Monday, July 16, 2012

Who's fault is it that the` volume and price of homes fell in Canada last month?

Not Flaherty's- he hadn't brought in his mortgage changes yet.

Vancouver- according to Sherry Cooper it's our fault. We brought the class average down. Sorry, I know some of you find her voice grating :

Bad little old Vancouver

But don't worry too much. This is not the US for goodness sake. They had much more lax lending than us. We only had a few Billion HELOC here and a few Hundred Billion high-risk mortgages insured there.

Oh and of course we won't worry that our per capita debt is now at their pre-bust levels.

And we know why we are having a bad time in lotusland. Not enough Chinese money washing ashore this year:

Hat tip Best place on Meth  The video shows the invasion of money slowed to a trickle,  however we do know that the Chinese Government is loosening the spigots a bit, so we may have a few more Government officials on 50K salaries buying $2M westside homes :)


  1. Thanks for the link to the video. It can only be good as more in the industry are sharing statistics with the buyers.

    hat tip courtesy of gouku3:
    Polygon - Moda - Unit #207, 2BR 907SF
    MLS V959498 on June 28 for $409k ($451.92/sqft) terminated
    MLS V962233 on July 13 for $379k ($418.85/sqft) sold

    Assuming it was sold at $379k at $418.85/sqft, that was -12% below the developer's lowest starting price for a 2-bedroom unit.

    an excerpt from their opening sale announcement:
    "Corner two bedroom residences
    range from 893 sq. ft. to 958 sq. ft.
    with amazing prices from $399,900." [$399,900/893 = $477.82/sqft]

    Although they put up chairs by the roadside a week or so be4, but on the actual "Saturday" less than 2 dozens "buyers" filed in to their sales center in the morning. By lunch time, there were more sales persons "in black" than customers. Later in the afternoon up to closing time, most had disappeared indoor to participate in "solemn karaoke" non-stop for hours.
    The hifi is still blasting during opening hours, presumably to attract the buyers that may have lost their way.

  2. Just want to point out, most government officials would be lucky to make 50K RMB which is less than $10K CAD.

  3. In photos: The flash cars of Beijing's poorly paid public servants
    The Globe and Mail
    Thursday, May. 24 2012

    Do the flash cars with government plates on the streets of Beijing look like the wheels of officials living on modest salaries? We're able to let you make your own judgments, thanks to a longtime foreign resident of China (he's asked not to be named) who forwarded us a few snaps he took of the all-day auto show that is the streets of Beijing.

  4. No SFH sold in West Van today. Some folks still listing in the $6-8 M like those Government officials are still coming.

  5. Only the "Obscenely Rich" will benefit from the manipulated interest rates of this decade.

    Zuckerberg's Mortgage Rate is Now 1.05%
    "why would someone worth over $15 billion need to borrow money to pay off a $7 million home?"

    1. He took out a 30-year adjustable-rate mortgage @1.05%, a preferential rate due to his high net worth.

      There is a lesson to be learned here.

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