Vancouverites have ten times the personal debt of people in the ‘debt capital of Britain’.

“The BA1 9 postcode area has the highest level of personal loans per person in Britain. Each owes an average of £2,311 [Can$4,279], according to the latest data from the British Bankers’ Association (BBA).”
– from ‘Lansdown, unlikely personal debt capital of Britain’, Kevin Peachey, BBC, 24 April 2014

In the ‘You-call-that-a-knife-THIS-is-a-knife’ Department, compare this with our muscular local figures:

“At the end of 2013, Canadians owed a total of $27,368 on such things as lines of credit, credit cards and car loans. … Vancouver residents experienced the biggest increase in consumer debt, hitting $41,077 at the end of 2013, up seven per cent from $38,357 in 2012. … “.. the real estate market has really had an impact there,” said Thomas Higgins, TransUnion’s vice-president of analytics and decision services.”
– from ‘Vancouver ends 2013 with highest consumer debt in Canada’, The Canadian Press, 26 Feb 2014

‘How badly would you be hurt in a housing market price correction?’ [The Globe and Mail]

“A question for everyone who thinks houses are an investment: How much would a market decline hurt you? …
Houses are a financial asset that can rise and fall in price, just like stocks, bonds and gold. It’s important to remind ourselves of this after a 25-per-cent price gain between 2008 and 2013 on a national basis and a doubling of prices in Vancouver, Calgary and Toronto over the past 10 to 12 or so years. …

Want to see what a 25-per-cent decline would look like in today’s market? Our Correction Calculator shows you the numbers for the Canadian market as a whole, as well as the Big Three markets of Vancouver, Calgary and Toronto.

The calculator in no way predicts a downturn in housing prices. It’s only a tool for helping people understand how both declines and increases in house prices might affect them.

Be cautious when viewing how a rising market will increase the value of your home. Interest rates are close to rock bottom levels after a 30-year down cycle and likely to rise in the next couple of years. The impact on affordability will be significant.

“I think it’s going to be a huge shock to the Canadian real estate market,” said Craig Alexander, chief economist at Toronto-Dominion Bank. “I do a lot of real estate presentations from coast to coast and an awful lot of young people think these low interest rates are normal. They don’t see anything abnormal about a 3-per-cent five-year mortgage. I always have to say, can you please have a conversation with the grey-haired gentleman at your table about the normal level of interest rates.”

– from Rob Carrick, Globe and Mail, 21 April 2014
—

Recorded here as part of our series ‘Incredibly Infrequent Posts’.
The idea of a possibly significant correction is getting mentioned more and more in the MSM.
Our outlook for Vancouver RE has not changed. We still foresee a large correction at some point. And, contrary to some guesses on the last comments thread, we have not capitulated and bought or anything bizarre like that.
Markets can remain irrational for longer than one can stay sane.. the Vancouver RE Bubble has been an absolute doozy.
For evidence, check out the graphic below, keeping in mind that the Vancouver chart is running at a trend that is unsustainable, arguably anything from 2% to 5% more per annum than is justified by any related real growth, and that prices tend to revert to means when they correct.
– vreaa

– from ‘Canadian, U.S. housing markets defy expectations, price gap hits record’, G&M, 23 April 2014

A Veterinarian’s Dilemma – “Living in a 300-square-foot closet, moving to northern B.C. or renting for life.”

“My veterinarian, owner of a successful west-side practice, emailed recently to say young professionals like him “are left with a choice between living in a 300-square-foot closet, moving to northern B.C. or renting for life.”
– from ‘Here in B.C., we’re richer than we think — on paper’, Barbara Yaffe, 24 Mar 2014

[Posts are, as you can see, very sporadic. No change in our outlook for Vanc RE market. -ed.]