Southseacompany pointed out this article where Bank of Canada governor Stephen Poloz is reported to have said that low interest rates have done their job.
So what exactly was the job of low interest rates?
Three years ago the BOC was issuing warnings that real estate in Canada was as much as 30% overvalued in some markets and posed a threat to the financial system.
How’s that concern looking these days ?
[…] ‘anything’ could cause correction –Owners face threat of rising rates –Interest rates are a blunt tool –Realtor revolt –Manitoba wants foreign buyers […]
Vancouver home prices may have finally shaken off foreign buyers’ tax http://globalnews.ca/news/3529481/vancouver-home-prices-foreign-buyers-tax/ >>> a number of very dangerous assumptions by so called experts and paid RE schills here… – rebound in Vanc prices due to overwhelming influx of new money vs systemic FBT evasion and fevered pre-election speculation that Liberals would win handily and kill the tax (that didnt happen and still may not happen) – effect of FBT and other measures in Toronto will also be short lived (this all rests on how things unfold in Vanc) – bubbles in other tax free jurisdictions will continue inflating at a torrid pace just because… (we’ll see how HAM makes out in Quebec and the Maritimes where things really are different) – while RE pros can continue touting the virtues of high prices, volumes have shrunken to nothing and in many… Read more »
Global News: where the top story tonight is… Real Estate. Brought to you by Re/Max.
Perhaps dangerous assumptions but as we know it, locust is unstoppable. They might run into some bumps but urge to move, launder and stash money in western RE is priceless for them. It is their mission, the meaning of life, besides parading in German or other exotic cars.
Manitoba realtors have an answer for foreign home buyers, send them our way
http://business.financialpost.com/personal-finance/mortgages-real-estate/manitoba-realtors-have-an-answer-for-foreign-home-buyers-send-them-our-way
Average Nanaimo house prices have jumped, fuelled in great part by offshore investment
https://www.nanaimobulletin.com/opinion/real-estate-expensive-enough/
Estate of murdered Chinese investor sued by accused killer for farmland profits
http://vancouversun.com/news/local-news/estate-of-murdered-chinese-investor-sued-by-accused-killer-for-farmland-profits
>>> more tales from the shadows of Vancouver…never gets old. stay tuned for the next episode…
“Canada’s central bank acts to defuse housing market threat”, Reuters
http://ca.reuters.com/article/topNews/idCAKBN1952WI-OCATP
“Canada’s central bank, which had long said interest rates are too blunt a tool to tackle the country’s housing market, may have finally decided to act and at least limit its role in fueling a potential bubble with low interest rates.”
“Canada’s 5-year government bond yield has jumped as much as 20 basis points, which could trigger higher mortgage borrowing costs, since Senior Deputy Governor Carolyn Wilkins spoke on Monday.”
a “potential” bubble…that is beyond hilarious…almost as much as claims they will do the right thing and deep six both the housing market and Cdn manufacturing sectors by raising rates
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Just listed this awesome Lower Lonsdale Townhouse. 2 years old. Panoramic views of DT Van. 1859 sq.ft 1,398,000. 246 E 6th Street North Vancouver https://youtu.be/3×98-GOGsqg
Selected Canadian rates. Look what happened in the last two days.
http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/
Fed hikes interest rates despite declining inflation, sets plan for balance sheet reduction
http://www.cnbc.com/2017/06/14/interest-rates-addressed-at-fed-meeting-with-janet-yellen.html
Construction company sues realtor over sale that fell through
http://vancouversun.com/news/local-news/construction-company-sues-realtor-for-alleged-trust-breach
>>> this never gets old…
Oh look, it’s our favorite brand of newcomers at it again.
Don’t believe the MSM bs so many here keep posting.
60% of BC voted to kick out the Liberals. The flawed system still gives change a 44-43 majority.
If the Libs want to be dicks and force another election, im hearing word that the NDP and Greens will run candidates only in selected ridings to ensure the Liberals are shit kicked.
Change is coming. Foreign $$ days are numbered.
Doubt it. The only ridings that the Greens have any hope of picking up more seats in are already held by the NDP. In every riding the Liberals won the NDP finished second.
Only way to continue Coalition. You sound like a Trudeau puppet.
Except West Vancouver-Sea to Sky. If the NDP gave up that one and maybe a handful of others where the Greens came a close third and are hopeless for the NDP, maybe a deal could be struck.
