Friday free-for-all!

Its the end of another week and that means it’s Friday Free-for-all time!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

-news links to come?

So what are you seeing out there?

Post your news links, thoughts and anecdotes here and have an excellent weekend!

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TC
Guest
TC
Central banks now freely peg short-term interest rates (near zero!), manipulate market yields, monetize debt, target/spur higher stock and risk asset prices and essentially promise continuous and liquid securities markets. Importantly, central bankers have been conditioned to absolutely avoid disappointing the markets. Indeed, heads of central banks have one-upped corporate America in striving to “beat expectations.” There is no longer anything cautious or subtle with respect to monetary management. The goal is precisely the opposite. One might these days contemplate why it took central banking a few hundred years to figure this all out – to appreciate the myriad benefits of zero rates, debt monetization and perpetual bull markets. I was, however, able to anticipate a very critical reality that remains fundamental to the ongoing global government finance Bubble: once the world’s central banks adopted unprecedented monetary inflation there would… Read more »
VMD
Member

City News: Investors in Brampton house development hit with $30K bill

09/05/2014
“Investors in a Brampton house development are suffering from a severe case of “sticker shock” after they found out the homes they purchased — originally scheduled to be completed in 2012 — will cost them an extra $30,000 in closing costs now that they are finally done.

Fernbrook Homes is telling the investors in the Castlemore development that if they want the keys to their new homes, they’ll need to pay up.
The buyers are upset since Fernbrook did not apply for a building permit until March of 2013 – one full year after the project was to be finished – and now they have to foot the very large, and unexpected, bill.”

tedeastside
Member
tedeastside

Virgin Atlantic dumps vancouver in favor of Detroit

….Business in Vancouver http://globalnews.ca/video/1543768/biv-virgin-atlantic-leaves-yvr/

patriotz
Member

@2:

Fernbrook said that of the 97 units affected, nearly 10 per cent of purchasers invoked their right to stand down from their purchase and received their full deposit back, plus a $7,500 penalty payment due to the delay in construction.

Puts a different spin on the story than that headline, doesn’t it?

If house prices had gone down in the last few years instead of up you can bet your socks 100% of them would have been happy to take the money.

Westside Realtor
Guest
Westside Realtor

Couple of our HAM clients spoke of their concerns that their China ppty holdings were losing value (seems to me that the nouveau rich in China hold lot of in productive Real Estate and have enjoyed large leveraged gains) and are concerned that their holdings here are/will do the same.

They are correct to be concerned.

The odd well priced home is seeing multiple offers, but that said it’s largely a phenomenon of the past, at least hereby on the Westside.

Take a drive around my area and see for yourself if it looks like a hot market.

Maybe all the HAM are out in Surrey bidding on Oracle’s building lot?

The certainly are not crawling all over the sfh listings on the Westside!

Enjoy the sunny weekend all

mac
Member
mac

I’m seeing very low inventory. We are looking at Kits 850 sq ft and above. Only 25 units on the market ??

AznPride
Guest
AznPride

A look back at your barbaric history:

Archives: Anti-Asian mob goes on rampage
This day in Vancouver history: Sept. 7, 1907

http://www.vancourier.com/news/archives-anti-asian-mob-goes-on-rampage-1.1344739#sthash.YeOEKPyy.dpuf

mac
Member
mac

850 – 1000 sq ft

Westside Realtor
Guest
Westside Realtor

Mac, look but don’t leap, imho prices will only decline, I believe we are at the front end of an inflection point, with years of declines ahead.

Likely a gradual decline that people can adjust to, but in my view you could easily see $100k declines in the market you are looking at. Just my two cents, good luck with your search/etc.

beige and blu
Guest
beige and blu
beige and blu
Guest
beige and blu
mac
Member
mac
Well, “Realtor”, As you know gradual declines don’t cut it when it comes to renting instead of buying.–IF your intention is to one day buy, that is. We’ve had a 5 year gradual decline of 5% already and in the meantime rent keeps going up. And, your favourite top notch Westside hood has already had the 20% decline you keep predicting. It’s started about 2 1/2 years ago when the height of the HAM buying competitive frenzy moved over to TO and bid the place up. Even they don’t like to pay too much when multi-million dollar bargains can be had elsewhere. But I don’t see them selling and giving up their ties to the West, esp Vancouver. Especially if China gets worse, they’ll hold on tighter. Right now might be your best to get in WoW! Then you can… Read more »
patriotz
Member

@12: ” We’ve had a 5 year gradual decline of 5% already and in the meantime rent keeps going up. ”

Okey dokey. So who’s ahead, the guy who bought a condo for $400K in 2009 or the guy who has rented since then and buys now for $380K? Include all cash flows.

