Collapsing Periphery – “I listed land at 20% below tax assessment 6 months ago. There have been no viewings. My real estate guy tells me that August in our town normally has 33 house sales. This year there were three. It’s freaking ugly out there.”

slavador 15 Sept 2010 00:10:25, in the comments section of Mish’s globaleconomicanalysis.blogspot.com post ‘59% of Canadians Live Paycheque-to-Paycheque’ 14 Sept 2010“After 8 months of no work, contracts have finally restarted! Since I do not qualify for any sort of employment insurance it was a mad scramble for cash. Here’s a few observations:
I ran crews in the forest for a friend for a couple of months. The rates were 1/2 that of other years and there was 1/2 the work. The phone rang day and night with folks desperate for work. In a normal year a 20 year old kid fearless enough to run with a chainsaw full throttle all day could make $300/day. This year it was more like $150/day and there were way more tough young lads than trees to cut.
I sold logs from my lands for a couple of months. Loads of cedar went for $3000 that went for $6000 two years ago. Idle self loading logging trucks were available at all times. Finding buyers was a bitch.
Neighbour with mill had 3 truck loads of cedar products stolen by a shady buyer at the US border. The trouble is that shady buyers are presently the only buyers! He is now running a saw in the bush like the rest of us…
In between I cut firewood. 1 cord split/dry fir is going for $125. In the past it was $200. Lots of guys are in the woods this year – many yards are full of wood.
I listed land at 20% below tax assessment 6 months ago – there has been no viewings. My real estate guy tells me that August in our town normally has 33 house sales. This year there were three and they were all bank foreclosures!!
I’m doing a mid-price (16k) wedding for my daughter in the regional nice hotel in a couple of weeks. We are their only booking for October -normally they have 6-7.
I do not know where the “recession is ended” crap is coming from – certainly not the North Okanagan in British Columbia Canada! Paycheck to paycheck Ha Ha Ha. How about cash job to cash job. With these contracts, I am pleased to be returning to my middle class life, but have great concern for the financial of my neighbours as its freaking ugly out there.”

4 responses to “Collapsing Periphery – “I listed land at 20% below tax assessment 6 months ago. There have been no viewings. My real estate guy tells me that August in our town normally has 33 house sales. This year there were three. It’s freaking ugly out there.”

  1. This is a perfect illustration of DEFLATION.
    I get very queasy about sanguine Canadians, thinking that we will somehow escape the mess that we find the World Economy in.

  2. I think you can observe this in the city already as well. Walking around there are a lot of “for rent” signs in stores and also industrial area around south false creek.

    Some of these signs seem to be gone for a while, then re-appear. I think outside of the residential realestate problem we’re very quickly going to see a commercial one as well (it has been going on for a while in the US).

    Several places that were rented before / during the Olympics also seem to be shutting down / closing / are empty now.

  3. How long does this guy need before he figures out his place is overpriced?

    http://vancouver.en.craigslist.ca/search/apa/van?query=1633+Ontario+St&srchType=A&minAsk=&maxAsk=&bedrooms=&hasPic=1

    $1750 for 630 sq.ft. with view of a parking lot and industrial zone (except if you go to the balcony, turn your head left, you’ll see 100 sq ft of water and the Science World…). In which world is this guy living?

  4. Driving through southern BC we found that every business and about 90% of real estate was for sale.

    It was incredible, and it stretched for 100s of miles in all the little towns. Many businesses were also closed and it appeared it was recent.

    Canadians will get hit hard when we get checked into the boards.

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