http://shaunkimmins.com/ViewBlog/157/ http://shaunkimmins.com/ViewBlog/157/#comments Thu, 13 Nov 2008 09:24:53 +0000 Market Info http://shaunkimmins.com/ViewBlog/157/
House prices in Canada are falling. But looking simply at the headline numbers can be very misleading. At a risk of being a bit technical, we will note that the headline numbers reflect a current weighting for each city, which leads to a significant bias to the overall average price since dramatic changes in the volume of the sales in certain cities can notably influence the national average price. Take Vancouver. The close to 45% year-overyear fall in the number of homes sold in the city and the fact that Vancouver prices are much higher than the national average combined to make it look as though national home prices were falling sharply when, in fact, it was driven by fewer expensive homes being sold in Vancouver, as a fraction of the whole. The result: the national headline number is down by close to 6% (y/y) last month but if properly weighted, house prices fell by only 1%. Yes, prices are falling and they will continue to fall, but the headline numbers exaggerate the real weakness in the housing market.


Click here for the entire PDF article: CIBC World Markets report

What should you do if you are thinking of selling?

If you are considering selling your condo, call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 

Read More]]>
House prices in Canada are falling. But looking simply at the headline numbers can be very misleading. At a risk of being a bit technical, we will note that the headline numbers reflect a current weighting for each city, which leads to a significant bias to the overall average price since dramatic changes in the volume of the sales in certain cities can notably influence the national average price. Take Vancouver. The close to 45% year-overyear fall in the number of homes sold in the city and the fact that Vancouver prices are much higher than the national average combined to make it look as though national home prices were falling sharply when, in fact, it was driven by fewer expensive homes being sold in Vancouver, as a fraction of the whole. The result: the national headline number is down by close to 6% (y/y) last month but if properly weighted, house prices fell by only 1%. Yes, prices are falling and they will continue to fall, but the headline numbers exaggerate the real weakness in the housing market.


Click here for the entire PDF article: CIBC World Markets report

What should you do if you are thinking of selling?

If you are considering selling your condo, call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 

Read More ]]> http://shaunkimmins.com/ViewBlog/157/#comments http://shaunkimmins.com/ViewBlog/155/ http://shaunkimmins.com/ViewBlog/155/#comments Thu, 13 Nov 2008 09:04:11 +0000 Monthly Stats and Press releases http://shaunkimmins.com/ViewBlog/155/ Ottawa bows to banks to keep credit flowing
Triples spending on mortgage purchases; Cuts price of loan insurance; Boosts business borrowing; Creates new lending office



RICHARD BLACKWELL AND TARA PERKINS


From Thursday's Globe and Mail


November 13, 2008 at 12:22 AM EST







Finance Minister Jim Flaherty (Chris Young/CP)





Pressure from Canada's big banks pushed the Harper government yesterday to overhaul the terms of financial assistance programs it recently designed to keep credit flowing through the Canadian economy.
Finance Minister Jim Flaherty announced a series of measures to support the banks, but also to mitigate the unexpected harm that some of his previous measures had caused.



In an early-morning move, Ottawa tripled to $75-billion the amount of money the government will spend on a popular mortgage purchase program that allows the banks to free up extra lending capacity. At the same time, however, the government bowed to pressure from Bay Street with a sharp price cut for a loan insurance program that the banks complained had actually made matters worse. When the program was launched a few weeks ago, the banks said the fee structure was so steep that it actually boosted funding costs because their other borrowing rates rose to match the rate set by Ottawa.



These measures are not a bailout, Mr. Flaherty stressed, and could potentially generate profit of hundreds of millions of dollars for the government. "We have to expect an extended period of stress in global credit markets," the Finance Minister said after meeting in Toronto with the chief executives of most of the big banks.
He said his message to them was that private-sector lenders have to "keep on doing their job, making loans to credit-worthy people and enterprises of all sizes." But the government will step in, he said, when "markets are profoundly disrupted, so that private-sector lenders can maintain access to the funds they need to keep lending and supporting economic growth." Other stimulus measures announced yesterday included a move by Ottawa to boost the borrowing authority of the Business Development Bank of Canada to $11.5-billion from $9.7-billion, which could get more money into the hands of small- and medium-sized businesses.


The Bank of Canada also took action yesterday, setting up a new $8-billion lending facility for financial institutions that will take non-mortgage loans as collateral. That follows Tuesday's move by the Office of the Superintendent of Financial Institutions to give banks more flexibility in setting their capital levels. Last week, concerned bankers took their complaints directly to Prime Minister Stephen Harper and lobbied hard for the Conservative government to make deep cuts to rates on the loan insurance program, but yesterday they were full of praise for the government's changes.



Gerry McCaughey, chief executive of the Canadian Imperial Bank of Commerce, lauded the new programs. "Today's announcement is another example of the federal government's commitment, along with the Bank of Canada and OFSI, to ensure that Canada's financial system remains among the strongest and most competitive in the world," he said.
The banks had wanted the mortgage bond program extended, the loan insurance scheme made cheaper, the launch of a new term facility from the central bank, and changes to capital rules. "We asked for four things, and we got all four of them," said Toronto Dominion Bank chief economist Don Drummond. Bank executives were quick to defend against public perception that Ottawa's help constitutes a bailout that will have to be funded by taxpayers. "We would like to get through this crisis without government bailouts," TD Bank CEO Ed Clark told a conference in New York. While a recession in Canada seems inevitable, he said, "there have been no bailouts of the Canadian banking system."



Under the mortgage program, the government makes money because it can borrow cheaply to buy the pools of insured home loans from the banks. With those loans off their books, the banks should be able to lend money more easily — and at lower interest rates — to consumers and businesses. The moves will "further strengthen Canadian access to international credit markets," and reduce risk, said Brenda Lum, managing director of Canadian financial institutions at credit rating agency DBRS Ltd.



