh.com.au/business/lowdoc-mortgage-ar

Devore
Devore
9 years ago

@Devore: Or, more to the point, what is the interest schedule? Is it 100% divided amongst unit holders, or does the developer or some other entity usually have some share as well.

Devore
Devore
9 years ago

@whydoItry: Who owns the strata? Is it 100% between unit holders?

patriotz
9 years ago

@McLovin: Within a month of putting her two-bedroom house in San Francisco on the market recently, homeowner Linda Gao had five offers, each one above her asking price of $699,000. So before accepting the most-attractive bid, she threw in an extra condition: If you want to buy my house, you have to feed the squirrels. Two weeks later, she and the buyer hammered out a contract that included feeding the backyard wildlife, which Ms. Gao has done three times a week for the past two years. "I don't think it matters if it's a buyer's market or a seller's market," Ms. Gao says. "Anyone with a good heart would feed them."… Indeed, when Susan Butler was negotiating to buy Ms. Gao's San Francisco property, she was resigned to the feeding schedule. "At that point, I said, 'Yeah, what the hell,… Read more »

whydoItry
whydoItry
9 years ago

How do condos die. When a condominium complex is built, the developers assigns a value in relation to the other units which is called an interest upon destruction. If the condo falls over or becomes uninhabitable then the property is sold and the individual owners receive a portion of the proceeds in accordance with the interest upon destruction. The oldest purpose built condominium complexes in Vancouver were built almost 40 years ago. These wood frame buildings might last another 60 years, so for most of us it may be a non issue. Of course a hundred year old condo complex is gonna be really ugly by then and you may find large insurance companies buying out the owners and redeveloping the land with concrete high rises. Especially if the condominium ownership is leasehold rather than freehold. Much easier for the… Read more »

McLovin
McLovin
9 years ago

I love the sign "Sold over asking". From this we are to believe that the agent actually did something to earn their huge commission. I mean something other than putting a listing on MLS and a sign on the lawn.

Question for the group: When Florida and Vegas hit the top of their bubbles were they huge bidding wars as well or are we even further in uncharted bubble territory?