We are seeing some normal fall cooling in the temperature and the housing market. The numbers are still pretty strong, and far from a buyer's market, though if you check craigslist, you will see some 'deals' being offered.
I think Klepto has been too busy to parse the numbers and I haven't got much to say. Lets see what October brings.
If the commodity market continues strong and assets like the stock-market and $CAD stay strong and interest rates remain low-the market will continue buoyant and the bubble bursting graph I posted below will fail.
However if any of these change directions then we will see renewed weakening.
Nothing more to say. Lets wait and see what the end-of-October numbers have in store for us.
Waiting for the gap fill
-
*Mid-week market update:* The decline in the S&P 500 seems to have been
arrested at its 20 dma (blue line). The next question is which price gap
gets fille...
1 day ago
What I find so odd is how this latest spike is so concentrated in Van West, Van East, and North Van SFH (stats show this). You don’t have to go far out into the suburbs to find prices like last year. I wonder why the craze is so much more narrowly focused than it was pre-2008. (I also posted this under NLL on VCI).
ReplyDeleteI agree.
ReplyDeleteOne result of the boost in commodities prices has been a bonanza for some of the local penny stock guys who did private placements or got stock options near the bottom of the market earlier this year.
In some cases they have seen 300-400% gains in just a few months. Some are converting that windfall into hard assets such as gold and RE.
Fish10, Very interesting, thanks.
ReplyDeleteFish/Patiently: I think we're seeing the narrowing in the market that sometimes comes towards the end of the bull, when more and more stocks start lagging and the small group of 'market darlings' blow upwards (and then it's over). The last bit of mo' is self perpetuating, 'cos the rising prices are themselves making those stocks/areas SEEM more attractive. They'll just crash that much harder later.
ReplyDeletevreaa, good points.
ReplyDeleteIt seems those market darlings attract the extreme speculators like nothing else. Now those speculators have such easy access to low interest credit so they are going nuts. Our tax dollars will pay for this. :(
West Bubbleville. 13 new listings. 7 price changes. 3 sales. One multimillion dollar foreclosure.
ReplyDeleteWest Van
ReplyDelete3 listings. 3 price changes. 3 sales.
Went to a talk by Don Drummond- TD economist tonight. Gist - no double dip recession and parity USD/CAD. (we are almost there)
Not sure how this will play out with housing. Economic strength = higher rates. But higher CAD means no raise in the BOC rates.
You work it out!