“When I was in their office last week, I overheard the conversation of a realtor saying his friends have bought homes to flip and they are all stuck with them now. He said the market has fallen so fast, it’s so different from the actual stats.”

“He [a local realtor] says the market is good and he is busy. That’s not what I’m hearing from my realtor friends up at Macdonald realty. In fact when I was in the office last week, I overheard the conversation of a realtor saying his friends have bought homes to flip and they are all stuck with them now. He said the market has fallen so fast, it’s so different from the actual stats. So, by the time you see the HPI move downwards, the market has actual moved much more.”HAM at RE Talks 28 Nov 2012 10:57pm

15 responses to ““When I was in their office last week, I overheard the conversation of a realtor saying his friends have bought homes to flip and they are all stuck with them now. He said the market has fallen so fast, it’s so different from the actual stats.”

  1. The hpi shows 2% decline for Van sfh. But the average is off 14% and median 10%. And now we are seeing some Van west homes sell 15-25% off list and way below assessment.

    Why isn’t this on the news?

    • “Why isn’t this on the news?”

      Ask The Sun, Province, CTV, Global.
      Don’t expect any replies.
      Here, we all know the answer (vested interests).

      • Naked Official #9000

        Global does it all day!

        Just like CCTV!

        Do you remember, loyal cadres, before they were called global, and they weren’t such whores?

        Ah, Vancouver of 1985 – come back to us..

      • EinsatzgruppenVancouver

        “Why isn’t this on the news?”

        Uh, pick up a print, as opposed to online, version of any local vancouver newspaper.

        If you want a real good visual representation, grab a pair of scissors and cut out all the ads from the real estate industry. How much of the ad revenue in the sun or the globe or the georgia straight is from condo developers and homebuilders?

        As we say back in the maritimes, “Ya dances with the one that brought ya.”

        Never mind the fact that the only reason that god-awful abortion of an “index” known as the HPI is clearly designed to hide the flatline since 2011 and the 2012 below-assessment prices. Good god in heaven, if prices were rising, they’d be using a straight up arithmetic mean/median price.

    • News affects people’s psyche. If its not shown or reported, it doesn’t exist. Simple as that. That’s why I come to the blogs for the truth. When the market was going up you couldn’t go a week without some RE story. Now, you never hear anything about RE.

    • It is on the news. They project a steady market for up to a year, making it a great time and your last opportunity to buy, before +20%/year increases resume indefinitely.

  2. UBCghettodweller

    A relative of mine was at University, then left in second year to become a realtor in North Van for about the last two years.

    As of September, he’s return to to classes. Before then, for several months, the number of facebook updates about multiple bidding wars, a balanced market, or open houses dwindled to zero.

    To keep peace in the family, I specifically haven’t mentioned any of my heretical views on the Canadian housing market or asked why an English degree suddenly looked better than being a realtor in the “Best Place on Earth.”

    • Naked Official #9000

      An English degree – lol

      Loyal cadres, encourage your tenants to learn mandarin, so they can understand why you’ll be raising the rents on these crofters.

      • Real Estate Tsunami

        Every Vancouverite should learn Mandarin anyway, as it will soon be required to work in the coal mines up North.

  3. Even the city of Vancouver knows what’s coming. They are increasing property taxes in anticipation of reduced income …..property taxes based on inflated home values!!!!!!

    http://www.vancouversun.com/news/Vancouver+homeowners+expect+average+cent+property+hike/7624378/story.html

  4. “….increasing property taxes in anticipation of reduced income…”, HOW does this make any sense… for god’s sakes people wake up and do something…what are we….rats rushing over a cliff!!

    • The natural state of affairs. I quite enjoy reality from time to time.

    • Trust me, it makes a lot more sense than the alternatives. Read about California Proposition 13, Mello-Roos districts, and all those places in the ‘States where property taxes are legally a fixed percentage of property value (i.e. no mill rate), so when prices slide, they lay off a third of their police and firefighters.

      Vancouver’s problem, common to several boom cities in the 905, was to rely on development charges for such a large portion of the budget in the first place. Cyclical revenues for fixed-ish expenses, what could go wrong?

      • If Vancouver was smart, they would build up a fund from those developer fees then buy land on the cheap to expand roads, etc, instead of keeping property taxes low. Burnaby does this.

        How does it help a very expensive city to have low residential taxes? I think it’s just another backwards thing about Vancouver – paradise of speculators.

      • Vancouver city is too accustom to spending with revenues from developments and property taxes on inflated incomes. I am sure that they can find many ways to reduce spending.

        http://news.nationalpost.com/2012/11/25/colorado-springs-recession/
        Some of the findings have stunned Mr. Fowler: The city offered employees “merit pay,” but employees were automatically given a 5% pay increase every year for five years, no matter their performance; workers’ compensation was 100% of an employee’s salary, even though workers’ compensation is tax-free; employees could bank vacation days and sick pay from one year into the next; 70% of the city’s expenditures went straight to payroll.

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