The fundamentals of the condo economy

“To sell real estate now, we have to look at fundamentals. And one of those fundamentals is how much product is really out there…. We’re at a time when everybody is looking for fundamentals and nobody has better fundamentals than downtown, for the investor or the homeowner.” –Bob Rennie, October 3 2008

When the history of Vancouver real estate is written, it’s quotes like this that will make for the best reading. It even makes for good reading now but in a few years, once all the havoc plays it out, it will read even better. Because in a few years, all we’ll have to go on are the numbers. We have the numbers today but many of us still look at them with emotion. “Sales are slow, but the Olympics are coming so things should turn around, right?”

Wrong. The numbers are indisputable. Inventory is at record highs. Sales are almost non-existent. Rents need to double or even triple to be in line with the cost of ownership. Buy today and you get the pleasure of a condo that costs you $3,600 a month that you can rent out for $1,600. It’s a heck of a deal, if by deal you mean endlessly losing money.

Bob Rennie is the best. Nobody’s better. And the quote he gave the Globe about being a “very, very, very high paid consultant” — it’s beyond beautiful. He should share it with everyone who walks through the Richards sales centre.

18 Responses to “The fundamentals of the condo economy”

  1. blueskies Says:

    Bob! Sell! NOW!!

  2. curious lurker Says:

    the color of this richards ad kinda looks like blood.
    like blood is in the streets… like nevermind. it’s better not to think about that.

    let’s dwell on the corpse in the tall grass instead. much more pleasant.

  3. Crash Says:

    Bob Rennie will be eating a big slice of humble pie soon. The guy’s ego is as inflated as the Vancouver R/E market.

  4. Wayne Says:

    I know I always look to the high school dropout with the Bentley and driver to solve complex social issues like homelessness and lack of employment opportunities for the poor and mentally ill.

    In an informative, but mildly nauseating G&M article, listening to Larry Beasley gush about Big Bob was either really funny or really sad and I can’t make up my mind.

    Bob, it’s very, very, very, highly (not high) paid……. but since you didn’t really finish high school we’ll let it pass.

  5. ds7777 Says:

    looks like he’s pinching the line from john mccain.

    and now john mccain looks totally out of touch…

  6. jesse Says:

    Rennie is selling motorbikes when everyone else is putting on rubber boots and blowing up life rafts as the flood waters slowly come in.

  7. Octagonian Says:

    Rennie said one true thing: he is nothing without the consumer. Vancouver — per Shiller — is home to the biggest gaggle of bubblheaded credit card junkies in the world. They made Rennie, not the other way round. He was simply the right guy with the right skill set at the right time. Vancouverites — not the mythical elusive unicornian “wealthy Asians” — did it all unto themselves. Rennie has enuff moolah to pose as the preeminent property mogul for the rest of his life…regardless of the coming implosion of Vancouver’s real estate. He may want to seek refuge in another country before the peasants come with the pitchforks to skewer him for what they did to themselves….

  8. Larry Yatkowsky Says:

    How many market blessings does the man have?

    Salvation is upon us with Bob’s “eternal light of positive spin”.
    In awe, we watch the bush burn.

  9. grumpus Says:

    A landmark commemorating what? The gore-tinted scheme makes me guess it was something…stabby.

  10. buff_butler Says:

    Its funny that realtors always quote “the fundimentals are strong” but they never elaborate. Its just another ambiguous statement like “executive condo”

  11. condohype Says:

    Rennie is eager to exploit his position as a market authority if it helps him sell more condos. It troubles me that he’s so revered in the media. I respect the man for his business skills but he’s not an expert — he’s a salesman. His priority is to close the deal. As the market has turned from bad to worse, his pitches have become even more removed from reality. To say supply is limited in the current market is totally, absolutely ridiculous. Any normal person would be laughed out of the room making a comment like that. Somehow it’s OK because it’s Bob Rennie.

  12. Greenhorn Says:

    Rennie is amazing. The market is tanking and I bet he can find enough sheep to buy 70% of this building. Utterly amazing. I think he did a good job on the website for the Richards buiding. My hats off to you Bob. You make the big money, so you must know what you are doing. It also helps that people in Vancouver are drunk on real estate.

  13. tsusiat Says:

    Bob spins the same nonsensical lines in this story, by an author who rings his hands about buying a place after doing kindergarten math to estimate the likelihood of a housing collapse – but good old Bob is there to reassure him.

    Read the code – the core will be okay, screw the burbs.

    Remember, most of Rennie’s inventory is at least one minute from Vancouver 😉

  14. SurreyJoe Says:

    Rennie is pure marketing genus. He sold the myth to Vancouver that real estate could not fall in value until after the Olympics were over. Still the timing on this one couldn’t be much worse.

  15. Carioca Canuck Says:

    Here’s what he should have said.

    “We don’t need no stinkin’ fundamentals”……….

    Heh. Reality is such a harsh master.

  16. ROCK Says:

    I find is utterly ridiculous when Realtors use the word “fundamentals” and then refuse to back it up with specific facts and unbiased information. It is nothing less than BS. Please do hang onto the quote and I hope there is a journalist out there who is willing to hand it back to Rennie once this finally plays out.

  17. Condo Abbotsford Says:

    Is there not a lot more product available in downtown now?

  18. Happy Renter in North Vancouver Says:

    Condohype, remember salesmen are perceived as authorities when the price of what they are peddling keeps going up… when the prices go down, they are recognized for the shills they are…

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