“It’s funny how quickly things change. Just a year ago, I was ridiculed during a conversation for just mentioning that maybe the RE market was over-inflated.”

“One of my friends is currently on a 1-year long maternity leave. Hubby is a realtor and has not closed a deal for quite some time now (and being very frustrated about it). I don’t know if this is because they can no longer pay the mortgage or because he sees the writing on the wall (probably a bit of both), but they’ve just put their 2-br-$800K condo up for sale (good luck with that one in this market!).
It’s funny how quickly things change. Just a year ago, I was ridiculed during a conversation for just mentioning that maybe the RE market was over-inflated, that maybe a correction might eventually occur, and that flipping a property at this point might not be a good idea. Oh well, I may not sound so stupid anymore, I guess…”

Makaya at VCI 16 Oct 2012 2:47pm

Awareness of the bubble is going mainstream.
– vreaa

28 responses to ““It’s funny how quickly things change. Just a year ago, I was ridiculed during a conversation for just mentioning that maybe the RE market was over-inflated.”

  1. 800k for a condo… must be in Beverly Hills, right?

  2. “It’s not looking at earthquakes as doom and gloom… It’s all about what we’re going to do as a community to be prepared so that when there’s an earthquake, we’ll get back on our feet and recover.” – Mark Benthien, YVR “GreatShakeOut” Organizer

    [CBC] – B.C. to participate in millions-strong earthquake drill

    …”Get ready to rumble. Millions in the United States, Canada, Italy and other places are set to participate in an earthquake preparedness drill Thursday. Dubbed the “Great ShakeOut,” homeowners, schoolchildren and office workers across the U.S. West and Southeast, in British Columbia, and in Italy, Puerto Rico and Guam will practice dropping to the ground, covering their heads and holding on to something sturdy — a technique that experts say minimizes injuries during strong shaking.”…

    http://tinyurl.com/8v7edcx

    [NoteToEd: Well then, it’s NoWorries AllAround as we’ve got you ‘Duck&Covered’ for everything from Radiological and ThermoNuclear to Seismic ‘surprises’. Also highly effective at staving off the adverse effects of housing bubbles for partcipants sufficiently pliable/nimble enough to get their heads past their anal sphincters.]

  3. RoboRedaktor strikes again. Probably the anatomical terminology, ED. Robo hates latin.

  4. “how quickly things change”
    plus ça change, plus c’est la même chose. The only quickly changing constant is change.

  5. Wait until they lose even more $$ from RE, maybe even bankruptcy. Then it’s not that you are smart but rather you are the reason why their life as they know it is over. You can the cause of all their misery.

  6. Just finished watching the Global news about pending and proposed tolls on bridges and roads throughout the Lower Mainland.

    Besides the fact that tolls are inevitable, and will have a major impact on mobility and thus the real estate market, I note that tolls on the Port Mann are set to go up.

    According to the news anchors, the toll will eventually be $3/crossing. So, $6/day for a normal two-way/day commuter. And, for a person working about 20 days/month, that’s a hit of an extra $120/month.

    I’m wondering, at todays rates, what does an extra $120/month buy you… or rather, if that $120 works its way through the system to the houses on the south side of the Fraser, how much would a seller have to reduce their price in order for the buyer to break even with the new toll?

    And, what of other tolls? Eventually the discount that is expected for buying on the periphery will have to increase as tolls become more and more common in order to entice people to live across a bridge. And the news folks were discussing the fact that there is now talk of tolling crossings between municipalities. Thus, the further out you live, the more tolls you’d be likely to encounter (on average).

    I can’t figure out how anyone makes a go of it in the Lower Mainland anymore. No wonder I am seeing so many economic refugees moving to the interior cities… and beyond.

    • Renters Revenge

      Recent job growth is strongest south of the Fraser, so likely more of a issue for the new urbanists living way out on the west periphery than it will be for the unwashed masses living in Surrey.

    • I am already noticing an increase in traffic as workers trying to avoid the toll are getting off before the bridge and heading for the Petula bridge. The traffic is backing up like never before.
      I’m sure that RE developers, on either side of the bridge, will have bet the wrong way as people with not enough money to live on will change their lifestyle.

  7. House values have been over appraised but article does not say by how much. From reading the article this isn’t single digit over appraising. This is going to get ugly real fast.

    http://ca.finance.yahoo.com/news/analysis-canada-house-appraisal-tool-202103908.html

    • Renters Revenge

      Emili doesn’t see the crack in the foundation, the rotten roof, or the former grow opp in the crawlspace. Ugly is right.

  8. interesting bond analysis from economist … http://tinyurl.com/9arp79u … hmmm .. apparently public access to pre-articles permitted

  9. famous French sayings today?… here’s mine:

    Sauve qui peut (la vie)

    there is a time during a war, or battle, when you may be losing .. badly… “Every man for himself”

    • tabarnak!

    • Le monde appelle fous ceux qui ne sont pas fous de la folie commune.
      Mad are labelled those who do not take part in the common madness.
      Roland.

      Du sublime au ridicule il n’y a qu’un pas.
      It’s just one step from the sublime to the ridiculous.
      Napoléon

      La critique est aisée, mais l’art est difficile.
      Criticism is easy, art is difficult.
      Destouches.

      Passer pour un idiot aux yeux d’un imbécile est une volupté de fin gourmet.
      To be seen as an idiot in the eyes of an imbecile is a pleasure worthy of a fine gourmet.
      Courteline

      • One more for you Nem: “Les cons, ça ose tout. C’est même à ça qu’on les reconnaît.” Audiard.
        I leave it to you to translate. I also recommend the quotes of two highly regretted french comedians: Coluche and Desproges.

  10. Talking with my dad the other day. He speaks a lot to my uncle, a retired nurse who really is clueless about a lot of things. He bought a condo in Coquitlam, a 2 br in Coquitlam last year and is now renting it out for 1500 a month, which will barely cover his mortgage plus fees.. He is convinced that he can sell it for a profit at anytime. Wonder if he can make any profit on it. Meanwhile, my dad says he knows nothing about real investments (my portfolio is up 40% rhis year not including dividends that are reinvested) and is just buying into this bs about how real estate never goes down. There are still idiots out there.

  11. Just outside L.A., a landmark Frank Gehry house on the market for 895 000$. Yes please.
    http://www.architizer.com/en_us/blog/dyn/57752/frank-gehry-house-on-market/

  12. This illustrates how absolutely how delusional our RE is. Our homes have very little design and pop up in a heart beat.

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