It’s that time of the week again! Let’s do our regular end of the week news roundup and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–North Americas #1 Bubble
–Who will be the next BOC head?
–Fear, not foreign investment
–Historical inventory graph
–Cooling house prices not bad
–Rabidoux/lepoidevin talk impressions
–CMHC MI levels drop 37%
–Short the banks?
–RBC 22% profit increase
–Flaherty asks for budget input
–Flipping and fraud
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
It’s not just Vancouver house sales that are heading down.
Business confidence in Canada dipped for a fourth month in a row and is now at a 3 year low.
This according to a survey from the Canadian Federation of Independent Business.
The last time it was lower was in July of 2009, when it stood at 58.6.
CFIB chief economist Ted Mallett says the index’s current position in relation to gross domestic product puts it very close to the zero-growth mark, suggesting Canada’s economy is nearing a standstill.
On Tuesday, Statistics Canada reported the economy had grown a disappointing 0.1 per cent in May, leaving the pace of the recovery at slightly below two per cent on an annualized basis.
The CFIB says confidence declined in July even in resource-rich provinces like Alberta, which saw a drop of three points to 70.3.
So taking out a home equity loan to fund your underperforming small business? Maybe not such a good idea unless the revenue is there.
Over at the CBC there’s an article about the ‘uncertain fate’ of Vancouver real estate.
Vancouver’s real estate market has taken another interesting turn, with listings up and sales down during what is usually a busy time of year.
In May, average prices for houses have dropped about $150,000 compared to one year ago. That 12-per-cent drop wiped out two years of price increases.
The reason appears to be that too many more sellers are trying to cash in at the same time. Listings are up by 23 per cent, but fewer are buying: sales are down 24 per cent.
“Probably, on average, about a 150 or 160 homes in Vancouver are reducing their price every day in the hope of catching, getting ahead of the train and maybe get out before they can’t,” said realtor Larry Yatkowsy.
Larry is an interesting fellow, he seems to change opinions frequently, but isn’t it in most realtors interest to get sellers to lower listing prices to make a sale?