Buyers market is a silly way to put it

What does ‘Buyers market’ mean to you?

Is it a market in which the buyer has lots of choice or gets a reasonable price?

..because they aren’t the same thing.

Now that prices are dropping from their record highs on Vancouver real estate, we’re seeing the term ‘buyers market’ bandied about in the media a lot.  And with a huge number of places for sale and actual transactions falling to a 10 year low there’s lots of choice.

But prices are still near record highs!

Real estate is a slow illiquid market, it takes LOTS of time for trends to move through.  Just take a look at the USA, there are some people thinking they’ve hit bottom in some markets after SIX YEARS of falling prices.  Don’t expect deals within a few months, or even a few years.

Real estate marketers will use the term ‘buyers market’ a lot in the coming years, because they make money off transactions.  If it’s not a good time to sell it must be a good time to buy right?

There is one nice thing happening with the shift in the local market though: the Vancouver Sun is starting to publish a bit more variety when it comes to RE market opinion:

Investors in stocks wouldn’t consider a drop in volume to be a buyer’s market in the absence of price changes. The adage that volume precedes price instructs investors to be patient. There’s no compelling reason for real estate buyers to act differently.

Bravo Vancouver Sun, Bravo.

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Meliss604

Just because there is a glut of product on the market because a mass of people saw dollar signs and listed, doesn’t mean it’s “time to buy.” Unfortunately, people get caught up in this propaganda and end up rushing out to buy, creating demand again and…low and behold, we’re in an upswing of sales again.

and so it begins...

It is midnight…. “the 30” is no longer!! Nite all!

HFHC

New Listings 363
Back On Market Listings 17
Price Changes 226
Sold Listings 215

ALL LOWER MAINLAND

Greatest Fool

Holy Shite it is almost midnight. Is there still time to get a 30 mortgage? My mortgage broker isn’t answering the phone.

Anonymous

@Vote Down The Facts: ….What’s it’s losing in games, it’s gaining in film production and digital effects.
….

I guess he’s referring to Vancouver’s other ‘film’ productions, you know, the one with titles like: ‘Raiders of the Lost Arse’ and ‘Harry Prodder and the Philosopher’s Bone’.

Anonymous

@Vote Down The Facts:

Please. If you know about the studios that have opened up recently, then you should also know that ILM has stated they’re only here for two projects, and that the going is only as good as the tax credits we’re firing at these companies.

The gravy train is not permanent – just look at New Mexico, London or LA to see what happens when another government – like Australia – offers better incentives.

Rakim

Another Vancouver game studio closure. They had a bad reputation, but it will still hurt a bit:
http://www.vancitybuzz.com/2012/07/rockstarvancouverclosed/

rp1

#76 @Anonymous: “Hey Cleveland, Toronto and Vancouver will be joining you real soon…”

I’m sorry, no:

http://www.youtube.com/watch?v=ysmLA5TqbIY

rp1

#78 @patriotz: “That’s just for the first 25 years Amber. Then for the next 5 years the person who takes out the 25 year will have a paid for house while you will still be making the full payments.”

Stop making Amber sound rational. I think 5 years of full payments is easily worth 25 years of eating “people food”.

Vote Down The Facts

@VMD: “The local film industry is losing an estimated 2,000 jobs and over $80M in investment due to the X-Men Wolverine movie franchise relocating to Australia.”

2000 lost jobs from that project? Unlikely.

But that’s besides the point. For every Radical that closes theres a Pixar, Digital Domain, or Industrial Light & Magic that opens its doors.

rp1

#82 @ReadyToPop: “The World Bank says China still has plenty of scope for fiscal largesse – cutting taxes and boosting spending – so it should at least avert full depression.”

This is wrongheaded. Chinese households have savings. They need it to survive. The way to boost the Chinese economy is to provide a better social safety net so that some of those savings can be spent. The suggestion to “cut taxes and boost spending” sounds like a line from zombie Ronald Reagan.

