Oh Canada

beer

If you knew a house was repossessed, and for sale, would you offer less? Duh. Of course you would. After all, if some overextended nimrod walked out on their mortgage and the lender was dumping the place, why not vultch?

If you were the broker handling the listing, or the real estate board overseeing it, wouldn’t this be relevant information for the marketplace? Duh. Of course it would. In fact, trying to hide this fact would be unethical and misleading.

But quietly, maybe fearing what’s ahead, CMHC has been doing exactly that. The government body which controls 75% of the mortgage insurance in Canada, protecting lenders against all those lusty little equityless property virgins and their high-risk loans, has now been exposed as a market manipulator.

Mario owns a real estate shop in Quebec. “So, basically, as a broker I’m not allowed to indicate that the property is a repossession. Hmmm. Kind of makes you think… Yeah, this bubble is probably popping,” he tells me.

Mario got this notice days ago from the Quebec federation of real estate boards: “The Canada Mortgage and Housing Corporation (CMHC) has stated that real estate brokers should not indicate, on a detailed sheet for a property that is for sale by the CMHC, that the property is a repossession. We inquired with the CMHC, and they informed us that this publication rule stems from a national policy that applies to all Canadian provinces.”

There you have it. The government is trying to hide foreclosures. Perfect.

And what does CMHC have to fear? Well, just look west for a glimpse.

It’s the last day in February, which means realtors will be publishing monthly sales numbers next week. In BC they’re a disaster. In the Mouldy City, the Greater Vancouver Real Estate Board recorded just 1,666 sales of all properties in the first 26 days of the month, compared with 2,302 during the same time last year. That’s a dump of 27.6%. And prices are wilting too. (Remember what I’ve told you about sales volume declines preceding price declines.) The average sale this month comes in at $744,281, down 6.3% from last year.

Now, imagine you’re a formerly horny ex-property virgin who bought a concrete skybox in Burnaby last year with 5% down. You’re now under water. After paying the mortgage, the strata fees and the property taxes for 12 months, your unit is not only worth less than it was, but your mortgage is bigger than your place is worth. And, factoring in closing costs (including the CMHC premium) and commission if you wanted to sell, you’re seriously broke.

So, you have a choice. Stay, feed the mortgage, pay twice as much as the renter next door is shelling out for the same unit, hoping that in a few years you might sell for at least enough not to have to borrow even more to get out.  Or, walk. Either way your down payment is toast.

Think CMHC doesn’t know this? By the way, here are more numbers to chew on. Total single-family home sales in the Lower Mainland (combining the Van board and the Fraser Valley Board) total 1,548 so far this month. That’s a stunning 50% drop from last February and (get this) a worse showing than in the same month in 2009, when we were plunging into the economy abyss. There’s little doubt significant price corrections will follow.

On Monday the Toronto real estate cartel, along with those in Victoria, Vancouver, Montreal, Edmonton, Regina and elsewhere will announce lower sales. Some will be moderate, some not. Without a doubt, the trend line will continue. Despite record low interest rates and the incessant pumping lately from ReMax, Royal LePage and the major mortgage-spewing banks, the real estate market is losing volume, price and momentum. The correction will be immensely uneven (bidding wars still erupt in Toronto for $700,000 to $1 million properties), but that’s the nature of housing. Those who get nailed rarely see it coming.

In this context, do we really want a powerful, massively-influential government agency fibbing to buyers? Coaxing them into paying more than an open market might dictate? Fluffing prices?

To be sure, repossessions, foreclosures and sullied virgins talking a walk are rare. Canada will never see a jingle mail revolution as in some US markets, since the only way out of debt here is bankruptcy. But the numbers will undoubtedly rise as wiped-out, whacked young buyers figure anything’s better than suicide by condo.

Except, maybe, the death of trust.

238 comments ↓

#1 Bob on 02.27.13 at 10:11 pm

Never Saw It Coming

http://www.youtube.com/watch?v=HBfJMlaHyuE

#2 HAWK on 02.27.13 at 10:15 pm

It’s criminal, the people should sue CMHC and any part of the government that aids and abets this.

#3 Big Sexy on 02.27.13 at 10:16 pm

Gee, sure looks like a fun show to watch!

#4 tow mater on 02.27.13 at 10:16 pm

Bring Zillow to Canada….Problem solved….

#5 Blasé on 02.27.13 at 10:19 pm

look at all the kids defaulting on school loans. bankruptcy will be commonplace in this generation of no-percent downers. after three years it’s pretty much a get out of jail card free anyway.

#6 simkev on 02.27.13 at 10:19 pm

Ummm ….First ! :)

#7 Chester on 02.27.13 at 10:20 pm

Is there anyone honest left?

#8 simkev on 02.27.13 at 10:20 pm

Not !

#9 Musty Basement Dweller Wannabe on 02.27.13 at 10:22 pm

I will admit I don’t understand the purpose of CMHC.

It seems it is not protecting the mortgage holder, and not protecting tax payers, and only protecting the big banks? Am I missing something?

If not, I hope they do away with it really soon since as a taxpayer I don’t want to be on the hook for all of these dicey mortgages in order to protect the big banks.

#10 Ferrari321 on 02.27.13 at 10:23 pm

TO is next in line to crack after BC …

#11 weedeater on 02.27.13 at 10:24 pm

If they’re not required to disclose, how about lying? If one asked the listing agent a direct question: is the vendor in foreclosure, power of sale, or in any way selling the property under distress? … yes or no.

This is the biggest purchase people will make; surely due diligence is called for.

#12 Soylent Green is People on 02.27.13 at 10:26 pm

I can blame this on harper right?

O
O

#13 richard on 02.27.13 at 10:27 pm

Furrrssstiiissssttttt!!!!! yeaaaahhhh babyyy!!!

#14 couved out on 02.27.13 at 10:31 pm

#5 – too bad you can’t bankrupt your way out of student debt loan however. Kids! next time have your parents take out a heloc for your education!

#15 lawboy on 02.27.13 at 10:34 pm

The story is clearly all lies. Everyone knows Canadian banks have only loaned to high quality borrowers who would never get into financial trouble.

Serious though – a question: why wouldn’t masses of 5% downers walk? And why would there be any need to declare bankruptcy??

Would there really be any repercussions…wouldn’t the CMHC insurance get the bank paid, with insurance monies the 5% downers have paid for through premiums. Nothing for either the bank or the govt to collect on at that point.

Am I missing something??

#16 simple reader on 02.27.13 at 10:34 pm

#4 tow mater

you said it, a Canadian Zillow will help a lot the Canadian people.

