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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Extremely rich Van h
8 years ago

@Best place on meth:

Did u quoted it from Epoch Time,a Chinese cult which is responsible numberous terriotist attack against Chinese citizens and foreign diplomats.

Best place on meth
Best place on meth
8 years ago

@Extremely rich Van house owner.:

China's going down the shitter fast.

Real estate crash, debt bombs going off left, right and centre and now they're losing jobs as the US takes them back.

http://news.yahoo.com/blogs/ticket/obama-plan-ins

What's really funny about this is that our moronic PM is hitching our wagon to this totalitarian cesspool while giving the US the finger.

His timing is just awesome.

Patiently Waiting
Patiently Waiting
8 years ago

By one measure, the average, Vancouver prices are already down YOY. I assume "the average" is the mean:

The number of houses sold in the Vancouver region through Multiple Listing Service was down 13.4 per cent in January from the same month last year, the industry group said Wednesday.

In addition, the average price of a Vancouver home declined slightly, from $762,562 in January 2011 to $752,380 this year — a difference of 1.3 per cent.

In the Fraser Valley, sales dipped by 3.1 per cent during the same time period. However, prices rose 6.4 per cent from an average of $441,544 last year to $469,635 in 2012.

Read more: http://www.vancouversun.com/business/Property+sal

Anonymous
Anonymous
8 years ago

@extremely rich

Exactly my point, HAM is paying 100% cash for 20% of the volume at ridiculous levels and the caucasian riff raff you refer to is loading up on cmhc guaranteed mortgages and heloc's etc with no cash for 80% of the volume and thus that latter segment of the market is being targeted for scale back by regulators and mortgage lenders themselves. So when the volume declines in that segment it may actually look like average prices are going up due to steadier demand from HAM cash when in reality the bulk of the market is unravelling.

Extremely rich Van h
8 years ago

@DEFAULT NAME:

U guys are jealous our success but the Sun will alway rise up from the East.Don't let your frustration destroy u.

Anonymous
Anonymous
8 years ago

@Extremely rich Van house owner.:

"What is it relevant to Van where 80% of house buyers are wealthy or well-to-do middle class Chinese"

There is no such thing as 'well-to-do middle class Chinese' buying houses in Van. There are wealty corrupt dirtbags (currently buying in Van occassionally)…and pretty much the rest of the country (99%) don't have flushing toilets.

Extremely rich Van h
8 years ago

@longorshort:

Come on guys don't use Caucasian mentality to analyze us;Our wealthy compatriots alway buys properties with cash;even those local Chinese citizens alway have substantial down payment usually 30 to 50 percent plus.We are a very prudent society.If it weren't Us and our bolived motherland support,this remote nothern country would end up like evil US.Even Harper,has repented his pass mischief to our motherland and pay a bestow to "Great China"

U guys should change your mindset to realize this century and coming centuries is a China one not US and others.

Anonymous
Anonymous
8 years ago

the cows here are chewing the same grass every day.

jesse
8 years ago

@patriotz: "They think they’re making a “tax free profit” every time they sell."

Even if one, two, three consecutive transactions are for losses they will be justified as profit, just compared to an earlier benchmark. Someone who bought 10 years ago can sell all the way down and still come up "net positive". It's all about emotional protection.

fixie guy
fixie guy
8 years ago

59 rp1 Says: "…The government could pay people to buy, or offer tax breaks to cover capital losses."

One RET booster claimed that the markets will surely be sustained because banks will start charge negative mortgage rates, paying clients to take their money. It was never made clear how they were to generate profits under the scheme; quantity?

patriotz
8 years ago

@jesse:

They think they're making a "tax free profit" every time they sell.

Seriously, some people think this way.

jesse
8 years ago

@longorshort: It could be that a lot of the volume is simply lateral moves. I have been shocked how many times some people have bought and sold SFHs in the past 10 years with no discernable reason beyond being addicted to buying and selling.

We'll see!

