By Chris Sorensen - Wednesday, January 9, 2013 - 0 Comments
The housing bubble has burst, and few will emerge unscathed
Keith Roy began warning his clients about a faltering Vancouver housing market in early 2012. The realtor says he was tipped off not by industry statistics, but by chatter across backyard fences. “When you hear about a homeowner who thinks his neighbour got too much money when he sold his house, you know there’s something going on,” says Roy. “That was the first clue.”
The next shoe to drop was a handful of homes in desirable west side neighbourhoods that took a few extra days to sell. Sensing a shift in the market, Roy put his own house up for sale in June and penned a blog posting the following month that advised people to “cash out.” Though he was criticized by fellow agents for breaking rank, Roy says he now feels vindicated after watching Vancouver home sales crumble to their lowest point in more than decade, with prices falling 3.5 per cent since hitting a high last May. The lesson? Recognizing a looming real estate downturn is more art than science; once it shows up in the numbers, it’s too late to do much about it. “One day the phone just stops ringing,” Roy says. “Then you’re in it.” Continue…
By Colin Campbell - Tuesday, May 5, 2009 at 3:13 PM - 5 Comments
Why all this talk of a crash is exaggerated
The multitude of construction cranes that now dot Toronto’s skyline seem to point upwards as if oblivious to the harsh economic times unfolding below. Floors keep getting stacked onto condo project after condo project, adding to the number of new units that are unsold, and will likely remain that way for many months. It’s a trend that has led many in this city to look up and wonder not just who’s going to buy all these new condos, but whether a crash in the once-heated condo market is now all but inevitable.
A report this week from TD Economics says “no.” The inventories of new condos, while significant, are not as bad as one might think, nor is the impact the recession is having on the economy of the Toronto area. The market is certainly caught up in the downturn, but the kind of underlying circumstances that have caused all-out meltdowns in U.S. cities do not exists here, it says. Toronto’s condo market is in the midst of a “cyclical downturn rather than a drawn out structural downturn,” it states. Continue…