Something between a US crash and soft landing

According to this article in the Financial Post signs of a Canadian housing downturn are everywhere.

They don’t pull many punches as they discuss the national home sales decline, overvalued housing and semantics:

Let’s not argue over whether Canada is the proud owner of a pretty pink housing balloon or a black bubble because either way, they both can pop.

They report some interesting numbers that the general public is likely not aware of. Did you know that housing related industries currently make up 27% of the Canadian economy? For a little bit of perspective that compares to 24% of the US economy at the height of their housing bubble.

Then of course there are the predictions for the future:

“Overall, we think existing home sales will continue to decline with negative implications for the elevated level of home building and broader knock-in implications for domestic demand growth,” David Madani, an analyst with Capital Economics, wrote in newsletter Friday.

And Mr. Ben Rabidoux, what do you think?

“Typically when you have a distortion in the economy, it is rarely painless to rebalance it. We’re in for a relatively painful period.”

Read the full article here.

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patriotz
Member

Once again Vancouver sets the trend – get people to work for free!

HootSuite to review unpaid intern policy after barrage of criticism

Who cares if it’s illegal? Crusty has other priorities.

Matt
Member

The real story about hootsuite is that hootsuite is considered a crown jewel of Vancouver’s tech economy.

Q
Guest
Q
HootSuite wants property rights over the things their interns create but refuses to pay them. The best part of that Globe and Mail article: “In a six-page sample contract posted online, with the signatory’s name blanked out, it appears the company sought to have its interns waive any rights to compensation, while at the same time demanding ownership of any content they create. HootSuite is named as the “exclusive owner of the deliverables and of all other results of the services and of all intellectual property rights,” it states, while “the intern shall have no claim against the company … for vacation pay, sick leave, retirement benefits, social security, workers’ compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.” The contract adds: “As full compensation for the services rendered … the company shall pay the… Read more »
vanpire
Guest
vanpire

No wonder Vancouver’s average wage is so low…

Harry Wang
Guest
Harry Wang
HootSuite may not be doing anything illegal if their ‘interns’ are working their as a requirement for a degree. Of course these details don’t make good newspaper copy. http://www.labour.gov.bc.ca/esb/igm/esa-part-1/igm-esa-s1-work.htm A practicum is not considered “work”, but apprenticeship training or an internship is. A “practicum” is part of a formal education process for students enrolled in a public or private post-secondary institution that involves the supervised practical application of previously classroom taught theory related to course study. The students are usually engaged in studies to obtain a degree so as to pursue a career in education, medicine, or engineering. A practicum is “hands-on” training that is required by the curriculum, and will result in a certificate or diploma. It is not considered to be “work” for the purposes of the Act. An “internship” is on-the-job training offered by an employer to… Read more »
Horse-sized Duck
Guest
Horse-sized Duck

@Harry Wang: Here are all the postings. None of them are practicums. http://imgur.com/a/VMwG1

Kinky
Guest
Kinky

In China at least they pay you slave wage, here they pay you nothing. Gulag country.

Anonymous
Guest
Anonymous

painfull pefiod is right. it has been painfully since 2004 for stubborn silly bears. to now, silly bears are still in denial that the housing situation is a fact of life.
wake up, and try to enjoy the best place on earth. only real estate agents can change your lives.

Yellow Helicopter
Guest
Yellow Helicopter

Front page of the local Metro Newspaper today:
“Oh, Give Me a Home: Sure, the market may be in a slump, but people will always be looking for a house in Vancouver.” It then goes on to say ‘take our crash course in homebuying, pages 10,11.
Still, sentiment is changing…

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

“Still, sentiment is changing…”

Yet prices are up.

Anonymous
Guest
Anonymous

“Yet prices are up.”
keep it to yourself. you ruined bears’ day.

suomynonA
Guest
suomynonA

Except prices are down over last year and condo prices have been flat for years. But don’t worry, you will always be able to pick a time period where prices are still ‘up’ no matter how far they drop!

Yellow Helicopter
Guest
Yellow Helicopter

Right Bull, prices are up. That’s why the headline clearly states, “Sure, the market may be in a slump.”

