Wednesday, December 5, 2007
Like any boy-band marketing worldwide, last months RE stats scream of manipulation. As does any rationale of why the F@%& the BoC would lower rates this week. Insanity. I don't understand why so many scientists are coming out against the IPCC and UN-led global warming hysteria these days yet very few economists are coming out against the ridiculous monetary policy emanating out of central banks all over. My guess is things are really bad. They just haven't hit yet. Look out.
Anyway. Patience bears, patience. We looked at a property this week. Even with our connections in the development world, a pre-approved mortgage, an agreed upon subdivision from one 36,000SF lot into three massive 12,000SF lots, one with a house on it, we couldn't make it economic. And we weren't the only ones as the previous bidder walked away too. This is going to get ugly. Anything worth developing is already priced as if it were.
When I see VREB stats and feel sad, I look at sales at Tuscany Village, Richmond Gate and the Pearl on Hillside, not to mention the Julia... I suddenly feel better. While their competition on the lower mainland sells out in 8 hours, our products, in the "land everyone wants to live on" can't hit 80% sold in 16 months.
I believe we are witnessing the dead cat bounce.