So far, Ottawa has made three purchases for a total of $19-billion, and it stands to make an annual profit of more than $190-million. Extrapolating that to the whole $75-billion, that would imply a potential profit of $750-million a year.
The changes in the loan insurance program were made partly because the original plan actually raised the banks' borrowing costs by putting a "floor" on the rates for bank debt. The government had designed its program like an emergency backstop, hoping financial institutions wouldn't have to use it. The insurance came with a charge of roughly 1.85 percentage points, depending on the banks' credit ratings. What Ottawa did not foresee was that market players such as pension funds decided that if that was the price the government demanded to provide security for a loan, they shouldn't take less. As a result, the cost of medium-term funding rose by nearly 30 basis points, according to one source.
The banks will now face a fee of 1.35 percentage points if they want to tap government insurance. Analysts said the mortgage bond option remains the cheaper source of funding and that the insurance program is more of a backstop and unlikely to be used unless credit markets further deteriorate. While the federal government has pulled several additional arrows out of its bank-support quiver, there are some it does not want to use.



Mr. Flaherty has been loath to consider beefing up deposit insurance coverage for retail banking customers, and he does not want Ottawa to buy any ownership stakes in the banks. Still, Ottawa is considering some other measures. At the next meeting with provincial finance ministers in December, Mr. Flaherty is to talk about possible changes to pensions, and a potential reorganization of the regulation of capital markets.

What should you do if you are thinking of selling?

If you are considering selling your condo, call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 


Read More]]> Ottawa bows to banks to keep credit flowing
Triples spending on mortgage purchases; Cuts price of loan insurance; Boosts business borrowing; Creates new lending office



RICHARD BLACKWELL AND TARA PERKINS


From Thursday's Globe and Mail


November 13, 2008 at 12:22 AM EST







Finance Minister Jim Flaherty (Chris Young/CP)





Pressure from Canada's big banks pushed the Harper government yesterday to overhaul the terms of financial assistance programs it recently designed to keep credit flowing through the Canadian economy.
Finance Minister Jim Flaherty announced a series of measures to support the banks, but also to mitigate the unexpected harm that some of his previous measures had caused.



In an early-morning move, Ottawa tripled to $75-billion the amount of money the government will spend on a popular mortgage purchase program that allows the banks to free up extra lending capacity. At the same time, however, the government bowed to pressure from Bay Street with a sharp price cut for a loan insurance program that the banks complained had actually made matters worse. When the program was launched a few weeks ago, the banks said the fee structure was so steep that it actually boosted funding costs because their other borrowing rates rose to match the rate set by Ottawa.



These measures are not a bailout, Mr. Flaherty stressed, and could potentially generate profit of hundreds of millions of dollars for the government. "We have to expect an extended period of stress in global credit markets," the Finance Minister said after meeting in Toronto with the chief executives of most of the big banks.
He said his message to them was that private-sector lenders have to "keep on doing their job, making loans to credit-worthy people and enterprises of all sizes." But the government will step in, he said, when "markets are profoundly disrupted, so that private-sector lenders can maintain access to the funds they need to keep lending and supporting economic growth." Other stimulus measures announced yesterday included a move by Ottawa to boost the borrowing authority of the Business Development Bank of Canada to $11.5-billion from $9.7-billion, which could get more money into the hands of small- and medium-sized businesses.


The Bank of Canada also took action yesterday, setting up a new $8-billion lending facility for financial institutions that will take non-mortgage loans as collateral. That follows Tuesday's move by the Office of the Superintendent of Financial Institutions to give banks more flexibility in setting their capital levels. Last week, concerned bankers took their complaints directly to Prime Minister Stephen Harper and lobbied hard for the Conservative government to make deep cuts to rates on the loan insurance program, but yesterday they were full of praise for the government's changes.



Gerry McCaughey, chief executive of the Canadian Imperial Bank of Commerce, lauded the new programs. "Today's announcement is another example of the federal government's commitment, along with the Bank of Canada and OFSI, to ensure that Canada's financial system remains among the strongest and most competitive in the world," he said.
The banks had wanted the mortgage bond program extended, the loan insurance scheme made cheaper, the launch of a new term facility from the central bank, and changes to capital rules. "We asked for four things, and we got all four of them," said Toronto Dominion Bank chief economist Don Drummond. Bank executives were quick to defend against public perception that Ottawa's help constitutes a bailout that will have to be funded by taxpayers. "We would like to get through this crisis without government bailouts," TD Bank CEO Ed Clark told a conference in New York. While a recession in Canada seems inevitable, he said, "there have been no bailouts of the Canadian banking system."



Under the mortgage program, the government makes money because it can borrow cheaply to buy the pools of insured home loans from the banks. With those loans off their books, the banks should be able to lend money more easily — and at lower interest rates — to consumers and businesses. The moves will "further strengthen Canadian access to international credit markets," and reduce risk, said Brenda Lum, managing director of Canadian financial institutions at credit rating agency DBRS Ltd.



So far, Ottawa has made three purchases for a total of $19-billion, and it stands to make an annual profit of more than $190-million. Extrapolating that to the whole $75-billion, that would imply a potential profit of $750-million a year.
The changes in the loan insurance program were made partly because the original plan actually raised the banks' borrowing costs by putting a "floor" on the rates for bank debt. The government had designed its program like an emergency backstop, hoping financial institutions wouldn't have to use it. The insurance came with a charge of roughly 1.85 percentage points, depending on the banks' credit ratings. What Ottawa did not foresee was that market players such as pension funds decided that if that was the price the government demanded to provide security for a loan, they shouldn't take less. As a result, the cost of medium-term funding rose by nearly 30 basis points, according to one source.
The banks will now face a fee of 1.35 percentage points if they want to tap government insurance. Analysts said the mortgage bond option remains the cheaper source of funding and that the insurance program is more of a backstop and unlikely to be used unless credit markets further deteriorate. While the federal government has pulled several additional arrows out of its bank-support quiver, there are some it does not want to use.



