Friday Free-for-all! September 9th 2016

It’s the end of another work week and Friday is here, that means it’s time for another Friday Free-for-all!

Here are a few recent links to kick off the chat:

Refinance before it’s too late
More bubble warnings
The purple hill of 2016
Toronto is the new Vancouver
Buying high or low?
A collapse in the blogger bubble
Affordability vs supply

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

Ban Tuesday

We’ve banned IPs for Matsui/saul and openhousemassacre as those two seem to have degenerated into threats and insults without any other content.  When you come back maybe you could think before you post.

There are a bunch of you that are on the edge as well – remember when we discussed real estate? Poo-flinging monkeys are funny in small doses, but no-one in their right mind wants to debate them.

How ’bout we start off the school year with an attempt to be civil?

 

 

Friday Free-for-all! Sept. 2nd 2016

It’s the end of another work week and that means it’s time for another Friday free-for-all here on VCI.

This is our regular 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:

Some recent stats
Rentals, the other disaster
For rent, van with no toilet
Scotiabank: Buyer tax the right move
Mansion prices drop
Prices to dip 10%
Thousands of job losses
What 3 mill gets you in Scottsdale
Vancouver & Toronto go in different directions

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

The ‘cry wolf’ club

There are a few organizations that have raised a public alarm over the state of the Canadian housing market, with particular focus on Toronto and Vancouver:

The IMF, The Bank of Canada, The Canadian Mortgage and Housing Corporation, The Office of the Superintendent of Financial Institutions, Most of the big banks, The OECD, and more.

It seems that everyone is freaking out about the Canadian housing market.

Despite industry assurances that the hottest housing markets in Canada, particularly Vancouver, will always remain hot, and that it is physically impossible for prices to decline in this miracle economy, Canadians are now becoming aware that those assurances have just been another load of industry hype. And a larger share of them are starting to grapple with a new reality – a reality in an over-leveraged, inflated housing market where prices have come to rest on the edge of a cliff.

In Vancouver’s once white-hot commercial real estate market, the hunt is now on for Chinese buyers as big institutional investors are trying to unload.

And yet, despite years of warnings here we are near record high house prices. If you bought a few years back and sold a month ago, you’ve done quite well.

So it seems we’re now entering another down phase, with reports of softening sales and prices, especially at the high end. The warnings are getting louder, but of course there are always people who propose that this market is different and will never truly crash.

Sometimes the number of warnings and lack of crash almost seems to prove it – Just like the boy who cried wolf, we start to get desensitized to all the warnings.  Unfortunately for some of the villagers we all know how that story ends.