FFFA! Bankrates, Burnaby, Bubbles

It’s that time of the week again!

Time for our end of the week news roundup on open topic discussion thread for the weekend – Friday Free-for-all time!

Here are a few recent links to kick off the chat:

BOC rate stance affect on housing
Burnaby couple wants to pay higher tax
Variable mortgages are safe again
The five largest housing bubbles
Bear motivators
Ownership good or bad for economy?
Vancouver Island investors fear loss
How many Victoria listings are foreclosures?
Ottawa condo surplus

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

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ILoveCharts
Guest
ILoveCharts
Some interesting things are happening. A) Vancouver vs Toronto price disconnect: Instead of Vancouver prices coming down, Torontonians are getting in crazy bidding wars and driving their own prices up to play catch up. B) Vancouver vs US price disconnect: CAD is dropping and that has the same impact on that ratio as our house prices dropping. I’m glad I have a bunch of my cash/investments in USD. C) BoC has given into peer pressure wimped out on interest rates. At least we’re not printing. D) F continues to be too skittish to make additional changes. On Thursday, he said: ““While we continue to monitor the housing market, we have no plans for further action at this time,”” E) We’re days away from major announcements on LNG projects in BC. Hiring has already begun. It raises a few questions: 1)An… Read more »
Free bird Friday
Guest
Free bird Friday

Type “m” into any search engine and you’ll find that “mortgage calculator” is the first suggestion. Canadians are sick and desperately need a wake up call.

Many Franks
Member

New home construction could be a ‘real grind’ for Metro Vancouver in 2014:

“I think those on council and those people seeking reelection will be loathe to make any kind of controversial decision (on new housing),” said Ferreira, who is a principal of the Vancouver company Urban Analytics.

“So it really freezes our market and, for those politicians who wax on about wanting to provide affordable product, it doesn’t help if we go a year without adding more supply,” Ferreira said.

Bless those developers, working ceaselessly towards our shared goal of market affordability here in Vancouver. And to think they’ll be stopped just shy of finally licking the problem once and for all.

Vadim
Guest
Vadim

ILoveCharts Says: B) Vancouver vs US price disconnect: CAD is dropping and that has the same impact on that ratio as our house prices dropping. I’m glad I have a bunch of my cash/investments in USD.

Exchange rate is the same from 2010…

4SlicesofCheese
Guest
4SlicesofCheese

http://metronews.ca/news/vancouver/833325/who-really-won-vancouvers-2010-winter-olympics/

“Someone who works in the tourism industry, lives in Vancouver and has a place in Whistler is sitting the prettiest,” said UBC Faculty of Education professor Rob VanWynsberghe, who conducted the research through UBC’s Centre for Sport and Sustainability.

A place in Whistler? Really?

Poloz
Guest
Poloz

Gov selling out Canadians. Our Dollar dropping versus all the major currencies. Expect everything to increase in price. This is nothing short of treason .

jesse
Member
CBC: Bjarke Ingels’s twisting tower gets rezoning by Vancouver Danish ‘starchitect’ Bjarke Ingels is one step closer to leaving his mark on Vancouver’s skyline after the city unanimously approved re-zoning for his controversial twisting towers project. The proposal for the 52-story tower next to the Granville Bridge on-ramp at Pacific and Howe streets includes 500 units intended to house about 800 people, plus commercial space. The design for the $200-million tower starts out as a triangle at the base but turns into a rectangle higher up. Close to 800 people attended the two open houses on the project and about 25 spoke at a packed public hearing last night. Opponents said the tower will block views of the water, cast shadows and bring too much density to the neighbourhood. But local resident Dean Maley says it will bring much-needed amenities… Read more »
HAM Solo
Guest
HAM Solo

BC Foreclosure Filings for Oct 25

Today / (MTD)

Vancouver: 6 / (98)
Victoria: 5 / (27)
Prince George: 3 / (20)
Kamloops: 2 / (12)
Vernon: 2 / (6)
New West: 1 / (37)
Nanaimo: 1 / (24)
Other: 4

Countrywide Cup Foreclosure Lenders Leaders

MTD:

Scotia: 27
CIBC: 27
TD: 26
First National: 20
Royal: 17
BMO: 12
Paradigm Quest: 11
Home Capital: 8
HSBC: 8

By Category MTD:

Banks: 128
Specialty Mortgage Entities: 81
Credit Unions: 23

Couple of comments. October has been pretty steady activity, with Vancouver running close to 6 foreclosures/working day. The rest of the province activity somewhat higher on a proportionate basis, but nothing really standing out.

On the lenders side, the specialty mortgage firms are where the action is as a % of assets. Would be interesting to know a little more about underwriting at First National or Paradigm Quest.

Son of Ponzi
Guest
Son of Ponzi

Twisting Tower.
More like the Tower of Babel

YLTNboomerang
Member
That CBC article had some real gems in it like this one from Matthew Sachs, a general manager at Urbandale Construction: Everyone got excited about Ottawa having a condo scene similar to Toronto and Vancouver and we’ve built up accordingly, but the market isn’t quite there yet So…everyone was excitied that Ottawa might get a massive ponzi bubble.. But this is by Sandra Perez Torres, a senior CMHC market analyst, is by far the best: The Canada Mortgage and Housing Corporation (CMHC) said the market should turn around by next spring if people buy up in anticipation of interest rates edging up. “All these first-time home buyers who are taking their time will probably jump in the market by then. Then the market will start rolling again,” Uhh…didn’t the government just say that rates are not going up? I guess… Read more »
Turkey
Guest
Turkey

I’m wearing my disagreement pants today.