Mr. Flaherty has been loath to consider beefing up deposit insurance coverage for retail banking customers, and he does not want Ottawa to buy any ownership stakes in the banks. Still, Ottawa is considering some other measures. At the next meeting with provincial finance ministers in December, Mr. Flaherty is to talk about possible changes to pensions, and a potential reorganization of the regulation of capital markets.

What should you do if you are thinking of selling?

If you are considering selling your condo, call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 


Read More ]]> http://shaunkimmins.com/ViewBlog/155/#comments http://shaunkimmins.com/ViewBlog/153/ http://shaunkimmins.com/ViewBlog/153/#comments Wed, 05 Nov 2008 12:27:11 +0000 Monthly Stats and Press releases http://shaunkimmins.com/ViewBlog/153/
News Release        



FOR IMMEDIATE RELEASE:


Residential housing price decline


creates buying opportunities


VANCOUVER, B.C. – November 3, 2008 – Housing price reductions across Greater Vancouver over the last six months have eliminated price gains witnessed in the first quarter of 2008.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 8.8 per cent between May and October 2008, resulting in a 3.9 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between Octobers 2007 and 2008. In May 2008, the overall residential benchmark price was $568,411, compared to $518,668 in October 2008.


“Home sales are not keeping pace with the positive economic conditions in BC,” said REBGV president, Dave Watt. “That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.”


Residential property sales in Greater Vancouver declined 55 per cent in October 2008 to 1,364 from the 3,028 sales recorded in October 2007.


Active listings totalled 19,257 in October 2008, a three per cent decline from the 19,852 active listings reported in September 2008. New listings for detached, attached and apartment properties increased one per cent to 4,867 in October 2008 compared to October 2007, when 4,819 new units were listed.


Sales of detached properties in October 2008 declined 56.5 per cent to 493 from the 1,133 sales recorded during the same period in 2007. The benchmark price for detached properties declined 4.7 per cent from October 2007 to $695,962. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 9.8 per cent.


Sales of apartment properties in October 2008 declined 52.7 per cent to 647, compared to 1,368 sales in October 2007. The benchmark price of an apartment property declined 3.5 per cent from October 2007 to $358,359. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined eight per cent.


Attached property sales in October 2008 are down 57.5 per cent to 224, compared with the 527 sales in October 2007. The benchmark price of an attached unit declined 1.4 per cent in Greater Vancouver between October 2007 and 2008 to $448,152. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 6.4 per cent.

 
What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 


 

Read More]]>
News Release        



FOR IMMEDIATE RELEASE:


Residential housing price decline


creates buying opportunities


VANCOUVER, B.C. – November 3, 2008 – Housing price reductions across Greater Vancouver over the last six months have eliminated price gains witnessed in the first quarter of 2008.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 8.8 per cent between May and October 2008, resulting in a 3.9 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between Octobers 2007 and 2008. In May 2008, the overall residential benchmark price was $568,411, compared to $518,668 in October 2008.


“Home sales are not keeping pace with the positive economic conditions in BC,” said REBGV president, Dave Watt. “That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.”


Residential property sales in Greater Vancouver declined 55 per cent in October 2008 to 1,364 from the 3,028 sales recorded in October 2007.


Active listings totalled 19,257 in October 2008, a three per cent decline from the 19,852 active listings reported in September 2008. New listings for detached, attached and apartment properties increased one per cent to 4,867 in October 2008 compared to October 2007, when 4,819 new units were listed.


Sales of detached properties in October 2008 declined 56.5 per cent to 493 from the 1,133 sales recorded during the same period in 2007. The benchmark price for detached properties declined 4.7 per cent from October 2007 to $695,962. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 9.8 per cent.


Sales of apartment properties in October 2008 declined 52.7 per cent to 647, compared to 1,368 sales in October 2007. The benchmark price of an apartment property declined 3.5 per cent from October 2007 to $358,359. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined eight per cent.


Attached property sales in October 2008 are down 57.5 per cent to 224, compared with the 527 sales in October 2007. The benchmark price of an attached unit declined 1.4 per cent in Greater Vancouver between October 2007 and 2008 to $448,152. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 6.4 per cent.

 
What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes 


 

Read More ]]> http://shaunkimmins.com/ViewBlog/153/#comments http://shaunkimmins.com/ViewBlog/151/ http://shaunkimmins.com/ViewBlog/151/#comments Fri, 24 Oct 2008 16:35:35 +0000 Market Info http://shaunkimmins.com/ViewBlog/151/

Victoria is on hold, becoming Langford's second development casualty in recent weeks. Quigg said pre-purchases virtually ground to a halt at the end of August. "We are not doing anything on


Bear Mountain right now," Quigg said. The shutdown came barely a month after work began on the first tower. Capella is planned for four towers, from 26 to 44-stories, on 20 acres overlooking Greater Victoria. Quigg estimates Capella is on hold anywhere from six months to two years. Clients will get their deposits back and have the first choice at units when the project restarts, he said. Westhills development in Langford, planned as a 6,000-unit "green" neighbourhood pilot project, suspended work in early October. It also cited the recent catastrophic downturn in world financi
 
Lucaya Project Stopped In Kelowna

 

Construction of Lucaya, a 21-storey residential tower on Sunset Drive in


Kelowna , has been stopped. Mark Dedominicis of Navigator Development Corporation, the Calgary-based development manager for the building's investors, said construction had been slowing down for some time before the complete stoppage came to be. "Until we have committed financing we are going to take the site down to make sure it's safe and expend as little capital as possible," he said adding they're looking for financing "that's not going to impede the profitability" of the project. About one-third of the project sold in the pre-sale phase.

