FFFA! August, Prices, Flippers, Slumlords & Richmond

It’s that time of the week again, Friday Free-for-all time!

Lets do our regular end of the week news roundup and open topic discussion thread for the weekend, hear are a few recent links to kick off the chat:

August Stats Summary
Canada among ‘most bubbly’ in world
BOC holds rate at 1 percent
A quarter live paycheque to paycheque
Real Estate doomsayers are wrong
Regulator eyes tighter mortgage rules
Realtor Hunger Index at 62%
Most expensive house price down $25 mil
Farewell Flippers in Trouble
Sunshine Coast down 22.5%
New Dyke standards hurt Richmond budget
Arrest warrants issued for slumlord

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

Sort by:   newest | oldest | most voted
ILoveCharts
Guest
ILoveCharts

Three months until the Strata Depreciation Reports are due.
http://www.housing.gov.bc.ca/strata/regs/

How will this play into numbers in Q4?

I think that sellers in condos that voted to not prepare the reports should expect to reduce their price.

As the Dec 13th deadline draws closer, I think that sellers in the remaining condos will have a harder time selling their units if the report is not yet complete. Why buy in November when you can make a much more informed decision in December?

On the other hand, it also appears that there are a lot of fools who are happy to buy into buildings with obvious problems so maybe this won’t have as much of an impact as it should.

tedeastside
Member
tedeastside

Vancouverites cherish their property value more than any other people in the world because Vancouver is such dead end city with terrible opportunities to make a living

BWilson
Guest
BWilson

@ tedeastside

Totally agree, without a lot of high paying jobs here people cling onto RE as their only hope of wealth creation, which makes them easy prey for those that try to sell them that dream.

Canada August job numbers were just released this morning the headline number was pretty positive +59,200 jobs in Canada, BC added 6200 jobs. However, BC lost 9800 full time jobs and gained 16000 part time jobs. If you value a part time job as 1/2 a full time job, BC lost jobs last month. Realistically, a part time job is worth less than half a full time job in terms of economic impact.

Son of Ponzi
Guest
Son of Ponzi

BWilson,
That’s why job numbers should be reported as FTEs (Full Time Equivalents).
Also interesting is the trend to hiring older workers, which does not bode well for BC’s economy as younger workers will have to leave the Province.

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

the vancouver bear blog bubble is popping! the cut and run legacy of VHB lives on!

don’t worry though, a new batch of blogs will pop up once the real estate market makes it’s next run up. after all, a sucker is born every minute!!!!!!!!!!!!!!

http://vreaa.wordpress.com/
last post 14 July 2013

http://vancouverpricedrop.wordpress.com/
last post August 2, 2013
second last post June 27, 2013

crabman
Guest
crabman

Translation of Troll! Troll! Troll!:

“Isn’t it great that the people who want housing to be affordable for the average Vancouverite aren’t getting what they want?! Isn’t it great that developers, banks and real estate agents are getting rich at the expense of the average family?! Isn’t it fantastic that professionals are leaving or not coming here in the first place?!”

Softy
Guest
Softy

“want housing to be affordable for the average Vancouverite”

The average vancouverite appears happy to pay super high, unaffordable prices. If they wanted affordable housing, they would not pay anaffordable prices.

mosesupposes
Guest
mosesupposes

I love the spin that a two month reversion to the 10 year average in sales (without any price increases) is somehow a great Bull victory.

So Average Sales + No Price Increases = Bull Market? Right.

crabman
Guest
crabman

You should run for City Council, softinthehead. You would fit right it. Here is Kerry Jang on the definition of “affordable housing”.

http://www.straight.com/news/418221/vision-vancouver-accused-misleading-residents-use-term-affordable-housing

“Well, you know, affordable housing is something that somebody can afford,” Jang replied.

It’s up to people to make “decisions as to what’s affordable to them”, the Vision Vancouver politician explained.

“Generally, if you can’t afford to buy a home, you rent something,” Jang also said.

oneangryslav2
Guest
oneangryslav2

The average vancouverite appears happy to pay super high, unaffordable prices.

Happy?!? Really?!? I know that sellers are gleeful that they’re getting the prices they are, but buyers happy? The only reason that buyers are not despondent about the prices that they’re paying is because they think (or have been told by the Real Estate Industrial Complex) that they will be able to sell for more than they purchased in the future.

