Friday, February 2, 2007

The Pizza Guy.

I am sitting in an empty house so I ordered pizza for lunch. The pizza guy was really interested in what I sold and paid for my house.

He said he was in the market so I told him to check out "Housing Blogs". He proceeded to write it on his hand and said "Thanks!"

P.S. - From where he was sitting he felt the market was slowing down.



Fraser Valley January Housing STATS are out.

"The total number of sales processed in January was 1,001, a decrease of 14 per cent compared to the same month last year when 1,165 sales were processed, however an 18.8 per cent increase compared to the 842 sales processed in January 2005.

New listings in January increased by 14 per cent compared to 2006. As well, the Fraser Valley Multiple Listing Service® saw an increase in the number of expensive properties listed.

“High-end buyers will see that over 75 single family homes listed at one million or more entered the Fraser Valley market in January,” says David Rishel, president of the Fraser Valley Real Estate Board. “There is also a range of choices for average home buyers, with almost 600 homes valued between $250,000 and $500,000 listed last month.”

The Board received 2,425 new listings in January compared to 2,127 during the same period last year, bringing the total active inventory in the Fraser Valley to 6,099, an increase of 29 per cent over last year.

The average price of a single-family detached house in the Fraser Valley in January was $494,177, an increase of just over 11 per cent compared to the same month last year. In January 2006, the average price was $444,771.

Townhouses sold for an average of $302,591 in January, an increase of 16.2 per cent from 2006 when they sold for an average of $260,445. The average apartment price went up 18 per cent in one year, from January 2006’s average of $169,473, to $199,995 in 2007."

Take a look LINK.

Is Vancouver's Housing Market Overheated?? If so, like the US, it will probably correct.

America’s best and worst housing markets
Sellers are loving Seattle, Detroit area is stuck in the doldrums

"Steadier, more tempered growth translates into a stable real estate conditions because affordability remains in line with local economic conditions."

"While speculators and flippers in places such as Boston and San Diego are running for cover, in other parts of the country they are basking in robust residential sales."

"Cities showing gains exhibited high job growth and positive net migration figures. They were also areas in which home affordability remained close to national averages through the boom, making them less prone to the corrections and adjustments seen in overheated markets. "

"From 2004 to 2005, median homes prices in most of the cities that are now resisting downturn, such as Austin and Charlotte, grew at slower rates than the national average. "

"This made them less susceptible to the sudden swings of a high-flying, highly speculative market such as Miami. In this area, median home price exploded from $232,000 in 2003, to $391,000 at the end of 2005, driven by a market in which builders couldn’t keep pace with demand. Miami’s real estate market has since corrected, moving down 5.6 percent from its peak. "

"“In the highest growth markets, there were a lot of folks who panicked when they saw prices going up by 8, 10 or 12 percent a year and rushed to buy in,” says Kermit Baker, a senior research fellow at Harvard University’s Joint Center for Housing Studies. "

"“Once prices started to fall [in high growth markets], speculators got an itchy trigger finger because prices went up so high that it was very difficult to buy; affordability had gotten out of hand and people worried that if they waited six to eight months to sell, they’d be left holding the bag. The result is a short-term adjustment.”" Full Article.

Thursday, February 1, 2007

Limited Posting, Moving.

I am moving this week so I probably won't be posting. The Blog Feeds on my sidebar automatically update so there is always something new to read. I should be back by the middle of next week.

Make sure you check out January's Housing STATS. I have links on my sidebar, they should be coming out in the next couple of days.

Remember, Real Estate doesn't always go up. "Home price slide not over." Be careful with your money.

Housing Prices to Collapse?? 47% Think Yes. - US.

