Thursday, October 02, 2008
Lower Mainland Real Estate Tipping?
Is this the beginning of what "they" (i.e. bankers, mortgage lenders, real estate foolios, developers, etc.) call the "soft landing"? After more than a decade's worth of time spent in this most recent cycle, we are officially preparing to bottom out ~ no thanks to my homies south of the border (props and shout outs to the SEC). According to the official numbers that came out, the Vancouver Real Estate Board has announced that sales have dropped 42% since last year. However, the number of listings have increased since a year ago . . . by 28.8%. Can you say "buyer's market"? Can we say "real estate bubble"? Can we say "about to burst" like a bad appendix?
Must flag David Watt's (President of the above mentioned "Board") comments:
"Although the economic situation in the United States has affected consumer confidence globally, the consensus view remains that our local housing market is underpinned by solid economic fundamentals . . . After five years of unprecedented increases, housing prices are beginning to realign."
Yes Watts, we've all heard the same blah, blah, blah the past few days. "Canuckians, don't be scared, we have a different regulatory structure in place than the US" (in regards to sub-prime mortgages and the like)! Yeah right, since the entire freakin' US economy is "putz" or headed towards "putz" - right Watts, "underpinned by solid economic fundamentals." What? The same fundamentals that are about to knock you upside the head! Yes, I'll have no local confidence when the global fundamentals are gone. Please let's not invade Iran just to boost consumer spending . . . no more, please?