FFFA! CONDO! HOMES! CREDIT! USA! BC! GLOOM!

It’s that time of the week again!

This is when we do our regular end of the week news round up and open topic discussion thread for the weekend.

Pull up a chair! Here are a few links to kick off the chat:

Horrible houses in bad areas for $500k+
BOC: Household debt is biggest risk
BC: Binging on Credit
USA vs Canada housing bubble
Get you drunk, take advantage of you
How bad is your market?
Why do Canadians owe so much?
The end of US mortgage deduction?
Canada sinks on US / Europe gloom

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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painted turtle
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painted turtle
Anonymous
Guest
Anonymous
Calgary and Edmonton displace Toronto and vancouver as top real estate markets “Calgary and Edmonton have displaced Toronto and Vancouver as the top-ranked cities for overall real estate prospects, according to the Emerging Trends in Real Estate 2013 report released Tuesday… “Growth characterizes Calgary’s future; it displaces Toronto as the top ranked city for 2013,” said the report. “This has made it challenging to acquire high quality real estate in Calgary, absorption of prime properties has reached record levels, and rents are being pushed due to limited supply… According to survey participants, Canada’s real estate market will follow along in a seeming state of near-perpetual equilibrium compared with other more volatile regions studied in the report, including most obviously the United States. “The results of this year’s Emerging Trends report reflects the fact that the Canadian real estate community understands… Read more »
Anonymous
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Anonymous
So real estate agents are now resorting to getting people drunk in order to make offers on real estate! The insanity never ends. This is no joke. This is from the Vancouver Sun: “Two Metro Vancouver realtors are taking a group of about 30 potential homebuyers out for a night on the town that includes drinks, appetizers and a limo ride. Along the way, the group will visit The Pint pub, as well as five funky homes that are for sale in Vancouver… “The market is dead right now, so we’ve got to do something. Buyers are really hesitant,” Macnab said. “We’re trying to generate some traffic by thinking outside of the box.”… On the crib crawl, the owner or listing agent will serve food and drinks at each apartment, and try to persuade the buyers why they should make… Read more »
southseacompany
Member
southseacompany

Province today: “Vancouver home sales, prices fall”

http://www.theprovince.com/business/Vancouver+home+sales+prices+fall/7557885/story.html#axzz2COy8UfhW

“Vancouver home sales and prices were lower last month as Canada’s third-largest city continued its role as one the nation’s hardest-hit centres in an ongoing housing market slump.”

specialfx3000
Member
specialfx3000

@Anonymous:

A while back, I went to a timeshare presentation and got a pair of Canucks tix for my wasted couple of hours.

These guys want prospects to pay them $20?

Anonymous
Guest
Anonymous
Here’s an interesting game of chicken that illustrates what’s happening in the market right now: I was talking with a colleague who just sold their home. They had an offer made on it a couple months ago which was subject to the sale of the buyer’s townhouse. The owners of the townhouse received an offer, you guessed it, subject to the sale of the potential buyers condo. These 3 transactions were all stuck in limbo because no one was willing to budge on their price in order to sell their place and let the dominos fall. In the end what ended up happening was the couple at the bottom (owners of the condo) decided to take on two mortgages. They used that as leverage on the person who owned the townhouse to lower their price (use the difference to carry… Read more »
Amen
Guest
Amen

@squeako

Dumbest time to buy RE in 30 years
Guest
Dumbest time to buy RE in 30 years
I was totally dismayed in late Sept-early Oct when sellers were still asking not just outrageous, but totally INSANE prices on the North Shore despite all the dire forecasts by financial institutions. Well, surprise surprise, regardless of what the monthly stats tell us, prices seem to be falling at a very, very nice clip. While the weekly adds announcing “price cut”, “reduced”, “new price” etc, etc have become a bit of a joke, what really caught my attention is that a lot of new listings appear to be about 15% to 20% below what I would have expected. One thing is certain. This is not a repeat of 08, when prices resumed the uptrend the next year. With half the world already in recession, with stock markets telling Obama that there is no easy fix for the fiscal cliff, with… Read more »
gokou3
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gokou3

@Anonymous: Oh is the market dead? It isn’t what Remax, BCREA, REBGV, etc said!

Bag it and tag it
Guest
Bag it and tag it

@southseacompany: Province today: “Vancouver home sales, prices fall”

Nice how they only compare October sales to the previous month, but then compare price changes to October 2011, gving the impression everything is flat and stable. If anything, it should be done the other way around. I’ll give them credit for the bearish headline though.

Aleksey
Guest
Aleksey

@Anonymous:

House owners found greater fools. No sympathy for condo and townhouse owners. Aren’t they reading newspapers or watching news?

Extend and Pretend
Guest
Extend and Pretend

@Dumbest time to buy RE in 30 years: re: Who is dumb enough to buy?