VMD

don’t forget to celebrate the back-to-19k party… : )
https://twitter.com/GreaterfoolVan/status/211343846842449920/photo/1/large

midnite toker

@good-format: but … soup IS good food, the dead Kennedys told me so.

Disbelief

89 The last Greatest fool has now purchased!!! Good now time to let the air out of that over stretched giant balloon sized bubble!!!
I have a question What happen to the 0/40 guy that puchased 4 years ago and now has to refi at 25 years? Or will he get grandfathered in a 35 year amo next year?

good-format

Someone rushed to buy before the rule changes

http://www.cbc.ca/news/business/story/2012/07/09/bmo-mortgage-housing.html

Amber Dykstra of Edmonton sped up her home-buying plans by a year when she heard about the mortgage rule changes. She finalized her 30-year mortgage on Monday just before the rules were tightened.

“The difference between a 25-year and a 30-year amortization can be $200 or $300 a month,” she told CBC News. “That can be the difference between eating soup and real human food.”

Dan in Calgary

@Dan in Calgary: “For some stupid reason there were fireworks last night here in Calgary. More than your usual backyard celebration. Louder, longer. Couldn’t figure out why. Perhaps whoever-it-was were ushering in July 9th!”

@Voting down the facts: “100th anniversary of the stampede…”

Yup, I knew there would be a stupid reason, lol. Definitely not a fan of the Stampede — it’s not much more than a party. Ushering in new mortgage rules is a better reason to party.

Navin R. Johnson

@Waiting to exhale:

Observation about your friend…

Smokin’ some great hootch…

Anonymous

@ReadyToPop: “Large banks are all offering money, but no one is taking it,”

AKA pushing on a string.

Anonymous

@patriotz: “The difference between a 25-year and a 30-year amortization can be $200 or $300 a month,” she told CBC News. “That can be the difference between eating soup and real human food.”

Good thing people can afford the mortgages they are taking out. As long as your budget can allow for ‘real human food’ after making the mortgage payment all is good. I feel sorry for everyone who buys going forward with the new rules. It will be soup only 3 meals per day.

Anonymous

@patriotz: “And of course Vancouver RE is at the top of the biggest bubble ever, and the S&P isn’t.”

I agree with you on the first part but not so sure the S&P won’t give back around 50% of its value over the next couple of years too.

Waiting to exhale

Here is another tidbit from the front lines: I have a co-worker who just bought a brand new $1.5 million McMansion out in Port Coquitlam last week. Her husband works for the government full time while she works part time (also with the government) and they have three young children. I know that they just got an inheritance the last few months and that is why they decided to upgrade to this McMansion. I asked her today if the purchase of her new house is dependent on the sale of her current one. She said “No, but if I don’t sell we will be heavily in debt.” I then asked, “What if you can’t sell it before you have to move into your new house?” She responded “We won’t sell unless we get the price that we want.” I then… Read more »

ReadyToPop

“Large banks are all offering money, but no one is taking it,” said a Shanghai dealer quoted by Reuters. This is more or less what happened in Japan in the 1990s, what is happening in Europe now. It is what happened to half the world in the 1930s.
The World Bank says China still has plenty of scope for fiscal largesse – cutting taxes and boosting spending – so it should at least avert full depression. If only the West were so lucky.
But at the end of the day, the country is bursting with industrial over-capacity. As Caixin reported recently, eight of the ten largest shipyards did not receive any new orders in the first five months of the year.

China heads for a deflationary shock

AG Sage

Buy’ers’ market is one where the buyer has the advantage in negotiations. Price and inventory are not necessarily connected to it, but likely are, at least on trend.

Vote down, CPPIB investment: wow, nothing like buying at the top.

And thanks Paul!

Anonymous

Neighbour had an open house this Saturday. Nobody showed and the Realtor was sitting on the deck furniture yapping on her phone for hours.

This is in Squamish….gateway to the Olympics or whatever BS copy they can make up to make it seem better than a logging camp on steroids.

The SQ market is done…you can see the desperation…