Garth, would that be possible here?

#17 Canadian Watchdog on 02.27.13 at 10:38 pm

#2 HAWK

It’s criminal, the people should sue CMHC and any part of the government that aids and abets this.

Nothing will change until the people amend Canada's real government. He/she appoints every key position out of Parliament's jurisdiction. 

How does Canada rank on FOI?

Feds dispute Canada's dismal global ranking in freedom of information

OTTAWA – The Harper government is dismissing a report that ranks it 55th in the world for upholding freedom of information, saying it has a sterling record for openness.

You have very few choices in Canada. From banks to communication providers, it's all an oligopolistic-dictatorship. Canadians know very little about the structure of their government, and the powers above will make sure it stays that way.

#18 45north on 02.27.13 at 10:39 pm

The Canada Mortgage and Housing Corporation (CMHC) has stated that real estate brokers should not indicate that the property is a repossession. We inquired with the CMHC, and they informed us that this publication rule stems from a national policy that applies to all Canadian provinces.

which raises the question How is this policy in the interest of Canada? It serves to conceal information from the marketplace obviously an informed buyer would offer less for a repossessed house or would not make an offer at all. He would more likely engage a home inspector. Why would this policy not be a case for a class action?

#19 Grim Reaper/Crypt Speculator on 02.27.13 at 10:42 pm

Where’s Dr . Wayne?

Does he use Aluminum cookware ?

#20 Calcanadian64 on 02.27.13 at 10:44 pm

FYI – In order to get Zillow in Canada, you would need access to free, open market real estate market data. Sales history, tax data, listing prices/reductions are fed to Zillow. Canadian MLS stats are kept very tight to the vest. Im not sure thats going to change any time soon.

#21 Nick on 02.27.13 at 10:46 pm

If you or your significant other is house-horny, print this quote and stick it on your fridge :

“So the news that the housing bubble is over won’t come in the form of plunging prices; it will come in the form of falling sales and rising inventory, as sellers try to get prices that buyers are no longer willing to pay. And the process may already have started.”

– Paul Krugman, New York Times, August 2005.

This goose is cooked.

#22 Notta Shepple on 02.27.13 at 10:48 pm

#13 richard on 02.27.13 at 10:27 pm
Furrrssstiiissssttttt!!!!! yeaaaahhhh babyyy!!!
——————————

Sorry, #13 is not #1.

(un-)lucky you.

#23 Led on 02.27.13 at 10:49 pm

OK, so the follow up question Garth should have asked is what appears on the sales contract under the seller section? I have always seen who the owner is at the notary, and often before. I wonder what exactly is written in these circumstances – is it CHMC, the bank, or the former owner??

#24 Old Man on 02.27.13 at 10:55 pm

I have often wondered if Garth was a member of an elite club in Toronto who were known as the Mallards, that held meetings at the King Edward Hotel with the hot babes; yes know all and will say nothing :).

Quack. – Garth

#25 Good Authority on 02.27.13 at 10:56 pm

The Canada Mortgage and Housing Corporation (CMHC) has stated that real estate brokers should not indicate that the property is a repossession. We inquired with the CMHC, and they informed us that this publication rule stems from a national policy that applies to all Canadian provinces. – Garth
——————————————–

I read this as you cannot publish the state of the property.

I would still expect your RE agent to gladly point out verbally what reposessions are available.

#26 Marco from van on 02.27.13 at 10:57 pm

If we are in a “Free market” economy, market forces MUST be allowed to be expressed without manipulation. Mess with those by bringing demand forward (loose lending driving leverage up) the correction to rebalance the trend line against long term averages (which track fundamentals) will be more painful.

This is not about an individual house or an individual neighborhood. Parts of London (UK) and Paris, heck Dublin and Barcelona have still appreciated despite the wholesale destruction of the broader national RE markets.

For Canada, take the RE marketing machine, pliant MSM and CHMC/Gov’t meddling out of the equation (ok, that’s quite a bit) then what’s left is emotion built on whim…

Do you think the last egg on face when the Mac Marketing solutions guys/gals got caught with their pants/ies down may make it more fashionable for MSM to do due diligence /verification before “reporting”?

Btw. Anyone know whos the “unnamed” executive who was supposedly fired (resigned) for the stunt – please let the blog know. I’d like to know where he goes next… Eg. Promotes at MAC… I think no one actually left and wonder how much the secrecy is a shield to protect Cam McNeil… It is clear this is common practice in an industry with no regulation and mere self policing against a definition of “ethics” that is nowhere close to that you would find in a dictionary of any version of English (or “Ingrish”)

I’ll be watching the tactics when they market the Arbutus ridge developments, may do some mystery shopper undercover and gift it to the MSM…

Have fun! Liquidity is king…

#27 juno on 02.27.13 at 10:57 pm

#15 Mic D’angelo on 02.27.13 at 10:33 pm

Put the amortization period to 60 years for only those in the bankruptcy category.They can leave the mortgage to their grand kids, great grand kids. This way they will remember their stupid decision and know when they put little or maximum 5% down than they are renting not buying a house,condo etc.
– See more at: http://www.greaterfool.ca/2013/02/27/oh-canada/#comments

===============
I disagree with you on this. It should place CMHC and the Banks for lending these guy the money in the first place.

How about Global news, using the CREA advertisement as news and brainwashing the sheeples.

Only way out of this one is allow the sheeples to go bankrupt. Domino’ing CMHC and bankrupting Canada.

Therefore Raising Property taxes, Domino-ing more homeowner and so on and so on. Once the system collapses it can rebuild.

Note you can’t get the banks, CMHC made the rules.

#28 Will on 02.27.13 at 10:57 pm

#16 – the CMHC will come after you for the difference of what they sold the property for vs the outstanding mortgage amount. Except in Alberta.

#29 Bottoms_Up on 02.27.13 at 10:58 pm

#9 Musty Basement Dweller Wannabe on 02.27.13 at 10:22
———————————————————
Typically Canadian banks were very conservative, you only got a mortgage if you had a large downpayment, good credit and a stable job. In other words, the bar was set pretty high in order to get a mortgage.

I think the government realized at some point to keep house prices rising was a good (shorter-term) option for the economy (and would keep boomers happy and spending), and that the banks could/should have been lending to more people, thus stimulating the economy. However, banks fear and run from risk. So…. in steps CMHC to protect the banks so that they DO lend. Creating a situation that’s good for lenders, good for the economy, good for the government, and good for the people that have always wanted to ‘own’ a home.