Experian-Gallup Survey Shows Nearly Half of Consumers Say Housing Price Collapse Is Possible in Their Local Residential Real-Estate Market
Thursday February 1, 6:00 am ET

"COSTA MESA, Calif., Feb. 1 /PRNewswire/ -- According to the latest Experian-Gallup Personal Credit Index(SM) survey, nearly half of all consumers (47 percent) say they think a housing bubble and collapse of housing prices is very likely (16 percent) or somewhat likely (31 percent) in their local residential real-estate market within the next three years. This is up from the 37 percent of Americans who felt this way in May 2005 and the 42 percent voicing this opinion in April 2006. More information for the Personal Credit Index(SM) can be found at"

""Housing market conditions may not have reached bottom at this point, with 57 percent of renters thinking there is the potential for a price collapse in their local areas over the next few years and 18 percent of all Americans expecting prices to decline during the year ahead," said Ty Taylor, president of Experian Consumer Direct. " Full Article.

Wednesday, January 31, 2007

US Key Interest Rate stays at 5.25%.

U.S. Federal Reserve leaves key interest rate unchanged for fifth straight meeting
Canadian PressPublished: Wednesday, January 31, 2007

"WASHINGTON (AP) - The U.S. Federal Reserve has left a key interest rate unchanged for a fifth straight meeting while repeating worries about inflation."

"The central bank voted to leave the federal funds rate, the interest that banks charge each other, at 5.25 per cent, where it has been since last June. "

"While the Fed had been expected to start cutting rates later this year, economists are now worried that the central bank may feel the need to resume raising rates for fear that inflation pressures will not keep easing. "

"The rate action was supported by a unanimous 11-0 vote of the Federal Open Market Committee, the panel of Fed board members in Washington and regional bank presidents who meet eight times a year to set interest rates. " Full Article.

Does the Government see the Top of the Real Estate Market?

Federal government to sell real estate worth $1.5 billion
Wednesday, January 31, 2007 - 08:07 AM By: 680News staff

"Toronto - Ottawa is set to sell $1.5 billion worth of real estate." Full Article.

Ottawa set to sell $1.5-billion in federal buildings
Sale is first phase of plan to lease back dozens of properties

"TORONTO, OTTAWA -- Ottawa is preparing to sell $1.5-billion worth of office properties across the country as part of the first phase of a plan that will see dozens of federal buildings go to the private sector with the government as a long-term tenant, sources say." Full Article.

Tuesday, January 30, 2007

Canada's Most Expensive Homes

Lauren Kerensky, 01.31.07, 12:01 AM ET

"Though the country is a latecomer to the multimillion-dollar housing market, and property remains relatively inexpensive when compared with cities like London, New York and San Francisco, Canada's real estate market is on the rise. And while the American dollar might buy you a slightly larger McMansion there than in the U.S., the asking prices are no bargain." Full Article.

Speculators. Housing, Oil is there a difference?

Here's an article that I came across while on the Calgary Contrarian Site that was really interesting. It talks about oil and its crash after Speculators got out. Read this Article, and think about what has happened to the Real Estate Market over the past few years.

Oil: It's Back To Supply And Demand
The speculators who bid up the market last year are in retreat. So much for the new reality

"Last July, when crude oil was surging toward $80 a barrel, the talk of a new reality in the energy markets hit a fever pitch. Some said China and India would so voraciously suck up supplies that we might never see $50 a barrel again. Others noted that the nations that make up OPEC had finally figured out how to put the screws to the West for good, emboldening Iran and Venezuela to send prices higher with a mere rattle of their sabers. The "multi-decade supertrend" mantra echoed through the canyons of Wall Street" Full Article

"Last July, when the median price of housing was surging toward $500,000, the talk of a new reality in the housing markets hit a fever pitch. Some said immigrants from China and India would so voraciously suck up Real Estate that we had better buy, or be priced out forever. Others noted that the Olympics would keep prices increasing forever. The "multi-decade supertrend" mantra echoed through Condo Sales Offices all across the Lower Mainland."

Foreclosures surge locally, UP 87% in Bristol County

By BRIAN FRAGA, Standard-Times staff writer

"Foreclosure proceedings in Bristol County jumped nearly 87 percent in 2006 due to a nationwide housing market slump that has left millions paying for more house than they can afford. "

"The Warren Group, a Boston real estate data tracking firm, also reported yesterday that, statewide foreclosure petitions, as the proceedings are known, increased 70 percent over 2005. In addition, there was a 46 percent increase in homes actually advertised for auction, the report said. " Full Article.

