tag:blogger.com,1999:blog-5936637281134795592.post1630562893119899381..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: Sellers "living off hope of a turnaround"Unknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5936637281134795592.post-44810341404917315232013-06-05T14:21:08.543-07:002013-06-05T14:21:08.543-07:00So @Farmer, are you suggesting that there might be...So @Farmer, are you suggesting that there might be a "temporary" run up in bond prices as these assets unwind?<br /><br />Or are you still of the notion that PMs are where things will run?<br /><br />Of course working capital is probably where we should go, but I'm so confused by the current climate.RE Lurkerhttp://www.google.comnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-57158201057238270112013-06-05T01:50:43.682-07:002013-06-05T01:50:43.682-07:00Don't any of you wonder what the looming stock...Don't any of you wonder what the looming stock market correction will do to the psychology of the Vancouver real estate market when it arrives?<br /><br />With gold and silver in a long downtrend (19 months and counting) and the TSX suffering as the resource sector has taken such a hit during that time, the baffling strength of the housing sector will soon be tested.<br /><br />Remember what happened last time the stock market crashed during the Global Financial Crisis in 2008? Five years later and US equity markets appear to have peaked despite all the QE's and may now be set for a sharp decline.<br /><br />By Bye pension money?<br /><br />You see, that is the point of the most leverage against housing price performance right now as mortgage-free property is owned primarily by the Boomers heading for retirement and their parents who have long since joined the list of those in their golden years.<br /><br />That is to say that the same people most heavily invested (even dependent) on pensions and equities are also the same group that owns most of the mortgage free property.<br /><br />It is that connection that will have the most impact in the event of a stock market bust as owners make decisions to liquidate and rotate to safety.<br /><br />It is the potential hit to wealth in the form of pensions held by mutual equity investments or related pension plans that will drive the decisions to sell homes in the near future.<br /><br />Do not harbor any doubts about how these two major sources of wealth and income are now related when it comes to decisions about selling out of real estate and hiding in bonds to weather the storm (not that I think bonds are a good place to be anymore but the logic of the herd cannot be argued).<br /><br />So keep an eye on equities. During the GFC the reaction was a swift 15% decline in average home prices in Vancouver and it is possible a repeat will be experienced as it is now so obvious the top in homes is past.<br /><br />FarmerAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-72769933658645662182013-06-04T23:10:37.315-07:002013-06-04T23:10:37.315-07:00Exactly. Quoting Larry is just shooting your blog...Exactly. Quoting Larry is just shooting your blog in the foot. Uncertain is what Larry will say next (lol).Raynoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-31955880592805352532013-06-04T18:27:53.878-07:002013-06-04T18:27:53.878-07:00Larry can't spell or construct a proper senten...Larry can't spell or construct a proper sentence either.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-11633430252309342992013-06-04T15:37:28.518-07:002013-06-04T15:37:28.518-07:00stay liquid. you'll be able to hold off far lo...stay liquid. you'll be able to hold off far longer than those idiotic speculators and home owners wanabes can stay solvent. the boomers who own outright their property but want to hold out for better conditions will watch in amazement how fast their net worth will evaporate when those who cannot afford their debt loads will probably have to take a loss or be finacially ruined.<br /><br />which btw many will. no doubt about that.nonsensenoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-28231411425803800722013-06-04T15:14:52.758-07:002013-06-04T15:14:52.758-07:00Whispers,
Thanks for the quote. There was a Bonus...Whispers,<br /><br />Thanks for the quote. There was a Bonus. <br />I found a typo as a result of the re-read. :) YatterMattershttps://www.blogger.com/profile/10882249929180940918noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-4879597985078744122013-06-04T13:10:22.821-07:002013-06-04T13:10:22.821-07:00Sellers always try to hold out for better market c...Sellers always try to hold out for better market conditions when a national housing bubble is bursting. This happened in the US in 2006. The most stubborn sellers were eventually punished as the US market crashed.<br /><br />Sellers were holding out in 2009 when Canada's housing bubble burst and the crash was in its beginning stages. However, we all know that a massive intervention turned the Canadian housing market around in a flash and pushed prices further into bubble territory. Sellers were bailed out in 2009. This time there will be no such intervention and no such bail out. <br /><br />Greedy sellers who are currently holding out for better market conditions will be punished this time instead of rewarded the way they were in 2009.infohttps://www.blogger.com/profile/02848148105386213925noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-46501373431004282972013-06-04T08:03:37.658-07:002013-06-04T08:03:37.658-07:00Note to Arnold: check the spelling before hitting ...Note to Arnold: check the spelling before hitting enter. Davehttps://www.blogger.com/profile/08956155381690841710noreply@blogger.com