Carney cries wolf again.. will it come?

Mark Carney is making new remarks about some Canadian real estate markets being “probably overvalued“.

It was the second time in recent days that Bank of Canada Governor Mark Carney voiced concern about property prices, which surged after the financial crisis as borrowing costs tumbled.
“We see that in a number of real estate markets in Canada, valuations are at a minimum, firm; in others, they’re probably overvalued. So there are risks there. We’re watching it closely. We’re working with our partners, the federal government, the superintendent of financial institutions,” he said in an interview on “Question Period” on CTV.

“Measures have been taken. They’ve been effective. We’ll keep up that vigilance. If more needs to be done, I’m sure the appropriate authorities will take those measures.”
The federal government has tightened mortgage regulations several times in a bid to prevent a property bubble from forming. Finance Minister Jim Flaherty said on January 17 that the government is watching the housing market closely and is ready to intervene if needed, but is not about to do so now.

Yes, the federal government has tightened mortgage regulations “several times”.. Here’s a timeline of those changes courtesy of Burbs Boy:

Jan 2006 – Minority Conservative Government elected
Feb 2006 – 25 year increase to 30 year on test basis
Jul 2006 – 30 year test affirmed and also increased to 35 year
Jul 2007 – 35 year increase to 40 year
Oct 2008 – 40 year decrease to 35 year
Mar 2010 – 35 year decrease to current 30 year

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jumpin in
Guest
jumpin in

Could someone give names of RE forums where we could troll massively?

Just for fun 🙂

Realtors have been doing the same here lately.

I only know RE talk.

vangrl
Member
vangrl

VMD "Thanks Crashcow, this is going straight to a new thread at the Chinese forum. Just trying to add some spark to the Chinese New Year holiday discussion ; )"

that thread made me laugh, thanks for that!

yvr2zrh
Member
Re: My Post #83 – – Final sale should have said Jan 2012 and not 2011. This was a recent transaction. There are actually many like this out there. Separately – I have to say I was pretty sickened by the insert in the Vancouver Sun yesterday. The Chinese New Year insert was nothing more than a Real Estate advertising section. It was completely rediculous. I think the industry can really see that without Chinese money – this market is dead in the water now, taking on water and sinking. It was in this section that the article mentioning that the Chinese are coming was included. What a POS this section was. Anyhow – – – Tuesday is here now and we should see all the effects of the 100's of cash sales that occurred on the weekend to the… Read more »
Dan
Guest
Dan

@604x

Thanks for posting… those letters are well written. I've sent a few to the media regarding tax-evasion. But I think I'll try sending some like yours.

Boombust
Guest
Boombust

“the other three offers that were declared Sunday evening have decided not to go forward.”

That's an old realtors' trick. Don't ever fall for the "…just so you know, there ARE other interested parties" Phoney BS.

jumpin in
Guest
jumpin in

Interesting post on the Chinese speaking RE forum, regarding sales in Richmond:

Year in an aircraft of migratory birds fly north, the New Year after an aircraft of migratory birds flying south again

604 Receding Gains
Member
604 Receding Gains

ok, I went a little nutty. Four letter templates are now posted in the VCI Forum:

http://vancouvercondo.info/forum/topic/letter-wri

VMD
Member
Interesting Realtor conversations documented @ Larry's site: Sunday AM Buyer’s Realtor® – “We’d like to make an offer!” Seller’s Realtor® – “Ok that’s great but, I need to tell you that three others who visited the weekend open house have also declared their intent to make an offer as well,” said the listing agent. “Oh – well then, I will inform the buyers I’m representing to advise them that you expect multiple offers – I’ll get back to you with their decision.” Sunday PM Buyer’s Realtor® – “The buyers I’m representing have decided that they do not want to participate in a multiple offer situation.” “Thanks for your time and good luck with your multiples.” Monday AM Seller’s Realtor® phones. “Would your buyer’s reconsider their decision?” Buyer’s Realtor® – “Why?” Seller’s Realtor® somewhat embarrassed – “the other three offers that… Read more »
VMD
Member

@zrh2yvr:

Thank you Zrh2yvr, this went straight to another new thread to the Chinese forum. I'm such a troll.

Did a quick summary,

-70,000 from reno

-3,132 from property tax

-43,950 (5%) from realtor fees/closing costs (does 5% sound right?)