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@Yellow Helicopter

prices are up this month. do you follow the stats or the MSM headlines? i thought the MSM was the anti-bear genocidal evil poopy face machine.

@whoever

“Except prices are down over last year”

except prices are up over the past 2, 3, 4, 5… 10 years. it depends on your perspective. prices are up in march. deal with it.

“condo prices have been flat for years.”

yes, condos are a stable investment 😛

“But don’t worry, you will always be able to pick a time period where prices are still ‘up’ no matter how far they drop!”

really? i thought the bear dogma said otherwise. better consult your pope, bishop, and cardinal on that one. you wouldn’t want to commit heresy on a sanctified holy bear blog.

Aleksey
Guest
Aleksey

WOW. According to the troll index it’s gonna be a VERY slow day. Probably under 100 sales?

painted turtle
Guest
painted turtle

Prices are up?
It depends how you look at it…

466 KING EDWARD AVE E
Sep 25/12 $828,000
Oct 25/12 $818,000
Current Price $838,000
City assessment is $847000
Still sitting…

8391 FRENCH ST
Apr 20/12 $836,000
Dec 31/12 $818,000
Current Price $816,000
BC Assessment value $822,000

693 71ST AVE W
Sep 19/12 $899,800
Current Price $868,000

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@painted turtle

three properties? are you kidding? get the fuck out.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

god damn fucking bear logic. holly shit.

Landbaron
Guest
Landbaron

Rough monday for you eh Bull, no one at the open houses on the weekend?

JR
Guest
JR
I don’t see the problem with unpaid internships honestly. I say this having been one a long time ago, and having had them working with me. They bring very little skill to the table and it requires a large effort that costs money to train them. One worked for me 3 years of her undergrad and was making $15/hour at the end (this was 8 years ago). You train them, if they are great you pay them to stick around. If they suck off they go. The truth is many university programs don’t give you the requisite skills to enter the workforce. You can do some work for free with a killer employer that looks great on your resume and pick up some valuable skills, or you can sit there unemployed, or working at Timmys wondering how you are going… Read more »
suomynonA
Guest
suomynonA
Aw, bull is in a rage. Come on fella, you’re usually so calm, what’s got you seeing red today? I love how you see ‘flat’ prices in condos as a ‘stable’ investment. Sure, pay twice the price for something, that sounds like a good stable investment. And what is this ‘bear dogma’ you speak of? There are a whole bunch of people that think Van RE is a bad investment right now – they are ‘bearish’ on it. That just means they think its going to lose money in the short term. I take it by your handle that you disagree and think it’s a good investment. Please put your money where your mouth is and buy as much as you can. Please post as much detail as your comfortable sharing about your investments here, that way you can come… Read more »
jb
Guest
jb

My wife and i went to about 10 open houses yesterday. We only saw two other couples the whole time. It’s very slow business for the realtors.

Democrass
Guest
Democrass

The Overvalued Canadian Real Estate infographic:

http://www.canadianbusiness.com/economy/trailing-indicator-2/

advoc8
Member
advoc8
@Democrass post #23 Just how overvalued were U.S. homes? Given that The Economist did warn about housing prices a few years before that crisis, I’d have to give them the most credibility. “Special report: The global housing boom In come the waves The worldwide rise in house prices is the biggest bubble in history. Prepare for the economic pain when it pops Jun 16th 2005 |From the print edition NEVER before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and China. Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000. What if the housing boom now turns to bust? According to estimates by The Economist, the total value of residential property in developed… Read more »
advoc8
Member
advoc8
“Throughout history, financial bubbles—whether in houses, equities or tulip bulbs—have continued to inflate for longer than rational folk believed possible. In many countries around the globe, house prices are already at record levels in relation to rents and incomes. But, as demonstrated by dotcom shares at the end of the 1990s, some prices could yet rise even higher. It is impossible to predict when prices will turn. Yet turn they will. Prices are already sliding in Australia and Britain. America’s housing market may be a year or so behind. Many people protest that house prices are less vulnerable to a meltdown. Houses, they argue, are not paper wealth like shares; you can live in them. Houses cannot be sold as quickly as shares, making a price crash less likely. It is true that house prices do not plummet like a… Read more »
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