FFFA! Interest rates, towers & debt

Hey, it’s that time of the week again!

Friday Free-for-all time!

This is when we do our regular end of the week news round up and open topic discussion thread for the weekend.  Here are a few recent links to kick off the chat:

Canadian house prices flatten
Is it really non-mortgage debt?
Surrey discovers murphy beds
Zero % loans for suckers?
HPI & Teranet Disconnect?
Burnaby grows up
Jim will intervene
A major correction?

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

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VMD
Member

Quote in this G&M article published Nov 14:

“It’s not just executives and elite athletes who are seeing wages climb. To join the top 1 per cent of earners requires $201,400 in annual earnings, and the group encompasses doctors, dentists, lawyers, veterinarians, real-estate agents, architects and engineers. The knowledge economy means that these jobs are much more valued than in the past.”

Which does not belong in the “knowledge economy”…?

VMD
Member

Vancouver sees country’s biggest price drop for new housing in September

The cost of new housing in Vancouver continues to fall, with the city seeing Canada’s biggest decline in September, according to the New Housing Price Index released by Statistics Canada November 14.

Year-over-year, prices for new housing in the city fell by 1.2%. Victoria and Ottawa-Gatineau were the only other cities where prices fell, with dips of 0.6% and 0.3%, respectively.

tedeastside
Member
tedeastside

Knowledge economy in Vancouver LOL!!! who would you work for? is Megabite pizza a tech company?

Pete
Guest
Pete

Who says Vancouver housing isn’t a commodity?

http://i.cubeupload.com/2LSzOR.png

I lined up detached prices and it fit like a glove. Maybe resources do run the show here.

Snake
Guest
Snake
Snake
Guest
Snake

Hundreds of former BlackBerry staff hunt for new jobs

https://www.google.ca/search?q=Hundreds+of+former+BlackBerry+staff+hunt+for+new+jobs&oq=Hundreds+of+former+BlackBerry+staff+hunt+for+new+jobs&aqs=chrome..69i57&sourceid=chrome&espv=210&es_sm=122&ie=UTF-8

Newcomer
Member
Newcomer
http://www.thestar.com/business/2013/11/15/condo_rents_hit_new_high_amid_seemingly_insatiable_demand.html The headline reads, “Condo rents hit new high amid ‘seemingly insatiable’ demand” In the article we learn that Toronto condo rents are up 1.6% and what they are using of proof of insatiable demand is the 40% increase in rentals through the MLS. The piece include this wonderful chunk of Through the Looking Glass spin: “Of the total of 4,609 new units registered across the GTA in Q3 of 2013, 24 per cent were put up for rent and less than two per cent were put up for sale, suggesting investors are looking to hold for the longer term rather than flip for a quick profit, says Urbanation. The perfect storm of forces driving this extraordinary demand for rental condos is “more structural than temporary,” says Shaun Hildebrand, senior vice president of Urbanation and a former GTA market analyst… Read more »
Newcomer
Member
Newcomer
@Snake “Home sales, prices climb more than 8% in October” This is not even close to being true. First of all, the article says right from the get go that sales volumes are down. It also makes it clear that the increase in prices did not occur in October, as you say, but in the 12 month period ending in October. The article is quite clear about what happened in October: “October sales in Vancouver were 10 per cent lower than in September, and in Toronto, they declined 5 per cent. Prices were down 2.4 per cent and 0.4 per cent in Vancouver and Toronto, respectively.” The people who write these articles are doing something known as “spinning.” That is to say, they want you to believe something other than the truth. When you read these articles, you should read… Read more »
Hardy
Guest
Hardy
taylor192
Member

That Toronto Star article is perhaps the worst piece of reporting. The author was probably smoking crack with Rob Ford.

Investors did not suddenly decide to stop flipping condos for cash. Profit has disappeared now that double digit gains are gone, so investors are stuck selling for little to no profit, or wait out price gain and rent.

As the article states, there is a price gap between renting and owning, thus investors waiting out prices gain are often renting for a loss. That loss is amplified when income taxes on rent are due, which many amateur landlords do not claim, yet CRA has decided to start going after.