Total~ – 117,000 or -13.3% (not including mortgage interest/insurance payments)

<a href="http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2 Fwww.westca.com%2FForums%2Fviewtopic%2Fp%3D3869974%2Flang%3Dschinese.html%233869974&act=url” target=”_blank”>http://translate.google.com/translate?sl=auto&amp…” target=”_blank”>Fwww.westca.com%2FForums%2Fviewtopic%2Fp%3D3869974%2Flang%3Dschinese.html%233869974&act=url

Guy Smiley
Guest
Guy Smiley

@ #82 That is a really nice place. But $20M???? Absolutely nutty. Much nicer available in a thousand locations around the globe. Carribean. South France. You might be able to purchase Arizona for that.

604 Receding Gains
Member
604 Receding Gains

A couple of nights ago @WTF! submitted enough comments about tax evasion of speculators that I got pissed off and wrote a letter. I've posted the letter to the VCI FORUM under its own section "Letters" (keyword "elbowing back"). The strategy of the letters: hit them where it hurts – m-o-n-e-y.

Copy, update and mail if you get bored. It needs follow-up parallel letters to other departments. Let's try to get to those in coming days.

Vive la revolution!

Brainburst
Guest
Brainburst

@Brainburst:

Actually, the entire website looks like The Little Shop of Horrors .

http://www.manyeelui.com/index.php

yvr2zrh
Member

Richmond sale today – – Failed Flip

10160 Dennis –

Sold Feb 2011 – $879,000

listed Aug 2011 – $1,098,000

Sold Jan 2011 – $879,000

one year, no gain, out of pocket for costs – and, listing says that seller spent $70,000 on repairs and renos.

Brainburst
Guest
Brainburst

@zrh2yvr:

It could be this one, staged with Chinese furniture.

http://www.manyeelui.com/Properties.php/Details/8

VMD
Member

@crashcow:

Thanks Crashcow, this is going straight to a new thread at the Chinese forum. Just trying to add some spark to the Chinese New Year holiday discussion ; )

<a href="http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2 Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D422633%2Flang%3Dschinese.html&act=url” target=”_blank”>http://translate.google.com/translate?sl=auto&amp…” target=”_blank”>Fwww.westca.com%2FForums%2Fviewtopic%2Ft%3D422633%2Flang%3Dschinese.html&act=url

Gromit
Member
Gromit

Larry's numbers

Vancouver East & West*

New Listings – 115

Back On Market Listings – 1

Price Changes – 15

Sold Listings – 27

Vancouver All Areas*

New Listings – 307

Back On Market Listings – 2

Price Changes – 53

Sold Listings – 73

*Attached & Detached – Date: 01/23/2012 Time: 20:55 Pacific YatterMatters.com: Courtesy REBGV. Data believed to be accurate but is not guaranteed.

mac
Guest
mac

@Makaya:

Exactomundo.

yvr2zrh
Member

Well – – House on Belmont sold today for pretty much $20M.

This is just one thing to remember that in this month of record low sales volume, we had a house that sold for an amount that will bring the average across the whole market up by $45,000 – So – Don't expect the Larry and REBGV graph to show as much of a decrease this month (we would have been down likely another 3-4% but this may counter-balance it to keep it flat).

Makaya
Member
Makaya

@Makaya: On that same article, they're running a poll with the question "will the market crash"?

So far, 70% of the people answered yes…

Makaya
Member
Makaya
And here is another MSM bearish article… Prediction: The Canadian housing market will crash Here is an interesting quote from the article: This puts the housing market in a precarious position: a large gap between prices and incomes, worsening affordability, and an indebted nation of homeowners less able to withstand economic shocks. None of these conditions has improved over the past 12 months. “The bubble has become worse,” says George Athanassakos, a finance professor at the Richard Ivey School of Business. Athanassakos argues the market is headed for a severe correction. Like many, he thought it would be showing more signs of strain by now. Instead, “house prices continue to go up, and debt continues to go up.” David Madani, an economist with Capital Economics, says that the reason prices keep rising, despite fundamentals that indicate they should be moderating,… Read more »
Apocarypse Mao
Guest
Apocarypse Mao

@crashcow Says: What a gutsy magazine cover that Canadian Business just put out!

Yes. I was shopping at Safeway on the weekend, made sure I spread four or five all over the magazine rack at eye level. Quite catchy.

Got to keep the agitprop up, with what little we have.

Anonymous
Guest
Anonymous

@longorshort: "I don’t have real time data but can say that there is limited supply of reasonable priced detached in better areas"

There has been NO supply of reasonable priced detached in ANY areas of the lower mainland for 8 or 9 years. However there will be lots coming soon.

frank
Guest
frank

Did I miss Paul's numbers tonight?

crashcow
Member

What a gutsy magazine cover that Canadian Business just put out!
http://www.canadianbusiness.com/issue/66623–issu

And here's the article:

"Prediction: The Canadian housing market will crash"
http://www.canadianbusiness.com/article/65694–pr