VaninUK
VaninUK
8 years ago

@Anonymouse #53

In my office, here in the UK, a colleague commented the other day that her house value had dropped £100k within the last year. Another colleague is buying an apartment in a manor house for £240k down from £515k in 2007. It sounds like things are definitely crashing outside of London (much like the crash outside of Vancouver). I imagine there's probably plenty of speculation happening in London because: "everyone wants to live here", "we have the Olympics", "never ending supply of Russians/Arabs", "Best city on earth", etc. So we'll see….

gordholio
8 years ago

Don't forget, boys and girls, we think of it as a spectacular, sudden "crash," yet the hot spots of the US housing bubble certainly didn't revert to sanity overnight. Foreclosures were already running rampant is some locales even while others remained rife with bogus media-fueled mania, speculative buyers out the ying-yang, and thoughts that "it's different here." Hell, it's *still* coming apart in most areas, a half-dozen years after it began.

longorshort
longorshort
8 years ago

@Extremelyrich

In SFH Van West, Richmond and W Van it may be 80% HAM, but reality is that good part of the value of transactions in the market is funded effectively by low equity deals for domestically born riff raff. And now they can't get financing so the trades in that segment of the market which has held down average prices has/will evaporate. Happy for someone with data to prove otherwise.

Curiosity
Curiosity
8 years ago

Love the quote from the article:

""What do you tell your sellers that are not in foreclosure that are now up against something they didn't see coming?"

Didn't see coming? It's not like they were blindsided and sucker punched. The writing was on the wall right in front of their faces. I suppose this same quote will be used when foreclosure rates hit an all time high in Vancouver.

Anonymous
Anonymous
8 years ago

@DEFAULT NAME: "2007 a 5 year mortgage was as high as 7 percent maybe even a little higher if you didn’t negotiate" You would have either had bad credit or been a fool if you got a 7% rate in 2007. 5% was easily available at that time. If the best you could do in 2007 was 7% then you would probably be at 5.5% today. "Also if you had a mortgage 5 years ago you probably paid a lot less than current at least in the Vancouver area" If you bought a new condo in 2007 you probably paid more than it would sell for today now it is 5 years old. I live in a place finished in 2008 which the owner bought in 2006 as a presale for 810K. The same unit unit just sold for 775K… Read more »

Anonymous
Anonymous
8 years ago

I am not sure how've many refinanced in 2008/2009 but I considered it (mind you I had negotiated a much lower than the posted rates) and I would not of saved anything after the penalties. I sure have kicked myself for locking in as the rates kept dropping They only way I will do a long (4 or 5 year term) is if I can get the 2.99 percent the banks were offering till last week (actually they stopped on feb 13$ I will probably do one year closed as that seems to be the lowest rate of the closed I personally do not like the variable as I like to see my mortgage amount drop over time and the variable it's not certain if say the prime rate increases Do not take my advice as you can see from… Read more »

Extremely rich Van h
8 years ago

What is it relevant to Van where 80% of house buyers are wealthy or well-to-do middle class Chinese, not low income Caucasian.

longorshort
longorshort
8 years ago

Any thoughts re average prices for Feb from those with data? With lower quality credits being squeezed out of the market (Firstline, etc.) and the remaining vancouver area market activity being at the higher end (still SFH bidding wars and $5m+ sales) where credit quality is equally high, it could mean averages/or arbitrary index prices go up albeit on lower volume.

Nero
Nero
8 years ago

@rp1:

And how well did that work in the US?

There's nothing the Government can do once the bust starts.

Even if they were in a financial position to pump billions in, it would only have a temporary effect.

Rates are zero and public debt is already too high (along with public healthcare and pension worries).

Add in the fact that a CDN recession could cause capital to flee Canada (thus raising bond rates) and we could actually have HIGHER mortgage rates after the bubble pops, exacerbating the situation.

That's what really makes it scary.

oneangryslav2
oneangryslav2
8 years ago

@DEFAULT NAME: How many took the bait and re-financed at lower rates in 2008/2009?

rp1
rp1
8 years ago

#52 @Nero: "Question is, what could possibly happen to juice RE at this point? Nothing."

The government could pay people to buy, or offer tax breaks to cover capital losses.

Anonymous
Anonymous
8 years ago

Devore / Troll

Actually if you got a 5 year mortgage in 2007 when you're new now the interest rate could drop as much as 4 percent

2007 a 5 year mortgage was as high as 7 percent maybe even a little higher if you didn't negotiate

A potential savings of several hundreds per month

Also if you had a mortgage 5 years ago you probably paid a lot less than current at least in the Vancouver area

so perhaps they will decide to hold longer

I know I am but I am not a speculator just a resident owner but there is no way I would buy now it is too expensive regardless of which way prices go

Anonymous
Anonymous
8 years ago

Ya, noting pisses me off more than having to move every 14 years.