This is a historic high Inventory level for the month of March.
Click 'comments' below to contribute to this post.
"Real estate Whistler is very popular and in demand and will continue to provide all types of buyers, sellers, and investors with opportunities... Get involved with Whistler properties before the 2010 Winter Olympics.
Have you seen real estate Whistler recently?... There are many different types of properties available today on the market for real estate Whistler. The price ranges vary from as low as $100,000 to over $10 million. Don’t let real estate Whistler values keep you away though as there continues to be a lot of interest in the area. Real estate Whistler will boom through the 2010 Winter Olympics and astute investors will see their profits soar."
Those who own a condo unit in a Whistler hotel are sitting on great potential, but at the moment the units are not showing great value.
Real estate consultant Denise Brown with Re/Max Sea to Sky Real Estate reported that a unit that originally sold in the Four Seasons Whistler for about $1.1 million was recently resold for only $520,000.
"We've seen the prices come down significantly," she said.
"The economic climate in Whistler and around the world was much different and the number of destination visitors to Whistler was larger. People were buying on vision. Revenue has not met expectations in the last few years."
"People were buying on vision. Revenue has not met expectations in the last few years."
"People aren't willing to spend as much in Whistler as they were a decade ago. It's not anything wrong with Whistler or that Whistler is worth less. It is just that people are prepared to spend less."
"Current informal coffee chats with some of my fellow Vancouver Realtors suggest a market in turmoil."
"a market that will have a lot of units for sale and more coming on stream."
As of Feb. 29, 2012, there were 6,000-plus condos for sale through the Vancouver Real Estate Board - up 15% compared to the previous year.At the same time, sales of used condos were down by 18%.Add to this the fact that - according to MPC Intelligence - there are some 8,000 pre-sale condos being launched in the first six months of this year.
"many made a lot of money by 'flipping' pre-sale contracts in the past, but the rules and risks are much different now."Ozzie's right. The rules and risks have indeed changed. And if the restrictive mortgage regulations proposed by the OSFI are implimented, the game will change even more dramatically.
"The Bank of Montreal is putting a scare into anyone heavily invested in Real Estate or heavily in debt."Predictions of a correction in Vancouver Real Estate have now gone mainstream.
"A $400,000 condo bought with 5% down would have a 95% LTV. If, upon renewal, three years later the unit was worth $320,000, then the maximum mortgage amount offered would be 95% of the new value, or $304,000, instead of the original $380,000. In order to renew, the owner would have to hand over $76,000, less the small amount of principal paid."
“If the government decrees new insured mortgage regulations, and/or rates rise significantly, and/or unemployment unexpectedly spikes, it could form the proverbial perfect storm that blows over housing valuations. It’s one thing to induce a measured housing correction (which is probably needed in some regions), but a policy-initiated free-fall is another matter.”
"(It's) a market that will have a lot of units for sale and more coming on stream."
As of Feb. 29, 2012, there were 6,000-plus condos for sale through the Vancouver Real Estate Board - up 15% compared to the previous year.
At the same time, sales of used condos were down by 18%.
Add to this the fact that - according to MPC Intelligence - there are some 8,000 pre-sale condos being launched in the first six months of this year.
"Overvalued housing markets in several Canadian cities and high household debt poses a clear and present danger... The report flags Vancouver as the market with the greatest risk of a housing price correction."
"all cities are at risk when interest rates eventually rise from their present 'exceedingly' low levels. Household debt growth over the past decade has been fuelled not as much by credit card borrowing but largely by loans secured by real estate, in particular home equity lines of credit. The ratio of debt-to-personal disposable income, which is now above 150% is likely to reach by late next year the 160% peak experienced in the U.S. and the U.K. before their real estate corrections occurred."
“To do so would be collusion, and it is illegal.”
“It would be a classic case of everybody dropping their asset at the same time just to make ends meet.”Meanwhile a new research paper from Pacifica Partners concludes.
“Our outlook on Canadian real-estate remains negative and we believe Canadian housing will begin an extended contraction phase.”
"Implementing all these measures gradually would be sensible for the long-term, and not just in the current environment.”
"A little is alright"
OTTAWA CITIZEN MARCH 10, 2012
Why is the federal government warning Canadians about debt while it is encouraging aggressive mortgage lending?
When it comes to interest rates and housing prices, it's difficult to see the thread of consistency in federal government policy. Bank of Canada governor Mark Carney and Finance Minister Jim Flaherty frequently warn Canadians that levels of household debt are too high. At the same time, the Bank of Canada's low interest rates make possible the low mortgage rates that are fuelling the housing market.
The government encourages risky mortgage lending even more by facilitating it through the Canada Mortgage and Housing Corporation. The government-owned mortgage insurer charges a substantial premium to home buyers with less than 20 per cent to put down, a federally mandated practice that effectively takes the risk out of mortgage lending for Canada's banks.
As concerns about a contraction in Canadian housing prices increase, the CMHC is finally getting some long overdue scrutiny. This week, the Ottawa-based Macdonald-Laurier Institute recommended a thorough review of how Canada finances mortgages. The institute questioned whether home buyers are paying too much for CMHC mortgage insurance, a fee which can be up to 2.9 per cent of your loan, higher if you are self-employed.
This mortgage insurance fee costs home buyers thousands of dollars, and the institute asks whether the fees are unduly high. The fact that the CM-HC has returned profits to the federal government of $14 billion over a decade suggests that this is a cash cow.
Other organizations, including the International Monetary Fund and the C.D. Howe Institute, are worried that the publicly owned CMHC has taken on too much mortgage liability, exposing Canadian taxpayers to undue risk. While there is a debate about whether Canada has a housing bubble, housing prices have increased 44 per cent since 2006. The CMHC's total loan insurance portfolio is now $541 billion, up from $350 billion in 2007. The Howe institute has suggested encouraging private mortgage insurers to play a larger role.
The main question, generally unasked, is why a federal agency has to take the risk out of mortgage lending for Canada's big banks. It's particularly pertinent with banks lowering rates again this week as they fight for more lending businesses. Normal businesses take risks. Why not our banks?
Our financial leaders say they are against debt, but their policies encourage it, and the government makes a tidy profit off insuring it. As long as those policies persist, they should spare us the lectures.
"That is just whacked!!"
“Expect the housing boom to cool rather than crash… While the housing boom is unlikely to continue unless mortgage rates drop much further, neither is it likely to bust… In our view, the national housing market is more like a balloon than a bubble… While bubbles always burst, a balloon often deflates slowly in the absence of a pin.”
"Don't wait for it to happen. Don't even want it to happen. Just watch what does happen."
“We’ve always said the market remains vulnerable to a correction in the face of a shock. It could also 'pop' in the absence of a shock should current frothy trends persist.
History of Central Banks and why we must End the Federal Reserve
- Ralph Nader on CNN
The author(s) of the posts on this site are not investment advisors and they do not offer investment advice. They try to provide some hopefully useful data with sources - especially concerning real estate - and then add their own analysis.
All the content on this website is solely an expression of the author's personal interests and is posted as free-of-charge opinion and commentary. Nothing here is intended as investment advice. If you seek investment advice, consult a registered, qualified investment advisor.