“I had a client who was convinced that the Vancouver real estate market had finished it’s run and the bubble was about to pop. Now, prices are even higher and he cannot afford to purchase.”

From Lisa Gibson, Vancouver Realtor, self posted video at youtube, 18 Nov 2010“Hi, I’m Lisa Gibson, with MacDonald Realty, I help people buy and sell homes in Vancouver.
“Should I buy now or should I wait until the market slows down?” – This I get asked a lot. Generally, as most of you know, any of you who have waited more than a couple of years, have been outpriced by the market. So, I guess, overall the answer is, if it’s your home, you’re better off to buy when you can afford to buy, than [to] wait.”


From blurb accompanying the video:
“If you are waiting for the Vancouver real estate market to go down – don’t hold your breath.
Three years ago I had a client who was convinced that the Vancouver real estate market had finished it’s run and the bubble was about to pop. Three years later, prices are even higher and he now cannot afford to purchase.
The Vancouver real estate market has seen a steady increase for the last 10 years. This is in large part due to two factors: one, the fact that we have very limited land space in which the city can grow; two, we have a steady stream of immigrants from China who keep pressure on the market which in turn keeps our Vancouver and Richmond real estate prices from collapsing.
Generally, if you are buying a home it is always a good time to buy in Vancouver. Even if the market drops slightly, you are paying down a mortgage and building up your equity.”

This is always the story in a bubble, those on the sidelines look stupid until the whole things comes crashing down, then they look wise. Still, painful for the prudent in the meantime.
Also noteworthy for the “building up your equity”  and “(real estate always goes up (don’t hold your breath variant))” chestnuts.
-vreaa

Addendum: This honest impression from another Lisa Gibson video 18 Nov 2011[excerpted from video and blurb] – “How Do People Afford Homes In Vancouver? I don’t know! If I did, and there was some secret I would definitely share it here. I see some young people either getting money from parents, or the money is coming from overseas, or.. I just have no clue.. because they certainly are not making the money that can afford the prices that these homes sell for in Vancouver. [emphasis ours. -ed] Frequently I see young couples purchase an $800K plus home, in Vancouver or Richmond, and they are only in their early 30’s. I have no idea how they can afford it. I often wonder if they are just completely maxed out on credit.”

38 responses to ““I had a client who was convinced that the Vancouver real estate market had finished it’s run and the bubble was about to pop. Now, prices are even higher and he cannot afford to purchase.”

  1. Superimpose a “troll” face on her picture and it’s high-larious. I know you don’t do requests vreaa but it would be lol thx.

  2. [expletive deleted -ed.]

    • Charmed I’m sure.

    • Polly Pollyanna

      yeah that was a bit harsh

      pity the poor woman – something is keeping her up at night..

      and it’s probably “oh, shit – what will i do???”

      i’ve never understood why people don’t sell their homes themselves. we sell our cars ourselves, why not our houses? sure there’s paperwork, but is it enough to warrant making $30,000 in one day?

      we bitch about pro athletes earning that kind of money – she’s not even putting the puck in the net! 😉

      • Why don’t people sell their homes themselves?

        1) It’s an arms race. If everybody else has a realturd and staging, and you don’t, then they perceive that their place is less likely to sell.

        2) Laziness and inability to crunch numbers. People earning $75k year don’t realize that a $30k realturd commision is wiping out half of their annual takehome. They might as well take a 5 month leave of absence from work, and spend that time selling their own home. They’d come out ahead.

        3) Bidding wars are difficult for an amateur to orchestrate. Since bidding wars are the norm in Vancouver, competent realturds can actually serve a purpose.

        In other parts of the country, FSBOs are fairly common. In Vancouver, not so much.

      • Polly Pollyanna

        i’m going to chalk it up to the usual Vancouver-give-me-convenience-or-give-me-death malaise.

        i think you’re right, they don’t crunch numbers – i mean we know that’s just a given, considering what we’ve witnessed over the last 10 years (but specifically the last 5 months)

        i notice a lot of small business shutting down lately due to increasing rents – is this for real? thoughts?

  3. isn’t it marvellous, just buy something and watch it magically appreciate by 10% year after year after year

    why bother working??

    just grab a seat on the magical vancouver real estate machine!!

  4. US realtor video from 2008: http://www.youtube.com/watch?v=MIZqTUal6As
    Words of wisdom: “On average home values nearly double every 10 years.”

