Global with Bearish Story

Greenhorn has recorded this Global piece aired last night on families moving away from BC due to the high price of housing:

Summary: families moving away due to the high cost of housing.

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Pipa
Guest
Pipa

tsx down 3,3%, McLovin must be looking for his bargains….he-he.. what a fool

people leaving BC is another sign of deflation..deflation in real wages ..lack of purchasing powers

vreaa
Member

Realtor Guerrilla Advertising On reddit? – “Just moved here, and have been renting a place for 4 months. My wife and kids (3 boys) are now coming to live here with me. I need to buy a home.”

http://wp.me/pcq1o-30W

Keeping An Eye On Th
Guest
Keeping An Eye On Th

There must be some kind of misunderstanding; there must be some kind of mistake…..

This is the best place on earth.

This is the richest province in Canada.

This is the California of the north.

Everybody wants to live here.

Rich Billionaires from all over the world are coming in droves.

We won’t be impacted by reality, we have Asia.

We have the mountains.

We have the oceans.

We have ran out of land.

Keeping An Eye On Th
Guest
Keeping An Eye On Th

oops, " Rich Billionaires from all over the world are coming in droves"

I guess if they are Billionaires, they are rich.

But then again, why are the wives and moms deliveing newspapers?

And looking in the bin for empty pop cans?

And why do they get GST refunds?

pipewrench
Member
pipewrench

http://www.federalreserve.gov/newsevents/testimon

"Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the U.S. economy"

You watch the markets react when they expected a bazooka of money to flood in from a QE3 stimulus. We now are given a broken fly-swatter carried by a blind snail to hold up prices that have been inflated by government stimulus .

Good luck with r/e now because the debt bubble must deflate with cutbacks. If you are thinking of selling, do it now and get the Fu&* out — the party is over.

Ultramam
Guest
Ultramam

I'm one of those anecdote. Sold our condo in noisy Yaletown, bought 5 acres in a small town in Eastern Township of Quebec, built a house. Debt load is a small fraction of what we had and lifestyle is way up. Every day I think to myself, what are all those people clinging too? Running along the Seawall is the only think I can think of.

AG Sage
Member

@Keeping An Eye On The Pimps: I do wonder how long this myth holds on given the massive credit squeeze going on in mainland China. Anyone have any other examples of repatriation of money? I have two and am looking for a third for a post. Thanks.

Patiently Waiting
Member
Patiently Waiting
Part of the problem right now is there is no "next thing" in Vancouver. In the past, young people could look to high-tech or Holywood North or financial services or even real estate as some way to gain future prosperity. Now we are in a post-Olympic funk and identity crisis. Everything from the riot to our fail fashion is causing endless navel-gazing. Crusty tours the province talking about jobs but a lot of if was about was the old economy of resource extraction. Then more talk about sucking up to Asia. There was nothing there for downtrodden young workers. Vancouver and Toronto now have higher unemployment rates than most smaller cities. This challenges the myth that we will gain prosperity by opening the immigration floodgates. All that does is increase the discomfort of existing urbanites. This might be why the… Read more »
gordholio
Member
1, Jesse: Agreed. It didn't go far enough. But it's a step in the right direction. From little acorns… IMO, the MSM has played the pivotal role in propping up this thing – with Global arguably being the most heinous offender of all – so a report that discusses real families who are truly being crushed by the cost of housing and living in this region (and are leaving the province because of it), and that doesn't interview a realtor or a real estate industry economist to refute the words of these families, is a serious departure. This was not a story about rented helicopters. It was not some news anchor orgasming over BC's "HOT" real estate market. It was not a paid condo lineup being portrayed as news. It was a small dose of reality. This MSM reporter actually… Read more »
anon2
Guest
anon2

I loved that they used those 'gotta be here' ads that featured celebrities born in BC who moved away for better oppourtunity. Michael J. Fox, Ryan Reynolds, Kim Cattrall, and Steve Nash all live in the US. Some of them were just shot in front of a green screen – they didn't even bother to come back to BC to film the commercial.

Escapee
Guest
Escapee

So in this story BC = Vancouver. You don't have to leave BC to escape Vancouver. This province tends to be expensive all over, but nowhere as much as Vancouver and its suburban sprawl. I moved to a small town in BC about a year ago and am loving the transition. Housing costs half what it did in Vancouver and lifestyle is much better for me anyways.

Escapee
Guest
Escapee

@Keeping An Eye On The Pimps: I lived on the east side for a while near main street. I had neighbors that lived in a 'million dollar house', a run down two story shack. There must have been at least three, maybe even four generations living in that house. The grandmother would always dig through our recycling box for empties. Talk about lifestyle!