@Free bird Friday,

Type “m” into any search engine and you’ll find that “mortgage calculator” is the first suggestion. Canadians are sick and desperately need a wake up call.

Google gives me “maps”. Hint: Google gives you personalized results, based partly on your search history. You may wish to consult a mirror.

@Poloz,

Gov selling out Canadians. Our Dollar dropping versus all the major currencies. Expect everything to increase in price. This is nothing short of treason .

A low dollar is good for Canadian manufacturers, and encourages both exports and domestic consumption of Canadian goods. I’d prefer that kind of growth to just selling off sticky pieces of the earth’s crust.

bestplaceonearth
Guest
bestplaceonearth

call your realtors and mortgage brokers now! they can save you from a lot of…bitching and whinning!

Son of Ponzi
Guest
Son of Ponzi

# 12
Yeah, call your realtors now and tell them SELL! SELL!SELL!

Randy Randerson
Guest
Randy Randerson

So according to the CMHC analyst, more lemmings will jump head first into life long indenture just to “owe”? And the % of household “owing” will go from 70% to what? 75, 80, 85%?

franko
Member
franko
Hard to believe that Poloz could make such a rooky blunder by shooting his mouth off to suggest that rates could go down. And this on the heels of “spaghetti bubbles” analogy. It’s the simplest job on the planet. He just needs to follow the FED like all his predecessors since the 60s. The slightest hint of lower rates is another way of saying that our economy sucks beyond our wildest dreams. It could have been political suicide not to delay tapering before the Congress and Obey kicked the debt ceiling can down the road. I have a bridge for sale to anyone who believes the FED can indefinitely continue to gobble up $85 billion per month of treasury bonds with the loss of confidence by the private sector. The FED has run out of tricks and rates will go… Read more »
Newcomer
Member
Newcomer

“Type “m” into any search engine and you’ll find that “mortgage calculator” is the first suggestion. Canadians are sick and desperately need a wake up call.”

Not mine. Mine come up with “movies” and “map” first. Search engines keep track of your searches and optimise themselves based on that. We are all seeing the world through personally tinted glasses, and it seems that your glasses are real estate tinted.

Bailing in BC
Member

#11 Turkey

“I’m wearing my disagreement pants today”

Those Sir are not your disagreement pants. Those are your “Fighting Trousers”

http://www.youtube.com/watch?v=0iRTB-FTMdk

Many Franks
Member
Here’s a Friday chuckle. Frugal condo owner has ambitious goals … and cash-flow jitters: Jenny is rightly proud of her ability to live within her means and save money, too. Thanks to her financial prudence, she was able to buy a small condo in the Toronto area in 2011 despite her relatively modest salary. […] Even though her condo costs are more than half her income, she wants to save up to buy a house at some point. Let’s see what prudence looks like. Assets Cash in bank $20,000; estimated present value of defined benefit pension plan from previous employer $50,000; defined contribution pension plan $1,760; condo $320,000. Total: $391,760 Monthly disbursements Mortgage $1,300; property tax $230; condo fees $275; utilities, home insurance $140; transportation $60; groceries $300; clothing $100; gifts $50; vacation, travel $125; club memberships $75; dining out,… Read more »
VanRant
Member
VanRant

Carney is doing his magic on housing in Britain as he has done in Canada.

“Prices across the country are 3.8 per cent higher than they were a year ago, although in London they have shot up by 13.8 per cent over this period, Rightmove said.

http://www.theaustralian.com.au/business/latest-news/london-house-prices-at-new-high/story-e6frg90f-1226743702980

Laurey
Guest
Laurey

“groceries $300″

what does she eat? Kraft dinner every night? I spent way more.

” utilities, home insurance $140″

this is also suspicious. I spent just on natural gas $130 a month. ok for a house but still. where is water, electricity?

patriotz
Member

@18:

We asked Heather Franklin, an independent financial planner in Toronto, to look at Jenny’s situation.

Home ownership does have a way of crimping a person’s cash flow, Ms. Franklin says. Jenny should keep in mind that mortgage debt is “good debt” if it helps her build equity in her home.

This person is an “independent financial planner”? God help us. Well God help Jenny, anyway.

Ben Rabidoux
Guest
Ben Rabidoux

@Many Franks

You can almost be certain that the RSP loan was actually for the down payment. It’s a clever trick….borrow money from the bank for a “RRSP loan”, put it in your RSP in a money market fund for 90 days, withdraw under Home Buyer Program and you have a legal down payment that makes the mortgage effectively 100% LTV. Plus a nice little tax refund that year as well. All legal. Very popular little maneuver today that all good mortgage brokers know about.

Isn’t it interesting that the RSP loan would have equaled +/- her 5% down payment on the condo plus closing costs?!

paulb
Member

New Listings 131
Price Changes 99
Sold Listings 93
TI:16579

http://www.paulboenisch.com

Son of Ponzi
Guest
Son of Ponzi

#22
Thanks Ben,
Seems like the mortgage brokers are even sleazier than the RE agents.
Together they are a lethal package preying on the property virgins.
And our elected official are just standing by.

Burt
Guest
Burt

Laurey #20

We spend no more than $400 a month for two people, often less. We eat very well.

Are you shopping at Whole Foods?

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