  5. she knows bloody well how these 30 somethings are “affording” 800k homes…
    My husband and I just relocated to Fort Nelson and bought our first home…We are not stretched by any means…our place only cost us 300k…we were concerned about financing though. We were pre-approved by TD for 500k. When we went to get our motgage, TD told us that they wouldn’t give us one because we were relocating and would be changing employers. They told us to come back after our probationary periods were up and we had at least 3 months employment history with our new employers.
    I was beside myself because we only had another week to remove our subjects on the deal. We were pre-approved for almost double what we needed. I never thought that the financing would be an issue. In Vancouver we made a combined 120K. Up here we make a combined 160K…
    I went back to my realtor and explained the problem that we were having with the financing…I was told that the only problem was that we had been too honest with TD. She hooked us up with a mortgage broker. He got us our financing from a bank that neither my husband or I have ever banked with.
    Now, the point that I am trying to male with this long winded story is simply that realtors know that their clients are less than truthful, and clearly they actually encourage this behaviour. In our case it certainly doesn’t present an issue. You have the numbers…we will have this place paid for no problem. What worries me is how many other “liar loans” are out there because realtors are encouraging them.

  6. Flogging a Dead Horse

    re: liar loans,

    this was, in case anyone has a short memory, one of the biggest problems/contributing factors during the run up in the American housing bubble – so i guess the old adage is true, when America catches a cold..

    off topic, but i found a great vid showing the future of living in vancouver.

  7. “those on the sidelines look stupid until the whole things comes crashing down”

    and you are right, only until then, they are stupid.

  8. Flogging a Dead Horse

    when it comes down, does anyone want to form a posse and round up some mortgage brokers?

  9. Polly Pollyanna

    i can recall a co-worker whose ‘real’ job was being a mortgage broker..

    she told me ‘any idiot can be a real estate agent’

    hehehe

    i should have asked her “if you’re so smart, why aren’t you designing bridges” but for some reason we put paper shufflers on a pedestal.

    i feel like agents are generally more honest than the brokers. obviously they want to make a sale, but they just make me feel so darn good!

    • but for some reason we put paper shufflers on a pedestal.

      Too true, and for some historic context: That’s how China went under the first time. They were too obsessed with paper shuffling than creating things of real value. It took them a few hundred years to start that climb back.

  10. You know… Whenever I see stuff like this, I can’t help but think of the boon to culturual morphologists, anthropoligists and sociologists everywhere that is youTube. Hoocoodanode, eh?! – A veritable treasure trove of cultural artefacts waiting for some earnest under-grad to catalogue, decode and re-present.

    Take Realtors’ self-promo, for example… Is it just me, or has anyone else noticed that a preponderance of these clips (I think it’s de rigeur for the genre) are recorded in their automobiles (often while driving – as is the case in Lisa’s most recent offering)?…

    It got me to thinking, and then I remembered this pearl of Realtor Culture… and faster than you can ‘blink’ – the secret of Realtors’ solo facility with dash-cams was revealed to me – they rehearse their monologues with Mummies. 😉

    [DailyBeast] – The Mummy Rode Shotgun

    “For 10 months, a [homeless] real estate agent drove around Southern California with the body of a woman in her car. Christine Pelisek investigates a mystifying and macabre case.”

    http://tinyurl.com/4qsr4v4

    • Polly Pollyanna

      i think the reason for the dashcam confessional is that they’re able to market a sense of always being ‘on the move’, being conscious that time is money and “i’m working so hard i have to squeeze in these little bits of altruistic advice whenever i get the chance, which is best done by paying less attention on the road” etc. etc.

      like most things in life,

      it’s all bullshit.

      • If you can muster the fortitude, Pollyana – amidst the bullshit/dross ‘there be pearls’ (just waiting to be havested)…

      • Polly Pollyanna

        oh i’ve got the fortitude, it’s just that my hip waders are filling with it.

      • “to market a sense of always being ‘on the move’, being conscious that time is money”

        Nope, it is all those hours of watching HGTV of those fancy sellers talking into the cameras and then the thought bolts out at them… “DANG I can do that too and maybe some producer will stuff my babble on TV and follow me around Vancouver… Move over Brad Lamb.”

    • Great observation re ‘Realtor Dash-Cams’.
      There were a number of good ones from Vancouver Island last year.
      Perhaps we need a Gallery… hmmm.

  11. pricedoutfornow

    “I often wonder if they are just completely maxed out on credit.”

    Why yes, Lisa, they are. I too, know these people. They have regular jobs, and a house that cost $800k. Oh, and a huge mortgage. Rates are set to rise. They will be up the creek with no paddle.

  12. She needs to get some sleep.

  13. Pingback: Realtor DashCam Gallery | Vancouver Real Estate Anecdote Archive

  14. it isn’t easy to get a mortgage when you follow the rules. When you lie and skirt around the regulations using a mortgage broker who hooks you up to a third rate lender it opens doors. Is this usual? No. Did this process help someone who couldn’t afford a mortgage get one? No. The buyers had income and affordability anyway.

  15. Polly Pollyanna

    lol how long have you been waiting in the pre-sale line up today?

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