 
Shut Down Infinity Seeks Fresh Financing

 

A major refinancing effort from PriceWaterhouseCoopers and the law firm of Fasken Martineau DuMoulin LLP is trying to revitalize the $350 million, 1,400-condo unit Infinity at Central City project in central


Surrey . Robert Millar, a partner at Faskens, representing South Korea-based Jung Developments Inc. said the company applied for financial protection under the Companies Creditors Arrangement Act and was granted interim relief from its creditors. Jung is attempting to build a five-tower complex, residential/retail complex, the largest in


Surrey history. Miller told the 560 pre-sale buyers that their deposits are safe and that "we are confident we will arrive at new financial partnership that will ensure this project is completed."

 

Millar said the first of the five 36-storey towers has been completed and occupied. Two further towers are under construction, concrete floors have been poured up to levels 21 and 25. The final two towers have not come to market but have zoning approval in place. It is estimated that approximately $100 million is needed to finish the project.

 
Others

 

We also hear of Intrawest being in trouble (Whistler may well be in bankruptcy this Friday - but will operate as a resort) and the Ritz on Georgia has stopped construction. Financing is cited as the problem for Intrawest, parking lot troubles (???) for the Ritz on


Georgia (Ahem?! The sales office is closed and advertising is painted over). We also hear through the grapevine the rumour that work has been halted at the Millennium project "Evelyn" in


West Vancouver as well. (Question now on Athlete's village?) Add to a glut of quarter share and Phase II condos clogging the Whistler marketplace ... and being fearful is understandable.

 

Major Point: There will be more. Buyers will continue to back off, the bad news will accelerate. It is normal at the end of the cycle. From 1995 to 1999 condos on the Concord Pacific site dropped by 35%. Condo prices in the Bosa Bros. development on

Quebec St.sold on average $46,000 lower on each sale than the original price achieved by Bosa. You overbuild - you have to clear out inventory ... and new projects will not be built. Every project that goes down is GOOD for the remaining used and new units on the market. However, look at this as an opportunity. Bide your time ... keep watching for bank ordered deals (bank says: "You MUST sell 6 units or we pull financing" ... developer will have to blow them out). Buy only the deal of a lifetime ... but keep looking.

 
Watch For The Rise Of The Sale-And-Lease Back

 

Commercial lending is tightening up - and fast - despite what appears to be a fairly robust commercial real estate market in


Western Canada . Some large projects, both commercial and residential are being stopped or stalled (see below for the latest) as nervous lenders pull financing. At the same time, businesses are having problems securing financing for expansion. For these reasons, we can expect to see more sale-and-lease back arrangements, even in Metro Vancouver. John Lecky, a principal with Avison Young (Canada) Inc. in


Vancouver (604-687-7331) explains the concept can offer advantages to both sellers and buyers. The advantage for the vendors is that they acquire immediate cash based on 100% of the property value, without the need to acquire financing; the removal of real estate debt from the balance sheet; and continued control of the property without responsibility of pr

 

There are also advantages for the buyer. The buyer acquires a fully-leased asset with the potential for appreciation in value. Most important, the return on investment from the rental revenue can be leveraged by obtaining debt that is lower priced than the cap rate, which increases the rate of return. Recently, Canadian Tire sold and leased back 12 of their stores, showing that the strategy is moving from the office and industrial sector into retail. Canadian Tire pocketed $170 million from the sale, mostly to a REIT, and signed 15-year leases as the tenant. Locally, Pacific Blue Cross recently sold and leased back its Burnaby headquarters; and Ritchie Bros. Auctioneers sold and leased back its


Surrey headquarters.

 
Canada-Wide Sales Down 10% In Third Quarter

 

Fewer homes were sold in the third quarter but the number put on the market also dropped - a sign that a slide in housing prices is beginning to slow, says the Canadian Real Estate Association. A total of 76,391 homes were sold in major Canadian markets in the quarter, a 10.7% drop from the same period last year, CREA said Wednesday. Vancouver led the way with a 43.2% decline in home sales year-over-year while


Victoria posted a drop of 16.6%. New listings declined to 146,637 nationally, a drop of 3.3% from their peak in the second quarter of 2008. Listings are still up 6.5% year-over-year. Nationally, average home prices fell 4.9% year-over-year to $319,969. The decline was led by Vancouver, where a decline of 8% more than offset increases in


Saskatchewan . Regina posted an increase of 27% while


Saskatoon home prices added 23%. Canadian homeowne

 

Major point: Yes, we are different and yes we will come out of this, but not now. Sell Regina and


Saskatoon . Markets will turn negative there as well.


Edmonton will also get affected now because of the oil price collapse. A number of tar sand projects need $100 oil and will be put on hold.

 
We Say It Again And Again...

 

Markets become the stories people hear/tell/retell about them. The news is full of worldwide bank bailouts, guarantees, joint lowering of rates ... trouble ... trouble. "Ozzie, this morning I heard that 1 house in 90 is now in foreclosure in the


US . OH MY GOD! The world is collapsing..." Eh, so what? 89% of houses in the


US are NOT in foreclosure. "But, Ozzie 3.8% of all mortgages are in default. OH, MY GOD!" Eh, so what ... 96.2% of all


US homes are NOT in default. "But Ozzie I bought in the


US too early and it is going down more. OH, MY GOD!" Eh, what? ... If you paid $140,000 for a condo 2 months in June (when right here we TOLD YOU to change your money into US dollars), that condo now would cost another Canadian $171,000 (because of the exchange rate). "Yeah, but


Ozzie, Iceland is collapsing. OH MY GOD,


Britain too!" Eh, so what...? We are in


Canada , we are in BC, whe

 

I keep saying that we are printing money ... that inflation is primarily a monetary phenomenon (Friedman) and that we will eventually see higher asset prices again. But each time we have to clear excesses first. Too many condos built (like from 1979-1982 and from 1990-1995) have to be sold at lower prices, some developments have to collapse, some people will be foreclosed on, and others will go bankrupt ... but - in the end - we will muddle through again.


