When you smile and say hello to people do they glare back at you?.
A recent study says Vancouver is not a very friendly city:
Talk to people in Metro Vancouver about their interactions with others, and similar stories abound. Newcomers to the city talk about going weeks without anyone offering to show them around or invite them for dinner. Apartment dwellers talk about distrusting their neighbours to the extent that they’re afraid to let their children play unsupervised outside.
And because this is Vancouver, everything comes down to real estate:
Significantly, more than half of respondents agreed that Vancouver is becoming a resort town for the wealthy and that there is too much foreign ownership of real estate. This view was particularly common among people aged 25-34, a group whose responses to many survey questions revealed a marked cynicism about the state of their communities compared with other age groups.
And it’s not just desirable to the wealthy with a longing for rain, it’s also irresistible to the homeless. But how do we house them?
A handful of people, including Vancouver assistant director of housing policy Abi Bond, sketched out a plan to transform a cargo ship into a green-roofed utopia. They proposed a kayak co-op for commuting to and from the shore, filtered seawater to drink, and occasional rotation of the hull so the container-homes on both sides could get southern exposure.
Other suggestions ranged from tweaking property tax laws to building tiny apartments atop warehouses. The prevailing attitude seemed to be that the current crunch in the least affordable city in North America was caused not by a lack of housing supply, but by a dearth of creativity.
I’ve heard housing bubbles justified by a lot of things, but I must admit ‘a dearth of creativity’ is a new one.
Before I make a major investment, I always like to do a bit of research and consult an expert.
Before I buy a new car I always ask a car salesman if it’s a good time to buy. They’re the experts after all.
And when it comes to real estate, who better to ask than a builder if it’s a good time to buy?
Looking at 2011 numbers related to the economic impact of residential construction in B.C., we can easily see that this industry is a massive contributor to British Columbia’s well-being and future success, as well as a huge indicator of the province’s economic climate. Just think: For every single home we build, 3.5 person years of employment are created and more than $60,000 is generated in spinoff spending.
Ah yes, it’s not just a good time to buy, it’s the right thing to do for the economy. Without Real Estate our economy would be in the crapper. What could possibly go wrong?
It seems like one of these bank economist forecasts come out every week, but TD is calling for a 15% decline in house prices here and in Toronto over the next couple of years.
“There have been growing signs that the markets have been tilting towards excess supply of new multiples,” the bank said.
Indeed, condo prices in both cities have shown signs of slowing down much more than the price of single-family homes, the usual benchmark of a market’s overall health.
“In fact, looking at the trend in condo prices, you can see there has been essentially no increase in prices since the federal government first began tightening mortgage rules in mid-2008,” the economists said.
So if the average selling price on a Vancouver single family home is already down 12% year over year and the outlook for condos looks worse… maybe not the best time to buy a presale condo eh?
A couple of very interesting articles:
Pimco and JP Morgan halt vacations to prepare for crash?
When one company decides to cancel vacations, or impose additional workloads on their employees due to projected events, it is not considered relative news. However, when several institutions, analysts, and even the head of the World Bank acknowledge a coming crisis, then everyone needs to come to the realization that something big is on the horizon that will have an effect on both Wall Street and Main Street.
21 signs this could be a long hot crazy summer for the global economy
The summer of 2012 is shaping up to be very similar to the summer of 2008. Things look incredibly bleak for the global economy right now. Economic activity and lending are slowing down all over the planet, and fear is starting to paralyze the entire global financial system. Things did not look this bad back in the summer of 2011 and things certainly did not look this bad back in the summer of 2010.
The Vancouver real estate slow down is making news all over and people are now wringing their hands over Toronto.
This Financial Post article talks about our bloating inventory and collapsing sales while pointing out that Toronto sales are up 11% year over year.
..and yes, there’s yet another warning from the Bank of Canada:
“Although economic growth in Canada was slightly slower than expected in the first quarter, underlying economic momentum appears largely consistent with expectations. However, the composition of growth is less balanced. In particular, housing activity has been stronger than expected, and households continue to add to their debt burden in an environment of modest income growth.”
The warning is apt. Rosenberg said if the Bank of Canada felt the need to re-establish parity between short-term rates and its inflation target it would have to raise the rate 100 basis points.
“That wouldn’t cause a recession, but it sure would be painful for many households,” leading to more loan defaults and less spending growth.
If you can’t afford a 100 basis point increase in rates you probably shouldn’t be taking on too much debt.