“A man who made millions as a short seller on Wall Street by betting against the odds has turned his sights from the U.S. economy to Vancouver real estate.
Former trader Marc Cohodes spent decades betting against housing “bubbles” before they burst. Now he has his eye, and his money, on the local housing market, and he has a warning to homeowners and first-time buyers.
“It’s going to blow to complete and utter smithereens,” Cohodes predicts.
“I think the market probably topped in the spring of ’16 and I think all hell is going to break loose in Vancouver in 2017.”
Cohodes is so confident in his prediction that he’s betting against one of Canada’s biggest alternative mortgage lenders, forecasting a housing crash similar to the one south of the border in 2008.
“I witnessed some of the U.S. housing fiasco here, and I said to myself, if I ever see it again, I should speak out louder than I did,” he told CTV’s Sarah MacDonald.
So this time he’s speaking out, and his predictions are drastic.
Cohodes, who is now retired from trading, predicts that all of Metro Vancouver’s multimillion-dollar homes will see their value plummet by as much as 50 to 80 per cent.”
– CTV News, 30 Dec 2016
This happens regularly — Somebody from ‘the outside’, with knowledge of markets, takes a look at Vancouver RE and sees how much of a bubble it is… they rant about it for an article or two… then nothing proceeds to change. Robert Shiller called Vancouver the ‘bubbliest city’, what?.. 10 years ago? And we’ve regularly seen traders like Cohodes try to find ways to short our RE.
One of these days, one of these guys is going to get the timing right.
[Implied comment/joke about the challenges of timing markets intended].
RE matters aside, have a really good 2017, everybody. – vreaa