http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20080806/bc_real_estate_buyers_080806/20080806/?hub=BritishColumbiaHome

Want to buy our B.C. home? We'll give you cash.


It seems buyers have nothing to loose but gain only if they wait more. “When the herd is selling, buy. When the herd is buying, sell.” as most of the people are sheep and they just follow the trend without analyzing. These bull sheep were keeping dead market alive from last 2 yrs with different financial suicide option ($0/40 yrs option). There were sign of caution and US live housing movie but bull sheep were just following trend because Canada is different.

Same logic holds good in bear market too as we are getting shortage of greater (or greatest now) fool. When these sheep are in bear market how much good offer given by builder/seller their bear mode will not change. So price crash will go to happen faster than expected.

Experts also agreeing (no other option) that housing price is going down as media/newspaper is full of price down. But biggest Q is who's buying now:

(a) You're too young to understand the basic economics
(b) You're too stupid
(c) You believe that in long term it's all good
(d) Does not know how to use calculator and do math (interest, down payment, taxes, maintenance, condo/townhouse fee, depreciation, rent/own ratio the same unit, CHMC premium, realtor fee)


News: Boardwalk slashes rental rates in both Calgary and Edmonton due to the glut of used housing on the market.


Vancouver area: Surrey is hardest hit in this area. People are taking help of interior designers and leaving all new furniture/settings as it is for new buyer as show home sale. Some are throwing 15K car too. A smart seller knows that it's better to take 40K loss than 100K loss later.

Calgary area example: One lady I know in my office was selling 599K then drop 570K and hire realtor. Her realtor advised to drop 550K. Still there is no showing in last 2 weeks with new price.

Edmonton example: One of my friends who were working with me in Vancouver moved Edmonton in 2006 and bought the place in 2007. He is Korean and his Korean realtor friend helped him. Now my friend wants to sale as moving back to Vancouver and can not take Edmonton cold (housing cold). His Korean realtor friend said" He is experts only with Buyers, not with sellers". He can only recommend someone. The new realtor asked him to cut 40K price down and my friend find out that is reason his Korean realtor friend does not want to represent him.

GTA: http://www.greaterfool.ca/2008/08/16/the-politics-of-collapse/#comments
Someone posted from greaterfool-
Things are looking bad in Toronto. I’m finding that RE Agents are not denying it anymore and things are bad.
I was talking to a RE Agent whose speculator client bought a dump on a in North York on a 60×130 lot in Dec 2007 with an intent to build a McMansion and flip. He bought it for $560,000. He is now selling it to “break even” since he got cold feet and does to want to build and to have another McMansion sitting on the market which is not selling.
He recently listed it for $469,000 and it go no offers. I spoke ot the Agent yesterday and he admitted that he needs to sell for $600,000k to break even with land transfer tax he paid and Real Estate Commissions. He openly admitted that his client would lose “at least $50k”.
Another dump in North York which according to the agent would have “easily sold last year for $550,000 and received multiple offers from builders” was originally listed for $550,000 then reduced to $449,000 and now listed at $429,000. This house is on 40×130 and is steps to Yonge Street.



Q:
1. What was average price in GTA or Mississauga in 2004? That can help buyer to decide a lot.
2. Will you hire/recommend a realtor whom you know from last couple of months/year and were saying "it's right time buy because..." and now there is 50K price down after his/her advice?

Fannie Mae, Freddie Mac Are Pounded

Share prices of Fannie Mae and Freddie Mac plunged Monday amid growing fears that the two largest providers of funding for U.S. home mortgages won't be able to avoid a government bailout.



In 4 p.m. trading on the New York Stock Exchange, Freddie shares were down 25% to $4.39. Fannie stock dropped 22% to $6.15. Both stocks are down more than 90% from a year ago.



Many investors and analysts fear the two companies may not be able to raise more capital by selling shares, amid gloom over the huge losses they face on mortgage defaults. On Monday, some preferred shares previously issued by Fannie and Freddie were quoted at dividend yields of more than 16%, up from 14% Friday. With investors demanding such high yields, raising money through new preferred shares may be too expensive.



