Falling interest rates drive gains

From the ‘duh’ files: falling interest rates contribute to rising home prices.

A recent study points to yet another powerful, if-often-ignored, driver of home prices — falling interest rates.

Despite the recent, small interest-rate increase by the Bank of Canada, real mortgage interest rates have fallen precipitously since 2000. In 2000, typical mortgages were obtained at an interest rate of seven per cent. Last year, they averaged 2.7 per cent — almost two-thirds lower.

What has this meant for the purchasing power of Canadians?

Interest-rate declines reduce the amount that income borrowers must spend on interest payments, which gives them greater capacity to borrow with the same amount of income. Consider that the average Canadian family income was $50,785 in 2000 (including couples and singles). With mortgage rates at seven per cent, the maximum mortgage amount this family could secure was $180,949. At 2016 rates (2.7 per cent), the same family could borrow $276,610, an increase of 53 per cent.

Read the full article here.

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Selena is taking action!

“New NDP ministers tour Vancouver’s tent city, Downtown Eastside”

Simpson offered no new policy proposals to that effect, but said the NDP remains committed to the housing issue – both in terms of the construction of new units in the long term, and in finding better short-term housing options for people currently living in tents.

…Late last month, Robinson told CKNW’s Jon McComb there was no timeline in place for new housing initiatives.


Note by focusing ONLY on people who live in tents they reduce the problem from 100s of thousands to a few dozen. Once they find those people in tent city homes they can call it a day and claim victory on housing. Next is boosting union government worker pay and raising taxes to pay for it.


tent cities in Duncan and Victoria turned out to be an exercise in lawyer and judges tipping wages. Tents werent occupied by locals. It was a con.

Debt piggery is a totally differreng matter, and at the core of The Rise In Power of the Useless eater.


We get it. NDP lied to us.

They will lose next election. 100% guaranteed.

At least the Liberals don’t lie. They are open house puppets.

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Liberals don’t lie?


They lie even more than you do, and that’s a hell of an accomplishment.


Cambie land assemblies send prices soaring, and the trend is spreading

It sits lonely on a corner, and has been an “orphan lot” as condos have gone up across the street and developers have bought and proceeded with plans for more right next to it. Now, it’s on the market by itself, again. This time, the asking price is $11 million for just over 8,700 square feet of dirt. It last sold, pretty much in the same condition, in February 2016 for $5.4 million.

Abdul Lahazi

“wouldn’t be interested in picking up the single lot now even if it would mean sewing up the entire block.”

This tactic of holding out can really backfire on the seller when the only property left becomes essentially “worthless” to a developer because they can’t build multi-units using one small lot.


Housing, money laundering, tax evasion, speculation not even mentioned in Eby’s priorities. How soon he forgot. Despicable.

Q: What is the top file on your desk right now?

A: “It’s hard to describe a top file when there are files as critical as ICBC’s financial solvency, the future of the electoral system in B.C. and the Kinder Morgan pipeline litigation. There are a lot of files that are critically important and then really important files that don’t get the same attention like the interaction between First Nations in B.C. and our justice system. So there’s a lot of high priority files. And we’re doing them all at once, which is both thrilling and definitely challenging.”



lawyer piggery, redux


I guess someone should have told Selena Robinson this is not one of Eby’s priorities.

What about a task force focused on the impact of fraud, money laundering and tax evasion on the cost of housing?

We need to make sure everyone is playing by the same rules. I know that minister (David) Eby will certainly be, and I will be working with him to look at these pieces and making sure that we are cracking down on the influence that fraud has on our housing market and distorting it.


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He’s not the housing minister.

Why should he talk about housing issues?

Once again, that’s for the housing minister.


Looks like Horgan may be listing that second house soon. He is going to need the cash.

Former LNG advocate Gordon Wilson sues B.C. Premier John Horgan for defamation in $5M lawsuit



lawyer piggery

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Wilson defamed himself a long time ago.

Liberals are pigs.


Lawyer ad at Music Bingo tonight

B – Been left out of a Will?
I – Interested in knowing your rights?
N – Not sure what to do?
G- Give us a call for a free consultation
O- our team is here to help

real Bingo

B- Been left out of the will ’cause you were an asshole
I – into Entitlements? give us a call
N- not sure how to invoice you until you come in.
G-Give you an hour free, but $500/hr after that
O- Our team helps themselves


Price Change


Dejected Bear

Rates only go up because the central banks identify wage growth.

Wage growth improves debt servicing.

It’s why property prices always go up. They go up faster than inflation during falling interest rates, and they tend to go up in-line with inflation during rising interest rates.


whats really happening.

QE has finally filtered down to the worker the FIRE industry hate the most, the white guy boomer. White guy boomer lives on the street, yet works repairing houses for the House Atm lifestylers. He takes his wages and buys precious metals.

Central Banks see this and freak… call up MSM to spread their manure lies and distractions. Bring in moar policy to enslave working slaver classes. Debt service pigs go back to the front of the line.



Bulls will like this article, as it is sympathetic to debt. Debt is okay as long as you can service it.

Bears would counter that the Bulls in society, the debt service types, put into place regimes of slavery, in order to secure the feeding of the beast.


Right…because every bank run is always caused by people who can service their debt….


i am right. Removing cash is a good example. Debt pigs have none, so they dont want others using it.
Cash has become a symbol of Freedom

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bears always have pillows stuffed with cash on their beds, so I heard. but when it comes to their own needs, they wait for hand out from the No-Deal-Party.

