TD Chief Economist – “Vancouver prices just seem insane.”

“Vancouver home prices, to me, make no sense relative to local employment and income gains,” Alexander said. “Vancouver prices just seem insane.”
– Craig Alexander, chief economist at the TD Bank, as quoted in ‘Forecaster says home prices may fall soon’, Montreal Gazette, 28 June 2012 [hat-tip penny saver at VCI]

We agree with Alexander. Prices are indeed “insane”.
Well put; that is not hyperbole.
This opinion stands in stark contrast to those of local economists, who are uniformly sanguine regarding our price levels.
And surely it must affect the readiness of TD to lend to buyers in our market.
– vreaa

10 responses to “TD Chief Economist – “Vancouver prices just seem insane.”

  1. One thing I learned about large organisations like TDC is that it’s possible for this guy to call prices “insane” while simultaneously lending multimillion dollar mortgages into the same arena. Big company is big, and the beast needs to be fed.

  2. Renters Revenge

    Don’t forget what Tsur tells us – Vancouver is different, there is “wealth” here.

  3. Ralph Cramdown

    I bet he wouldn’t be so brave with his unfounded opinions and anecdotes sans data if he had to put his name to his opinion, instead of anonymously posting to his audience of 500.

  4. *Now* he is saying that??? We knew that for years.
    This is just another ex post facto financial “expert” that will soon claim “I told you so”.

  5. it is not insane if you take into consideration the fact that most buyers are chinese who live in China and don’t earn the paltry salaries that Vancouverites earn. To make Vancouver properties sane again, you need to restrict foreign buying.

  6. Wow! TD’s latest ‘pitch’?… Lose your job? Get transferred? Catch your SweetHeart in the sack with the SalsaInstructor? No Worries! We’ll buy it back and cancel your loan! What are you waiting for? You can’t lose!*

    [G&M] – TD Bank woos buyers with take-back program

    “The benefits of a product such as this transcend any economic ebbs and flows,” Mr. Ojamae said. “Most of the coverage circumstances aren’t directly tied to the broader economy, but they’re events that can happen to anybody almost at any time … in good or bad economic times.”

    *Coverage restricted to TD auto loans, “SorryAboutThat!” Further conditions may apply. Applicants experiencing prolonged priapism are advised to consult their physician.

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