However, they lacked the foresight to see this would create a bubble, and bring us to the precipice that we see ourselves in right now.

Ultimately I think the government’s intentions were good, but it is going to harm a lot of people. However, this policy has also made a lot of people rich.

#30 Sebee on 02.27.13 at 10:58 pm

Free market eh?
Biggest purchase for most people eh?

You know its a damn sad day when Realtors are calling CMHC on ethics and disclosure.

#31 tkid on 02.27.13 at 10:59 pm

Am I missing something??

Yes. Any CMHC shortfall will be covered by the government. CMHC only has so much in their kitty; if they have to pony up for foreclosures over that amount either CMHC goes bankrupt thereby leading to losses for the bank or the government pays out to cover the losses.

Banks win. Bankrupt former owner starts over. And the national debt goes up by however much the CMHC needed to be bailed out by. Taxpayers ultimately cover the monies that the government paid out for – taxes go up.

How much is CMHC supposed to cover? Last I heard it was $600 billion. National debt is $600 billion.

And the taxpayer doesn’t so much as get a shiny new hospital or one itty bitty F35 fighter jet for all that money spent.

#32 OttawaMike on 02.27.13 at 10:59 pm

Every time i have bought or sold a property the legal owner(s) who is listed on the title is typed into the vendor space on the offer.
I am unsure how the CMHC could be hiding this. Or do most buyers not read the offer before signing it?

Last month, I spoke to a local agent who specializes in selling CMHC repos. I asked about the prices and she candidly replied that most of these places are not deals when you add in the repairs most of them need. The only way you can make it worth while is if you are a contractor or handy enough to do the work.

#33 simple reader on 02.27.13 at 11:01 pm

people, stop blaming the government, they were elected not imposed by the force (and despite they are a cartel, they were the best option), so suck it up, learn, improve and do something. what´s the saying? “people get the government they deserve”

What Garth is doing is a very important part of the solution. He is helping people to stay informed, free, financially healthy… probably to get a better government also. Garth, dude you rock, you are not the typical BS politician, you probably have the knowledge to fix the crappy future we are pointing to.

I will ask again, why the hell dont we have a zillow? are we retarded or what?

#34 DocInWaitingRoom on 02.27.13 at 11:01 pm

False numbers, paid advertisements, fake buyers from China, Now we can’t even know the number of Foreclosures?

What exactly is real in this country besides the fact we pay 4X more for milk, chicken and 25%+ on cars and now 3-4X times for crappier homes… What a country man are the few people on here the only non-idiots?

Man talk about people lining up for manual disinpaction after years of constipation….

#35 Bottoms_Up on 02.27.13 at 11:02 pm

#19 45north on 02.27.13 at 10:39 pm
——————————————
If you think of this new policy on behalf of home ‘owners’, 70% of the population, well, it makes sense. If everyone knew 3 houses for sale in my subdivision were ‘repossessions’, they would fetch lower prices and lower the value of my (and other owner’s) houses, likely resulting in a snowball effect of prices going lower. So, they are trying to preserve the bubble, and protect the masses.

#36 Vamanos Pest on 02.27.13 at 11:05 pm

A national insurance program, that could not exist if not for the backing of the taxpayer, withholding relevant information about the properties it insures from the taxpayer?

That’s not unethical, it’s tyranny.

#37 Notta Sheeple on 02.27.13 at 11:05 pm

#7 Chester on 02.27.13 at 10:20 pm
Is there anyone honest left?
———————————-

I just received my latest CIBC bulk waste of trees in the mail (and here I thought I was reducing paper consumption by subscribing to on-line banking). Apparently, I am now pre-approved for their latest MasterScam card, allowing me to start enjoying up to 2% cash back on all my credit purchases:

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FACT: In eorder to recoup the MasterScam’s annual fee of $79, you must spend at least $3,000 at their first 0.5% cash-back tier, then an additional $6,400 at the next 1.0% cash-back tier, for a total of $9,400 in credit card payments before you break even on their annual fee!

The Big 6 Banking Motto: “WE’RE RICHER WHEN YOU DON’T THINK!’

BANK: The original 4-letter word.

#38 Bottoms_Up on 02.27.13 at 11:06 pm

#14 couved out on 02.27.13 at 10:31 p
———————————————-
You’re wrong, the government has and does write off bad student loans. There was just a news article where they wrote off something on the order of $400 million. Those are dollars owed to us, the taxpayer, that we’ll never see. But look at the bright side — those loans belong to individuals that might as well have gone bankrupt, with the potential of dragging down the economy. The government is out to protect the masses yet again.

#39 MUST READ on 02.27.13 at 11:07 pm

http://www.financialpost.com/m/wp/personal-finance/mortgages-real-estate/blog.html?b=business.financialpost.com/2013/02/27/cmhc-seeking-to-hide-foreclosure-information-from-home-buyers

#40 Ted54 on 02.27.13 at 11:09 pm

There you go Garth blowing smoke up the dogs arse. If the concern is that tax payers will have to pony up for CMHC shortfalls why is it in the consumers interest to see these properties vulched or hacked away at. It’s is in the tax payers interest that CMHC receives the highest price possible. You can’t have it both ways.

Do you understand what ‘insurance’ means? The lender gets the money. — Garth

#41 Alex on 02.27.13 at 11:11 pm

#19
“why would this policy not be a case for class action?”
Good question, Garth should we seek legal advice?

#42 DJB on 02.27.13 at 11:15 pm

Fake helicopters, fake chinese buyers, fake $38 million listing pictures in West Van now fake seller motivations courtesy of CMHC.

Seems we have rot from the top down.

#43 Mike on 02.27.13 at 11:15 pm

So you confirmed Toronto is fine in the low rise segment.

Got it. Nothing to fear about.

I referenced one price range of resales in certain demand areas. New low-rise construction has collapsed 50% in the GTA. Something to fear about. — Garth

#44 Cowpoke on 02.27.13 at 11:18 pm

Banks have been doing this for years, keeping all their forclosed properties off the market till the market turned around. CMHC was the only game in town 08,09,10 and had a nice monoploly from what I understand. The other insurance companies went bust. They insured all the apartment buildings of private equity groups as well. I would think alot of these private or public REIT’s and Ltd Partnerships could very well be under water as well.

#45 james on 02.27.13 at 11:19 pm

clarification on a part. garth stated ‘the major mortgage-spewing banks, the real estate market is losing volume, price and momentum. The correction will be immensely uneven (bidding wars still erupt in Toronto for $700,000 to $1 million properties), but that’s the nature of housing.’

when does the lower volume transition to a housing dump?