The NDP is not going to “give up” any seats. They do have a slim chance to win a majority in another election. If they wanted a better chance at winning the two parties would merge as one party like the federal Reform party did with the Conservatives. I think that would be at least another election away.
The NDP is constituted as one party Canada wide (except in Quebec) with the same membership federally and provincially. This makes it almost impossible for a merger with another party to take place in any given province. Reform and the PC’s were federal only, the latter had previously separated from its provincial branches.
Would make sense if in every riding that the Green or NDP won that only that winner runs and not the Green or NDP loser in that riding….that should guarantee they don’t lose any seats….then in the ridings the liberals won, the 3rd place candidate drops out in hopes those votes go the the 2nd place candidate, which could be enough to take the seat. The real solution to all this, which should be a no brainier in a real democracy, is you select a 1st and 2nd choice, so if your first choice is in 3rd place, your 2nd choice automatically kicks in, eliminating that age old issue of cite splitting allowing one to vote their conscience and not be the reason for the victory of their least favourite candidate due to vote splitting.
Risk for the Greens is if that strategy is too effective and the NDP win a clear majority rendering them irrelevant
If Liberals force an election they will definitely be shit kicked by an enraged public forces to take yet again vote and waste tax dollars
If low interest rates have done the job, shouldn’t there be an over-abundance of rental accommodation due to the cheap financing? Instead, we have a record low vacancy rate. The city and provincial governments have done a poor job of fostering healthy development, and now everyone is blaming the BoC for prices. High prices are what happens when you limit supply and auction off what’s left for luxury condos. It’s nice to see that the city is now talking about addressing the crisis; I guess it’s never too late to start considering taking action on something that’s been on-going for a decade… I’m getting more and more pessimistic, the city is only interested in taking action as long as it’s A-okay with all existing residents and owners. The BoC may not be able to raise rates in 2018 as it… Read more »
I doubt the hikes will stop because there is their credibility on the line and also they need some ammo for next time. Right now they are out of bullets and have to reload.
Record low vacancy area cause of record temp immigration.
An extended relative family just got approved for a 9 years visitor visa a few days ago.
9 years! LOL when invited for a single wedding.
Rental crisis only going to get worse because of Trudeau.
Only hope is FBT and annual tax on non residents. Then buy before it starts rising again.
Your government simply doesn’t give a damn.
That’s bizarre. IMHO the temporary foreign worker and Quebec investor immigration programs are the ones that need to get reined in the most.
“If low interest rates have done the job, shouldn’t there be an over-abundance of rental accommodation due to the cheap financing?”
The problem is cheap financing makes it inexpensive to leave property empty or underutilized.
I agree but that’s where the city/province needs to step in with better policy. The foreign buyers tax came pretty late, the new empty homes tax later still, and both of these together are probably still not a big enough incentive to make a huge difference. Zoning and approvals are a problem too, if purpose-built rentals were all that could be built at some good sites, I think it would get built.
Halifax buoyed by ‘spectacular’ boom in international newcomers:
http://www.news1130.com/2017/06/14/halifax-buoyed-by-spectacular-boom-in-international-newcomers-agency/
Summary:
violent crime increased five per cent.
per capita income down.
rents increased by 1.4%
cost of food and groceries not very or not at all affordable.
workers aged 65 or older has tripled to 9,000.
Employment in the arts and culture sector dwindled for the second year in a row, with 300 jobs lost.
Wages also decreased by $3 an hour.
But yes, an immigration boom and “international newcomers” is a good thing !
Dishonest cherry-picking summary wouldn’t you say? Crime dropped overall by 3% but you omitted that part. Why?
“Dishonest” in what way? Why? So that negates the rest of it? Sounds like we need to discuss your “cherry picking”.
Dishonest because you presented it as a summary when it wasn’t an accurate reflection of the article and also because you implied a correlation between the negatives and immigration when the article did no such thing?
Do you really need this stuff explaining to you? I guess you do.
Too bad facts get in your way huh?
Violent crime is almost always between people who already know each other, i.e. being a victim is a result of associating with the wrong people. In addition, in a small city like Halifax the numbers are going to be small enough that a change of 5% one way or another is just noise. Even in metro Vancouver which is 8 times bigger such a change hardly means anything.
Almost always people who know each other……. with the exception of Bernie Sanders supporters.
