Yep, it’s another one.
As we wind down the work week and head into another weekend it’s time for another Friday Free-for-all!
This is our regular end of the week news round up and open topic discussion thread.
Here are a few recent links to kick off the chat:
–Drastic measures to slow market?
–Taxpayers send realtors on trip?
–Dirt earns more than all workers
–Houses hit all time high
–Replace income tax with property tax
–Scotiabank concern over Vancouver & Toronto
So what are you seeing out there? Going to any open houses this weekend? Post your news links, thoughts and anecdotes here and have an excellent weekend!
It’s that time of the week again…
Friday Free-for-all time!
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:
–The bank will pay your mortgage
–The illusion of equity
–More cutting by Poloz?
–Bubbles and crying wolf
–The kids are all right
–HSBC stops some china US mortgages
–Prices up beyond wages
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments section below and have an excellent weekend!
As the economy deteriorates further Canadians are sitting on a pile of cash. Stock portfolios are holding a record $75 billion in cash.
How do you get people spending and investing again?
Well, you could try negative interest rates.
That kinda worked in the EU. Denmark has driven down their currency which has helped exports. Of course the flip side of negative rates is the risk of housing and stock bubbles.
But how would negative rates most likely affect Canadian consumers? Higher fees.
“What you might see happening is a negative interest rate masquerading as higher fees,” Milevsky said. “No bank in their right mind would tell a consumer, give us your hundred dollars and we’ll give you 95. That will never happen.”
Read the full article here.
A funny thing happened on the way to financial security and easy riches, the condo promise in Vancouver didn’t really pan out for many young families according to a recent Vancity study.
The idea of a starter home is to get on the property ladder, then trade up as your family grows. But this doesn’t work as well when condo prices stagnate and single family home prices grow, especially when there are very few options available for 3-4 bedroom attached or condos.
Across the region, families who wish to move from a one-bedroom apartment or condo to a three-bedroom home with an attached yard would have to increase their debt level by an average of 95%. In Vancouver’s west side, this jumps to 158%. In the city’s east side, it is a much lower 78%. The biggest jump is found in White Rock, where debt levels would increase by an average of 164%.
Read the full article here.
This Vancouver Sun article used to have the headline “Vancouver housing market in bubble, new house price index claims.”
That version of the article apparently included the following:
“While foreign investors are no doubt playing some role, we think this explanation is overblown. Low interest rates and self-fulfilling expectations of higher prices continue to inflate actual prices independently of fundamentals,” reads a press release from the creators of the index.
“Over the longer-term, we still believe that these housing markets will experience major price reversals.”
But that has since been updated to “Vancouver’s ‘housing bubble’ shows no sign of bursting” and we’re having a hard time finding the above quote. The article now says:
According to Davidoff, it is impossible to judge Vancouver’s real estate market on the same bases as that in other cities. In the Prairies and the U.S. Midwest, where space is plentiful, the value of a home is essentially what it costs to build. Vancouver, on the other hand, is almost out of new land to build on. “The house, that means, is worth whatever people are willing to pay,” he said.
We can’t quite put our finger on it, but it feels like there’s been a subtle shift in the tone of this article.
Read whatever the article currently says here.