Comments on: Prelude to crisis?

By: Burnaby Real Estate Agent

Burnaby Real Estate Agent — Wed, 19 Aug 2009 00:18:28 +0000

Well, the US is still suffering, but Canada has bounced back quite strongly. It does concern me, though, that things are so strong so quickly. We have a new Harmonized sales tax on the way, which will increase the burden on buyers, and interest rates are likely to rise soon, so we may have some serious cooling effect on our markets.

With regard to our economic relationship to the US, I would hope we could diversify more so we do not rely on their well being so much. We have been at their mercy, which they have take advantage of in the past.

About the house qualities, i am not sure about the accuracy of the statements above. Although i do agree there are some crappy houses now, there actually have been for a long time. Even a crappy house will last the life of the mortgage, i think, although it may need some extra work along the way. It will still be better than an old house with single pane glass and serious ventilation all over the place. Hopefully it just does not leak.

By: David

David — Fri, 02 May 2008 00:10:57 +0000

Albertan you are correct. Most of those 700K clapboard palazzos in Calgary and Edmonton could barely withstand a mild chinook.
The worst apartments in the former Soviet Union were called “Khruschev Slums” and these slums of concrete and steel are still standing.
Most of the the shabby new developments in Alberta wont be standing up in the next five years. Only 35 years left to pay right?

By: Another Albertan

Another Albertan — Thu, 01 May 2008 21:52:11 +0000

@David:

My cousin is a civil engineer whose practice is principally restoration and insurance claims. He wouldn’t consider living in any wood-framed structure built in western Canada in the last 10 years. It’s all junk.

By: David

David — Thu, 01 May 2008 17:16:02 +0000

Most of the overmortaged McMansions are so poorly constructed the 40 year mortgages will long out last the economic usefulness of the house. It is quite common to see McMansions built during the boom showing early signs of aging and decrepitude. Aesthetic issues aside, the mortgage will long outlive the house. Even after 10 years of diligent payment little if any equity will be built up and those leaky windows and mould and bowed roofs will be in desperate need of repair. It seems almost impossible to envision a happy future for Canadian real estate.
http://www.oftwominds.com/blognov07/mcmansions.html

By: Sandy Canchuk

Sandy Canchuk — Thu, 01 May 2008 00:23:54 +0000

Gee, what could Dimwit Jim do redeem himself? He looks and acts life a real ‘goof’.

What’s the definition of a ‘goof’?

The Con PitBulls and their minions.

Sad day for democracy Canada has been so proud of debuting.

Guess that was too simple for the Harper Con’s.

What’s up with Elections Canada anyways? Seems like Harper forgot to tell some of his running MP’s the so called ‘in and out’ scheme wasn’t legal? Was it?

By: Brad

Brad — Tue, 29 Apr 2008 23:56:26 +0000

http://www.financialarmageddon.com is another good site.

By: Robert B.

Robert B. — Tue, 29 Apr 2008 19:53:36 +0000

@Future Expat, the other sites I get my info from are: http://www.financialsense.com (listen to the Big Picture). I’ve been listening for 2 years and almost everything Jim Puplava has said has come true. He’s predicting a hyperinflationary depression in the US in 2010. Safehaven.com and Ted Butler’s silver articles are great, too.

Rob M. has the right to express his opinion. It doesn’t bother me at all. Yes, my tin foil hat off center but so am I. When houses go for 20 cents on the dollar I’ll be in the market buying from the sheep like Rob M.

20 cents on the dollar may be too low from today’s perspective but in some places in the US the prices of homes are down 50% and are still declining. The bubble there has a long way to go before hitting bottom and THAT’s the point Garth makes. What is happening there will happen here. It is just a matter of time.

By: Bank of Canada: US Economy in R-Mode for Two More Years (Canada to Follow Shortly) « Your Daily Dose

Tue, 29 Apr 2008 16:34:19 +0000

[...] Canada, Canada, Canadian Real Estate Association, economy, Garth Turner, Mark Canada, real estate [MP Garth Turner's Blog] Prelude to crisis? ” Four days ago the Bank of Canada torpedoed its estimate for economic growth. The bank boss, [...]

By: Keith in Calgary

Keith in Calgary — Tue, 29 Apr 2008 15:30:58 +0000

Calgary had the Olympics too…….back in 1988……and I have lived here ever since.

The Olympics did nothing to affect our house prices back then…..and the mountains are still here…….doing nothing.

By: Jeff

Jeff — Tue, 29 Apr 2008 07:52:08 +0000

Dom-GTA:
I’m a Realtor in Vancouver and people here, like anywhere, are saying ok prices will fall in Toronto or Calgary but it ain’t gonna happen here… we got the Olympics and the mountains. People come up with so many laughable reasons why their city is different.