Calgary's Tax Assessments come out this week, suburbs to pay more.

Tax burden spreads across Calgary

"With tax assessments for 2007 set to hit mailboxes today, the city's chief assessor says despite an overheated housing market, Calgary's tax base is levelling off. "

"While some households are due to see significant tax hikes for the coming year, Ian McClung said there will be a break for some inner-city areas that have traditionally bore the brunt at tax time as the market begins to balance out" Full Article.

You can't beat Wall Street, it's a fixed game.

Wall Street unleashes its 'weapons of mass manipulation' on you
Monday January 29, 7:32 pm ET
By Paul B. Farrell

Arming Wall Street with more firepower to dominate irrational investors

"ARROYO GRANDE, Calif. (MarketWatch) -- Sorry investors, but you're at a distinct disadvantage, running a handicap race. You're one of America's 94 million Main Street investors and the odds are 100:1 against you given the enormous firepower of Wall Street. And thanks to behavioral finance, it's getting worse, the gap's widening." Full Article.

Major home markets' slump continues - US

Boston and Detroit led the way down, according to latest figures from Case Shiller Weiss. Seattle bucks the trend.
By Les Christie, staff writer
January 30 2007: 12:04 PM EST

"NEW YORK ( -- Housing prices fell in nearly every major U.S. market in November, though some Northwest markets are bucking the trend, according to the latest numbers from Case Shiller Weiss."

"Some of the smart money is betting that the decline will continue. Case Shiller real estate derivatives are down an average of about 3.9 percent for its 12-month future contracts, which expire in October of 2007."

"Boston prices have swooned by 5 percent for the 12 months through November and Detroit was off 4.5 percent. Of 20 major cities tracked, all but three showed declines in November and seven recorded 12-month losses."Full Article.

Monday, January 29, 2007

Canadian Oil Sands Q4 profit falls 26%

Canadian Press

CALGARY — Canadian Oil Sands Trust said its profit fell to $128 million in the fourth quarter, down from $174 million in the year-earlier period, as its bottom line was hit by higher Crown royalties, higher operating expenses, and higher foreign exchange losses.

Profit amounted to 27 cents per unit, in the fourth quarter of 2006, down from 38 cents per unit, Canadian Oil Sands announced Monday after markets closed. The trust is the largest partner in the Syncrude oil sands project.

Cash from operating activities increased to $412 million, or 88 cents per unit, in the fourth quarter of 2006, up from $281 million or 61 cents per unit for the fourth quarter of 2005.

For the full year ended Dec. 31, net income was $834 million, or $1.78 per diluted unit. That compares with 2005 net income of $831 million, or $1.80 per unit diluted. Cash from operating for 2006 was $1.14 billion, up from $949 million or $2.07 per trust unit.

Canadian Oil Sands units closed Monday at $30.79, up 35 cents or 1.15 per cent on the Toronto Stock Exchange. Full Article.

US Housing Bubble Debate Video

Here's a Video that I found while reading a comment on Housing Panic. It's between the an economist, Peter Schiff, and the NAR's chief economist, David Lereah.

It's interesting that David states Real Estate is Local then tries to use National RE STATS to say that the Housing Market is fine. Check it out.

Launch in external player


US Housing Market Improving in 2007?? 45% Say No.

Finance Poll

New home sales fell in 2006 by the largest amount in 16 years. Will this year show an improvement?
Yes 32%
No 45%
Results will be flat 25%
62260 Votes to date

LINK To Poll - At Bottom Right of Page.

Things to watch for this week.

  1. What will the US FED do with interest rates?
  2. How does the US Rate affect the Canadian Dollar?
  3. January Real Estate STATS should come out by Friday, maybe early next week.
  4. Price of oil. Saudi's are fine with $50/barrel.

Funds good way to invest in property

Sun Jan 28 2007

"But if you're simply looking at real estate as an investment, there may be better ways to go about it. Like a mutual fund for instance. There are not a lot to choose from but one of the better ones is offered by Fidelity Investments."