#46 Al on 02.27.13 at 11:21 pm

I suppose mr & mrs Taxpayer will have to bail out CMHC via higher taxes.

#47 Cowpoke on 02.27.13 at 11:21 pm

I have read stories about CMHC insuring projects in China!

#48 claudius emperor on 02.27.13 at 11:23 pm

Trust? In F?

Flush the toilet.

#49 Robbie on 02.27.13 at 11:25 pm

Realtors (I’m one) still get that information from their Real Estate Board and from reading the title and a Realtor should always share that information with his/her Buyer. However, not all foreclosures are good deals as sometimes there are several prospective Buyers in Court and they bid up the price…sometimes to far more than than the property is actually worth. The Foreclosure Judge (“Master”) has a responsibility not to sell the property for less than its proper valuation so there aren’t necessarily great bargains to be found in a foreclosure. However, lots of foreclosures out there now….I’m in the outer Victoria area.

#50 Axxman on 02.27.13 at 11:25 pm

Bank earnings releases this week will have enhanced disclosures about their mortgage portfolios. Should be interesting reading. Funny, the gov’t requires these enhanced disclosures from the banks, but opts for reduced disclosures when it comes to CMHC. I suspect OSFI is behind both of these moves (OSFI has recently started regulating CMHC)

#51 My thoughts on 02.27.13 at 11:28 pm

Why do I see mike Stewart’s advertisements every web site I look?

#52 My thoughts on 02.27.13 at 11:28 pm

Mike Stewart realtor from
Vancouver that is.

#53 Mark W on 02.27.13 at 11:29 pm

http://www.trulia.com/

Here is a good real estate website for the USA.

You can create a filter under “Listing Type” and click on “Foreclosure”.

Here is one example:

In Whittier CA there are 1038 properties for sale.

766 of them are Foreclosure.

So 73.8% of all the properties in Whittier CA are Foreclosures.

Pick any place in the USA and do your own math.

No such filter on http://www.mls.ca (none that I can see anyway).

#54 Dr. Hoof-Hearted on 02.27.13 at 11:30 pm

Quote:

In this context, do we really want a powerful, massively-influential government agency fibbing to buyers? Coaxing them into paying more than an open market might dictate? Fluffing prices?

==================================

In the US, it was more the two – step…. the Banksters got apropos legislation repealed.

In Canada…the same scum went directly for the throat via the CMHC.

Same sh*t ……different pile.

#55 eviee1973 on 02.27.13 at 11:31 pm

Any foreclosure I had seen in recent years has a piece of paper in a window stating that a firm is in charge of the property, the houses are always empty. Simple other things to look for, a title search, or ask neighbours.

#56 heloguy on 02.27.13 at 11:39 pm

The Canada Mortgage and Housing Corporation (CMHC) has stated that real estate brokers should not indicate that the property is a repossession. We inquired with the CMHC, and they informed us that this publication rule stems from a national policy that applies to all Canadian provinces. –

The governing word “should” in the above paragraph has has many meanings but in legal terms, “should” means a person is “encouraged” to do something while “must” and “shall” mean they are required to do it, therefore realtors with any sense of ethical responsibility towards their clients can tell them about the status of the property.

#57 Mark W on 02.27.13 at 11:41 pm

http://www.dailymail.co.uk/news/article-2285430/Charlie-Bean-Bank-crushing-savers-Backlash-grows-new-hint-negative-rates.html

“The Bank of England was last night accused of ‘crushing’ savers as the row over negative interest rates intensified.
Charlie Bean, deputy governor at the central bank, admitted ‘there is nothing to stop us’ reducing rates to below zero to kick-start the economy – although he insisted there was no plan to do it ‘immediately’.
His views emerged just a day after fellow deputy governor Paul Tucker said sub-zero rates should be considered to boost lending to businesses and households.
But the proposal was greeted with disbelief by savers and condemned by critics who called the central bank’s policies ‘insane’.”

Read on …. :-(

#58 Smoking Man on 02.27.13 at 11:42 pm

Dogs, I hear from you, Banksters, Cartels, Slime sucking realtors.

What that tells me about you, you have no control, you haven’t figured out how to turn on the prosperity switch. So ya chirp.

I’d you where a Rothschild, you would act like a Rothschild. But your not, so time for plan B. Infiltrate and profitate……

Chirping just gets you nowhere..

It’s how it’s done…..

#59 Montreal IT Guy on 02.27.13 at 11:49 pm

Im absolutely appaled by this foreclosure thing, why isn’t this on CBC a 18:00 news all over the country? Garth can you post that notice online?

#60 Canadian Watchdog on 02.27.13 at 11:50 pm

Here’s one realtor site that posts some GTA power of sales. Link

This is only one agent’s listings. The banks and CMHC use various agents so nobody can track how many power of sales are actually listed.

The reason why CMHC and banks keep a lid on foreclosures is not so much to prevent buyers from low-balling offers, rather to keep MBS and bondholders confident that their assets are valued at market prices (Emili) and rated AAA.

Sound familiar?

#61 Mouldy in Nanaimo on 02.27.13 at 11:53 pm

#29 Bottoms_Up- thanks for the info that seems to add up. Lack of forsight on the governments part for sure. A short sighted policy that will reward the banks. They are the only ones that get off scott free in this deal and maintain their huge profits with virtually no risk or skin in the game. Total crap. .

#62 lawboy on 02.27.13 at 11:54 pm

#28 Will

the CMHC will come after you for the difference of what they sold the property for vs the outstanding mortgage amount. Except in Alberta.
….

Really. So the CMHC insurance is just to ensure the banks get paid quickly…the insurance buyers pay for is really for the benefit of the banks? Damn…

#63 oh oh on 02.27.13 at 11:55 pm

True story, I am in on a foreclosure deal here in BC, it’s listed on MLS the Realturds website and nowhere does it show it as a foreclosure bank owner property, it is also 65% less than what it last sold for, I’ll let you blogdogs know if I win in court, ps there’s lotsa foreclosures in BC these days… Watch for more to come

#64 Smoking Man on 02.27.13 at 11:58 pm

What separates a bum on the street, to an elite, tactics, self worth, that’s it.

It’s simple. Yet most just sell them self short, the enemy, your mind.

Got your teachers to thank for that….

#65 Dog Walker on 02.28.13 at 12:03 am

Not disclosing the information is a delay tactic, and the suckers buying the properties will most likely be insured by CMHC. Everyone except the riskless banking geniuses take a kick in the pants ( the front, not the back ).

