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
Guest
painted turtle
3 years 9 months ago
Anonymous
Guest
Anonymous
3 years 9 months ago
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… Read more »
Anonymous
Guest
Anonymous
3 years 9 months ago
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… Read more »
southseacompany
Member
southseacompany
3 years 9 months ago

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
3 years 9 months ago

@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
3 years 9 months ago
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… Read more »
Amen
Guest
Amen
3 years 9 months ago

@squeako

Dumbest time to buy RE in 30 years
Guest
Dumbest time to buy RE in 30 years
3 years 9 months ago
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… Read more »
gokou3
Guest
gokou3
3 years 9 months ago

@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
3 years 9 months ago

@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
3 years 9 months ago

@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
3 years 9 months ago

@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
3 years 9 months ago

@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
3 years 9 months ago
@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… Read more »
M-
Member
3 years 9 months ago

@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
3 years 9 months ago

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
3 years 9 months ago

@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
3 years 9 months ago

“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
3 years 9 months ago

@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
3 years 9 months ago

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
3 years 9 months ago

Makaya

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

Makaya
Member
Makaya
3 years 9 months ago

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

/dev/null
Member
/dev/null
3 years 9 months ago
@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… Read more »
Vote Down The Facts
Guest
Vote Down The Facts
3 years 9 months ago

@/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
3 years 9 months ago
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… Read more »
Chabar
Guest
Chabar
3 years 9 months ago

This is how I think the touring of five funky homes that includes drinks, appetizers and a limo will mostly look like:

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

Anonymous
Guest
Anonymous
3 years 9 months ago

@Vote Down The Facts: Obviously they’re not going to make them sign binding legal documents and hand over certified cheques while drunk.

How is that obvious? That’s how timeshare sales work.

Anonymous
Guest
Anonymous
3 years 9 months ago

@Anonymous: ….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……

I think I just saw Cam Good running by pulling a rickshaw with a couple of hungry looking Realturds in the back.

Anonymous
Guest
Anonymous
3 years 9 months ago

@Vote Down The Facts: “Obviously they’re not going to make them sign binding legal documents and hand over certified cheques while drunk.”

“Obviously”? We are talking a profession that demands a 5 day course.

Vote Down The Facts
Guest
Vote Down The Facts
3 years 9 months ago

@Anonymous:

Oh please, you seriously think that drunken signing of contracts was on the cards?

Ralph Cramdown
Guest
Ralph Cramdown
3 years 9 months ago

Buddy, if someone says “Let’s put in an offer” their agent is NOT going to say “Why don’t you sleep on it?”

patriotz
Member
3 years 9 months ago

@Vote Down The Facts:
I don’t think that signing would be the real obstacle, rather that most people don’t carry around a stock of certified cheques payable to bearer to make on-the-spot offers. Unlikely the limits on most people’s credit cards would be adequate to the task, even if the agent/seller were willing to accept them.

CAM
Guest
CAM
3 years 9 months ago
Vote Down The Facts
Guest
Vote Down The Facts
3 years 9 months ago

@Ralph Cramdown: “Buddy, if someone says “Let’s put in an offer” their agent is NOT going to say “Why don’t you sleep on it?””

It’s more likely that they’d say “I’ll swing by tomorrow with the paperwork for you to sign”. This whole event is to get feet through the door and get some attention – which is obviously working. It’s no different to any other saleman wining and dining a potential client.

CAM
Guest
CAM
3 years 9 months ago

And this quote is funny: “Remember this cartoon? Wile E. Coyote is running after the Road Runner and eventually finds he has run off a cliff. For a few seconds, his feet are still frantically pumping, and he continues (albeit more slowly) to move horizontally. After a brief period of vertical suspension, however, gravity kicks in, and he plummets straight down. Owners of high-end real estate in Vancouver may soon relearn the lesson that gravity eventually exerts its force—even on the prices of scarce real estate.”

squidly77
Guest
squidly77
3 years 9 months ago

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!

http://www.youtube.com/watch?v=oyxCZ-mzy28

Warning-This ends badly and is very violent!!

jesse
Member
3 years 9 months ago

“We’re likely going to see more of the same next year, certainly not expecting to see a dramatic rebound. I’m forecasting home sales will be up next year compared to this year but only in a modest percentage, still falling a little bit short of those longer term averages.”

– Cam Muir, November 15, 2012

Booked.

ReadyToPop
Guest
ReadyToPop
3 years 9 months ago

@ 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???

