RBC compares housing to hangover

“The situation is unraveling fast in British Columbia….further price correction should be expected in the near term.” -RBC Economics Research, “Housing Trends and Affordability,” December 2008

A new report by RBC economist Robert Hogue says B.C. is in “full-blown correction mode” with more price declines expected in 2009. This isn’t breaking news now that “negative speculation” is all the rage but this report is notable for its colourful use of language. It’s not every day a bank economist writes about the Canadian housing market in the context of parties, hangovers and digestion.

The report is available here for your reading pleasure.

14 Responses to “RBC compares housing to hangover”

  1. Larry Yatkowsky Says:

    Reason: The laundry forgot to starch his shirt. :>)

    Nice to see RBC show some warm fuzzies. Will those fuzzies be reasonably extended to those trying to buy a home? Waiting!

  2. blueskies Says:

    scatological references:

    how about “kool-aid enema”?

    or “ED” market?

  3. Carioca Canuck Says:

    What is with the banks (the Bank of Nova Scotia excepted obviously) suddenly publicly appearing to have a conscience about telling the truth, if even only partially presented and color coated ?

  4. ds7777 Says:

    perhaps it is the banks way of informing potential customers: “dont ask us for a loan to buy a house”

  5. Van-zee Says:

    To continue the party analogy one should exercise caution when people start promoting “stimulus packages” to keep things going.

  6. VancityAllie Says:

    I’m glad they’re actually releasing realistic information. It’s important that consumers start getting accurate information from sources, instead of thinking they can go max out their mortgages, credit cards, and who knows what else…

  7. Chilled Says:

    When the banks actually start to state what us “bitter renters” have been suggesting for quite some time, we are surely done!! I have no doubt my mortgage burning party will be decades before those who mocked me. I know I shouldn’t gloat about others pain, but, WTF!!!

  8. jesse Says:

    “Negative speculation” has to be the dumbest phrase I’ve ever heard. The concept is so confusing and filled with misdirection, how can I not agree with it?

  9. paul Says:

    Chilled I’d say renters have be in a sweet spot these days not bitter. The jig is up on the real estate pimps. If the average price is down 15% in the past two months then that translates into a $100,000 loss for the owners holding a median priced property. If they’re saying the median price today is 620,000 and the market has fallen 15% that’s $93,000. If the markets been in free fall for two months, thats $46,500 per month of losses. Whats the drop going to be in the next six months.

    great time to be bitter dude. Are you paying $46,500 per month in rent. No? then your doing gooooooood.

  10. condohype Says:

    My favourite part of the report is the metro market analysis of Vancouver where the author seemingly mocks our condo prices for being “only” 70% above average. The use of quotation marks is brilliant.

  11. RossK Says:

    Carioca Canuck, upthread, asked:

    “What is with the banks (the Bank of Nova Scotia excepted obviously) suddenly publicly appearing to have a conscience about telling the truth, if even only partially presented and color coated ?

    Could it have something to do with the fact that they have to justify their hording in a time of dramatically falling BoC rates?

    .

  12. Nanrealestate Says:

    Hi all, just thought I’d mention I’ve created a new blog about Nanaimo Real Estate at http://nanrealestate.blogspot.com/

    I have added this site to my blogroll.

  13. anon Says:

    Scotiabank’s new ad slogan:

    “GOT GOLD?”

  14. Brittanny Originals Says:

    RBC — Liars

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