#66 Grantmi on 02.28.13 at 12:04 am

<blockquote.40 Ted54 on 02.27.13 at 11:09 pm

There you go Garth blowing smoke up the dogs arse. If the concern is that tax payers will have to pony up for CMHC shortfalls why is it in the consumers interest to see these properties vulched or hacked away at.

You’re a fuking idiot!!

There Garth.. I said what you mean!!

#67 pathcontrolmonk on 02.28.13 at 12:07 am

Garth, I thought it was Boomer Week? You have to comment on the rich retired bureaucrat featured in this story who bought in Trump Toronto because of guaranteed returns of 27% http://mobile.bloomberg.com/news/2013-02-27/canada-losing-debt-halo-as-bull-market-housing-peaks-with-carney.html

#68 len on 02.28.13 at 12:08 am

Our local realtor guy who seems the better of the lot posted the CMHC article stating that it is a non news and presented an example of a title that he bought were it stated the owner as CMHC – see, no problem he says.

What seems lost on this person is that this information is now hidden behind a paywall and not easy to aggregate for anyone so inclined. The CMHC justifies this new policy in terms of best deal for the taxpayer and they are probably right, in the wrong way. They simply want foreclosure statistics to be hidden: they choke the information and can thus control the message. The lamestream media is asleep or complicit and will gladly take the verbatim smoke and mirror PR announcements coming from CMHC. They want to stem panic so that people don’t get the idea it’s OK to walk away. So in this roundabout way, they do want to minimize the damage and protect the taxpayer.

That is probably their justification internally and in agreement with the government of the day. Canada really sucks when it comes to public transparent information access.

#69 Canadian Watchdog on 02.28.13 at 12:09 am

My last post for the night.

Report reveals Canada has far more state-owned businesses than previously thought

The punch line: "This means that agents employed by CMHC are not agents of the Crown."

#70 HAWK on 02.28.13 at 12:13 am

#17 Canadian Watchdog on 02.27.13 at 10:38 pm

============================

Good insight thanks. Maybe someday we’ll be free of the British Crown………one can hope.

#71 Mouldy in Nanaimo on 02.28.13 at 12:15 am

Wait a minute Garth were you involved with creating CMHC when you were in government?

Yes, right after my unit shipped back from WW2. — Garth

#72 Screwed on 02.28.13 at 12:17 am

The private sector is hurting – FIRST. Has been going on since August 2012 across all sectors.
The public sector will hurt coming soon.

BC’s balanced budget is a joke and Arthur Andersen would blush.

Next up, liabilities. Pensions and other scheduled payments. When the purse runs dry, there is no other option.

Nobody will be insulated from the crash and as much as I appreciate the blog and insight, I don’t understand why Garth seems to be enjoying the coming chaos with glee.

Victoria is maybe on an island but it sure is NOT an island. There’s no escape and the “haves” will be asked to contribute more, the “haves not” will not participate anymore and develop the black market and underground economy.

Cash is King.

#73 DocInWaitingRoom on 02.28.13 at 12:18 am

well when I buy im low balling like everything is a foreclosure in a few years problem solved

#74 Van guy on 02.28.13 at 12:21 am

#51 My thoughts on 02.27.13 at 11:28 pm

Why do I see mike Stewart’s advertisements every web site I look?

————————————————

It’s google advertisement. Google keeps track of your browsing and sends you ads based on what type of websites you visit. That also means you are likely from the Lower Mainland if you see his ads. I see it everywhere and each time I see it, his face makes me wanna puke.

#75 new to the east coast on 02.28.13 at 12:23 am

in Nova Scotia the interesting http://www.viewpoint.ca real estate website can show (some?) foreclosed properties… it also will show some of the sales history, and a rich set of information once you sign up…

the data is there, i think it’s MLS trying to limit access to it and drag you into the world of the realtor

#76 Joseph J. Roy on 02.28.13 at 12:29 am

Garth,

The CMHC has issued a response to this issue:

http://www.cmhc.ca/en/corp/nero/2013-02-27.cfm?WT.mc_id=TWT2013_54

#77 Paul on 02.28.13 at 12:29 am

Thursday at 9 on CBC…The Boomer Revolution.

#78 Mic D'angelo on 02.28.13 at 12:30 am

To Jun0 #27
It takes two to tango. I agree and disagree. It is both the faults of the lender and the borrower 50%/50% of this mortgage debt mess. I don’t know if you will get this post because Garth does not like my opinions and has blocked at least 7 or 8 of my posts over the last 3 days this one included. You can see for yourself #15 is Lawboy but I was #15 until Garth Turner removed my post #15 Mic D’angelo.

As you know, last week you were detected posting excessively, under multiple names. When I blocked further posts you attempted to bomb this site on Wednesday and Thursday of last week with dozens of entries interspersed with personal threats. As a result your service provider was contacted by my webmaster and you were temporarily blocked from accessing this site. Further actions will be taken if you repeat this behaviour. You are now permanently banned from posing here. — Garth

#79 Smoking Man on 02.28.13 at 12:31 am

On my LinkedIn Summary.

I make problems go away, mind you a bit looped when I typed this.

What would I do that?

For the dumb. It makes me stand out, separates me from the people that have the Starbucks menu memorized.

I can brag without arrogance (problems go away) at the same time I show I’m a cool and we can share a pint down to earth, builds trust.

Tactics………

I should charge you dogs, but in a very weak state at the moment.
Another confirmation test on Tuesday.

Damb

#80 Mouldy in Nanaimo on 02.28.13 at 12:33 am

#71 Mouldy in Nanaimo on 02.28.13 at 12:15 am
Wait a minute Garth were you involved with creating CMHC when you were in government?

Yes, right after my unit shipped back from WW2. — Garth
—————–
Oops sorry Garth! I had a feeling I was setting myself up to be nailed on that question.

#81 Small Town Steve on 02.28.13 at 12:52 am

I found this nice little web page for checking out ETF’s and other financials. It is even free.
http://www.barchart.com/opinions/etf/THD
Thank you Garth for educating us on the importance of taking an active roll in getting ourselves out of debt and keeping liquid.

#82 My thoughts on 02.28.13 at 12:52 am

#74. Actually from the GTA, but I will try to reset my browser. Thanks

#83 Macrath on 02.28.13 at 12:54 am

I would suggest that this is only the tip of the manipulation iceberg. TPTB will do whatever it takes to keep a floor under the real estate market bubble. They already have the laws arranged so that they are obliged to sell at fair market value under power of sale. If you are expecting a great deal from the Banks ! forget about it.