New York collapsed by 35% to 40% in value in the early '90s - the news was dire... The Reichmann's went in and bought real estate and made $500 million in 9 months.


San Diego was down by 35% in 1992 and since then has risen by 410%. Of course, it had to readjust! Booms are followed by busts ... but not necessarily over the cliff. I advised last January that in 2008 cash would be king. Will we have bad times? YES. Unfortunately - again - markets are the stories

 

Major Point:

 

Fear always is stronger than euphoria. And you can SMELL the fear in every news report, in our papers and our talking heads on TV. While we have a propensity to overshoot our upward cycles driving prices higher than we ought to, we also - alas - have the propensity to drive prices lower than we ought to when markets turn as now. (We expect prices to reverse between 5% and 20%, depending on area and product.) The losses in the stock market, the crash in oil, gas prices and the ongoing barrage of talking about (even just the talk) the recession and job losses, may well overshadow the real bright future outlook we should have in BC. This will last 1-3 years (we have talked many times of previous downturns and price declines). It is not just a worldwide issue. We have overshot our targets on affordability in


Vancouver (70-plus percent), we have a sharp reversal in sales and a substantial increase in listings.

 



Understand your motives ... you are not buying the market, or the world, or


Iceland ... you are buying a home, a condo, a place of business. Real estate has a use and thus will always have a value. Best of all, if it never goes up ... eventually you will have it paid off and you own it. Keep your eyes open. In the next 1-3 years some great opportunity will come your way. Risks rises in direct proportion to how fast and how high values go ... risks falls in direct proportion in downturns as well.



What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More]]>

Victoria is on hold, becoming Langford's second development casualty in recent weeks. Quigg said pre-purchases virtually ground to a halt at the end of August. "We are not doing anything on


Bear Mountain right now," Quigg said. The shutdown came barely a month after work began on the first tower. Capella is planned for four towers, from 26 to 44-stories, on 20 acres overlooking Greater Victoria. Quigg estimates Capella is on hold anywhere from six months to two years. Clients will get their deposits back and have the first choice at units when the project restarts, he said. Westhills development in Langford, planned as a 6,000-unit "green" neighbourhood pilot project, suspended work in early October. It also cited the recent catastrophic downturn in world financi
 
Lucaya Project Stopped In Kelowna

 

Construction of Lucaya, a 21-storey residential tower on Sunset Drive in


Kelowna , has been stopped. Mark Dedominicis of Navigator Development Corporation, the Calgary-based development manager for the building's investors, said construction had been slowing down for some time before the complete stoppage came to be. "Until we have committed financing we are going to take the site down to make sure it's safe and expend as little capital as possible," he said adding they're looking for financing "that's not going to impede the profitability" of the project. About one-third of the project sold in the pre-sale phase.

 
Shut Down Infinity Seeks Fresh Financing

 

A major refinancing effort from PriceWaterhouseCoopers and the law firm of Fasken Martineau DuMoulin LLP is trying to revitalize the $350 million, 1,400-condo unit Infinity at Central City project in central


Surrey . Robert Millar, a partner at Faskens, representing South Korea-based Jung Developments Inc. said the company applied for financial protection under the Companies Creditors Arrangement Act and was granted interim relief from its creditors. Jung is attempting to build a five-tower complex, residential/retail complex, the largest in


Surrey history. Miller told the 560 pre-sale buyers that their deposits are safe and that "we are confident we will arrive at new financial partnership that will ensure this project is completed."

 

Millar said the first of the five 36-storey towers has been completed and occupied. Two further towers are under construction, concrete floors have been poured up to levels 21 and 25. The final two towers have not come to market but have zoning approval in place. It is estimated that approximately $100 million is needed to finish the project.

 
Others

 

We also hear of Intrawest being in trouble (Whistler may well be in bankruptcy this Friday - but will operate as a resort) and the Ritz on Georgia has stopped construction. Financing is cited as the problem for Intrawest, parking lot troubles (???) for the Ritz on


Georgia (Ahem?! The sales office is closed and advertising is painted over). We also hear through the grapevine the rumour that work has been halted at the Millennium project "Evelyn" in


West Vancouver as well. (Question now on Athlete's village?) Add to a glut of quarter share and Phase II condos clogging the Whistler marketplace ... and being fearful is understandable.

 

Major Point: There will be more. Buyers will continue to back off, the bad news will accelerate. It is normal at the end of the cycle. From 1995 to 1999 condos on the Concord Pacific site dropped by 35%. Condo prices in the Bosa Bros. development on

Quebec St.sold on average $46,000 lower on each sale than the original price achieved by Bosa. You overbuild - you have to clear out inventory ... and new projects will not be built. Every project that goes down is GOOD for the remaining used and new units on the market. However, look at this as an opportunity. Bide your time ... keep watching for bank ordered deals (bank says: "You MUST sell 6 units or we pull financing" ... developer will have to blow them out). Buy only the deal of a lifetime ... but keep looking.

 
Watch For The Rise Of The Sale-And-Lease Back

 

Commercial lending is tightening up - and fast - despite what appears to be a fairly robust commercial real estate market in


Western Canada . Some large projects, both commercial and residential are being stopped or stalled (see below for the latest) as nervous lenders pull financing. At the same time, businesses are having problems securing financing for expansion. For these reasons, we can expect to see more sale-and-lease back arrangements, even in Metro Vancouver. John Lecky, a principal with Avison Young (Canada) Inc. in


Vancouver (604-687-7331) explains the concept can offer advantages to both sellers and buyers. The advantage for the vendors is that they acquire immediate cash based on 100% of the property value, without the need to acquire financing; the removal of real estate debt from the balance sheet; and continued control of the property without responsibility of pr

 

There are also advantages for the buyer. The buyer acquires a fully-leased asset with the potential for appreciation in value. Most important, the return on investment from the rental revenue can be leveraged by obtaining debt that is lower priced than the cap rate, which increases the rate of return. Recently, Canadian Tire sold and leased back 12 of their stores, showing that the strategy is moving from the office and industrial sector into retail. Canadian Tire pocketed $170 million from the sale, mostly to a REIT, and signed 15-year leases as the tenant. Locally, Pacific Blue Cross recently sold and leased back its Burnaby headquarters; and Ritchie Bros. Auctioneers sold and leased back its


Surrey headquarters.

