| May 2014 | May 2013 | ||||
| Wk 1 | Wk 2 | Wk 3 | Wk 4 | ||
| Unconditional Sales | 229 |
406
|
659
| ||
| New Listings | 572 | 909 |
1428
| ||
| Active Listings | 4512 | 4578 |
4783
| ||
| Sales to New Listings |
40%
| 45% |
46%
| ||
| Sales Projection | 719 | 687* | |||
| Months of Inventory |
7.3
| ||||
*Counting the stat as a weekday.
238 comments:
«Oldest ‹Older 201 – 238 of 238Housing market can withstand gradual 2% mortgage hike: BMO
Nothing to worry about. Is two percent the worst case scenario?
This article reminds me "stress test" put on freddy and fanny in the states. Their worst case scenario was a two percent decrease in prices over three years. Then everything would bounce back. The conclusion of the report? sunshine and rainbows.
CMHC losing grip on mortgage-insurance market to private-sector rivals
"Banks increased the amount of business that they gave to CMHC, as opposed to its rivals, during the financial crisis because the federal government backstops or guarantees CMHC’s business to the tune of 100 percent, while the guarantee for the private-sector rivals is 90 percent. The extra level of guarantee bolstered CMHC’s market share during and after the financial crisis, because lending at that time was riskier for banks and they sought the extra level of guarantee."
Quote unquote private sector.
Why are they winding down the CMHC? Is there some kind of risk? There shouldn't be. After all this is the housing market we're talking about here.
I find it strange to see CMHC described as having "rivals." It's not the CMHC's role to defeat private insurers.
"Losing grip" makes it sound like there's a problem that needs to be solved.
Best deals I've seen this month.
A 3,000 basement entry home with a suite on a 10,000 square foot lot along Marie Meadows in Central Saanich sold at $415,000 or $137 per finished square foot. That's a 77 percent increase from what the property sold for some 17 years ago in 1997.
A recently updated home on a quarter acre lot in Mayfair along Jackson Street that sold at $430,000. That's a 220 feet deep lot in the city. Last time this property sold was in 2004 at $300,000. It seems to illustrate that people are not looking for big lots as they were a decade ago.
A top floor corner suite condominium along Dallas Road at $275,000 or $258 a square. You have to go out to the balcony to see the water views. But at that price it's worth the 5 second walk. Bought 33 years ago in 1981 at $118,000. This is what happens when a city council keeps on approving more condos. While God might not be making anymore land - there seems to be no stopping Fortin from making more condos.
A basement entry home without a suite along Carnarvon in Oak Bay at $495,000 or $249 a square. I smell an Estate Sale here.
A condo in Polo Pacific on Quebec Street that originally sold new in 1994 at a whopping $261,000 for what was one of the finest complexes built in the city then. Re-sales 20 years later after increasing 51% to $395,000. Certainly not stellar appreciation for a luxury condo.
The different market segments are not working in unison with each other as they were a few years back when prices were increasing steadily. That makes any HPI number, median or average that is too broad in nature to be inaccurate or even misleading.
This is how you see a market decline. Not universally over all market segments but declines in the less popular housing first which later pushes prices down in the premium housing types and locations.
Character homes in Oak Bay may be the first to rise in value and the last to drop. But they will drop.
Corporate Profits Boom As Canadians Struggle With Debt, Sluggish Job Creation
Canada created virtually no net new jobs in the six months to April, consumer debt is at an all-time high, retailers are struggling if not disappearing, and the percentage of Canadians with a job remains well below the pre-recession level.
But things are looking much brighter on the corporate side. According to StatsCan, corporate profits in Canada shot up 12.3 per cent in the first quarter of 2014, compared to a year earlier.
By comparison, Canadians’ average weekly earnings, according to another StatsCan report, went up by about a quarter as much; they rose 3.1 per cent during the same period.
Then there are the banks. Despite dire warnings that the country’s housing boom is about to turn a nasty corner, and worries that low interest rates are going to start eating into bank profits, earnings results out in the past few weeks show Canada’s financial behemoths are raking it in.
The six biggest private banks — CIBC, BMO, National Bank, RBC, Scotia and TD — earned unadjusted profits totalling $7.37 billion! in the second quarter.
References Thomas Piketty new book, Capital in the Twenty-First Century.
they rose 3.1 per cent during the same period.
