Energy & Commodities
Here’s fun fact: the world’s deepest manmade hole goes 15 kilometers into the ground. They stopped drilling at the 15th kilometer because it got too hot at the bottom of the hole. Welcome to geothermal energy, the reason most religions depict Hell as a place deep underground and the reason why we may succeed in building a clean energy future for the planet without turning it into a disco ball of solar panels.
Geothermal energy is, simply put, heat; heat that is generated from the decay of radioactive elements in the planet’s mantle. The amount of energy this heat translates into is stunning. According to the Union of Concerned Scientists, just 33,000 feet below the Earth’s surface there is 50,000 times more energy than the energy all the oil and gas in the world can produce. This energy can be harnessed and used for heating and power generation.
Of course, from a driller’s perspective, 33,000 feet, which is equal to 10 kilometers, is not exactly a small distance to drill. Yet it is not impossible as those engineers in the ‘80s demonstrated with their 15-km hole. We just need to develop the drilling technology….CLICK for complete article
This is Andrew’s follow up video to his September webinar, Protect & Prosper Through the Coming Chaos.
Chinese officials said Friday that the a Phase One agreement has been reached with the U.S. on trade that includes a phased rollback of tariffs.
The Dow Jones Industrial Average jumped more than 100 points as Chinese officials began a press conference late Friday Chinese time to announce the agreement.
Chinese Commerce Vice Minister Wang Shouwen announced the deal. Chinese officials said it requires technical legal review before it is signed, but that the two sides had agreed on a deal that will lead to mutual reduction in tariffs on a “step-by-step” basis and improve Sino-American relations overall. CLICK for complete article
A divergent trend has begun to establish itself in the Greater Vancouver Condo Market. Beginning in June 2019 prices were at $643,471 which bounced off our technical line and began a minor uptrend that propelled the market higher peaking in September 2019 with prices reaching $673,220. The November data produced and average sales price of $670,811 indicating a lower high than the previous high in September. This trend will be resolved with a clear and concise winner, Eitel Insights anticipates seeing the Greater Vancouver Condo average sales prices take another leg lower in 2020 and beyond.
Overall the market is down 11% from the peak in 2018, and while year over year is only down 3% that is after this recent rally that began when prices were down close to 7% from the November 2018 sales price.
Sales numbers have been touted as a sign of strength by the Real Estate Board, however the chart above in our opinion does not share their sentiment. Yes, November sales are up 400 year over year. However they conveniently don’t mention that last year was one of the worst on record. Sales will not dissipate to nothing there is always a segment of demand in Greater Vancouver. Need based purchasers, however we anticipate the inventory will drastically jump higher over the upcoming two years and that will disarm any potential rebound believed to be occurring by optimists.
The inventory has seemingly taken the 4th quarter of 2019 off, after realizing an aggressive growth trend for the past 2 years. However the new monthly listed inventory is only lower by 300 properties on a year over year basis, and the overall inventory is lower by 800 properties. We attribute this to fatigue on part of sellers that haven’t been able to achieve a sales after remaining on the market for a lengthy period of time and simply removing the listing for the Holiday Season.
Eitel Insights sees a great imbalance currently taking hold in the Condo Market. As evidenced by the chart below which is the average days on market. Currently to achieve a property takes on average 44 days which is continually climbing higher. Indicating a real imbalance of “listed properties” versus “sellable properties”.
I will leave you with this analogy for the Greater Vancouver Condo market. Picking yourself up off the floor doesn’t mean you will win the fight. Again Real Estate cycles exist, we point out where we are in any given cycle across Canada. Here in Vancouver the market still needs to go lower before the cycle has been filled and the market can again see prices increase. For an individual report please visit www.eitelinsights.com
Watch Eitel’s lastest video:
We’ve followed New Story’s efforts to create affordable 3D-printed homes for a while, including its first prototype model and ambitious plan to build a community in Latin America. That plan has now been put into action and the non-profit has revealed what it calls the world’s first 3D-printed community, which is currently under construction in…Click here for full article.
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