Friday Free-for-all! May 13th, 2016

Lucky you!

It’s Friday the 13th and that means it’s time for another Friday free-for-all, or regular end of the week news round up and open topic discussion thread.

Here are a few recent links to kick off the chat

Normal interest rates are history
Canadian rates to rise?
Why does this government hate free money?
Negative discretionary income
Vancouver, stay or go?
Freak show housing market
One heck of a student loan
Loonie sinks

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

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[…] –Gov terrified of popping bubble –CREA: Market ‘topped out’ –We don’t need no education –How to pop the bubble before its too late –BC Real estate watchdog leaving –continued acceleration –Anyone want to sell under market? – […]


It’s baffling to see the opposition (Eby) try to shed some light on the true nature of the Vancouver Bubble while Crooked Clark and her officially elected party supposed to represent all BC residents ( not just Hot China Money ) is not doing a single thing about it. Is it because she enjoys receiving those little 10oz gold bars every time she travels to China? Or better yet the hot diamonds? The NDP is trying to do something about it while at the same time they will potentially be picking up, as official party, a ruined economy after the housing bubble has eventually run its course and has burst!? Makes you wonder just how horrible the game of politics and political careerists have become.


Debate heats up over probability of Lower Mainland’s residential real estate bubble bursting


Lululemon founder Chip Wilson loads up on Vancouver properties
Wilson family’s Low Tide Properties aims to have $1.5 billion portfolio within a decade

[…] Polozi Scheme posted this link to a post at Ross McKay real estate consultants with the theory that the Vancouver real estate is a ‘currency exchange ponzi scheme’. […]


“Drop in Vancouver-area home sales suggests owners spooked by rocketing prices: CREA”, Vancouver Sun

“Sales activity fell by 7.6 per cent last month compared to March in the cities covered by the Real Estate Board of Greater Vancouver’

Newcomer (N)

I would suggest “spooked” be changed to “encouraged.” The number of people who own more than one property in this town is unusually high, and yet they are not putting those investment properties on the market either.


“Debate heats up over probability of Lower Mainland’s residential real estate bubble bursting”, Business in Vancouver

““You never know when you’re in a bubble until it bursts, but whenever you see an asset price rising as fast as it is … it does set off alarm bells,” said Sal Guatieri, senior economist with the Bank of Montreal (TSX:BMO).’

““When you see that kind of panicky fear of missing out,” he said, “if that’s the mentality driving the market – and there are definitely signs that it is – then you can start to sniff that this isn’t right.””

Newcomer (N)

“never know,” “start to sniff?” The unequivocal mega bubble is blindingly obvious to anyone who has sat through a high school economy class or lived on the planet for more than 30 years.


The turbulence and viciousness of China’s Cultural Revolution began 50 years ago… Two weeks later, a People’s Daily editorial called for an attack on the bourgeoisie. “Sweep away all monsters and demons!” the state newspaper urged.

The directive launched years of social disorder, factional warfare and even cannibalism. In total, between 1.5 million and two million people died, historians estimate.

But unlike the calamities perpetrated by Stalin, Pol Pot, Franco and Hitler, the regime responsible for the Cultural Revolution remains in power.


The B.C. government is working with Westbank Project Corporation to redevelop two adjacent buildings located on West Cordova St. into a single building to help address homelessness in Vancouver.The project includes the New Fountain Shelter and the Stanley Hotel. The building will also include ground floor retail commercial units and a seven-storey section with 134 market rental units


For Christ Sakes where do all these Chinese expect to move to in Vancouver. Are they really going to jam a 100 million people into the Lower Mainland .I cant wait to move outta here ,I still have another 10 years of work to go .

Shut It Down Already

Can I help you pack?


Globe and Mail: Vancouver realtor accused of making threats


“How Canada became the world’s economic Rorschach test”, Macleans

“The idea that Canada has the fix for what ails the world economy—this time, with debt-fuelled stimulus spending—has proven enduringly enticing over the years”


More foreign buyers are snapping up Canada’s luxury properties, according to a new survey of Canadian real estate advisers.
Nearly one quarter of real estate advisors believe that 25 per cent or more of luxury homes in their region were purchased by foreign buyers, according to the Royal LePage Carriage Trade Luxury Properties report released Thursday.