VHB
Member
VHB

Total days 20
Days elapsed so far 3
Weekends / holidays 2
Days missing 0
Days remaining 17
7 Calendar Day Moving Average: Sales 122
7 Calendar Day Moving Average: Listings 279
SALES
Sales so far 380
Projection for rest of month (using 7day MA) 2074
Projected month end total 2454
NEW LISTINGS
Listings so far 963
Projection for rest of month (using 7day MA) 4743
Projected month end total 5706
Sell-list so far 39.5%
Projected month-end sell-list 43.0%
MONTHS OF INVENTORY
Inventory as of September 5, 2013 16912
Current MoI at this sales pace 6.89

Softy
Guest
Softy

” love the spin that a two month reversion to the 10 year average in sales (without any price increases) is somehow a great Bull victory.”

It proves that its a soft landing. No crash on the horizon.

Softy
Guest
Softy

“Well, you know, affordable housing is something that somebody can afford,” Jang replied.

It’s up to people to make “decisions as to what’s affordable to them”, the Vision Vancouver politician explained.

“Generally, if you can’t afford to buy a home, you rent something,” Jang also said.

All three statements are correct. Affordable housing is, in fact, housing that is affordable. It is, indeed, up to people to decide what is affordable to them – should the government tell them what they can afford?. And it is also a fact that renting is cheaper than owning, so if you cannot afford to buy, you will rent.

FIRE Department
Guest
FIRE Department

Canadian Job Creation Triples Forecasts in August

BUT

“Education workers fell by 22,400 to lead declining industries in August. The finance, insurance, real estate and leasing group cut 18,500 jobs…”

Got a bit more time on your hands these days Softy?

Melba
Guest
Melba

Hmmmmm….

Apparently, August was bumper month for home sales but the industry still managed to whack 18,500 jobs. Wonder what a downturn looks like?

In any case, seems like there’s lots of lease-foreclosed Beemers suddenly available.

crabman
Guest
crabman

Do you see the ignorance of you last statement softy? It is only because of the government that housing has gotten to where it is today.

With record-high prices, record-low mortgage rates – which are certain to rise in the near future – no bank in their right mind would be issuing 95% LTV mortgages if they weren’t guaranteed by the government. And rates wouldn’t be this low in the first place if central bankers weren’t manipulating them.

Son of Ponzi
Guest
Son of Ponzi

Softy,
Many people prefer to rent, even though they could afford to buy.
Rather than buying an overpriced, depreciating asset, they are investing the 50% bonus of renting vs. buying.
And come out way ahead.
And remember, once the RE market has deflated, they can always come back and swoop up the bargains.

Softy
Guest
Softy
Well, unfortunately for the bears, the governement and the central bank are not going anywhere. So while you recognize that they contribute to high prices, why those extra market forces disappear? It is like complaining about the force of gravity. “If it wasn’t for gravity, it would be much easier to change a tire.” Your point is essentially that extra market forces prop up high prices. Well, that is what soft landing proponents say. That’s why there will be a soft landing. “which are certain to rise in the near future” This has been said many times in the last five years. Rates finally started rising this year and there is no guarantee they will continue. There is no guarantee that there will not be counter forces acting to improve afforability even while rates rise such that the net affect… Read more »
Softy
Guest
Softy

Should say “net affect on market PRICES is nil”

Softy
Guest
Softy

“And come out way ahead.”

Until something like 2000 or 2008 or 1987 happens.

patriotz
Member

It’s up to people to make “decisions as to what’s affordable to them”, the Vision Vancouver politician explained.

Well Jang is right about this and other quotes in the article. House prices are determined by the buyer and housing bubbles can only happen if buyers are willing to pay more than it would to rent the same property.

And market rents in any neighbourhood are determined by supply and demand. Rents in CoV are not going to be affordable to the average renter in the metro, any more than they are going to be affordable to the average renter in the old (pre-amalgamation) City of Toronto. There are too many people with high disposable incomes who want to live there.

Many Franks
Member

@Softy:

“And come out way ahead.”

Until something like 2000 or 2008 or 1987 happens.

Nonsense, Softy. Stock market crashes are bad for the economy. The government will step in to prevent them, at worst allowing valuations to gently decrease as wages and inflation come up to meet them.

tedeastside
Member
tedeastside

Toronto has high paying jobs…Vancouver has dick

patriotz
Member

@22:

What change in the universe happened last night which enabled governments to prevent stock market crashes going forward?

patriotz
Member

@22 My apologies if you were being sarcastic, I don’t bother reading the poster you were replying to.

wpDiscuz