 
Canada-Wide Sales Down 10% In Third Quarter

 

Fewer homes were sold in the third quarter but the number put on the market also dropped - a sign that a slide in housing prices is beginning to slow, says the Canadian Real Estate Association. A total of 76,391 homes were sold in major Canadian markets in the quarter, a 10.7% drop from the same period last year, CREA said Wednesday. Vancouver led the way with a 43.2% decline in home sales year-over-year while


Victoria posted a drop of 16.6%. New listings declined to 146,637 nationally, a drop of 3.3% from their peak in the second quarter of 2008. Listings are still up 6.5% year-over-year. Nationally, average home prices fell 4.9% year-over-year to $319,969. The decline was led by Vancouver, where a decline of 8% more than offset increases in


Saskatchewan . Regina posted an increase of 27% while


Saskatoon home prices added 23%. Canadian homeowne

 

Major point: Yes, we are different and yes we will come out of this, but not now. Sell Regina and


Saskatoon . Markets will turn negative there as well.


Edmonton will also get affected now because of the oil price collapse. A number of tar sand projects need $100 oil and will be put on hold.

 
We Say It Again And Again...

 

Markets become the stories people hear/tell/retell about them. The news is full of worldwide bank bailouts, guarantees, joint lowering of rates ... trouble ... trouble. "Ozzie, this morning I heard that 1 house in 90 is now in foreclosure in the


US . OH MY GOD! The world is collapsing..." Eh, so what? 89% of houses in the


US are NOT in foreclosure. "But, Ozzie 3.8% of all mortgages are in default. OH, MY GOD!" Eh, so what ... 96.2% of all


US homes are NOT in default. "But Ozzie I bought in the


US too early and it is going down more. OH, MY GOD!" Eh, what? ... If you paid $140,000 for a condo 2 months in June (when right here we TOLD YOU to change your money into US dollars), that condo now would cost another Canadian $171,000 (because of the exchange rate). "Yeah, but


Ozzie, Iceland is collapsing. OH MY GOD,


Britain too!" Eh, so what...? We are in


Canada , we are in BC, whe

 

I keep saying that we are printing money ... that inflation is primarily a monetary phenomenon (Friedman) and that we will eventually see higher asset prices again. But each time we have to clear excesses first. Too many condos built (like from 1979-1982 and from 1990-1995) have to be sold at lower prices, some developments have to collapse, some people will be foreclosed on, and others will go bankrupt ... but - in the end - we will muddle through again.


New York collapsed by 35% to 40% in value in the early '90s - the news was dire... The Reichmann's went in and bought real estate and made $500 million in 9 months.


San Diego was down by 35% in 1992 and since then has risen by 410%. Of course, it had to readjust! Booms are followed by busts ... but not necessarily over the cliff. I advised last January that in 2008 cash would be king. Will we have bad times? YES. Unfortunately - again - markets are the stories

 

Major Point:

 

Fear always is stronger than euphoria. And you can SMELL the fear in every news report, in our papers and our talking heads on TV. While we have a propensity to overshoot our upward cycles driving prices higher than we ought to, we also - alas - have the propensity to drive prices lower than we ought to when markets turn as now. (We expect prices to reverse between 5% and 20%, depending on area and product.) The losses in the stock market, the crash in oil, gas prices and the ongoing barrage of talking about (even just the talk) the recession and job losses, may well overshadow the real bright future outlook we should have in BC. This will last 1-3 years (we have talked many times of previous downturns and price declines). It is not just a worldwide issue. We have overshot our targets on affordability in


Vancouver (70-plus percent), we have a sharp reversal in sales and a substantial increase in listings.

 



Understand your motives ... you are not buying the market, or the world, or


Iceland ... you are buying a home, a condo, a place of business. Real estate has a use and thus will always have a value. Best of all, if it never goes up ... eventually you will have it paid off and you own it. Keep your eyes open. In the next 1-3 years some great opportunity will come your way. Risks rises in direct proportion to how fast and how high values go ... risks falls in direct proportion in downturns as well.



What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More ]]> http://shaunkimmins.com/ViewBlog/151/#comments http://shaunkimmins.com/ViewBlog/149/ http://shaunkimmins.com/ViewBlog/149/#comments Fri, 24 Oct 2008 13:26:30 +0000 Market Info http://shaunkimmins.com/ViewBlog/149/
According to the front page of The Vancouver Sun today in an article from Cenral 1 Credit Union, BC's housing market can expect a 15% decline in property values in 2009 and a further slide of 3% in 2010. According to the article, the largest losses will be in the multi-unit sector (read condos) which they believe will decline as much as 44% versus housing which is forecast to decline 18%.




What does this mean for Downtown Vancouver Condo Sellers?

It means that if you are waiting to see what happens in the next little while, you are gambling with your equity. If this article is correct, you stand to loose almost 1/2 of your condo's equity by waiting. It's time to face the facts, you have lost some equity already but nowhere near what you stand to loose by waiting! You still have an opportunity to sell now and salvage some value. Contact Shaun for specifics.

What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More]]>
According to the front page of The Vancouver Sun today in an article from Cenral 1 Credit Union, BC's housing market can expect a 15% decline in property values in 2009 and a further slide of 3% in 2010. According to the article, the largest losses will be in the multi-unit sector (read condos) which they believe will decline as much as 44% versus housing which is forecast to decline 18%.




What does this mean for Downtown Vancouver Condo Sellers?

