“Leaving Vancouver is like leaving an insane asylum… To question RE is like questioning the existence of a God to a group of Christian fundamentalists.”

Cult-like sentiment. Misallocation of human capital. ‘Junius’ lays it out; we agree. -vreaa

This from junius at greaterfool.ca 23 Jan 2010 10:27 am “Vancouver is the epicenter of RE insanity in Canada. There is no market like it. I speak to friends who have moved from here to Toronto, Calgary, Ottawa or Montreal – or abroad – and they all say it is like leaving an insane asylum. It is much, much more than the outrageous and inflated prices. The culture in Vancouver is so deeply tied to the notion that RE prices cannot do anything but go up forever you can easily find yourself outcast just for expressing a contrary opinion. It is like expressing an opinion questioning the existence of a God to a group of Christian fundamentalists. I worry most about how deeply a crash would impact the Gen Ys who have both pursued a career in RE and leveraged themselves to the ceiling in debt. I cannot tell you how many bright young people I have met who have left traditional careers – teaching, engineering, law, etc. to pursue the easy riches of a career in RE. Some are agents, some are in marketing, some are in mortgage lending and finance. However in each case they left because a career in RE paid better and appeared to be more solid in the long run. I am sad for this group because many of them have really just started in the last decade when things could not have been better. They will find it nearly impossible to replace the income they enjoyed over the past few years and in many cases will have to in order to keep their investments. A crash will hit them hard in so many ways.”

junius adds some specifics, at 10:35 pm – “My favourite place to watch the insanity of Vancouver prices is on the Prompton Board at the Roundhouse on Davie Street. It has a bevy of current listings for premium apartments in Yaletown. If you are in the areas pass by and take a look – more than a little amusing. What you will see are mostly condos in the 900K to 3 million range. The majority lately are in the 1.1-1.8 range which is what a 2 bedroom in the 1100 sq ft. range lists for. Over the past few month almost all of the movement has been in the under 800K range. I noticed that yesterday only one unit out of about 40 listings had sold. It was a 1 bedroom that was listed at 650,000 that sold for 580,000 – more than 10% off list. Just one listing but it could be a sign of things to come.”

3 responses to ““Leaving Vancouver is like leaving an insane asylum… To question RE is like questioning the existence of a God to a group of Christian fundamentalists.”

  1. Best place on meth

    Real estate is the drug that has kept Vancouver going for many years.

    When the fog lifts, the landscape will resemble a war zone and residents will have no idea what hit them.

  2. “1.1-1.8 range which is what a 2 bedroom in the 1100 sq ft.”

    Jeepers. Boy oh boy, what a terrible market. For 1.1-1.8 here in Miami… Oh man. What you would get.

    Though, Miami doesn’t have Vancouver’s weather and diversity. Oh, wait. Anyways. It worked out well here, kids. I’m sure ya’ll will be alright.

  3. Svend – right on point…and hilarious to boot…

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