One of the best things about running this blog is the commentary from the readers. I appreciate your posts whether I agree with them or not, and I love seeing on-topic links to current Vancouver real estate news or commentary. Unfortunately Blogger doesn’t make it very easy to make clickable links, italics or bold text in your post comments. To do these three formating tricks you need to use some basic HTML. I’ve had a request to make a little cheat sheet for those of you that want to put links in your comments so here it is:
<a href=”http://vancouvercondo.info”>link text</a>
This is probably the easiest way for you to add a clickable link to your comment text. You can simply copy the above HTML code and replace my URL (http://vancouvercondo.info) with the URL of the page you want to link to, and replace the words ‘link text’ with whatever you want the link to say. Just make sure you have the “quotes” around your URL or blogger will complain.
To make text bold use this simple code replacing the words “bold text” with your own:
creating italic text is very similar:
So there you go! It may seem a bit strange at first, but with practice it becomes pretty simple. I’ll add a permanent link to this post on the sidebar soon for future reference. If you have any question just post them below.
Now back to the real estate!
Here’s some interesting commentary on property tax assessments and the downside of the ‘wealth effect’ by Chris Olsen of CTV’s Olsen on your side. The ‘wealth effect’ is what happens when people feel richer due to higher assessments and are more willing to go into debt based on those paper profits without considering the potential downside.
Most regular Vancouver real estate blog lurkers will know all about our very poor affordability index compared to other Canadian cities and the related downward pressure put on prices, but its a great basic primer for those that haven’t considered such things. Excerpt from the link above:
The less affordable houses are — the harder they are to sell. That puts more pressure on housing prices to fall. RBC predicts the Vancouver housing market is near a turning point — where prices will begin to fall. The signs are all there. The number of sales is down. The number of houses on the market is up. So that’s the reverse of what we’ve been used to. Now there are more sellers than buyers. So RBC is saying that house prices are going to drop. By how much is the big unknown. Nobody knows. Hypothetically, letâ€™s say they fell by a third, that would only bring prices down to where they were two or three years ago. We’d still have the most unaffordable houses in the country. Which brings us back to the original point. Given all these indications that house prices could fall – it’s dangerous to borrow against the value of your house when that value is expected to drop by an unknown amount. Remember — you’ll still have to pay back whatever you borrowed.
You think vancouver is in a tricky spot for real estate? At least we don’t have housing debt protestors setting themselves on fire. Thats whats going on this reuters news photo.
A man doused himself in fuel and set himself alight outside Chile’s presidential palace on Thursday to protest housing debt. He survived and was arrested.
Television pictures showed the man in flames before he jumped into an ornamental pond in front of the La Moneda palace in the heart of the capital of Santiago. The water extinguished the fire, allowing police to fish the protester out of the pond and arrest him. He was hospitalized with burns over 11 percent of his body, local media reported.
Indebted house owners have staged a series of protests in Chile against what they see as extortionate rates they have to pay to service their mortgage debts.
Thanks Jaime for the link to the horrifying picture.
Todays Vancouver Sun leads with the cheerful headline House millionaires double in the province. Are these people that own or owe a million dollars?
Most new paper millionaires own single-family houses. There are 38,027 such homes worth more than $1 million according to 2007 property assessments — 18,459 more than a year ago.
And the number of condominiums assessed at more than $1 million increased by almost three quarters to 3,260 properties.
As BC real estate association chief economist Cameron Muir (nÃ©e CMHC) points out this is based on the july 05- july 06 assessments which saw some of the biggest price increases. Prices for the last six months are doing something strange – they’ve actually been dropping in many categories since a price peak in september 2006.
Muir added that assessment increases are only “paper profits.”
“It’s the equity in your home. Today it may be high, [but] the market may change and it may not be so high in a few years,” he said.
Is that the most pessimistic Muir quote yet?
Property assessments are out now and we’ve seen an astonishing 25% increase in prices from july to july. If we extrapolate those gains into the future we’ll see an average home price that is 8,000 times the average Vancouver income before too long!
On the other hand those assessments are six months old and if we were to extrapolate the price change month over month based on the last months price reductions we’d see the average house sell for twelve dollars in just a few years.
Extrapolating is tricky business!