It means that if you are waiting to see what happens in the next little while, you are gambling with your equity. If this article is correct, you stand to loose almost 1/2 of your condo's equity by waiting. It's time to face the facts, you have lost some equity already but nowhere near what you stand to loose by waiting! You still have an opportunity to sell now and salvage some value. Contact Shaun for specifics.

What should you do if you are thinking of selling?

If you are considering selling your condo, do yourself a favour and call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More ]]> http://shaunkimmins.com/ViewBlog/149/#comments http://shaunkimmins.com/ViewBlog/147/ http://shaunkimmins.com/ViewBlog/147/#comments Wed, 22 Oct 2008 11:42:33 +0000 Market Info http://shaunkimmins.com/ViewBlog/147/
It's no suprise to anyone at this point in the global economic meltdown that real estate developers are having problems both funding and selling their new projects and it appears that the Ritz Carlton "twisted tower" designed by Vancouver architect by Arthur Erikson may be the latest high-profile casualty in Vancouver's downtown condo market.





According to local news sources the project has been halted. Click here for a scan of this mornings article: Ritz on hold The official explanation is that the parkade is being redesigned. Yeah right. I'll tell you what, while they're redesigning, I have some nice swampland in Florida you may be interested in. 

This problem isn't going away soon 

Whatever the truth is, one thing is certain. The market is worsening and you are well advised not to hold your breath for a turn around in the near future. We're in for a long, protracted slowdown in the market so if you're thinking of selling but you are "waiting to see what happens" you are risking further errosion in your equity.

Concerned about the Candian dollar's slide?

Yes, our dollar has retreated considerably from the highs we saw earlier this year. It's now siting at below 80 cents to the US dollar. So what to do? My advice is still to sell if that's your plan but to leave the proceeds in a Canadian dollar account or short term investment facility. Our dollar is being hammered by the decline in demand for oil and commodities. Once consumers start to see recovery and confidence returns, demand will follow as will the value of the loonie. At that time, you can make the exchange thereby avoiding the potential further errosion of real estate values in downtown Vancouver. I would be glad to recommend some excellent investment counsellors should you wish to pursue this avenue.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes


 

Read More]]>
It's no suprise to anyone at this point in the global economic meltdown that real estate developers are having problems both funding and selling their new projects and it appears that the Ritz Carlton "twisted tower" designed by Vancouver architect by Arthur Erikson may be the latest high-profile casualty in Vancouver's downtown condo market.





According to local news sources the project has been halted. Click here for a scan of this mornings article: Ritz on hold The official explanation is that the parkade is being redesigned. Yeah right. I'll tell you what, while they're redesigning, I have some nice swampland in Florida you may be interested in. 

This problem isn't going away soon 

Whatever the truth is, one thing is certain. The market is worsening and you are well advised not to hold your breath for a turn around in the near future. We're in for a long, protracted slowdown in the market so if you're thinking of selling but you are "waiting to see what happens" you are risking further errosion in your equity.

Concerned about the Candian dollar's slide?

Yes, our dollar has retreated considerably from the highs we saw earlier this year. It's now siting at below 80 cents to the US dollar. So what to do? My advice is still to sell if that's your plan but to leave the proceeds in a Canadian dollar account or short term investment facility. Our dollar is being hammered by the decline in demand for oil and commodities. Once consumers start to see recovery and confidence returns, demand will follow as will the value of the loonie. At that time, you can make the exchange thereby avoiding the potential further errosion of real estate values in downtown Vancouver. I would be glad to recommend some excellent investment counsellors should you wish to pursue this avenue.


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes


 

Read More ]]> http://shaunkimmins.com/ViewBlog/147/#comments http://shaunkimmins.com/ViewBlog/145/ http://shaunkimmins.com/ViewBlog/145/#comments Tue, 14 Oct 2008 13:37:09 +0000 Listings http://shaunkimmins.com/ViewBlog/145/ I just finished uploading this Condo for sale, 1001 1328 PENDER Street, Vancouver West, British Columbia
Luxury corner 2 bedrooms plus den at Classico in Coal Harbour. Open floor plan with top finishings such as Brazilian cherry hardwood, crown moulding, designer paint & mirrored doors in both bedrooms. Kitchen boasts granite counters and S/S appliances including gas range. Ensuite bath has jetted soaker tub & heated floors, marble counters & decorative Italian tile. Beautiful corridor view of Coal Harbour from the balcony with custom cedar deck cover. Includes in suite laundry & storage as well 1 parking stall. Building features indoor pool, hot tub, sauna, exercise facility, meeting room & guest suite. Pets and rentals welcome. Read More]]> I just finished uploading this Condo for sale, 1001 1328 PENDER Street, Vancouver West, British Columbia
Luxury corner 2 bedrooms plus den at Classico in Coal Harbour. Open floor plan with top finishings such as Brazilian cherry hardwood, crown moulding, designer paint & mirrored doors in both bedrooms. Kitchen boasts granite counters and S/S appliances including gas range. Ensuite bath has jetted soaker tub & heated floors, marble counters & decorative Italian tile. Beautiful corridor view of Coal Harbour from the balcony with custom cedar deck cover. Includes in suite laundry & storage as well 1 parking stall. Building features indoor pool, hot tub, sauna, exercise facility, meeting room & guest suite. Pets and rentals welcome. Read More ]]> http://shaunkimmins.com/ViewBlog/145/#comments http://shaunkimmins.com/ViewBlog/143/ http://shaunkimmins.com/ViewBlog/143/#comments Thu, 09 Oct 2008 15:24:35 +0000 Monthly Stats and Press releases http://shaunkimmins.com/ViewBlog/143/
Please click (on the report below) to see the report by CIBC World markets on the likelihood of a US-style housing crash in Canada. I predicts that the Vancouver and Canadian markets won't crash as badly but it does contend that things are going to get worse than they are right now. Time to sell? If you want to maximize your investment, then the answer is yes.