Selling common shares also would be difficult, because the companies' market values have shrunk drastically. At Monday's close, Fannie's market value was $6.6 billion and Freddie's $2.8 billion. Raising even a modest $5 billion would mean severely diluting the value of existing shares.

The latest price declines came after an article in the financial weekly Barron's asserted that a government bailout is likely and could wipe out the value of common shares in Fannie and Freddie.



Representatives of Fannie and Freddie reiterated that their capital remains at levels above the minimum required by their regulator. But many analysts consider that minimum level too low to withstand the potential credit losses ahead.



As defaults on home mortgages soar, Fannie and Freddie have recorded combined losses of about $14 billion in the past four quarters. Those losses are expected to continue for at least another few quarters, and some analysts don't think the companies will return to the black before 2010 or 2011.

Cheers!

Can you see the future? Rememeber no-one was dreaming in US too in 2005-06.


http://www.bloodhoundrealty.com/

105 South 227th Ln, Buckeye, AZ, No Pool, Faces West, Lender Owned, $94,900
10774 West Edgemont Av, Avondale, AZ, Pool, Lender Owned, $129,900
12843 West Redondo Dr, Litchfield Park, AZ, Pool, Needs Work, Short Sale, $134,900
12917 West Windrose Dr, El Mirage, AZ, Pool, Short Sale, $140,000
14179 West Shaw Butte Dr, Surprise, AZ, Pool, Upgraded, Short Sale, $124,900
14719 West Mary Ct, Surprise, AZ, Pool, Needs Work, Short Sale, $145,000
14911 West HoneySuckle Ln, Surprise, AZ, Pool, Needs Work, Short Sale, $136,900
15516 West Watkins St, Goodyear, AZ, Pool, Short Sale, $149,900
16087 West Hilton Av, Goodyear, AZ, No Pool, Short Sale, $129,900
16763 West Taylor St, Goodyear, AZ, Pool, Needs Work, Lender Owned, $135,900
22628 West Adams Drive, Buckeye, AZ, Pool, Golf Course, Upgrades, Short Sale, $110,000
22794 West La Pasada Blvd, Buckeye, AZ, Pool, Short Sale, $100,000
25759 West Nancy Ln, Buckeye, AZ, Pool, Needs Work, Lender Owned, $118,900
25805 West Lynne Ln, Buckeye, AZ, Pool, Decent Shape, Lender Owned, $114,900
30277 West Earll Dr, Buckeye, AZ, No Pool, Upgrades, Builder Owned, $128,950
8537 West Riley Rd, Tolleson, AZ, No Pool, Short Sale, $120,000
8823 West Toronto Wy, Tolleson, AZ, Pool, Short Sale, $140,000

Quote:

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Originally posted by rahul_singh23

Will you hire/recommend a realtor whom you know from last couple of months/year and were saying "it's right time buy because..." and now there is 50K price down after his/her advice?

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Has any real estate agent ever suggested to anyone that don't buy or sell house right now?

If they do, what will happen to their earnings?

For them ecomony is always good and market is always good.

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Hurat Honani Murat!

So true. The Realtor is doing his/her KARMA. Working to serve others is what he/she is suppose to do.

In any market, at any give time, properties keep exchanging hands.This is the basic principle of nature. You can see here how GTA real estate markets behaved in since 1969 http://condopundit.com/wordpress/?p=73

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Amit K..I read your all the posts in RE forum and really appreciate your knowledge.

If a half brain person can figure out that price are going down then is it not job of a good realtor to tell client "It's better to hold for couple of months and we can search appropriate house again as price going down and there are tons of house on sale this time. If you are really want to throw money right now we can do now. It's your choice".

If someone treats me with hard fact and not trying his sales skill on me then I will call same realtor after 8 or 10 months and would like to give my business. He saved my $$ so he deserve my business too and can recommend/reference his name too after my deal/experience.

Quote:

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Originally posted by amit kalia

So true. The Realtor is doing his/her KARMA. Working to serve others is what he/she is suppose to do.

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