Friday, March 23, 2012
Here we have CEOs paid many millions a year saying...regulate us!
Like a obese glutton unable to control his appetite. Some on th blogosphere even have an excuse for the banks. They have to be easy or lose business. That is the same bs that chuck prince at Citi said before the US collapse. 'while the music plays we have to keep dancing'
BS !! - the result was huge tax-payer bail-outs. Not all banks did this. Not New York Bank of Mellon. This is the junkie's excuse. Would we excuse a barman from giving more and more drinks to a drunk until he died!
Of course not. Why can't the stupid banks self-regulate???
Then there is Flaherty who wants to shun responsibility too. It's not my market- he says!
Duh.... It is bozo. What about the CMHC.?
No CMHC, no bubble.
Nobody wants to take responsibility for what is going to happen, not the over-paid debt pushers, nor the windbag politician.
E are in a bind.
Sunday, March 18, 2012
Cristy is in a tough spot....If she tries to put the breaks on Re she will dealing with a huge bubble and help middle class families who are priced right out.
However she will also upset current owners, the housing lobby (developers and Realtors) and also take away a major economic driver ( short-lived and speculative yes, but that never stopped a politician)
In fact there is very little she can do. She has no control over the CMHC or the Bank of Canada rate or lax bank lending and if she speaks against Chinese off-shore ownership she risks alienating China and risking their investment in other areas, and I can assure you- that would lead to a major recession in BC. Tough bind.
The TD bank is the latest bank begging to be regulated more.
This is turning out to be a weak spring for sales. Sales haven´t blossomed and are on track to be amongst the lowest in the last decade.
HOWEVER listings haven´t exploded either which removes the housing crash scenario. This is perfect. As I have said if we had a quick correction the Federal Government would lose it´s resolve and their would be no changes.
Excuse any errors or mistakes ( and I cannot make the font bigger). I am paying $$ for the internet connection.
Monday, March 12, 2012
Friday, March 9, 2012
Minister of Finance
2) Rates are at all time lows, banks are falling over themselves to lend at very low rates and prices are at all time highs. To provide insurance at such a time to vulnerable borrowers is setting these borrowers up for disaster should there be the slightest change from the current ideal circumstances and exposing us all to excessive risk.
May I offer some suggestions, at this late hour to mitigate the risk we are all now exposed to:
In fact the CMHC should have its horns clipped significantly. As mentioned, insuring vulnerable lenders at all time low rates and all time high prices is doing no one any favours. I would encourage you to continue on your path of tightening lending requirements.
Privatizing the CMHC would be the ideal solution to allowing the market-place to properly evaluate risk and reduce the burden on the tax-payer.
3) The Board of the CMHC needs to revamped. I have reprinted the names and occupations of the Board members taken from the CMHC site, below:
Chair of the Board of Directors, CMHC
Principal, Chiesa Group
President and Chief Executive Officer
James A. Millar
National Capital Region
The Sussex Circle
André G. Plourde
President, Groupe immobilier de Montréal Inc.
E. Anne MacDonald
Pictou, Nova Scotia
Chief Financial Officer
Partner, Practical Plumbing Co. Ltd.
Thursday, March 8, 2012
Friday, March 2, 2012
SURREY, BC – The Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) recorded 1,269 sales in February, an increase of 59 per cent compared to January and a 1 per cent decrease compared to the 1,279 sales during February of last year.
In terms of new listings, the Board received 2,846 in February, an increase of 3 per cent compared to January and a 6 per cent decrease compared to the 3,038 listings received last February, taking the total number of active listings to 9,037, an increase of 4 per cent compared to those available in February 2011.
As Board President Scott Olson explains, a seasonal increase in sales is typical for February; however this increase was not as robust as in years past. February’s sales finished at 4 per cent fewer than the 10‐year average for that month.
“Although our market has picked up, it’s still favouring buyers. In terms of our clients, we’re seeing more caution and deliberation when house hunting.
“This could mean using a home inspection as part of negotiations, or asking for extras to be thrown in, or the client walking away if terms are not met. The other side is that selection at certain price points is limited depending on location, so if the buyer finds the right home, they act, which is keeping prices stable.”
The MLS® HPI benchmark price of a ‘typical’ detached home in Fraser Valley in February was, $569,200, an increase of 8.3 per cent compared to $525,400 last year. The benchmark price of Fraser Valley townhouses increased by 2.0 per cent in one year, going from $305,700 in February 2011 to $311,900 in February 2012, while the benchmark price of apartments increased by 0.6 per cent going from $200,200 in February of last year to $201,500 in February 2012.
Olson adds, “We anticipate the new HST transition rules will generate more buying activity of new homes over the coming months and will have a spill‐over effect on the resale market. The majority of new homes in the Fraser Valley fall under the new $850,000 HST rebate threshold and first‐time buyers will be taking advantage of the refundable tax credit bonus of up to $10,000 available until March 31, 2013.
“These changes will improve accessibility in the Fraser Valley, a region already recognized for its affordability.”
Thursday, March 1, 2012
Actually this is not unexpected. Inventory is the highest since the 2009 crash. The MOI is over 6 and much higher in the outskirts, with condos leading the pack, sales are down a lot compared with last year- yet HAM buying has been hot and heavy in the pricey areas...so the average is up!
In fact we have had several huge sales, and not just to the Lululemon founder, but to some very rich locals and HAM, which has skewed things considerable.
Now we will have to wait for the HPI, though of course we know that the REB has fiddled with this so that this is not as reliable as it was.
Actually this result is not as bad as it would seem:
1) Higher prices will bolster the very little back-bone the Feds have to deal with their own excesses.
2) In all bubbles the periphery starts to defalte first- OK, Sunshine Coast, Fraser Valley and then we get to the centre. That's what happened in the US.
If this is the case, we would expect weakness to emerge from the FV numbers and our numbers to be weaker from here onwards.