George Carlin explains the situation,
http://www.youtube.com/watch?v=rsL6mKxtOlQ

#84 DA why don't you mention all the foreclosures in Kelowna too! on 02.28.13 at 12:56 am

Just went up to Toronto from my winter home in Florida for family reasons. On the return trip to Florida was talking with a senior bank executive from TD Bank on his way to Philadelphia for a meeting. He is from TD’s HQ in Toronto. I asked him about what he thought Canadian housing is doing. This is his exact words” the whisper number through the senior level at TD is for AT LEAST a 30% drop in prices through the entire Canadian market. Then he added it hasn’t even started yet. That blew me away.

By the way have you seen how many new houses have joined the foreclosure listings in Kelowna… its HUGE. Right DA!

#85 Billy on 02.28.13 at 1:02 am

It’s not looking good in Burnaby at solo they are advertising 330k two bedrooms, in my building next door 5 years old people are trying to get over 400k for bottom floor units. Guess what they are not selling, and prices have been dropping. People in my building are trying to get 350k for 1 bedrooms when you can buy a brand new two bedroom for 330k next door. It is not looking good for people trying to sell units in Burnaby.

#86 Lookoutbelow on 02.28.13 at 1:15 am

Buyer pays for insurance, the Banks collect the payout if the owner defaults.

CMHC, Banks = MORAL HAZARD

But hey, at least the economy is growing, DUH!

#87 West Vanner on 02.28.13 at 1:15 am

Eagerly awaiting those numbers next week, especially for Victoria area. I think a box of Kleenex should accompany any offers made, no point in being totally unfeeling for the poor buggers….

#88 FYI on 02.28.13 at 1:19 am

http://business.financialpost.com/2013/02/27/im-afraid-of-a-condo-crash-canadian-real-estate-investors-fret-as-housing-blitz-winds-down/?__lsa=e7d2-5beb

#89 rp1 on 02.28.13 at 1:26 am

Does capitalism have no victims, only volunteers?

#90 Oh Canada — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate | The Affluent Boomer™ on 02.28.13 at 1:30 am

[...] via Oh Canada — Greater Fool – Authored by Garth Turner – The Troubled Future of Real Estate. [...]

#91 minus40 on 02.28.13 at 1:36 am

In the states banks and goverments regularly sell repo houses in packages of 10 or 20 to keep them out of the hands of individual buyers, who they feel should be buying new houses and condos and paying full price for them. The fee for those bundles of repo houses is higher than most individuals can afford, so they go to property management firms or landlords where the (usually heavily damaged) buildings are repaired and used for rental housing. Don’t know how this affects property values or other real estate data, but they’re doing it.

#92 Vangrrl on 02.28.13 at 1:38 am

#71- “Wait a minute Garth were you involved with creating CMHC when you were in government?”

“Yes, right after my unit shipped back from WW2. —
Garth”
————–
Too funny…!

#93 Mixed Bag on 02.28.13 at 1:40 am

Well would you look at that. Got around to checking my email, and saw in my weekly Globe and Mail Newsletter: Personal Finance Reader by Rob Carrick, delivered Wednesday morning, that he linked to the “Advice” post. From the email:

It’s the right time to buy a house when…
Garth Turner, king of housing bears, has developed a formula for deciding when it makes sense to own a house. It’s called the rule of 90 and it says that an appropriate percentage of your net worth to be tied up in your home is equal to 90 minus your age.
Read more <- link to "Advice" post

#94 Mainlander on 02.28.13 at 1:43 am

There is no way that property values go to zero and wipe out CMHC. At most they might lose 20% of the insured value and that would be a stretch. Property values are going way down but no way will any bank or CMHC get hurt. Insurance companies have actuaries plan for absolute disaster scenarios and CMHC is no different.

#95 Freedom First on 02.28.13 at 1:52 am

CMHC. Politicians. RE industry. Banks. MSM. Various other white collar workers. You get the idea.

Consumer/citizen/Canadian: If you have not figured it out by now, you are the target. The goal of the above, is to keep you spending your money, consuming, and in debt. Your well being is up to you, as they do not care about you, but pretend they do, because if you end up either: broke, bankrupt, jobless, homeless, ripped off….etc., it is entirely your fault. Sooooooo, if you would like some consumer protection, please, get up from your computer, go to the bathroom, and look in the mirror. There is your consumer protection.

Now, Garth, with his informative, truthful, and generously free blog, has been kind enough to try to educate people to protect them from themselves(ignorance and stupidity), as well as the unscrupulous, unethical, greedy, and evil dark side of human nature, of which there is an abundance of, dressed in suits, with smiling faces, welcoming handshakes, out and out fabrications, and masterly presentations of misleading delusions of grandeur(in laymens terms: bs and lies). So many fools in the world, it is disheartening to read the stories worldwide of the fleeced, and see them now rioting in the streets. It is not different anywhere in the world. Canadians, as naive as anyone. I have empathy for the people, but find it so sad to see the masses always being duped.

#96 Nostradamus Le Mad Vlad on 02.28.13 at 2:02 am

-
“There you have it. The government is trying to hide foreclosures. Perfect. Except, maybe, the death of trust.” — C, H and F’s masters are well pleased with the carnage they have wrought. Someone’s gotta do it, I suppose.
*
#191 tkid on 02.27.13 at 9:49 pm — “There isn’t enough money coming out of taxes to fund today’s needs (witness the shabby state of health care in Canada), . . .” — That’s why H and F bought in the TFIA (investment), so smart people would be able to take care of themselves, after gouging IT’s, except the majority of sheeple are too dumb to understand this. Good post.

#18 Canadian Watchdog — Exc. post and links.

#36 Vamanos Pest — “That’s not unethical, it’s tyranny.” — Good call, and it blankets this continent.
*
Inflation and Taxes Coming to a country near us; Economists love to hate gold. I hear it’s hitting the skids lately, and Gold Central banks become net buyers of gold, most since ’64; Viva l’Italia!Maybe not; TPTB need Stormtroopers to keep Greek masses from dismembering them; 1997 French unemployment highest since then; Five Ways the rich live frugally.
*
Adobe Emergency patch for Macs and PCs; 2:31 clip Yes, Sarah Palin has an idea which is worth checking out; 3:50 clip The only reason for the false BS against Iran is . . .; Some is better than none Man with half a face; Four vs. one He didn’t stand a chance; Karma Chameleon Cycles of birth, life (decay) and death; Trotter the BulldogDressing up for Instagram; 1:38 clip (Russian) Russian missile deflected part of meteor last week; 4:01 clip Nuke waste and sacrifice zones (Hanford, Washington State); Draconian “This new act aims to pull an ‘Aaron Swartz’ on all of us…”; Gun Control “Gun murders worst in urban areas with toughest gun laws.” Breakdown of law and order? Or maybe pre-planned; 2:23 clip Obomba ‘borderline communist'; GMO Manmade biological threats, aka forced starvation or depop.; Horsemeat and Arms Trafficking There really are plenty of numbnuts on this planet; Bob Woodward Speaking of Obomba; Entente Cordial Putin, Obomba and one or two others.