Sheesh
Guest
Sheesh

I agree with Gordholio. The short news segment format does not allow for in-depth reporting but she managed to pack in a lot of info. And, refreshingly, it was based on reality instead of spin.

Runawayscreaming
Guest
Runawayscreaming
Having just fled British Columbia after living there most of my life I don't like the sound of a wave of BC refugees arriving where I am now. I just spent an enormous amount of money to move myself and my business out of Vancouver and I don't really want it following me to my new Province. British Columbians I urge you to give BC a second chance (and a third and a fourth if need be). Keep a stiff upper lip and think about golfing, skiing and sailing all on the same day. Keep the dream alive! Even if almost every business leaves Vancouver you may be able to get a job serving the needs of rich Vancouver homeowners from the People's Republic of China. Think of the warm weather. Think of the warm, friendly people of Vancouver. It's… Read more »
asalvari1
Guest
asalvari1
Here is what I got this morning from europac.ca. I tough I would share with you guys… there are some sane people around, and sane financial institutions in Canada.. The mail reads as a statement – I did reply with question on what is their suggestion on how to protect oneself in the impeding collapse they are foreseeing… ———————————————– Hi ____, Is the Canadian housing market ready to crash? What we do know is that there is plenty of data to suggest that Canadian housing prices are far higher than they should be. And the usual suspects are to blame: Artificially low interest rates, an expansionary credit environment and importantly moral hazard in the mortgage origination process. We’ve focussed before on low interest rates and the expansion of credit so lets’ consider moral hazard: What this fancy phrase means for… Read more »
patriotz
Member

@Escapee:

"I moved to a small town in BC about a year ago and am loving the transition. Housing costs half what it did in Vancouver"

In other words, there is a province-wide bubble in BC. Half the cost of Vancouver for a small town is just as ridiculous as costs in Vancouver.

Here's what a small town a couple of hours from Toronto (which remember, is much bigger than Vancouver) costs:

http://www.realtor.ca/map.aspx?&vs=VEResident

scullboy
Member

As most of you know I'm another one of these. I just signed a new contract, and I'll be working as a senior business analyst for a Toronto based consulting group. The best part is I will still get to live in Halifax! It's a Toronto salary and a Maritime lifestyle.

Personally I think life in the larger cities isn't what it's cracked up to be, and we're going to see a migration out to smaller, more affordable cities.Vancouver isn't alone in this respect.

vreaa
Member

For your reference, most of the Global piece is transcribed, with stills, at VREAA:

Global TV – Young Couples Leaving BC – “You’re not putting all your money into the house itself.”

http://wp.me/pcq1o-31b

Our comment:

Kudos, on this occasion, to Global TV and to Tanya Beja, for plainly stating aspects of the effects of housing prices.

The montage of clips from the ‘Best Place On Earth’ BC advert interspersed with voice-over questions about housing is the closest Global has come to asking real journalistic questions about our RE.

It’d be even better if Global went further, and joined some of the dots:

Given the prices and incomes, we’re experiencing a ‘speculative mania’ in housing prices, aren’t we?

And, given the effects on migration that they cite, and given that prices have been driven up by bubble-dynamics, are prices sustainable?

– vreaa

Pipa
Guest
Pipa

"G&M: Flaherty ‘relatively confident’ Canada can weather economic storm"

Politicians are impotent in their fight of deflation. They are just distraction, noise.

victoria
Member
victoria
I am begging my husband to leave Victoria. At our age our home should be paid off. We are not a young couple but had 4 kids after 35. We bought a house to suite our family (we have been in the market for over 20 years) but this house needs a lot of work and it is just not worth what we paid. Windows need replacing, bathrooms are falling apart I could go on and on. Any other city (except Toronto) the house we are in would be 1/2 the price it is here. We are scraping together money every month to live. My husband owns and company and it is just starting to work (slowly) after 8 years. This indebted lifestyle has affected our marriage, our family (the kids sense the tension) my mental health. He can't get… Read more »
registered
Member
registered

15 Sheesh Says: "I agree with Gordholio. … it was based on reality instead of spin."

Not here and it was a very narrow view of reality. For the life of me I can see little bearish about that piece. No mention was made about price sustainability or future expectations. A viewer can just as easily come away with a 'dark side of our wild and justified success' message, especially with the BPoE propaganda tacked midway. I would argue it's Global's real message.

The piece's bearish impression comes from being so constantly stewed in homogenous streams of high fives and knuckle bumps in the mass media about Vancouver real estate that any discouraging word sounds extreme.

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