Perhaps one of the most chilling statistics for the real estate industry came out late this past week.
Many in the real estate industry have comforted themselves lately by saying prices in Vancouver aren't going to fall significantly. They rationalize prices will just stabilize or maybe they will drop a bit.
One thing R/E people insist is that prices in our little Village on the Edge of the Rainforest will not crash. They insist "you won’t see a crash here in Vancouver unless there economy takes a sudden turn for the worse."
Well Stats Can just announced that BC lost half of all the jobs lost in Canada last month.
Statistics Canada says of the 30,400 jobs that disappeared across Canada, 14,500 were in B.C., pushing up the provincial jobless rate four-tenths of a point to an even seven per cent in July.
And the bottom line is that people who don't have jobs... they don't buy houses.
Things get more interesting with each passing day.
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"And the bottom line is that people who don't have jobs... they don't buy houses."
ReplyDeleteAnymore.
I know you aren't real into details that don't support your cognitive bias, but they are important. Full-time jobs were up almost 10K, the losses were all part-time. Plus, hours were up.
ReplyDelete"Plus, hours were up"
DeleteToo funny!
Total hours worked has a stronger correlation with growth than employment does. This is basic stuff.
DeleteJust think of all the "carpenters" and landscapers and renovators and water garden experts et al that will be out of work when the heloc gravytrain is cut off.
ReplyDeleteWho needs jobs when there's CMHC? Oh wait they are cutting back...
DeleteI'm not sure about that - there's still going to be work to do on all the shabbily built houses that are going to start falling apart any minute. Plus hopefully some work will be put into older houses, rather than just tearing them down.
ReplyDeletehope all you want fact is most of the reno work was fueled by helocs and flipping...sure there will still be some reno work but nothing like before.
ReplyDeleteGet used to the new normal...same as the old normal..houses for living in.