#97 Gunboat denier on 02.28.13 at 2:05 am

66 Grantmi – ya sure, now please answer Teds question.

#98 Double Double Straight on 02.28.13 at 2:09 am

To the wannbe riddle man. Do you honestly think people would pay for what? For one that complains so much about the macheeen, why ya keep contributing. DUH !!!

#99 popados on 02.28.13 at 2:23 am

#55 ,what do i do? drive all over the lowermainland looking for a piece of paper in a window that says the house is in foreclosure . great,i hope you send me some gas money Eviee.

#100 Stomper on 02.28.13 at 2:48 am

You guys are all a pack of whingers.

Try living here in Sydney Australia – the second most unaffordable city int he world.

Call your bubble a bubble…..

Try average house prices of A$670,000 against average earnings of A$75,000 (pre taxes) – and those are REAL $ not US$ or CAD$ junk.

And we have the same ponzi mentality being spruiked by our leaders – with our 4 big banks sharing obscene oligopolistic profits with asset fueling Central Bank rates.

Unfortunately I believe we have learned nothing from the GFC and are heading towards fiscal armageddon with the same demographic profile working it’s way through the system.

The only real difference is we’ll be eating kangaroo instead of squirrel!!!

#101 Blasé on 02.28.13 at 2:53 am

WW2 LOL

#102 Roy on 02.28.13 at 2:53 am

For a decade it has been one giant party, and now the game is going sour. Isn’t that when you see the gunfights start to break out at the poker table?

I guess now we will find out what the RE industry is really all about, and it doesn’t look good. It never was, it has just all been a charade.

The latest Van sales numbers for Jan-Feb are dismal! They really confirm what has been said about the middle class being eviscerated from the buying pool out here. Of course there are others who absolutely have no interest in buying any severely overpriced asset right now.

This bubble is on the verge of a major blow-out, and what is key is that confidence has also eroded to a critical stage.

Foreclosure-fest by 2014 – 15?

Some owners may be close now to being caught totally off-guard here.

“the only way out of debt here is bankruptcy.”

This will not end well.

#103 futureexpatriate on 02.28.13 at 2:57 am

#4 Zillow is pure unadulterated easily manipulated bullshit. People who rely on Zillow are worse of than relying on the real estate boards. Fraudulent sellers report fake sales in the millions of dollars or adjacent properties, ZILLOW PRINTS THEM, lets them pump up their useless “zestimate”, and then absolutely refuses to remove the imaginary sale after FULL PROOF being reported more than 10 times. Multiply this PERSONAL experience times a million or more.

#104 broadway skytrain on 02.28.13 at 3:01 am

just ask:”The real estate broker is however required to disclose this information to all potential buyers in a timely manner.” – cmhc

#105 broadway skytrain on 02.28.13 at 3:08 am

Yes, right after my unit shipped back from WW2. — Garth

army, navy or air force? and thank you for your service of country. god bless.
anyway , how could they have a war without computers???

#106 Bailing in BC on 02.28.13 at 3:24 am

“Yes, right after my unit shipped back from WW2.”

I knew it. It all makes sense now. Obviously you have been drinking the blood of virgins to stay “forever young”

#107 Buy? Curious? on 02.28.13 at 3:34 am

There should be a jiggle mail revolution! If enough people do it, the more reform will take place! Make the banks pay!
Bankruptcy courts can’t discharge student loans but they can with mortgages! Do it if you can!

Garth for PM (Precious Minister)!

http://www.youtube.com/watch?v=JXL3F4FhedQ

#108 West Vanner on 02.28.13 at 4:07 am

Anyone have any thoughts about the future of the City of Vancouver? Seems to me that it’s over occupied, to a large extent by people who don’t speak the language as well. Not only that but the buildings they live in are poorly built, most of the envelope ‘parts’ are from their countries of origin, quality control is a big issue with it. Of course, mayor Gregor’s bike lanes are built to the highest standards, the future Ghetto residents will no doubt appreciate those, as long as they are not littered with burned out German Automobiles…. which seem to be the vehicle of choice around here, myself included.

#109 Devore on 02.28.13 at 5:31 am

#57 Mark W

Mr Bean 2 years ago:

http://www.telegraph.co.uk/finance/personalfinance/savings/8028884/Savers-told-to-stop-moaning-and-start-spending.html

Carney will toe the same line.

#110 Need Sleep on 02.28.13 at 5:42 am

I wish we had Zillow here.

My local paper, The Winnipeg Free Press has given no coverage of this CMHC headline yet. The most recent housing article we have claims it is a great time to sell your place and buy a more expensive home. I plan on spending more time on Zillow considering a U.S. purchase then time on MLS.ca looking for a Winnipeg home.

#111 I'm stupid on 02.28.13 at 6:41 am

When I had very little money I would buy the best clothing, nice cars, and spent money like a drunken sailer. I wasn’t afraid of risk or debt since I had nothing. Then I became disciplined, I began to save and invest. I don’t know what caused the change but I did it religiously. Now I don’t care about brand name clothing and only buy what I need. Now that I can afford to live like I did when I only had income and very little net worth I don’t. I can’t explain why, or the change in attitude. Maybe it’s because I was insecure about being a “loser”. The “house” has become a badge of honour for Canadians. The giant mortgage is validity of success. Since most new buyer are like I was (broke) they don’t fear loss or risk. They will learn when they can’t borrow anymore and realize they don’t make enough to pay the bills. I remember a story a wise man told me when I was
young.

There was a rich man, living in his castle. At the front gates lived a beggar. The beggar would sing and dance and was happy. The rich man couldn’t understand why he was so happy and it annoyed him. So he gave the beggar a large sum of money to move far enough so he could not hear him. That was the last day the beggar sang and danced because his time was preoccupied with keeping and protecting his new found wealth.

I finally understand the full meaning of the story.