CIBC report on Canadian housing vs the US housing crash


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More]]>
Please click (on the report below) to see the report by CIBC World markets on the likelihood of a US-style housing crash in Canada. I predicts that the Vancouver and Canadian markets won't crash as badly but it does contend that things are going to get worse than they are right now. Time to sell? If you want to maximize your investment, then the answer is yes.


CIBC report on Canadian housing vs the US housing crash


To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites

Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More ]]> http://shaunkimmins.com/ViewBlog/143/#comments http://shaunkimmins.com/ViewBlog/141/ http://shaunkimmins.com/ViewBlog/141/#comments Thu, 09 Oct 2008 15:05:41 +0000 Market Info http://shaunkimmins.com/ViewBlog/141/
Does this mean there's a window of opportunity for Vancouver condo investors to sell before things get really bad? Time will tell......


Realbiz pointed out this story in the Globe and Mail this morning: A recent report from Merrill Lynch Canada is warning of a Canadian housing market crash and mortgage meltdown similar to the one currently eating away at the US economy:



Canadian households are more financially overextended than their counterparts in the United States or Britain, a report issued by Merrill Lynch Canada economists David Wolf and Carolyn Kwan says.


“We’re just now starting to see house prices fall in Canada, and sharp rises in unsold home inventories increasingly imply that this will not be a transitory phenomenon … From this perspective, the absence of a Canadian credit crunch to date may be cause for concern, not comfort,” their report says.


They say it’s only a matter of time before the “tipping point” is reached and the housing and credit markets crack in Canada.



Stephen Harper was asked to comment on this at a campaign stop in Vancouver, where he rejected the economists conclusion:



“Firstly, we have seen that the housing market and the construction market are much stronger in Canada than in the United States. We don’t have the same situation here with mortgages as was the case in the United States with the subprime mortgages there. And so therefore I think our market is in a much stronger position.”



Merrill Lynch Canada says the main concern is the way Canadian households have overextended themselves and carry a large quantity of debt.  The housing and construction market may currently be stronger than it is in the US, but there’s no guarantee that it will stay that way:



“What worries us is that Canadian households have been running a larger financial deficit than households in either the U.S. or the U.K.,” the Merrill report says. “… After 40 years of net saving, Canadian households moved into sustained deficit in 2002. In 2007, household net borrowing amounted to 6.3 per cent of disposable income, a wider deficit than in the U.K. and not far off the peak U.S. shortfall seen in 2005.”


The economists say the data imply that Canada’s household sector is now overextending itself as much as the United States or Britain ever did.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites
Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More]]>
Does this mean there's a window of opportunity for Vancouver condo investors to sell before things get really bad? Time will tell......


Realbiz pointed out this story in the Globe and Mail this morning: A recent report from Merrill Lynch Canada is warning of a Canadian housing market crash and mortgage meltdown similar to the one currently eating away at the US economy:



Canadian households are more financially overextended than their counterparts in the United States or Britain, a report issued by Merrill Lynch Canada economists David Wolf and Carolyn Kwan says.


“We’re just now starting to see house prices fall in Canada, and sharp rises in unsold home inventories increasingly imply that this will not be a transitory phenomenon … From this perspective, the absence of a Canadian credit crunch to date may be cause for concern, not comfort,” their report says.


They say it’s only a matter of time before the “tipping point” is reached and the housing and credit markets crack in Canada.



Stephen Harper was asked to comment on this at a campaign stop in Vancouver, where he rejected the economists conclusion:



“Firstly, we have seen that the housing market and the construction market are much stronger in Canada than in the United States. We don’t have the same situation here with mortgages as was the case in the United States with the subprime mortgages there. And so therefore I think our market is in a much stronger position.”



Merrill Lynch Canada says the main concern is the way Canadian households have overextended themselves and carry a large quantity of debt.  The housing and construction market may currently be stronger than it is in the US, but there’s no guarantee that it will stay that way:



“What worries us is that Canadian households have been running a larger financial deficit than households in either the U.S. or the U.K.,” the Merrill report says. “… After 40 years of net saving, Canadian households moved into sustained deficit in 2002. In 2007, household net borrowing amounted to 6.3 per cent of disposable income, a wider deficit than in the U.K. and not far off the peak U.S. shortfall seen in 2005.”


The economists say the data imply that Canada’s household sector is now overextending itself as much as the United States or Britain ever did.


For comprehensive details on this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites
Shaun Kimmins and Associates Main website
Coal Harbour Condos and Townhomes
The Bayshore Condos and Townhomes
Waterfront Place Condos and Townhomes
Harbour Green Condos and Townhomes
False Creek North Condos and Townhomes
Vancouver's Luxury Condos and Townhomes

Read More ]]> http://shaunkimmins.com/ViewBlog/141/#comments http://shaunkimmins.com/ViewBlog/139/ http://shaunkimmins.com/ViewBlog/139/#comments Mon, 06 Oct 2008 16:39:36 +0000 Monthly Stats and Press releases http://shaunkimmins.com/ViewBlog/139/ Here's the latest 31 year price graph including my notes to point out the last FLAT market's duration: 9 years!


Average price with notes to Sept 2008.pdf





The point of this graph is to illustrate that once the VAncouver Real estate MArket enters a flat trend, it can be there for a long time. If you're waiting for the current market to get better, you may be waiting just as long. Contact Shaun to dicsuss the merits of cashing out of the current market and where future opportunities might lay.

Read More]]> Here's the latest 31 year price graph including my notes to point out the last FLAT market's duration: 9 years!


Average price with notes to Sept 2008.pdf





The point of this graph is to illustrate that once the VAncouver Real estate MArket enters a flat trend, it can be there for a long time. If you're waiting for the current market to get better, you may be waiting just as long. Contact Shaun to dicsuss the merits of cashing out of the current market and where future opportunities might lay.

Read More ]]> http://shaunkimmins.com/ViewBlog/139/#comments