Best place on meth
Member
Best place on meth

Presented without comment.

http://news.yahoo.com/no-sign-help-philippines-chinas-hospital-ship-093715108.html

Because really, what is there to say?

Newcomer
Member
Newcomer

@11

Well, we could say, “That has absolutely nothing to do with real estate.”

Best place on meth
Member
Best place on meth

@N

In that case you should avoid this site on Fridays.

Scroll up to the top and read it what it says.

Brian Ripley
Guest
Brian Ripley

I have the total residential sales and listings for the 6 biggest cities in Canada plotted on 2 charts now:
http://www.chpc.biz/sales-listings.html

It’s clear that seasonally, the bulls will retire until early spring next year.

Son of Ponzi
Guest
Son of Ponzi
MATH MATTERS LOG SCALES ARE NEEDED Ralph Cramdown at 25 said: On a long term chart like that, either semi-log axes or an exponential rather than linear curve fit is called for. ********************************** Ralph beat me to it with that comment. Need log scale on the vertical axis. On a regular scale any constant percent growth will shoot skyward if enough years are shown. It’s called exponential growth and even 1% is exponential let alone 5% or whatever. On a log sale a 4% constant growth or whatever shows as a straight line no matter how many years. Chart is from Real Estate Board of Greater Vancouver. It’s flawed and should be ignored. It’s misleading. Even on a log chart I am sure the hockey stick effect is there. (And why not, given lower interest rates). But the raw data… Read more »
Son of Ponzi
Guest
Son of Ponzi
Son of Ponzi
Guest
Son of Ponzi

Sorry, link does.not work.
Go see graph on Garth’s latest post.

jesse
Member

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than is lost in corrections themselves.”
– Peter Lynch

“It’s always a good time to buy and sell.”
– Some guy

George
Guest
George

@N #7

“Even condos aren’t proving to be as attractive an alternative for buyers as many people think, with the gap between owning and renting a condo now about $665 a month, says Urbanation.”

That is a stunning quote to read in the mainstream media. Let’s just pause on that for a second and enjoy it because it happens so rarely–the mainstream media is telling us it is cheaper to rent than to buy condos! Wow! Is it April Fool’s Day?! I had to go to the article to read it for myself–I had to make sure that they weren’t saying that the gap was in the other direction and that owning is cheaper than renting. It really does say that renting is cheaper than owning. Wow! Just wow!

George
Guest
George

I am reading that right, right? I still can’t believe it.

Son of Ponzi
Guest
Son of Ponzi

#18
“The time to buy is NOW!”
Steve Buchsbaum, Realtor in Rochmond

RealityCheck
Guest
RealityCheck

China has just relaxed its one child policy it had for the last 30 Years.

Expect population to explode from the current 1.3 billion.

God help those that don’t own any assets as labour will become plentiful.

Best place on meth
Member
Best place on meth

While real estate continues to go nowhere, the major stock markets are pushing ever closer towards huge milestones which we may even see today.

DOW 16,000
S&P 1800
NAS 4000

I’m glad I’m not bleeding $665 a month on some piece of shit condo.

RealityCheck
Guest
RealityCheck

I’m sure that’s why mainland Chinese are coming to Vancouver…..so they can have more than one kid.

So simple eh? In Canada you can bring the parents and grandparents, have more than one kid, work overseas while family collects benefits, free healthcare and kids get a free education.

Now what Chinese wouldn’t want to move here? This is utopia for then.

ILoveCharts
Guest
ILoveCharts

http://www.scmp.com/news/china/article/1354767/vancouver-benefits-influx-mainland-chinese-migrants-says-mayor

“Nonetheless, Robertson acknowledged that the number of mainland Chinese had been growing rapidly in recent years and now accounted for 10 per cent of the city’s 603,000 residents.”

How can anyone seriously make a claim that when 10% of the residents in the city are from mainland China that HAM is not having a material impact on the market?

“In one indication of Chinese interest in the city, Robertson’s Sina Weibo account has more than 79,000 followers, compared with 39,000 followers on his Twitter account.”

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