Speaking of apartment buildings for sale in Vancouver, here’s a co-op apartment building on Oak Street @ 20th being offered for sale. Isn’t co-op housing being touted as an “affordable housing” solution? and now it’s disappearing…interest rates really “have done their job”!
http://preview.tinyurl.com/ycgdncf4
“Rare opportunity to acquire an exceptionally well-maintained 26-suite co-op apartment building in Vancouver’s affluent Shaughnessy neighbourhood. Given the housing co-operative ownership structure of the building, there will be no existing tenancies in place allowing the building to be rented at current market levels (market rates estimated to be approximately $3.25 per SF)”
i noticed there has been some peculiar activity at the large Beacon Cove apt complex located at 7831/51/71/91 No 1 Rd Rmd
bldg is in poor condition yet transaction volume is unusually high and turnover very quick. i suspect units are being quietly rounded up by developer group looking to hijack the strata and push for eventual sale and redevelopment.
“Isn’t co-op housing being touted as an “affordable housing” solution?”
It’s not what we would call a co-op. Prior to the legislation allowing condos circa 1970, the only way for an apartment building to be owned by suite owners was by incorporating as a cooperative. But the owners bought and sold the units much like condo owners do now. If you want a better known example look at the co-ops in Manhatten where rich people live.
Hyper-mega-Bull
NDP + Green = 44 seats. appoint a speaker, 44 – 1 = 43.
i don’t see how the math works as total stands right now.
1 month 3 days ago
http://vancouvercondo.info/2017/05/meet-the-new-boss-same-as-the-old-boss.html#comment-300775
One would think professor Weaver would be able to do basic math.
That guy is such a dummy. First he tries to start negotiating before all the votes were counted when either the Liberals or NDP could have won a majority. And then he signs a deal with a party that can’t actually deliver on the deal because apparently nobody knows how Parliamentary Democracy works. How about instead of pushing for PR, you first understand the system we have now?
I think Weaver’s math is fine. Your grasp of Westminster parliament needs correction. The GreeNDP based their ‘takeover’ on the fact that the Libs have to put a speaker in place in order to bring in their Throne Speech.
So the count will stand at 41+3 vs 44-1.
The Libs lose the confidence vote and the GreeNDP takeover with the SAME speaker in place. This is based on history where a speaker does not resign for partisan reasons.
If the Lib speaker does resign, then we are headed for another election and the Libs will have to wear that they caused it.
You guys know the speaker has vote in case of a tie, right?
it’s pretty ugly what the wiseguys are doing with this bs takeover talk, rumors of HCG and sucking in all sorts of mooches and naive retail investors only to have crooked insiders and connected people unload on them over the last few day as the regulators turn a blind eye. imho this co is effectively insolvent, but the powers that be have been too worried about optics, saving face and propping the housing market up versus doing to the right thing and winding the company down. as i said a couple of times over the last few days, i suspect this chatter from the BoC regarding hikes is nothing but a ploy to get prospective buyers off the fence, locking in rates now and taking the RE plunge sooner rather than later.
Seems like we’re in great shape:
http://www.cbc.ca/news/business/national-balance-sheet-q1-2017-1.4159851
What could go wrong?
‘I’ve never seen that much garbage’: pair of hikers carry out other people’s garbage:
Vince Emond and Devin Francis spotted the equivalent of three large garbage bags full of chopsticks, empty sushi containers and red party cups behind a boulder right next to the trail leading to upper Joffree Lakes.
Likely was Asians defiling nature again.
Because the white folk don’t drink out of red party cups or eat sushi?
Just fuck off.
What was the first clue?
Don’t forget the chopsticks, you asshole.
For Sale 220-UNIT WATERFRONT APARTMENT BUILDING
1011 Beach Avenue, Vancouver
Martello Tower
Potential for immediate rental upside as 65% of tenancies are on fixed term leases
The fixed term lease loophole needs to be eliminated. I thought Krusty was going to get rid of that? Oh right, that turned out to be too hard to do.
Unless forced to take action, her instinct is to side with the landlords. Always.
would it be a loophole if rents were falling and tenants were using it to get their rent reduced again and again and the end of the lease?
falling rents = high vacancy rates = renters market.
In a renters markets, no tenant would sign a FTT.
