We want a nice housing bubble

I’m so sick of hearing realtors and mortgage brokers complain about the new CMHC rules.

The government isn’t really bringing in some tough new restrictions, they’re simply rolling back some of their bubble incentives.

The Feds clearly wanted to juice housing and that’s what they got.

Bank of Canada governor Mark Carney says the No. 1 risk to the Canadian economy is a housing bubble. Good grief! How on earth did rock-stable, good-banking, solid-regulating Canada end up on the edge of a possible real estate crisis? Simple. In Canada as elsewhere, housing is a political business policymakers find irresistible. There’s always some government policy — low interest rates, first-time home-buyer incentives, high-ratio mortgages, mortgage insurance, capital gains exemptions, interest deductibility — available to government agencies to bolster the feel-good business of home ownership.

It’s a global phenomenon, from Ireland to Spain, from Britain to the United States. Housing bubbles — rocketing prices following by plummeting prices — are not new to the world economy. The last decade, however, has left an unprecedented trail of housing price chaos and disaster. The similarities from one country to another are unmistakable.

We saw what was happening in the states, and still the government moved amorts from 30 to 40 years and flooded the housing market with money. Where did they expect this to lead?

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Saint Patrick
Saint Patrick
8 years ago

Phil Whatever you do don’t mention “Asian” peoples on this website. They have not drastically increased home values particularly on Vancouver west Side or in Richmond. These “Peoples” which can not be mentioned have not bought at any price as to expidite possible immigration issues. These “Peoples” have not bought at any price in order to escape possible prosecution for embezzlement or theft back in “their” country. These “People” have not bought several properties in order to secure and safeguard their new investments. No Phil you are way off mister. There has not been a significant increase in immigration from the country of these “People”. It does not matter that the fathers and grandfathers of Canadians fought and died in two world wars to resist the trype of tyranny and Fascism which embodies the homeland of these “Peoples”. No Sir!!… Read more »

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[…] “On a business trip with a colleague from Victoria, who I knew purchased last year at the peak of the market. I mentioned how Vancouver prices were coming down, and that the Victoria market had already dropped. He agreed, and half heartedly lamented that he had bought at the peak. But in the next breath, he said it’s all relative, because if his house goes down so do all the others, so it makes no difference if prices go down. Amazing – so highly educated but failed to realize that with his 10% down, he would be underwater if he went to move or buy up. This “its all relative” mantra is really prevalent, even my own father believes this.” – Told Yous at VCI 27 Jun 2012 4:52pm […]

Crikey
Crikey
8 years ago

@Devore:
“You mean if the immigrants were from Europe, the price wouldn’t “increase correspondingly”?

It doesn’t matter where the immigrants are from, nor what they look like. The problem is the high concentration of new “locals” in Vancouver which are much wealthier than average Canadians. It would be the same problem if they were from Portugal, or Mars.

Crikey
Crikey
8 years ago

@frank:
“If we admit that the buyers-of-convenience whatever their hue are detrimental to life in this city, then we are stating a fact.”

Thank you, Frank.

I have stressed exactly what you say in past posts, being very careful to parse words and explain that I don’t care about where people come from (but only the effect of us all having to compete with their greater wealth) and still been accused of “looking for Chines under my bed”.

People react stupidly to any mention of any effect wealthy immigrants might have. Of course they are only a piece of the puzzle, but they *are* a piece and cannot be ignored as such.

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[…] me to call her if I changed my mind about buying the unit. I could smell her desperation.” – pricedoutfornow at VCI 27 Jun 2012 3:08pm […]

giantsloth
giantsloth
8 years ago

@new home: http://www.padmapper.com/ feeds in a few sites into google maps and has the best filters of any of the sites that do that.

rp1
rp1
8 years ago

#95 @HAM Solo: “What say ye?”

Agreed. How about instead of “Crack Shack or Mansion?” we play “Contagious or Not?” Also, which of these have you seen on the Skytrain this week?

http://www.rxlist.com/quiz_contagious/quiz.htm

new home
new home
8 years ago

@good-format:

Thanks!
I’ve been checking CL out, just seeing if others has other resources to share 🙂

I’ll share some of the ones I’ve found so far:

http://www.6717000.com/rental.html – Rental agent list
http://apartments.canada.oodle.com/
http://www.vancouver.nuuly.com/neighborhoods

VMD
VMD
8 years ago

[Update from the Chinese Forum front] Richmond RE Pumper “GreatChina” calling for “Unity of Sellers” to prevent further price drops.

