Sunday, March 18, 2012

Checking in from my holiday

I see increasing calls for Christy Clark to ´do something´about our housing bubble.

Cristy is in a tough spot....If she tries to put the breaks on Re she will dealing with a huge bubble and help middle class families who are priced right out.

However she will also upset current owners, the housing lobby (developers and Realtors) and also take away a major economic driver ( short-lived and speculative yes, but that never stopped a politician)

In fact there is very little she can do. She has no control over the CMHC or the Bank of Canada rate or lax bank lending and if she speaks against Chinese off-shore ownership she risks alienating China and risking their investment in other areas, and I can assure you- that would lead to a major recession in BC. Tough bind.

The TD bank is the latest bank begging to be regulated more.

This is turning out to be a weak spring for sales. Sales haven´t blossomed and are on track to be amongst the lowest in the last decade.

HOWEVER listings haven´t exploded either which removes the housing crash scenario. This is perfect. As I have said if we had a quick correction the Federal Government would lose it´s resolve and their would be no changes.

Excuse any errors or mistakes ( and I cannot make the font bigger). I am paying $$ for the internet connection.