Good morning,
There are lots of little things going on that are not worthy of their own post so here is a place we can discuss them all.
1. Interest rates went up today. As was widely expected, the Bank of Canada raised the short term rate to 4.5%. They also said that "some modest further increase in the overnight rate may be required to bring inflation back to the target over the medium term.”
2. There is a new blog on the block where we can find daily updates to the local real estate inventory situation - http://vannumbers.wordpress.com/. Welcome REsteven.
3. Canadian Housing Starts are still hot, hot, hot. In the words of Beata Caranci at TD Economics, "Canadians can sleep well under their roofs tonight with the belief that the housing experience on this side of the border looks to be day-and-night versus its U.S. counterpart."
7 comments:
That poster is awesome. I'm getting the HR Dept here to order one for the lunch room.
"Canadians can sleep well under their roofs tonight with the belief that the housing experience on this side of the border looks to be day-and-night versus its U.S. counterpart."
The statement is factually accurate. You CAN sleep well if you BELIEVE something that makes you comfortable and content.
I'm not sure if this TD director is either sloppy choosing words or has a very subtle sense of humour.
The way I read it, he wouldn't have called it a belief if he bought the idea. Remember, TD was the first bank to start making bearish noise.
"The statement is factually accurate. You CAN sleep well if you BELIEVE something that makes you comfortable and content. "
Yeah, I pondered that one as well for a moment. I think it is intended to suggest that the situation really is night and day. Of course, Americans pretty well thought the same thing when their RE star was shining bright. I shake my head at this clowns. When the day of reckoning comes, I want each and every one of them to have multiple servings of egg on their faces.
Heck, reading this crap is so obnoxious that I feel like kicking somebody. Since prices haven't gone down yet, I will have to dig into the past for a scape goat. None other than Province reporter Ashley Ford:
Ashley Ford sources,
March, 4 1981:
"While Real Estate prices have apparently reached a benchmark, there is no decline in house prices - and there won't be, according to industry analysts"
"Both agreed there is not a hope of falling prices and there is a terrific underlying strength to the market"
Bad call dude. Very very bad call. Won't make the same mistake again, will we? Of course we will:
Ashley Ford sources,
September 1, 2006:
"There is no bubble," he said. "This housing market is simply not going to collapse ..." Baxter said.
" ... the housing market is very steady and there is little speculation in it ..."
History does repeat itself.
"Remember, TD was the first bank to start making bearish noise. "
1. Banks don't speak with a unified voice. Many opinions from many departments.
2. Carl Gomez did bravely call Vancouver as he saw it, fundamentally overvalued. He then went on to greener pastures, Coincidence?
3. I read the report and I don't understand the excessive use of hyperbole such as "extending a four month winning streak", "head fake", and "tie a noose around the neck of". This is data, not competetive athletes with free will.
4. The report suggested that housing starts are strong. That is actually bearish for housing prices, so I don't know why anybody but builders and renters would sleep well.
Just the other day we had a pollster squeeze in his two cents about housing prices. Now the same from a simple housing start report. What gives. Nervous nellies out there? You should be.
REsteven has posted Tuesdays numbers, with a nice breakdown between GV and FV, and even by munipality. I suggest you check them out and leave some encouraging words. It is a great development to have access to these.
Nice catch on Ashley Ford freako.
Nice commentary all around.
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