“Canadian homeowners face threat of rising interest rates”, Globe & Mail
“An economic growth spurt is bringing the prospect of higher mortgage rates at a time when many Canadians in the country’s largest cities are stretching to afford homes.”
Campaign director Laura Miller stepping down from BC Liberals
https://www.theglobeandmail.com/news/british-columbia/clark-campaign-director-laura-miller-stepping-down-from-bc-liberals/article35305200/
Arrest of China’s Anbang chair won’t affect sale of B.C. retirement-home chain: Ottawa
https://www.theglobeandmail.com/news/politics/arrest-of-chinas-anbang-chair-wont-affect-sale-of-bc-retirement-home-chain-ottawa/article35305277/
The Trudeau government’s point man on foreign takeovers said he’s disturbed by news that the chair of Chinese conglomerate Anbang has been arrested by Beijing, but he will not reconsider Ottawa’s decision to allow the insurance titan to buy a stake in British Columbia’s health-care sector.
>>> but everything is hunky dory in ottawa…
Money makes you ignore even the most glaring blemishes. All is fine and dandy in Trudeau’s world.
Sunny times, my friends.
Christy Clark playing usual politics game. She will elect and depose a speaker with Liberal colors, then claim that the other guys should do the same.
However she has miscalculated: Horgan will not let her play this game, they will allow the speaker to regularly vote with the majority.
New Election!
In 2021!
this is when having the Lt Gov in her back pocket will payoff bigly
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Saga over B.C. House Speaker continues
http://globalnews.ca/news/3525111/saga-over-b-c-house-speaker-continues/
>>> none of this sounds encouraging for the greeNDP
You’d think they would have consulted a constitutional expert before signing the deal. My understanding was that the opposition party is supposed to have a member abstain from voting out of respect for Speaker impartiality. It sounds like it’s a bigger faux pax to make the speaker partisan than to not have somebody abstain. So the Liberals probably shouldn’t cause a deadlocked situation, but it looks like they will.
If the deal hinged on the Liberals giving up a speaker, then I’d say those two clowns aren’t fit to govern.
The tone has definitely changed in the last week and maybe all the parties have been advised that if the Legislature is deadlocked, we’re headed back for an election. If the GreeNDP felt otherwise, I think they would have been clear about it by now.
Norman Spector, who negotiated the agreement, says it was predicated on a Liberal defection. Sounds like somebody is covering his ass.
I knew the crooked clown would try to cling to power no matter what, she’s even making up fake traditions now.
“Premier Christy Clark says tradition dictates the party in power offers the speaker, intimating that if she fails to win the confidence of the house, a Liberal Speaker would resign.”
She lies and cheats with relish. A courtesan who will do anything for a good payday.
I really don’t understand how there could be an issue. How can you have a deadlock when there are an uneven number of votes. The speaker has the tie breaking vote for a reason, and you are on crack if you think an NDP speaker would ever vote Liberal with the tie breaking vote. Next topic…
should things unfold in this fashion Lt Gov Guichon would step in. Horgan should be getting ready for battle and raising money using any and all means possible
One commenter from the article nails it: “if you would bother to read the agreement made between the NDP and the Greens, there is no mention of a speaker choice. Also, if you would stop listening to rumours and read a Poli Sci 100, Canadian Politics textbook, you would understand that the fact the party in power traditionally offers a speaker does not enter the equation. What matters is the number of votes in the House. There are 87 in total, and Christy Clark can only confirm 43 of them. She needs 44 or she fails the confidence motion. When she does that, the Lt. Governor will act on the will of the House. And the will of the House has already been made clear to her, in writing.”
>>> my guess is that krusty could care less if she loses the confidence vote. the fact that she keeps bringing this up without batting an eyelash tells me there is more to the story which will be revealed AFTER that happens.
Horgan, Weaver lash out at Christy Clark during NDP-Green press conference
http://vancouversun.com/news/local-news/live-updates-horgan-weaver-hold-joint-press-conference-about-liberal-green-alliance
Horgan, Weaver look to navigate tricky situation of picking a Speaker
https://www.theglobeandmail.com/news/british-columbia/horgan-weaver-look-to-navigate-tricky-situation-of-picking-a-speaker/article35312153/
>>> no matter how pieces of chess board are moved around, end game will be a hung parliament followed by another election. of course, there are pro’s/con’s to doing snap election (maybe catching horgan with pants down) vs dragging this out for balance of year (and keeping ndp on sidelines)