Price falls of only 5%-10% in 2011 is an optimistic prediction. We wouldn’t be surprised to see 20%-25%-off by the end of 2011. The fact that price drops are being called likely in the MSM is a noteworthy landmark, however. -vreaa
“Experts say home prices are overvalued and due for a correction”
“Central One Credit Union expects a 5% drop in prices in 2011.”
“CIBC World markets say that prices in BC are overvalued… by almost 17% (! - ed.) and it predicts a drop by 10%.”
Global TV 3 Oct 2010
[thanks to Greenhorn for archiving the video]
The latest stats from zerohedge.com and other truthful web sites say that the issue to watch is the collapse and halting of foreclosure sales in the USA, because of rampant fraud. Millions of home transactions will be stuck in a netherworld…and the impact will be indescribable. The reason that I bring this up – the Derivatives that back all these fraudulent mortgages were packaged and sold to Pension plans, that were screaming for high yield, in a low yield world. Now – take a look at oh, say, the BC Civil Service Pension base and how much of the 98,000 recipients money is tied up in WORTHLESS PAPER. That means a lot of Pension Plans are in trouble. mark this day down – October 4th, 2010….the day the Derivative died. Now let’s see where the chips land.
This will affect interest rates, and anyone who is even a bit over extended will be creamed. The numbers in Vancouver are screaming major correction. It has started, and the cascade will take 25 percent off the top and grind on for years. We will never see the insane valuation for property again like this in our lifetime.
If you are waiting for a great deal on a leased luxury car – just watch how many toys get thrown over the side. Don’t believe me? Take a look what is happening in Squamish and Whistler, as people are bailing as fast as they can. Oh, and the Milly Wa Wa, that is the disgraceful Oly Village, will cause Vancouver Taxpayers to revolt. IDIOTIC.
David Levy: “To say our [housing] market is going to crash, fall apart, the bubble’s going to burst – the economy would have to go back into significant recession before that happens.”
Now my memory is a little hazy, but I seem to vaguely recall the yankies had a housing bust first and a global economic meltdown second. In fact, the continued home foreclosure rate in the US is one factor that is grinding their economic recovery to a halt. I also seem to recall David Rosenberg saying that every penny of real GDP since Canada’s “recovery” began has been thanks to the housing sector.