Friday Free-for-all! July 8th 2016

It’s the weekend.

One more read of the internet and then you should really get outside to play.

But being that today is Friday that means it’s time for our Friday Free-for-all! This is our regular end of the week news round up and open topic discussion thread for the weekend.  Here are a few links to kick off the chat:

What did people talk about before the bubble?
Supply up, sales down?
Raise interest rates
Precise data from a tiny sample
ok fine, give me $100k less
speculation tax = market collapse?

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

Lack of home inspection leads to no surprises

At least it should come as no surprise that buying a home with no inspection leads to numerous nightmare scenarios when you actually inspect the property after purchase.

“Recently, I had one house that was so catastrophic, it needed some $350,000 in repairs. They were not expecting that at all because it was newly renovated. But that only concealed all the issues. It was lipstick on a pig. It needs a new foundation, piping, you name it, it needs to be done,” said Anderson, who has been an inspector for six years and was a builder for 25 before that.

A million bucks doesn’t get you what it used to in east van:

Last October, the 40-year-old and his spouse bid $955,000 on an older home in Hastings-Sunrise. It was listed at $899,000 and “we heard there were five bids. We were in the middle. We expected this and wanted to have a differentiating factor.”

Ahead of taking possession, “we had asked if we could get in to do some measuring for our furniture, but they wouldn’t allow it,” said Girard.

On moving day, they arrived to find “an absolute disaster,” said Girard, who described the home as being “not safe for our one-year-old daughter. That was the biggest problem.”

There were also holes in the wall, exposed electrical lines, flooring that didn’t meet walls, kitchen cabinets sitting unevenly over dirt floors covered in rodent droppings. The house, when they had seen it, had been “staged. They had positioned things to cover up problems. Drywall had been ripped out. There weren’t enough circuit breakers for things like the stove to be powered. We had to MacGyver things to make them work.”

Unsurprisingly, the Home Inspectors Association of BC recommends that you get a home inspection before buying.  Read the full article over at the Financial Post.

Damage from bubble bursting worse than affordability issue

What’s worse?

Working people not being able to afford a home or losing your life savings during a housing bubble burst?

This opinion piece at the Vancouver Sun says it’s not a question of if, but when – and when it does burst the damage to the economy will be far worse than the current affordability question.

The damage will be huge. In 1989, the Toronto bubble burst, and six years later house prices had decreased 50 per cent. Many speculators lost all of their life savings. Financial institutions were in crisis. All home building activities stopped. Unemployment increased. The flow of immigrants decreased sharply. A general economic recession developed.

Governments cannot prevent the bursting of the Vancouver bubble. They can only adopt policies to slow its growth. But these will be opposed by the many who benefit from the price increases and who, as is the case during all euphoric phases, insist that “this time, things are different”.

Read the full article here.

Friday Free-for-all! Happy Canada Day!

It’s that time of the week and that time of the summer.

Long weekend time, Happy Canada Day!

This is our regular Friday Free-for-all post – an open topic discussion thread for the weekend and news round up.  Here are a few recent links to kick off the chat:

“outright bubble”
It’s made of debt!
“No housing bubble”
Losses down under
Auction fail
Getting out
Diving in head first
Brexit & low rates

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

No more self-regulation for BC real estate

The premiere is talking tough about self-regulation in BC real estate:

“The real estate sector has had 10 years to get it right on self regulation and they haven’t,” said Clark at a Vancouver new conference.

Clark said the right to regulate the industry will be taken away from the Real Estate Council of B.C.and put into the hands of a newly established and dedicated superintendent of real estate.

“The point of regulation is to protect people, to protect consumers,” she said. “Self regulation is a privilege.”

Too little too late or just in time? Read the full article over at the CBC.