The real estate company polled 250 real estate advisors across the country between February 26 and March 9, and nearly 66 per cent said they believe the sale of luxury properties to foreign buyers has increased in their region over the last decade.

“Over half of the advisors polled (51 per cent) cited China as the primary international region generating real estate purchases in Canada,” the report said.


From Charles Hugh Smith’s blog “Of Two Minds”, a lucid and succinct critique of globalization and free trade. You will easily find where and how Vancouver RE figures, unintended, into the analysis:

“The Destabilizing Consequences of Globalization”

“Local assets–priced for the local economy where credit and cash are both limited–are snapped up on the cheap by global capital, and sold for immense profits…
Credit–scarce in traditional self-sufficient economies–offers maximum leverage to global capital, which can borrow money in distant markets at low costs and use the cash to outbid local buyers to snap up local resources that are still cheap compared to the resources in other globalized markets.”


This is a good listen .From what I understand there is no way this can continue for much longer .KABOOM!!!


“A Battle Brews Over Negative Rates on Mortgages”, Wall Street Journal

“As interest rates in Europe fall near or below zero, lawmakers and consumer advocates in Spain and Portugal are attacking an ancient tenet of finance by insisting that lenders can owe money to borrowers.”

“Banks in the two countries, struggling to recover from recessions that shook their financial systems, are fighting back, with billions of dollars in mortgage interest payments potentially at stake.”


The flawed immigration bill that the Trudeau government is trying to rush through will make it easier for citizens of convenience.
Interesting that the most blatant examples of abuse are mentioned in Vancouver…I wonder why!


Trudeau is a disaster. Good thing he will be in power to take the blame for the inevitable crash. The building I live in 2 bedroom units were selling for $800K last year. They probably should sell for about $400K at historical metrics. One just sold for $1.3 million last month and another is for sale at that price. That is a 60% increase in less than a year. When things go parabolic the end is nigh.


Yeah he’ll probably drop rates again . The more you’re in debt the better it is for the Elites.


Justin obviously isn’t the sharpest tool in the shed. Unfortunately, we don’t know yet who winds him up to point him in the right direction…hopefully, not McCallum.

I\'m With Stupid V

“When things go parabolic the end is nigh.”

Thats what I said 4 years ago..
Then 2 years ago..


Four years ago and 2 years ago real estate was in a bubble but had not gone parabolic. We are at the stage now tech stocks were in 1999. Tech stocks were in a bubble since the mid 90s but did not go parabolic until 1999. It took months for the bubble to pop after that. Once it goes parabolic the only thing that can happing is it bursting. I can see a few more months then pop. At that point prices may have doubled within 1 year or 18 months.

I\'m with Stupid V

“I can see a few more months then a pop.”
Wow someone brave enough to make a prediction, I used to do that in public and to friends and family, I have definitely learned from that.
4 years ago I thought prices are parabolic but heh what did I know. Hong Kong is falling now and you know if they drop another 15-20% more than the current 15% or so, the government will step right in with some measures to contain it. I can see the same here especially with stance the pm has had on the subject.


Hong Kong and YVR are different. YVR can crash without it hurting the overall economy of the country and our available controls are all at the federal level. Note that plenty of Canadian markets are in the red but nobody is doing anything about it.


Re: sleeve listings
Because I visit this site, Facebook gives me real estate ads like mad. They are now advertising houses that are “not yet on the MLS” and advise viewers to contact the real estate group before they put it up.
It’s mad.


“They are now advertising houses”

You mean they are advertising actual properties, or just saying that they have properties “not yet on the MLS”. If the latter, they may be looking for clients for them to make unsolicited buy offers. Or there may be less to it than that, they just want to be your buyers agent period.

But nothing like giving buyers the idea they can get you in before the crowd, right?


They are ads for specific properties with pictures and details. No open house, no price.


Now that’s interesting. Perhaps you could record some of the addresses and see whether they turn up on MLS.Maybe they are just fishing for initial bids before they choose an asking price.


Just marketing to gain naive clients. If a realtor already had a client who wanted to sell they would just list the property on the MLS and it would sell within a few days. No need to advertise on Facebook.


Hong Kong’s property market is in “free fall” and the credit expansion in Southeast Asian emerging markets will unravel.

Shut It Down Already

Quite possibly the dumbest theory yet.

ChinaOne Swallows Dicks

LOL. Coming from this turd?

Shut It Down Already

I voted you up out of pity.