CBC.ca/bc : “foreclosures” on the front page

But not only that: “skyrocket” is in the same sentence. Is the end nigh?

Home foreclosures are on the rise in B.C.’s Central Okanagan in recent months, but local real estate agents disagree about who might be losing their homes.

There are more than 170 court-ordered sale properties on the market in the Central Okanagan, more than 10 times more than three years ago.

Real estate agent Jason Neumann says according to his estimates, in the last 30 days alone 60 new foreclosures were put on the market, and he calls it a disturbing trend.

Neumann is worried the number of foreclosures will bring the overall market down, hurting anyone who wants to sell their home.

“What do you tell your sellers that are not in foreclosure that are now up against something they didn’t see coming? It’s one of those things where the bank is going to have to do what it’s got to do to get it sold.”

Looks like the media just noticed what’s happening in the Okanagan. Here’s the article.

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WFT?
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WFT?

Here is a comment from that CBC story.

There are foreclosures in Kelowna because speculators overextended themselves and wannabe buyers got into the market obviously knowing that they did not have the personal resources to do so. What the community, and the Okanagan still has going for it is that as far as Canada is concerned it is "paradise". There are few places, as beautiful, with the natural amenities close at hand and an 8 month summer. The 170 homes will be picked up soon and the local market will continue to grow. Why would a person live anywhere else in western Canada if they could financially afford to be in the Okanagan.

WFT?
Guest
WFT?

This poster is the "everybull". His post represents the views of RE bulls on their local bubble market no matter where in the world the bubble happens to be.

Anonymous
Guest
Anonymous

K this is totally unrelated but I have to post it…unbelievable

http://www.cbc.ca/news/canada/british-columbia/st

gordholio
Member
All cynicism aside, doesn't it suck that we live in a corrupt environment where the mainstream media is just now "noticing" this? I was in the Okanagan last spring (Penticton, Summerland). A mini-vacation and a quick hands-on check of the local RE market. Prices were already way down, listings were already way up, two of the agents we toured with used the "foreclosure" word, and we could feel the crash everywhere. I remember several times standing on a given road, amidst a sea of For Sale signs and slahed prices. Still, we knew it would only get worse as time went on. Yet even while the usual media suspects trumpeted (questionably stocked) condo pre-sale line-ups in Burnaby and Chinese in choppers, they blissfully ignored one of the most obvious signs of a bursting bubble – large-scale deflation in the peripheral… Read more »
gordholio
Member

#1 WFT?: Did you get the name of that realtor?

patriotz
Member

@WFT?:

" Why would a person live anywhere else in western Canada if they could financially afford to be in the Okanagan. "

He answered his own question without realizing it. The Okanagan has no real economy, and is expensive. The only people who can afford to move there are those who already have a lot of money and no desire to make more. Which excludes even most rich people, who like to live where the real action is, and that isn't Kelowna.

Yaya
Guest
Yaya

So I guess it wasn't news until the wave of foreclosures hit. It seems to me that we've been talking about the collapsing okanagan real estate market on this site for a year or more, you'd think prices dropping by 30% or more would make news.

Best place on meth
Member
Best place on meth

>>>Neumann is worried the number of foreclosures will bring the overall market down, hurting anyone who wants to sell their home.<<<

Bullshit.

It won't hurt "anyone who wants to sell their home". Why would someone who bought 10 or 20 years ago be hurt? They won't realize gains quite as big as if they had sold a couple of years ago but they'll hardly be hurt.

No, the ones who will be hurt are those who bought more recently at stupid, insane prices – the ones who helped inflate the bubble.

These are people I couldn't give a rats ass about if they end up broke, divorced and living on the street.

Aloha, suckers!

And don't cry, I don't want to hear your fucking wailing, just shut up and take your lumps.

patriotz
Member

@Yaya:

Many people both here and in the US have the mistaken belief that foreclosures are the cause of RE busts. They're not a cause, they are a result of falling prices. Foreclosures remained at low or normal levels until a year or more after the peak in all US markets, as they have in Kelowna.

So people, and the media, don't see a "bust" until the foreclosures start snowballing.