Doug
Guest
Doug

Condos seem flat, however once you factor in how much smaller they’ve been building them over the years they have actually risen in price. No one used to build 400 sq ft units.

southseacompany
Member
southseacompany

“House prices in Canada’s major cities setting hot pace, but for how long?”, Globe & Mail

http://www.theglobeandmail.com/report-on-business/economy/housing/house-prices-in-canadas-major-cities-setting-hot-pace/article20353117/

“Home prices in Canada’s major cities are running at a rate many economists just don’t think is sustainable.”

“Falling mortgage rates helped make homes more affordable heading into the summer, according to Royal Bank of Canada.”

Westside Realtor
Guest
Westside Realtor

Hi Mac,

I agree that prices have fallen off their peak values.

I just think that it’s early days yet for price declines.

Hopefully, while you were renting and saving on the total cost of ownership you put a bunch of that $ away.

Don’t see how you are getting the worst of the bargain, at all.

Congrats on your patience thus far, hope the stars align for you.

Brad Caucasianfellow
Guest
Brad Caucasianfellow

i love living downtown vancouver. you don’t even need a car! it’s so convenient walking, taking transit or riding my bike. i don’t think i’ll ever go back to driving. also, because not driving is convenient given my personal situation at this point in time i think that public policies should punish drivers.

ham
Guest
ham

is “Westside Realtor” a realtor? Or just a name for fun????

mac
Member
mac

I think it’s been proven that it’s more economical to be a renter provided you save. But this city does have very high rents making it hard to save. There are also many other reasons, both forced upon a renter and not, why a renter would have to move more often than a homeowner. This has been my experience over 6 years.

It would have been better for a homeowner to have bought the dip in 2008. Regardless of having not made much money since then. But some properties have made dough. So once again Patriotz you have proven how you can be correct on paper and wrong I real life.

patriotz
Member

@19: “I think it’s been proven that it’s more economical to be a renter provided you save”

What does that have to do with it? A is more economical than B if they provide the same thing and A is cheaper. It doesn’t matter what you do with the difference.

midnite toker
Member
midnite toker

Meh. I’m over it.
I was born here.
I grew up here.
All my friends are here.
My family ia here
I made almost 80 k last year, will make closer to $90 this year.
But there ia no chance I’ll buy a home here.

Mege. I’m over it

Brian Ripley
Guest
Brian Ripley

I have the 3 hot Canadian Housing Charts up with August data now (Vancouver, Toronto & Calgary):
http://www.chpc.biz/

Seasonal momentum continues to head into 4Q-1Q lows.

Boombust
Guest
Boombust

#21

Don’t throw in the towel, stay put.

I remember the EXACT same sentiments back in ’81…people left Metro Vancouver in droves,

Of course, they regretted buying in the Interior, the Cariboo and other places when the market turned.

Guess what? They were stuck.

LS in Arbutus
Guest
LS in Arbutus
Here in Arbutus there are two houses less than one block from me with no signs out front. Another (with a sign) has been on the market for well over a year asking close to $3 million: http://www.realtylink.org/prop_search/Detail.cfm?areatitle=&ARPK=&ComID=&agentid=&MLS=V1073779&rowc=25&rowp=21&BCD=GV&imdp=9&RSPP=5&AIDL=27&SRTB=P_Price&ERTA=False&MNAGE=0&MXAGE=200&MNBT=0&MNBD=0&PTYTID=5&MNPRC=200000&MXPRC=90000000&SCTP=RS It’s obviously too much for a 20 year old house on a 50 foot lot. There are lots of the same vintage asking between $2.5 and $3.0 and they aren’t moving. The market seems quite weak for houses of this vintage, but they don’t seem to lower their asking prices. $3.0 million is essentially what someone paid for a BRAND new house on a 50 foot lot across the street a couple of years back. So, these asking prices are ridiculous. In fact, according to the monthly blurb I get from my realtor almost nothing goes above ask anymore and above asking… Read more »
Westside Realtor
Guest
Westside Realtor

You nailed it LS.

Westside sfh sales are in a funk, and set to get WORSE from here.

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