Wednesday, Jul 07, 2010
These girls fall like dominoes, dominoes
Mish's: Vancouver home sales drop 30%, Calgary 42% - First comes volume, then comes price; Canada housing peak is finally In
The Real Estate Board of Greater Vancouver reported yesterday that home sales fell 30.2 per cent in June from the inflated levels of a year earlier, and 5.8 per cent from May. New property listings rose 1.2 per cent from May and 32 per cent from a year earlier.
The Calgary Real Estate Board, meanwhile, reported sales of single family homes fell 16 per cent in June from May and 42 per cent from June of 2009, while condo sales fell 14 per cent from a month earlier and 40 per cent from a year earlier. Notable is that sales of high-end properties worth $1-million or more are rising, the group said.
Posted by drewster @ 09:37 AM (1240 views) Add Comment
10 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. drewster said...
This is related to the previous article on China's bubble bursting. Until now, the Chinese have been keen buyers of property in Australia and western Canada. With the Chinese government tightening up credit, these sales appear likely to fall off sharply.
2. simon68 said...
The Chinese are just shifting the battlefield from mainland PRC luxury properties market to Calgary, Canada. PRC is a communist driven market………….all market movements properties or stocks are determined by government’s policy.
3. happy mondays said...
That won't happen here, because we have a supply & demand problem, so i keep getting told...
RC - affordable housing
4. Deadjune said...
Housing Collapse Cascade Pattern:
Volume drops precipitously
Prices soften a bit
Inventory levels rise slowly
High-end home prices remain relatively steady for a brief while longer
The real estate industry tries to convince everyone it's "business as usual" and homes are affordable because rates are low
Bubble denial kicks in with media articles everywhere touting the "fundamentals"
Stubborn sellers hold out for last year's prices as volume continues to shrink
SO FAR THE ABOVE HAVE HAPPENED IN THE UK
Inventory levels reach new highs
Builders start offering huge incentives to clear inventory
Some sellers finally realize (too late) what is happening
Price declines hit the high-end
Increasingly desperate sellers get creative with incentives, offering new cars, below market interest rates, trips, etc
Gimmicks do not work
Price declines escalate sharply at all price levels
The Central Bank issues statements that housing is fundamentally sound
Prices collapse, inventory skyrockets, and builders holding inventory go bankrupt
5. hpwatcher said...
It's not deflation, just devaluation.
6. tpbeta said...
Great quote:
Housing Collapse Cascade Pattern
* Volume drops precipitously
* Prices soften a bit
* Inventory levels rise slowly
* High-end home prices remain relatively steady for a brief while longer
* The real estate industry tries to convince everyone it's "business as usual" and homes are affordable because rates are low
* Bubble denial kicks in with media articles everywhere touting the "fundamentals"
* Stubborn sellers hold out for last year's prices as volume continues to shrink
* Inventory levels reach new highs
* Builders start offering huge incentives to clear inventory
* Some sellers finally realize (too late) what is happening
* Price declines hit the high-end
* Increasingly desperate sellers get creative with incentives, offering new cars, below market interest rates, trips, etc
* Gimmicks do not work
* Price declines escalate sharply at all price levels
* The Central Bank issues statements that housing is fundamentally sound
* Prices collapse, inventory skyrockets, and builders holding inventory go bankrupt
7. Happy Mondays said...
Also included in that cascade pattern should be * Gullible buyers * Vi's properganda * Dilusional sellers
8. happy mondays said...
Also included in that cascade pattern should be : * Gullible buyers * Vi properganda * Dilusional sellers
9. 51ck-6-51x said...
Happy Mondays said "RC - affordable housing"
- wow, I guess you win the RC awards 2010...
10. happy mondays said...
@666, i guess so!
Rc- fubar market