By the way, are the NDP supporters ready to chip in to pay the lawyers to fight the pipelines and the site C?


lets not call it cash, lets say Savings. Look what the lawyer greed pigs did to ICBC savings., Lately the pig media says ‘Rates going Up.’ They may or may not. Ferry rates are going down. They might make it up on increased ferry usage. There are clever ways to generate income, BC is full of these clowns working many computer related professions. Serious lack of clever construction trade workers tho…
Maybd thats why Site C is going into hiatus. Do I have to do all the thinking on this forum today?


this is a little off topic but a historical footnote that compares impressively with the upcoming 21 Aug eclipse, plus the recent NK distraction.


This is news to me. On August 23, 1958 there was a One Month war between Proc and Roc (Taiwan). Americans very much involved, Note the use of new weaponary.


when can the shooting start already….after all team BPOM need some practice first before they go in and kill all those locust, wreck their tofu homes, forever destroy disgusting Chinese food, and maybe take their women? Nah….they wouldn’t like the weak frail Chinese women. There is nothing that can compare to the full figured fleshy BBW in North America with sun tanned golden wrinkly freckled skin who are strong feminists and believes in the spirituality and teaching of the Prophet.


not going to see a shooting war, but a financial war is well underway, implicitly. Se are moving to trade war Explicity. Bannon took a yuge leap yesterday

internet debt money has been weaponized. Crypto currency as well

in an age of technological advancement, inventions are first used as tools of war.

As crazy as it sounds North Americans need Chinese immigrants not so much for their money laundering, but they will be very valuable once the borders close and we fire up the factories again.

as for women, you are looking at a demographic, Boomer, that is menopause.

A race of people loses their edge if they are settled on soft ground. This is basic Toynbee, Study of History.

No Money Down

“With mortgage rates at seven per cent, the maximum mortgage amount this family could secure was $180,949. At 2016 rates (2.7 per cent), the same family could borrow $276,610, an increase of 53 per cent.”

Yes, but Van Detached have gone up 400-500% over that time.


True, True.


People didnt say Duh when Steve Keen said Mortgage Refinancing rate (0.82) positively correlated to Prices.
They said, ‘holy shit’


Hmmmm it’s uncanny how this blog seems to mirror VCI …. well, except for the constant Chinese commentary. http://www.mortgagenewsdaily.com/5172005_Housing_Bubble_2005.asp Robert on I dont expect to see the kind of appreciation we have been experiencing in so. ca (+20%/yr), but I do expect to see an appreciation of +3-6% a year for years to come. Barring a monumental catastrophy, I dont forsee any great loss of housing price (a drop of more than 10%?). Report This Comment Robert on I have been reading about the so called housing bubble for about four years now. We sold our house in 2000 (big mistake). I kept reading and listening to others speak about the looming bubble in So. Ca., so we waited to purchase a house. I expected the prices to fall in 2001, 2002, 2003 and finally after seeing that was not… Read more »


people have been comparing vancouver real estate to california since 2005. they’ve been saying that we were going to crash just like them. more than 10 years later we haven’t crashed.

so what’s different about us versus them? you point out one possibility.

>Hmmmm it’s uncanny how this blog seems to mirror VCI …. well, except for the constant Chinese commentary.

>except for the constant Chinese commentary.


Immigration both temp and perm and you can immigrate entire family here.

Plus banks will help you launder $$


What happens in history, often there is a pattern of behaviour that oscillates like a sine wave.

for instance, BC had a record of selective immigration. Everyone knows it. For a long time in Canada, to get ahead you had to play the Patronage game. It wasnt about merit.

What I see now is that Merit is the only criteria. Financial merit. A person with a device, money fed into our sysrem via offshore. No need for loyalty, no need for work skills, no need for any form of assimilation.

So, we have oscillated between two extremes.

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“there is a pattern of behaviour that oscillates like a sine wave”

Except that now it’s a sino wave.

Abdul Lahazi

LOL. +1 !!!


I’m sorry, Hyper-mega-bull. Here is the Chinese invasion meme for you. As noted below the Chinese buyers were apparently a big influence prior to the housing crash. Oh … and … they’re back….

Kind of makes you wish they would have stuck around to stop that big crash.


Among all non-English speaking groups, the share of all-cash buyers of U.S. homes increased from a 20% share in 2005 to a 33% share in the 17 months ending in May 2015.

Overall, Chinese buyers spent $22 billion on U.S. housing in the 12 months through March 2014 — 72% more than a year earlier, according to the National Association of Realtors, buying mostly high-end, expensive homes with a median price of over $500,000.


As have been pointed out many times on this blog, the site admin believes in freedom of expression, unlike people such as Turncoat Turner who believes in censorship and hiding the truth. This blog foster free, open minded, often out-the-box, and critical look at why Vancouver housing is what it is. This means broaching uncomfortable and perhaps social taboo subjects. Team BPOM have made this abundantly clear multiple times, and the site admin agree with him. After, Chinese is not a race so any diatribe or unpleasant messages directed at them doesn’t qualify as racisms. Obviously calling for nuking China is also not hate speech since no one on this blog will be doing it. Nor is anyone on this blog brave enough to go tell even a short skinny Chinese girl to go back where she come from. So… Read more »

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Of course nuking china isn’t hate speech, their destruction is necessary, it’s a matter of our survival.

It would b self defense against a hostile and active enemy that have been waging a silent war against us for years.

But in reality it’s far too late. As I’ve said many times before, china should have been nuked in the 50’s.

Hopefully Trump can nuke their economy and blow them up.


I’m sure the Generals are aware. Every year that goes by means China is that much stronger relative to the USA.

War will happen. If it doesn’t, then the US will be taken over. There will be no regard for the lesser poor if that happens. Look at where Vancouver is headed.

135A street in Surrey is closed due to 200 tents all over the place. Media blackout. Go drive by.