“A brand new house in good area of West Richmond, 8111 Dalemore Rd, was just sold for $1.58M, $170k lower than assessed price of $1.75M. It’s a shame that the buyer went through so much to purchase this property and build a new house, hoping to earn some money while doing a service to the community, only to have the buyer recklessly slashing price. I call on the sellers to withhold giving in to under-asking offers. We should all pull our listings and wait until a better market to sell in a bidding war situation”

HAHAHAHAHA

Current listing: MLS® V953065 http://www.ecorealtyinc.ca/listing?id=259508474
Purchase price: $533,000 Oct 2006 (old timer, was torn down and rebuilt as luxury mansion)

good-format
good-format
8 years ago

http://vancouver.craigslist.ca/

is a very good place to find rentals

new home
new home
8 years ago

Any tips on where to looking for rentals?
Going through the usual places CL, Kijji, rental agents etc

Anyone find alternative resources?

looking in the westside area, Fairview, Mt Pleasant, and surrounding areas. Budget set at 1500 max for a 1bedroom.

Thanks in advance

Devore
Devore
8 years ago

@Phil:

That point being that the Asian population has increased greatly in the last twenty years and has accordingly affected the price of real estate.

What do you mean “accordingly increased”? You mean if the immigrants were from Europe, the price wouldn’t “increase correspondingly”?

Vote Down The Facts
Vote Down The Facts
8 years ago

@Phil: “There is a 6% other, which I’m not sure what that includes”

Good grief.

Vote Down The Facts
Vote Down The Facts
8 years ago

@Phil: “Now consider the levels of immigration in the last 6 years and it’s safe to assume the white (the previous largest population) and Asian populations are even. ”

Thanks for conceding that your argument boils down to personal assumptions.

/dev/null
/dev/null
8 years ago

Buy a Tuscan village (well, ghost town) for about $3M. What would that get you in Vancouver?

http://www.theatlantic.com/technology/archive/2012/06/buy-your-very-own-tuscan-village-on-ebay/259072/

southseacompany
southseacompany
8 years ago

Eugen Klein, President Real Estate Board of Greater Vancouver, writes to the Sun today:

“Just the market facts are the real estate board’s focus”
http://www.vancouversun.com/business/Just+market+facts+real+estate+board+focus/6846800/story.html

Isn’t this the guy who said that Maple Ride SF home prices went up 30% in a year after the Alex Fraser Bridge was built? Refuting his own organizations publicized stats?

Oh, yeah. Same guy: http://www.vancourier.com/Blaming+Chinese+high+house+prices+Vancouver+racist/6417310/story.html

Just the facts, mam.

jesse
8 years ago

@Phil: “it was pretty obvious where you were going with that leading question”

I’m assuming you meant “Asian” to mean people born in Asia. Please indicate if otherwise.

Anonymous
Anonymous
8 years ago

@Phil: The city is over 50% Asian now, when 20 years ago it wasn’t even close.

Okay so when a population becomes closer to 50% Asian a housing bubble forms – right Phil? But what about all those other places with bubbles Phil? I am still confused with your theory.

HAM Solo
HAM Solo
8 years ago

Dear blog dogs, It has come to my attention that the site needs a few new topics of conversation. After years of debate and data point watching (is RE overvalued? is the inventory picture turning? are prices declining?) we have most of those issues pretty much settled. The market has peaked, prices are coming down, and we are all discovering that there are a whole host of factors that will serve to accelerate and or extend the downturn. We all have the option of going somewhere else, but I kind of like this spot. However, I’m not sure I want to hang around for endless scapegoating (of Asians or Tories or Realtors or In-laws). It would be nice if we had a good discussion of the data and realtime update of the extent of the decline. Independent discussion of the… Read more »

Phil
8 years ago

I will tell you that your theory is incorrect. Look at the part of the sentence following the comma that you conveniently left out of your quote and you will have your answer.

Anonymous
Anonymous
8 years ago

@Phil: “Look around. The city is over 50% Asian now”

So Phil are you trying to say we have a housing bubble because the population is 50% Asian in Vancouver? Would we have avoided a housing bubble If our population was almost all white like Edmonton? Would prices be normal if we had a large Cuban population like Miami? How about a large black population like Washington DC? Would that have prevented the housing bubble? Could an influx of Mexicans like in Arizona stopped this housing bubble from ever happening?

Phil please tell us your theory.

Anonymous
Anonymous
8 years ago

Things are getting interesting in Squamish!! You have this listing: V958237 for 575k in the Meighan Creek development that backs onto the golf course that does not exist and for 85k less you can have this unit :V952328. They are exactly the same units, on either side of the same block.

I’ve never been in the units, but there can’t be that much difference. Also, you can buy a house for the same price as either of these units, and actually own land…..

Phil
8 years ago

@vote down the facts, the 2006 census shows 47.1% white and 42.7% Asian. There is a 6% other, which I’m not sure what that includes. Now consider the levels of immigration in the last 6 years and it’s safe to assume the white (the previous largest population) and Asian populations are even. So my point stands. That point being that the Asian population has increased greatly in the last twenty years and has accordingly affected the price of real estate.

Vote Down The Facts
Vote Down The Facts
8 years ago

@Crikey: “Apparently if you mention certain realities about recent immigrants-come”locals” money in Vancouver, and how many immigrants buy/hold multiple properties… you will only get accusations of racism!”

You think one example somehow proves your point? Or contradicts the Landcor data? News flash: there are white Canadians who own multiple properties too.