Avg house price dropped $10k in July

The CREA has released stats and a forecast.. Apparently house prices are down and the expect them to stay that way.

“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods, but this factor is now diminishing,” CREA’s chief economist Gregory Klump said. “Upward skewing of the national average price is also shrinking due to overall sales trends in Vancouver, and most recently in Toronto.”

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patriotz
Member

Canada's real estate market is now expected to grow this year rather than decline, as buyers take advantage of continued low interest rates that are intended to offset recent economic turmoil, economists said Tuesday.

The comments came after the Canadian Real Estate Association revised its 2011 national forecast for home resales, citing stronger than expected sales and higher prices in the second quarter.

http://ca.finance.yahoo.com/news/Real-estate-buye

Better buy today – you might be unemployed tomorrow.

whydoItry
Guest
whydoItry

As prices come down, sales activity should increase. What happens to the volume of listings will either cause prices to increase or decrease. If listings continue to increase, you can have more home sales but with decreasing prices.

And that would be a good thing for the re-sale market, agents, brokers and bankers, but no-so-good for new construction, vacancy rates and construction related employment.

southseacompany
Member
southseacompany

"Is Canada in bubble-trouble? Check out what the experts have been saying since 2009."

http://blog.buzzbuzzhome.com/2011/08/is-canada-in

bubba
Guest
bubba
Re CMHC 5) Why is CMHC the only insurance entity in Canada exempt from OSFI regulation? OSFI (Office of the Superintendent of Financial Institutions) is, after all, the country's top financial regulator. The notion that since it is a government entity it should not be subjected to the same oversight as private firms, especially when they are insuring far larger sums using taxpayer money, strikes me as completely absurd 6) Along the same line as the last point, why is CMHC so damn secretive?! I’ve taken the advice of a recent poster and am now attempting to pry some data from CMHC’s cold, clenched hands via the Freedom of Information Act. I’ll let you know if I make any headway. ======== Is the CMHC Canada's equivalent of Federal Reserve ? Love YOUTUBE clips of Ron Paul questioning Bernanke on various… Read more »
jesse
Member

@whydoItry: "As prices come down, sales activity should increase."

Yep, that should happen. Except it doesn't. I know I know… that's… just… crazeeeey!!!

bubba
Guest
bubba

@whydoItry:

As I have said before old rules do not apply at finish…because the old rules weren't used at the start.

Its a bizarro universe

People should go to used books stores and buy " BOOM BUST ECHO" by David Foot…it laid all this out.

Vansanity
Guest
Vansanity

10 year bond yields dropped to 2.288% lowest ever.

From the UK, good read on the depression… we'll see how bullish people remain on housing.

http://blogs.telegraph.co.uk/finance/jeremywarner

Many Franks
Guest
Many Franks

A video collection including one or two local favourites…

http://realtorsincars.tumblr.com/

VanRant
Guest
VanRant

Mustbe a fruit stand on every corners.

Contarian Lemming
Guest
Contarian Lemming

Somebody asked last week about Olympic Village sales. These numbers are for new Land Title registrations for this year, not actual sales, but they give a rough idea:

Jan 0

Feb 0

Mar 10

Apr 35

May 66

Jun 11

Jul 14

Aug 3 (as of Aug 16)

As of Aug 16, 403 units are sold and 334 remain registered to the city.

I also noticed a few second sales:

#710 1633 Ontario

Aug 23 2010 $674,000

Mar 10 2011 $570,000

#909 181 West 1st

Jul 26 2010 $1,235,900

May 9 2011 $983,000

#810 181 West 1st

Jul 7 2010 $840.900

Jun 2 2011 $750,000

DaMann
Member
DaMann

@Contarian Lemming:

Wow those seconds sales show what a great investment those things were!

Devore
Member
Devore

“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods

Oh, now they tell everyone. Pricks.

Devore
Member
Devore

@whydoItry:

As prices come down, sales activity should increase.

All other things being equal, yes. Economics 101: if the price of something decreases, more of it will be demanded. However, house price declines do not happen in a vacuum. Why are prices decreasing, and what effect do those conditions have on the marginal buyer?

House prices have decreased in the US, but so has sales activity, which is at all time lows even beyond what was seen during the Great Depression. I'm not saying the same conditions will exist in Canada, but clearly your assertion is not valid.

Best place on meth
Member
Best place on meth

@Many Franks:

When realtors do videos from their cars it shows everyone that they're movers and shakers – especially movers.

If they can tape the video while driving, even better – it shows superior multi-tasking skills which a realtor needs when passing pieces of paper with numbers on them back and forth while simultaneously on the phone with other clients.

Of course, none of this actually matters anymore with sales in the gutter but it's still impressive nonetheless.

rp1
Guest
rp1

@whydoItry: "As prices come down, sales activity should increase."

True in normal times, but not when something becomes a status symbol:

http://en.wikipedia.org/wiki/Veblen_good

Devore
Member
Devore

@rp1: I wouldn't say a status symbol, but certainly an emotional purchase. If prices turn down, and the "always goes up" sentiment turns negative, for what reason would sales go up? Also, if prices do establish a declining pattern, lending will become more strict, because meager 5% equity could be wiped out in a single month, putting the buyer in a precarious situation, particularly should they need to sell. Needless to say, if credit dries up, sales will evaporate too, regardless of how low prices go.

jesse
Member

@Devore: "if the price of something decreases, more of it will be demanded"

Here one assumes the demand curve remains fixed. Any look south of the 49th shows the demand curve is dynamic and reduced faster than the price drops, which is the problem with almost all house price busts in history. Economics 102 😉

patriotz
Member

@rp1:

Houses are not consumer goods (luxury or not), they are capital assets which are bought with the expectation of future resale. That is, demand is speculative.

That's why your economics textbook demand curve, which is for consumables, does not apply to them. It doesn't apply to stocks either.

jesse
Member

5 year bonds: 1.4%. Sorry bears, no rent rises this year! 🙂

bubba
Guest
bubba

I will pass this on….

> Just a friendly reminder……

REMEMBER: Cell Phone Numbers Go Public this month.

REMINDER….. all cell phone numbers are being

released to telemarketing companies and

you will start to receive sales calls.

YOU WILL BE CHARGED FOR THESE CALLS

To prevent this, go to the following web-site for

Canadian Telephone Numbers:

http://www.lnnte-dncl.gc.ca

It is the National DO NOT CALL list. It will only take a minute of your time..

It blocks your number for five (5) years.

HELP OTHERS BY PASSING THIS ON .. It takes about 20 seconds.

Someguy
Guest
Someguy
rp1
Guest
rp1

@patriotz: "Houses are not consumer goods (luxury or not), they are capital assets which are bought with the expectation of future resale. That is, demand is speculative."

That's true of:

1) outright speculators

2) first time buyers scared of being priced out

3) landlords holding on with terrible or negative yields

But what about all the people trading up to say "look at my big house!" A lot of people at this point don't care if they lose money, as long as it's not a devastating loss. They deeply believe house prices can/might/will fall, but not too much.

Anonymous
Guest
Anonymous

@bubba:

That's an internet myth that has been around for years…

bubba
Guest
bubba

@Anonymous:

Not really…I have received calls on mine from telemarketers….

Whatever…

uh oh
Guest
uh oh

@Someguy: That's bad news.

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