Friday Free-for-all! May 12th 2017

It’s the end of another week in luxury land and that means it’s time for another Friday Free-for-all! This is our regularly scheduled 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:

Six Canadian banks cut by Moodys on debt
Strata must pay 554k to replace tree
Always a good time to buy
Home Capitol to sell $1.5b mortgages
Best option to move across the water?
We need this graph

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

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BubbleTea
Guest
BubbleTea

‘Corrupt Elite’ Laundering Money In Canadian Housing: Report
One glaring problem is a lack of rules requiring that the actual owner (or “beneficial owner”) of a property be identified. In Canada “there are no requirements for any person involved in real estate closings to identify the beneficial owner,” the TI report stated.
http://www.huffingtonpost.ca/2017/03/31/money-laundering-real-estate-transparency-international_n_15725728.html?ncid=engmodushpmg00000004

BubbleTea
Guest
BubbleTea

Quote of the Day “My advice for people looking to buy Van real estate … you have a better chance of getting a pre sale if you fly to HK and book your home there”

Abdul Lahazi
Guest
Abdul Lahazi

Back when Vancouver was a working man’s city and not a playground for the rich:
http://www.cbc.ca/news/canada/british-columbia/greg-girard-vancouver-photographs-1.4114262

Abdul Lahazi
Guest
Abdul Lahazi

Christy’s free money handouts have goosed the condo market:

http://www.cbc.ca/news/canada/british-columbia/vancouver-condo-market-high-1.4111631

Tom Davidoff, an associate professor of urban economics at the University of British Columbia, said just as the housing market was starting to cool off, the introduction of the home-buyers program — which helps first-time home buyers with a loan of up to 5 per cent of the purchase price — propped up the market and helped drive up prices.
“It’s hard for me to believe that that program has not had any impact on prices,” Davidoff said.

Shut It Down Already
Guest
Shut It Down Already

You didn’t even quote the meat:

“According to the Ministry Responsible for Housing, 1,288 applications for the first-time home buyers program have been approved as of May 11, with 20.5 per cent of them approved for Metro Vancouver properties. “

xyz
Guest
xyz
Ulsterman
Member

“Often, when you have a truly unsustainable housing market, you will see very rapid price increases (and) very rapid credit growth,” Poloz said. “But we don’t see that in the credit side, so I do think a significant amount of this that is fundamental, but layered on top, is a speculative element.”

Fundamental? I guess incomes in Toronto must be rising at 30-50%+ per year to fundamentally support the incredible rise in home prices. Boy, the people must be ecstatic there to be living in such times…..

http://ca.reuters.com/article/businessNews/idCAKCN18B041-OCABS?pageNumber=1&virtualBrandChannel=0

Burnaby
Guest
Burnaby

I am almost embarrassed for Poloz (almost).

Confucius
Guest
Confucius

Often, when you have a truly unsustainable housing market, your central bank will tell you there’s nothing to worry about.

Burnaby Bear
Guest
Burnaby Bear

From the paragraph prior to your quote:

“…recent house price increases were not sustainable…some speculation appeared to be at play in the market…that did not mean a major price correction was in store.”

So he agrees that there is speculation in the market, the current prices are not sustainable but there won’t be major price correction! So only part of the 30% to 50% increase in GTA prices is speculative, the rest is based on solid fundamentals!

I’m not embarrassed for Poloz, I’m embarrassed for the BOC and for the country having a moron like this running our central bank!

Abdul Lahazi
Guest
Abdul Lahazi

With the people in charge just as deluded as the masses, it is no wonder this bubble has gotten so out of hand.

Vancouver Review
Guest
Vancouver Review

May 14th, 2017 Daily Review Vancouver Real Estate Housing Bubble News

https://youtu.be/r2X0Mhw7wOA

southseacompany
Member
southseacompany

“Canadian home sales cool in April; new listings spike”, Globe & Mail

http://www.theglobeandmail.com/real-estate/the-market/canadian-home-sales-cool-gta-leads-decline/article34986046/

“Resales of Canadian homes fell 1.7 per cent in April from record highs in March as new listings spiked”

“actual sales, not seasonally adjusted, were down 7.5 per cent from April 2016”

bullwhip29
Guest
bullwhip29

Home Capital’s ‘idiosyncratic’ troubles are contained
http://business.financialpost.com/news/economy/home-capitals-idiosyncratic-troubles-are-contained-but-hot-housing-remains-primary-concern-stephen-poloz

>>> we should all be worried when high powered bankers and govt officials step up to the plate and tell us bold faced lies

bullwhip29
Guest
bullwhip29

and to those that insist this sounds and looks nothing like what the US went through should watch this again…
https://www.youtube.com/watch?v=INmqvibv4UU

bullwhip29
Guest
bullwhip29

and to those that insist this sounds and looks nothing like what the US went through should watch this again…

http://tinyurl.com/lg2bay2

bullwhip29
Guest
bullwhip29
Abdul Lahazi
Guest
Abdul Lahazi

More home owner’s problems:

https://app.tmxmoney.com/news/cpnews/article?locale=EN&newsid=a42854&mobile=false

“I felt like, what did I do wrong? I did everything right. Why is this happening to me and my daughters?” said Randy Belair, a Willington resident who discovered pyrrhotite in the foundation of an addition he had built on his house.

Shut It Down Already
Guest
Shut It Down Already

Scraping the barrel?

trackback

[…] Bullwhip29 pointed out this article in the financial post where Bank of Canada governor Stephen Poloz says that the troubles at Home Capital are ‘idiosyncratic‘ and contained: […]