"I spoke to Steve Buller, manager of the Fidelity Global Real Estate Fund a couple of weeks ago and he said, "Real estate is a relatively new investment universe. Commercial property hasn't always been something that could be done via publicly listed securities." " Full Article.

Sunday, January 28, 2007

Housing Bubble is Global.

Australian homes are 'severely and seriously unaffordable': report
30 January 2007

Housing affordability in Australia ranks among the worst in the world, a new study has revealed.

The 3rd Annual Demographia International Housing Affordability Survey found Australia to have the most pervasive housing affordability crisis of all the countries in the study. The survey looked at the housing markets in Australia, Canada, Ireland, New Zealand, the UK and the US.

The study also rated every capital city in Australia as 'seriously' or 'severely' unaffordable in the global study of 159 cities. A city is deemed unaffordable when the median house price passes three times the median household incomes. Housing is 'seriously' unaffordable when it passes four times median household income and 'severely' unaffordable when it passes income five times.

Sydney was named the most unaffordable city in Australia and ranked seventh of the 25 most unaffordable housing markets in the world. Perth, Hobart and Melbourne also joined the list. Median prices in Sydney are 8.5 times median income - worse than London at 8.3 times and New York at 7.2 times. LINK

Bring on the housing slump

L.A.'s economy cannot survive insanely high home prices.
By Joel Kotkin, Joel Kotkin, an Irvine fellow at the New America Foundation, is the author of "The City: A Global History" (Modern Library Paperback).January 28, 2007

"FOR THE LAST five years, speculators, big developers and homeowners have gorged on Los Angeles real estate. The huge run-up in prices — more than 135% from 2001 to 2006 — has greatly increased the spending power of property owners. Yet there has been a worrisome consequence: Working and middle-class families are moving out — and failing to move in — because they cannot afford a house here. Long term, that's not good for the local economy. As perverse as it sounds, what L.A. needs now is a real estate bust. "

"Recent history is illustrative here. The big and rapid declines in property values in the early 1990s, after the last real estate bubble popped, helped open the door to homeownership for a new generation, many of them immigrants. New owners of delinquent or moribund commercial properties, especially downtown, fueled a spike in business activity, much of it stemming from immigrant and minority entrepreneurship." Full Article.

Canada's Housing Market Clarified, an honest article.

Compounding mishap a matter of interest in celebrating real-estate gains
Canadian PressPublished:
Sunday, January 28, 2007

"So add "timing, timing, timing" to the old real-estate adage about investing in "location, location, location." In Toronto, after its exuberant 1980s bubble, the annualized 1989-2006 gain from $273,000 to $352,000 was just over one per cent. "

""The percentage increases that have occurred across the country over the past 25 years show that real estate is also a solid investment."

"Of course, even this assessment might need clarification for those who bought at the previous property-market peak in 1989."

"For example, someone who paid that year's Canada Mortgage and Housing Corp. estimated average price of $147,000 for a Canadian home, then watched its value plummet in the mid-'90s before reviving to the Re/Max estimated 2006 price of $277,000, would have a 17-year gain of 88 per cent - representing a compound annual growth rate of 3.8 per cent. " Full Article.

Housing Market Humor, Flipper Nation.

This is a spoof on House Flipping. It involves a couple of Housing Speculators, a Real Estate Agent, Mortgage Broker, and the Trades that are involved in a House Flip.

Flipper Nation: The First Flip

There's more where this came from at:
If you cannot view this video, you can check it out at YouTube instead.

Fed Rate Cut, don't get your hopes up.

This week's Fed announcement on interest rates will focus investor attention
Published: Sunday, January 28, 2007 11:41 AM ET

"The Fed makes its next rate announcement on Wednesday under very different expectations from just a few weeks ago. "

"Everything we're seeing suggests that the downside risk to the U.S. economy is abating," said John Johnston, chief strategist, The Harbour Group at RBC Dominion Securities.

"And with that you're getting any hopes for a Fed rate cut kind of being pushed away." Full Article.


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