Borrowing demand from the future

House sales have gone up recently even if prices haven’t.

After last years rock bottom sales numbers this year saw a big jump in summer sales.

If demand is increasing more price increases can’t be far behind right?

RBC economist Craig Wright says nope, expect further softening.

Interestingly enough they don’t mention interest rate increases, simply ‘strained affordability, slowing population growth and empty condos’:

Craig Wright of the Royal Bank says “activity now is borrowing from the future… that, alongside of a still-strained affordability environment suggest, to us as least, that the housing sector will continue to soften rather than accelerate from this point forward.”

Wright also sees new home construction being limited in the short term by slowing population growth and unoccupied condos in Vancouver.

They predict small growth in the province over the next couple of year and note that BC created no new jobs over the last year so retail sales are not moving much.

Read the full article here.

 

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George

Regarding crime and the skytrain: I do not believe skytrain spreads crime. I have a long memory of the Lower Mainland having lived here all my life and having heard stories from my parents and grandparents. What areas along the skytrain have crime? Surrey Central. New Westminster Station. Columbia Station. Broadway and Commercial. Downtown stations. All of those areas had crime LONG BEFORE the skytrain was ever built. Whalley was actually way worse before the skytrain came there. Columbia Street in New West had beer parlours and drunks and druggies and was always a place to watch your back. East Van was way worse in the 70s. The skytrain has helped gentrify East Van and Surrey and probably made those areas safer. Have we seen big increases in crime along the Millenium Line? No. Have we seen increases in crime… Read more »

fixie guy

franko Says: ” I haven’t got a fucking clue what you are trying to say.”

No doubt but I’m here to help. It’s a forum. Expect replies. Your self-serving fantasy of hordes of boomers crushing the credit system in the late Seventies is laughable. The great majority of them were just leaving high school. Move the slider to 1978 for yourself and and please ask for help if that sounds like ESL to you:

http://www12.statcan.gc.ca/census-recensement/2011/dp-pd/pyramid-pyramide/his/index-eng.cfm

The economy was also poor, the prime rates over 10% and lending standards much more stringent than today’s. There’s no way masses of graduating high school students qualified for credit.
It’s obvious you need targets to blame for some perceived slight or personal failure but the road to sweet sympathy is paved with data. Try being plausible.

Son of Ponzi

My son lived near the Edmonds station for a few years.
He said after 10:p.m he was scared to go out.
Luckily, he was just renting, so he could move to a safer place.

Joe Mainlander
Son of Ponzi

Someone on this thread mentioned that they bought property in Coquitlam just a stones throw away from the new Evergreen Line, which will probably be completed in 2016.
Well, happy waiting, and install deadbolt and window bars.
Police records show that crime increases by 10% around Skytrain stations.

Laurey

this tidbit info that i found. The US consumes about 19 million barrels of liquids per day. Assume a retail price of about $150 per barrel. Over 30 days that would be 19 million barrels per day X 30 days X $150 per barrel = $85,500 million, or in round numbers about $85 billion spent per month in liquids purchases in the US. and how much they print for asset purchases a month? the same number 85 bil.
so yes, it’s all about credit now.

jesse

“until the Feds change policy”

What, their promise to scale back asset purchases when data improve? Why would they change that?

Maria

Very nice blog. You can visit mine on Mobile Home Buyers

chin

prices of houses must be falling more than I thought, seeing all these house hump’n trolls

Laurey

You like cushy online bussiness. Well that does not pay much. The other day someone posted job for 2 bucks per lead for cushy sales job. Yes you mingle with cute asian ladies in sales center in the village but pay is miserable. how about farming? Are you interested in buying and renting a land. My in laws do that in manitoba. Decent profit margin.

Mañana

The latest US Fed bond scheme of continuing pumping $85 billion to the monetary system will inflate RE prices – on average globally but certain areas will have accentuated RE inflation.

The financial gimmickry that resulted in US RE bubble is being exported globally.

I’m on the buy side until the Feds change policy.

the helmet

You know best Laurey. Those sound too “hard” for me. I prefer soft baskets.

Laurey

“The question is how much we pay for them.”

here you have some opportunities where you can even buy with small working interest
http://knikenergy.com/Projects.html

snake

Get Your Monthly Retirement Paycheck INCREASE YOUR WEALTH THROUGH REAL ESTATE

http://www.bennettpros.com/gold_customform3.asp

the helmet

“could you explain what is wrong with buying productive hard assets?”

Your statement is trite. We all want to invest in productive assets. The question is how much we pay for them.

Ludvig von Mises

#60
“Sales have reverted to average. Only a (scummy) promoter would call that “red hot”.”

In Vancouver red hot is the “average.” Which is exactly what this site has been complaining about for years.

Best place on meth

“What has this hate for Chinese gotten you anyways? So you can feel better about your own life?? So you can feel superior?? Do you maybe have to report to an immigrant manager maybe??”

Do you have to ask such fucking stupid questions?

Bull! Bull! Bull!

looks like Halloween came early for the bears.

paulb

New Listings 196
Price Changes 91
Sold Listings 102
TI:17366

http://www.paulboenisch.com

kinetic

space: “What has this hate for Chinese gotten you (BPOM) anyways? So you can feel better about your own life?? So you can feel superior?? Do you maybe have to report to an immigrant manager maybe??”

could be that some Chinese dude ba..ged his girlfriend that is why such hate is coming from him.

franko

@ fixie guy #62

I apologise if English is not your first language.
Although you have responded to several of my posts with fancy words, I haven’t got a fucking clue what you are trying to say.
It might help if you tried to elaborate and express your ideas in a simpler way.

Son of Ponzi

,
You’re right. Flaherty will have to hit the brakes and hit them hard.
Gotta kill the beast, once and for all.

Son of Ponzi

Way back, there was a car repair commercial were the mechanic said:
“you can pay me now, or you can pay me later”.
Implying that paying later will mean paying more.
The same holds true for the FEDs decision to continue to borrow.
The notion that you can borrow yourself out of debt is just insane.
Sooner or later, the music will stop and you’ll have to pay the piper.
Ever wonder why Germany now has the strongest economy?