People aren’t necessarily always borrowing, spec’ing or even moving up. People could be downsizing for retirement.

realist
Member
realist
3 years 9 months ago

Just wanted to reassure the readership that Vancouver is the best city on earth, has incomparable quality of life, therefore sales and prices must rebound soon, etc:

Running to catch a bus at Broadway & MacDonald St at 9am this week.
Felt my foot hit something like a small ball. Looked down, nothing seen on sidewalk, puzzled, turned around to see an agitated rat cowering in the entrance way of a shop, who then ran out into the traffic. This is, after all, Vancouver’s tony WEST SIDE!!

george
Guest
george
3 years 9 months ago
I haven’t heard any discussion by the economists and politicians about the tidal wave of debt that is engulfing this country. The following information is from a Statistics Canada credit market summary data table as of the end of June 2012: (The debt statistics for Canada up to the end of September 2012 will be released in about 4 weeks by Statistics Canada). Total debt in Canada as of the end of June 2012 (bottom line of the data table) was 5.1 Trillion $ From the end of June 2011 to the end of June 2012 the total debt in… Read more »
T
Guest
T
3 years 9 months ago

@Westside Observer

We live in a port city. Rats is to be expected. The CoV has a website that lists their inspection results. About a third of the 20 facilities I looked up has had a rat problem.

Ralph Cramdown
Guest
Ralph Cramdown
3 years 9 months ago
If you’re spending for a limo, canapés, bubbly and models, you’d be a fool to let the guy see the unit again in daylight, call his buddy or his mother, hear another bear-themed piece in the media or anything else. If he expresses interest, you get him to sign on the line that is dotted. No certified cheque? REBGV’s standard Contract of Purchase and Sale conveniently has a big blank space where you can write in that it will be delivered within 24 of acceptance, or whatever. They’re flexible! I’ll admit to you that some agents will play it low… Read more »
Crikey
Guest
Crikey
3 years 9 months ago

@west side observer:
“turned around to see an agitated rat cowering in the entrance way of a shop, who then ran out into the traffic. This is, after all, Vancouver’s tony WEST SIDE!!”

Ah, more evidence that Vancouver is just like New York!
Somebody tell Global, stat! They can run a smug story about how world class we are because we have rats.

Makaya
Member
Makaya
3 years 9 months ago
The joy of owning a condo… Condo insurance: a dripping time bomb Some tidbits: Indeed, inadequate coverage — either because of frequent damage claims, attempts by owners to reduce monthly fees by keeping premiums low, or a failure by condo boards to determine the true costs of replacing their buildings — has emerged as a bigger threat to the condo sector than the much-publicized risk of overbuilding, several real estate experts say. (…) One well-known Montreal insurance broker, who oversees policies for 300 different condo boards, said his clients’ premiums rose between 20 and 50 per cent — depending on… Read more »
mac
Member
mac
3 years 9 months ago

@jesse: Did Cam Muir just get his period or somethin’?

G
Guest
G
3 years 9 months ago

In addition to Philip Chan’s free Fiat with his townhouse…

There is free Electric Scooter with this condo, even put the scooter as title pic
http://www.realtor.ca/PropertyDetails.aspx?PropertyID=12554554&PidKey=-425761306

Naked Official #9000
Guest
Naked Official #9000
3 years 9 months ago

@painted turtle:

i want to watch this, i really do – but to be honest – i’ve just had enough of it – time to tune it out; it’s just too awful.

and look how happy they all are..

fuck off
Guest
fuck off
3 years 9 months ago
3) This section will do a run down of the general ideas needed to perform these feats against Kid Dynamite, Mike Tyson. a) The most important thing to remember for the KO strategy to work is to not to take ANY damage at all. This includes blocking any punches because Little Mac still takes partial damage. Little Mac must not be damaged in any way for the KO strategy to be assured of working (he could still be KO’ed, but it is no longer a guarantee). However, if you get hit and take some damage against Mike Tyson, you can… Read more »
Naked Official #9000
Guest
Naked Official #9000
3 years 9 months ago

@mclovin:

well we just have to hit the right buttons Vs Tyson:

patriotz
Member
3 years 9 months ago
BC suspends visa program A review sparked by the increase in applications found an uncomfortable result – few of those B.C. nominees who had put up a bond were actually running a business as promised. Mr. Bell told reporters Friday that the fast-track program has a “disappointing” success rate of under 20 per cent… Between April and September of this year, the business immigration stream under the province’s nominee program had 383 applications, a 120-per-cent increase compared to the volume in the previous six months. Most of the applicants were from China. Well about time, but couldn’t anyone with any… Read more »
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