You know what time it is?
Free-for-all time!
This is our regular end of the week news round up and open topic discussion thread for the weekend.
-links to come!
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
FIRST!!!!
#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO#YOLO
So to summarize the past two days:
Deutsche Bank joins the IMF in saying we have the most overvalued housing in the world.
Debt to income reaches *new* high (yes, once again), fueled primarily by new mortgage borrowing.
http://www.reuters.com/article/2013/12/13/canada-economy-debt-idUSL1N0JR23U20131213
TD Bank boss says we’re not in a bubble and that privatizing the CMHC would weaken banks, leave economy vulnerable.
Land of insanity, thy name is Canada.
Yesterday I saw two Manadrin speakers flipping through a bunch of real estate brochures in the OV. One was the agent, the other was the very young buyer. I couldn’t get by them, almost knocked over their table trying to pass them and they never looked up once. It’s like I didn’t exist, because, maybe, I don’t. I’m just a ghost from the past when Vancouver had other people living in it.
If anyone thinks that Vancouver real estate is in a bubble that will crash answer this:
Condo prices have been flat for 5 years and houses have been flat for 2 years after an astonomical price increase. Show me a precedent of any city or country in the world where a huge real estate price boom was followed by years of flat prices – and then a crash.
If there is no historical precendent for a “bubble” like that (and that is the bear case)then there is likely no real estate bubble in Vancouver and there will likely be no crash.
I’l make it even easier, istead of finding a precendent of a crash, find even a 10% price drop after a huge price increase followed by a multi year falt period.
Show me the evidence or change your beliefs.
Softly, lookup historical prices of Vancouver. You’ll find prices dropped 10% in 1994 and stayed flat till 2002 after a run up from 1991.
Evidence shown, now go away.
Somebody post on a # 3? I no see comment. Must be ghost.
Canada Man… so funny. Lucky to be background extra in China movie called Vancouver. Still complain.
“Softly, lookup historical prices of Vancouver”
So, based on that have you given up hope of a crash and do you admit that there was no bubble? If not, you are willfully blind.
1)Canadian household debt ratio climbs to record in third quarter as mortgage borrowing hits $1.13-trillion
http://business.financialpost.com/2013/12/13/canada-debt-mortgages-2/
2)As house prices go up and incomes stagnate, renting is become more attractive.
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/home-buying/why-preet-banerjee-is-choosing-renting-over-buying/article11260888/#dashboard/follows/
3)Preet Banerjee sold his house and rents. Why he couldn’t be happier
http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/preet-banerjee-sold-his-house-and-rents-why-he-couldnt-be-happier/article14740574/
4)Create a company that offers short selling homes?
http://forums.redflagdeals.com/create-company-offers-short-selling-homes-1423366/
5)It is always difficult to spot a speculative bubble in advance, but in the case of Canadian housing the weight of evidence is clear in our view:
http://blog.bcaresearch.com/canadian-housing-the-bubble-debate
“Show me a precedent of any city or country in the world where a huge real estate price boom was followed by years of flat prices – and then a crash.”
Ask, and you shall receive! San Francisco condos stayed flat between 2005 and 2008 (at an index of about 340), then crashed 34% to 225.
http://www.ziprealty.com/blog/case-shiller-indices-q3-plain-english
http://www.youtube.com/watch?v=bDITD7p8AZw
the technology behind a Twisted Building.. I was watching this video for other reasons, and was surprised to learn the roots of this technology…They show a full skyscraper…it’s not just aesthetics
i think a crash is right around the corner. very soon we are going to see interest rates spike, china collapse, mortgage rules tightening, and an earthquake in the lower mainland which will cause prices to collapse.
it isn’t different this time. sorry realaturds and specuvestors, but you’re about to get burnt! BIG TIME!
@ #3.
I’m going to have to go ahead and ask you to keep out of the way next time if your not going to be buying any condos.
Thaaaanks.
AMEN FRANKO!!!!! This city is slowly declining into a socialist dream world. Which is great if your a bureaucrat. I’m about ready to support a pipeline through every city hall in the region. At least we can get rid of the useless “public servants” who so dearly love making our lives difficult.
renter look like this http://i.imgur.com/h9Qzcnk.gif
@franko
I guess it never occurred to you that the reason there are no bikes on that stretch of road is because there are no bike lanes. Keep in mind, they build them in order to encourage people to ride bikes, and not to relieve existing bike congestion.
Not only has Canadian household debt reached new record highs but in my 4 chart mashup it is evident that negative output continues to deepen after 5 years even as labour costs plunge. New Orders have also taken a step down as productivity remains below the 2009 pit of gloom:
http://www.chpc.biz/2/post/2013/12/credit-growth-vs-4-metrics.html
@N #17
How many bikes have you ever seen in the bike lane going up the long hill on Rupert St in Van from Grandview to 22nd?
I only go that way a couple of times a month on the way to the airport and have yet to see any…even in the summer.
Until biking becomes a necessity instead of a recreation it will be a hindrance to traffic and should not be supported by tax money from commuters.
I think Gregor should be banished to Amsterdam!
…Keep in mind, they build them in order to encourage people to ride bikes….
Keep in mind, in Vancouver, people don’t ride their bikes because it rains 10 months of the year, it’s not because they don’t have anywhere to ride. If you turned every street in town to a bike lane and banned all cars, the number of bikers would stay the same and more people would have to walk.
30 percent correction coming in vancouver Real Estate.
Here’s how to profit. If you have a home, take as much equity out and put into US dollars. If you also have a portfolio, put in US dollars.
The CDN dollar will go down about 25% as a result of QE by the Bank of Canada via keeping rates low. Heck they might start to buy mortgage bonds in Canada!
After dollar hits bottom, bring money back. Voila, at least 20-25% ahead! 30% if you don’t own a house now.
But then it will be harder to qualify for a mortgage. If you don’t have anything saved, I find it hard to see bow a correction is going to help.
at least this guy is on my side
http://www.commuterbybike.com/2011/04/20/hitler-and-bike-lanes
To the down voters of my post above: you are doing the right thing I’d you want to fall further behind…just trying to help you.
#23, you are being voted down because you’re trying to provide advice on currency exchange rates, something you have no real idea what you’re talking about. In some circles they’d call you a “speculator”.