From the three party comment below, the one using up their remaining leverage on a second mortgage are dumb enough:

http://vancouvercondo.info/2012/11/fffa-condo-homes-credit-usa-bc-gloom.html#comment-181288

“If we build up enough speed and hit the ramp just right…”

Financial daredevils with a CMHCasino credit line. Enjoy paying for them.

CMHC $600B / 35M Population = $17143 for every man, woman, and child in Canada.

Patiently Waiting
Member
Patiently Waiting

@Dumbest time to buy RE in 30 years: “OK, sales are down to a trickel, but what really puzzles me, who in the hell is dumb enough to be still buying under these circumstances???”

It makes me think of my Grade 11 Social Studies class when the teacher asked a girl who the Prime Minister was at the time. She had no clue (it was Mulroney btw). Some people go through their whole lives having no idea what is going on beyond their immediate friends/family.

Anonymous
Guest
Anonymous

@Anonymous: ….Two Metro Vancouver realtors are taking a group of about 30 potential homebuyers out for a night on the town that includes drinks, appetizers and a limo ride. Along the way, the group will visit The Pint pub, as well as five funky homes that are for sale in Vancouver…….

Ahhh, remember the heady days of a few years ago when they used to do this with helicopters? I wonder if the limo ride will make the lead story on Global news?

I supposed in a few months, Realturds will be taking their suckers out for a free ride on a moped. I’m sure that would make Global news.

M-
Member

@specialfx3000: The realtors’ $20 fee was the most surprising thing to me in that article. If I were seriously looking to buy, I would absolutely not spend $20 to be stuck in a limo with salespeople for a few hours, looking at places that I might not be interested in.

Heck, you can call up just about any realtor, and they’ll drive you around (in a luxury car) for free to places that you are actually interested in!

mclovin
Member
mclovin

Vancouver home sales and prices were lower last month as Canada’s third-largest city continued its role as one the nation’s hardest-hit centres in an ongoing housing market slump.”

Wow! If they think this is hard hit just wait till this time next year. We haven’t even gotten started. Vancouver got hit by the fly weight. Wait until Mike Tyson comes out!

Can't Wait
Guest
Can't Wait

@Anonymous:

“In the end what ended up happening was the couple at the bottom (owners of the condo) decided to take on two mortgages”

Caucasian On Credit or Hot Asian Money?

Guy Smiley
Member
Guy Smiley

“OK, sales are down to a trickel, but what really puzzles me, who in the hell is dumb enough to be still buying under these circumstances???”

Those who are expecting a repeat of 2008 – 2011. People are generally great at pattern recognition, but often with too limited geographic reference and time frame.

Tony
Guest
Tony

@M

i understood that there is also food and drinks offered in the houses that they visit. $20 to sample different food in 5 different places is not bad deal. I am just waiting when the realtors will start using call girls in their effort to attract properties.

Vote Down The Facts
Guest
Vote Down The Facts

Saw this link via a banner ad with the tagline “Big Condo Blowout” at the top of the Vancouver Sun’s homepage :

http://liveatedge.com/

Looks like they’re doing some sort of one-day sale tomorrow, with deep discounts (up to 25% they say).

Bailing in BC
Guest
Bailing in BC

Makaya

I just read your full article. Thanks for that you did a great job.

Makaya
Member
Makaya

@Bailing in BC: You’re welcome 🙂 Preaching the bear cause for the common good!

/dev/null
Member
/dev/null

@Anonymous: Just so I have it clear, they’re going to give people alcohol and then try to get them to buy real estate? So, for context: what would happen to someone selling a car or refrigerator if they did that? And what would happen if someone selling a stock or bond did that? Serious question. I’m guessing one would get a bonus from their boss, and the other would be looking at loss of license or charges. Or am I incorrect?

Oddly enough, I think this story has evaporated any remains of respect I had for realtor estate agents as a profession. (PaulB gets a complementary get-out-of-disrespect-free card). I know they’re salespeople but this comes across as just shameless.

Vote Down The Facts
Guest
Vote Down The Facts

@/dev/null: “Just so I have it clear, they’re going to give people alcohol and then try to get them to buy real estate?”

Obviously they’re not going to make them sign binding legal documents and hand over certified cheques while drunk.

VMD
Member
Informant was key to charges in CRA corruption case – guess what industry was involved. Nov 16, 2012 “The RCMP has used the informant to collect information on officials at the CRA who have been accused of corruption and business people who are alleged to have offered them bribes to reduce their tax bills. The informant has worn a hidden microphone at times to obtain confessions from former colleagues and people alleged to have made kickbacks to CRA officials… ..As part of the investigation that was launched in 2008, the RCMP has laid charges of fraud, extortion and bribery against five former CRA officials and four people in the private sector, including construction-industry magnate Antonio Accurso. In a statement, the RCMP said the investigation into CRA corruption is far from over. …The RCMP has also alleged in search warrants that… Read more »
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