Devore
Member
Devore

@WFT?: Ah! The hope never dies. Cognitive dissonance at its best. If everyone wants to live there, why has the market sucked for years, and why is there 12 months of inventory?

Is that innocence? Or is that greed? Or both? (from end of previous thread I guess)

Bally
Guest
Bally
"Neumann is worried the number of foreclosures will bring the overall market down, hurting anyone who wants to sell their home." What crap. Neumann is worried that he'll have trouble selling stuff and thus making any money. I could respect that position and agree with him that it's going to be a more difficult time to be a realtor. Got no sympathy though and have zero respect for him trying to pretend he only has the interest's of the 'poor' sellers in mind. Also have zero respect for CBC for taking such biased commentary and regurgitating it without editorial control or presenting a balancing opinion. Still, it's nice to see such negative news out of a former RE hot-spot. Thank god it couldn't happen in Vancouver with our fantastic views, hills, ocean, golf-courses, mild climate, and Hot Asian Money supporting… Read more »
Devore
Member
Devore

Interesting point from everyone's favourite Vancouver realtor cam practitioner Ian Watt: many 5 year condo mortgages coming up for renewal in 2012. With 50% investor/speculator share, as he estimates, many will be deciding whether to renew the mortgage on their negative cashflow property, or sell it.

rp1
Guest
rp1

I listened to the interview and it's a bit more balanced. But I found the last part amusing. The REMAX guy equates Kelowna foreclosures (which are just ticking up) to the US situation where the inventory of foreclosed properties is decreasing.

Anonymous
Guest
Anonymous

From this CBC story, and the last post from vangrl

( http://www.canadianrealestatemagazine.ca/news/ite… )

on the previous topic, it's looking like the Real Estate Agencies (and therefore the local MSM) has started to turn against owners, realizing the only way to increase sales is to instill a little panic into sellers to get them to drop their prices. They appear to be realizing that by hiding any evidence that things are deteriorating, sellers are very unrealistic about what their place is worth and are unwilling to comprimise.

Anonymous
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Anonymous

@Yaya:

Yes. And I think they failed to even mention the magnitude of the price drop in the CBC article.

Anonymous
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Anonymous

@Devore: "Is that innocence? Or is that greed? Or both?"

Don't confuse ignorance with innocense.

Anonymous
Guest
Anonymous

@Devore: I would imagine that every year there will be a lot of 5 yr condo mortgages up for renewal.

patriotz
Member

@rp1:

"The REMAX guy equates Kelowna foreclosures (which are just ticking up) to the US situation where the inventory of foreclosed properties is decreasing."

That is, he's calling the bottom. Well that's a start, since to call the bottom you have to admit that prices have been going down.

Maybe we should start a bottom call thread in the forum.

jesse
Member

I'd like to think CBC is paying attention to social media to generate their stories. I expect this is no exception.

Noname
Guest
Noname

@Devore: I bet many will do what 'cash flow negative' owners have done in Bubble markets all over the world. They'll decide to sell, but list at a fantasy price. It will sit on the market and they'll gradually reduce price but not far enough. They'll let the listing expire and wait 'for the market to recover'.

Then they'll sit for years with a depreciating money losing investment. Some of them will have life changes that makes selling necessary, they'll take a big loss or go into foreclosure and bankruptcy.

The free lunch will turn out to be the most expensive thing on the menu.

Watcher
Guest
Watcher

USA = Bottom

CANADA = Top

In terms of RE prices

Watch the see-saw in action!

Devore
Member
Devore

@DEFAULT NAME: No duh, but there is a specific reason Ian brought it up, which you would know had you taken 2 minutes out of your busy life to look at the video. Whatever, carry on as you were.

Best place on meth
Member
Best place on meth

For anyone who hasn't yet seen the piece on the house Larry's selling:

http://www.cbc.ca/news/canada/british-columbia/st

CanNeverThinkOfaGood
Guest
CanNeverThinkOfaGood

Apologies if this has been posted before. People appear pretty shocked at the extent of the irregularities in the comments.

http://www.nytimes.com/2012/02/16/business/califo

patient renter
Guest
patient renter

So, it will happen in 2013, huh? I think it will be sooner than that!

http://tinyurl.com/6spedx6

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