Canadian wages as a whole only grew 3.1%, however BC fares much better at 4.4% growth.
y/o/y growth in weekly earnings
AB 4.9%
Newfyland 4.7%
BC 4.4%
Canada 3.1%
http://www.statcan.gc.ca/daily-quotidien/140529/longdesc-cg140529a003-eng.htm
I can beat that Jack. I was at a someone place recently that bought a top corner in Oak bay last year with a great view for 177 a foot. He did sya he put 16 thousand into it, so make it 180 something per foot.
@Phil
Canadian wages as a whole only grew 3.1%, however BC fares much better at 4.4% growth.
I'm not disputing the numbers, but public sector salaries (municipal, UVic, Camosun, provincial and federal) are nowhere close to this amount, and have been averaging about 2% per year for the past ten years.
Perhaps this is another reason for a stagnant real estate market in a "government town" like Victoria.
Why are they winding down the CMHC?
I can see one of two options:
1. There is more risk than they are letting on and they are trying to de-risk gradually before the house of cards falls down.
2. The powers that be have a financial interest in Genworth and Canada Guaranty and are stuffing their pockets by moving business away from CMHC.
Reducing the role of CMHC is a good thing, but shifting the business to Genworth is just privatizing profits without actually substantially reducing any risk to the taxpayer. They should cut the guarantee to 50% or less.
ondominium along Dallas Road at $275,000 or $258 a square. Bought 33 years ago in 1981 at $118,000
Didn't even keep up with inflation during a time of massive real estate value appreciation. Just imagine how condos will perform in the next 30 years.
"They should cut the guarantee to 50% or less."
That would be quite the change. Very drastic.
However, this government is being a little drastic. Cancelling the tfwp for restaurants was very harsh economic move.
CMHC decision to disclose more mortgage data wins applause
" "Rob McLister, editor of Canadian Mortgage Trends, said the data indicates, for example, that almost two-thirds of typically insured homeowners have a downpayment of less than 10%."
but don't worry...
"Overall arrears were 0.35% of all mortgages as of March 31, 2004."
"Are there really all the problems you note in a kids park like the big on one on Cook Street next to the Victoria Lawn Bowling Club?"
Who knows what you'll encounter on any given day? I don't find any public space to be problem-free except Government House, which is open to the public, but staffed in the day and closed at night.
"I meant what park is the dog shit, drug needle, booze bottle filled park?"
Of course it's not all in one park at the same time. These are things you'll find if you're a downtown parent who goes out most days exploring the city and playing with kids while running errands. I'm not put off by it enough to flee to the suburbs but I can understand why some parents might feel inclined to do so.
I guess another way of looking at it DavidL is Alberta and Nfld governing cities have been keeping up with their provincial wage growth of 4.9% and 4.7%, therefore one could venture that Victoria prices have some catching up to do since we have been flat for so long now.
Alberta and Nfld governing cities have been keeping up with their provincial wage growth of 4.9% and 4.7%
Maybe that's because they are also a primary or the primary economic and population centre of their province instead of just a government town?
“Maybe that's because they are also a primary or the primary economic and population centre of their province instead of just a government town?”
Really, Edmonton prices most likely has some catching up to do with Calgary, its economic centre. Calgary prices have been rising at 10% per year.
I checked Vancouver Teranet, it's been rising at 9%. Either Vancouver has to eventually correct, although it seems to be accelerating, or Victoria has some catch up.
Or Victoria and Vancouver prices do not move in unison, as evidenced by the last 7 years
Monday June 2, 2014 8:00am:
May May
2014 2013
Net Unconditional Sales: 714 659
New Listings: 1,509 1,428
Active Listings: 4,672 4,783
Please Note
Left Column: stats for the entire month from this year
Right Column: stats for the entire month from last year
Sound the trumpets, you reached 700!
What is that, an 8% increase yoy? I'm sure we'll hear about this in the media.
I realize the contradiction of my profile photo and this post but, hey, I can't stop the news.
Sony Pictures Imageworks moving headquarters to Vancouver
One of Hollywood's biggest visual effects studios Sony Pictures Imageworks is moving its headquarters from California to Vancouver, the company has confirmed.
The Oscar-winning animation division of Sony recently produced some of the effects on the Tom Cruise sci-fi thriller Edge of Tomorrow and The Amazing Spider Man 2.
The company will be moving into a new 74,000-square-foot studio at the Pacific Centre, making it the city's largest visual effects and digital character animation studio by floor space.
Seth - wrong blog - you want http://vancouvercondo.info/
@reasonfirst - Good point! My profile photo stands and I'm redacting my previous post.
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