#112 Jaguar on 02.28.13 at 8:14 am

While the draconian tactics of CMHC (or it’s two main competitors, let us not forget there are two others) is a concern, what’s more troubling is that this may be the beginning of a trend. Large credit lines based on home equity have been very popular in the recent past. People are leveraged. When the shaky ones figure out they are ‘under water’ those rats may abandon the sinking ship. It won’t be just CMHC that becomes the focus of everyones attention.

#113 T.O. Bubble Boy on 02.28.13 at 8:28 am

WW2 comment is classic….

Since CMHC has obviously over-extended itself (to put it nicely) from that original mandate of helping war veterans get into the housing market, why don’t we just sell the thing when it is still at/near its peak?

If China can buy Nexen, why not CMHC? Then it can be a direct money laundering service for HAM dollars instead of today’s over-complicated indirect process where you have to pay for citizenship first or send cash through your kid on a student visa.

#114 thinker on 02.28.13 at 8:36 am

You people should be happy the CMHC is doing. YOU ARE THE CMHC!!!!!, THE BETTER PRICE THEY GET, THE LESS THE TAX PAYER IS ON THE HOOK!!!! THEY ARE PROTECTING YOU.

THINK PEOPLE, THINK

This is insurance. CMHC does not get the money, it simply shoulders the liability. The lender is covered. Sheesh. — Garth

#115 Tony Right on 02.28.13 at 8:43 am

CMHC is trying to build a paper dam on a tsunami. Good luck with that!

#116 TurnerNation on 02.28.13 at 8:46 am

Don’t over-think H’s regime strategy.

If I recall from Orwell’s book ‘1984’, the play book reads:

“The object of persecution is persecution. The object of torture is torture. The object of power is power. Now you begin to understand me.”

Simply put. Do not question the reptillian brain. History has proven its mettle. In every country. Even ours. The betrayer.

#117 Ralph Cramdown Ⓤ on 02.28.13 at 9:34 am

#82 Macrath — “I would suggest that this is only the tip of the manipulation iceberg. TPTB will do whatever it takes to keep a floor under the real estate market bubble. They already have the laws arranged so that they are obliged to sell at fair market value under power of sale. If you are expecting a great deal from the Banks ! forget about it.”

Yeah, next they’ll try 30, 35 and 40 year mortgages with only 5% down, or even nothing down. And they’ll lower interest rates to stimulate the economy. Maybe offer a credit to first time buyers, or a tax rebate for closing costs. Maybe a forbearance or loan mod program for financially stretched homeowners. Yeah, maybe they’ll try some of those.

It’s like we’re watching the same movie, but you’re waiting for the leading man to make his appearance, and I’m anticipating the credits to start rolling (no pun intended).

#118 jess on 02.28.13 at 9:39 am

no hinges or pins bearings joints
could make robots cheaper, stronger and faster.

http://www.youtube.com/watch?v=SDg5W3YwrsI

#119 Incubus on 02.28.13 at 9:42 am

This can’t work because:

1) on the listing you will see sell “without legal waranty”;
2) you will be ask to do an offer open for few days instead of 24 hours;
3) you will have to make a deposit of $1000 on the name of an financial institution;
4) the house will be empty and not cleaned.

But they have already comply of the new rules.

Québec Remax web site has changed .

http://www.remax-quebec.com/fr/showHome.rmx#search

Before they had a tab that indicated repossession, now it is gone!

#120 lp on 02.28.13 at 9:46 am

Garth,
You have often mentioned that financial assets will do well over the next few years. Can you explain the rationale behind this? If home prices fall and people spend lesser and instead choose to lower their debt, wont the broader economy (and as a consequence financial markets) also weaken ?

Check out bank profits today. Second, no smart investor has only Canadian assets. — Garth

#121 Incubus on 02.28.13 at 9:50 am

Here an example:

“Sold without legal warranty of quality, at the buyer’s own risk.”

http://www.remax-quebec.com/en/inscription/M/9589501.rmx?fromsearch=foreclosed_66010

#122 thinker on 02.28.13 at 9:53 am

Garth who do you think will have to make those liabilities whole if the CMHC fund who has only 1% of cash to meet them is wiped? US, the Canadian taxpayer. So if they are getting back 100% of the money and pass it back, then have the cushion…better for them do that then firesale homes living my kids on the line.

#123 Rusty Venture on 02.28.13 at 9:59 am

#29 @ Bottoms_Up.

Well said! I think the intent was to encourage domestic consumption during the Great Recession until the U.S. economy recovered, then exports to the U.S. would ensure a ‘soft landing’ in terms of GDP.

However, the powers-that-be made it too easy to obtain mortgages which drove up house prices too quickly, as well as underestimating the amount of time it would take the U.S. to recover.

#124 jess on 02.28.13 at 10:05 am

FT says this morning:

“[The EU] parliament also prevailed in requiring banks to reveal their taxes and profits on a country-by-country basis from 2015, as long as the extra transparency is not judged by the European Commission as an impediment to inward investment.
http://www.taxresearch.org.uk/Blog/2013/02/28/we-got-it-country-by-country-reporting-is-on-its-way-for-banks/

#125 rosie "moving forward" on 02.28.13 at 10:13 am

Excluding “foreclosure” on a listing makes good business sense.

#126 afraidit allmightend on 02.28.13 at 10:16 am

Manipulation & Entitlement …a Canadian right…..everyone has been taught to think so over the years by the lies of the manipulators who want to maintain the uneven status quo thats says an elitist cadre of the few should get more while taxpayer can f off.

http://www.vancouversun.com/news/British+Columbia+film+industry+fades+Ontario+jobs+surge/8026182/story.html

This entitlement crap is endemic throughout the CDN social and political system…..entirely unfair to the greater mass of the population…..CMHC manipulation…of course…what did you expect….honesty…from the government……have you been living under a rock?

The example above relates to the film industry that expects its union members to do a little better then the average Canadian and as such forces their cost structure onto private business…that business can’t function and so moves….whats difficult to understand…..what are they going to do …raise taxes?

#127 Satinder Singh on 02.28.13 at 10:32 am

LOL – Read the following from CREA website – Responsibilities of Realtor Representing you as a buyer:

As a REALTOR®, you take professional agency responsibilities very seriously. When working with
clients to buy and sell properties, it’s your duty to make reasonable efforts to discover the relevant
facts about each property.

– So tell them if it is a Grow-Op but not if it is a repo ??

Definition of a double standard !

#128 Mortgage Guy on 02.28.13 at 10:33 am

What is funny is that most people believe that in Canada we have safe lending standards.. what a bunch of baloney.

Here is a direct copy for a lenders offer.. Canadian offer. That is valid right now, not a year ago.. right now… this very moment. It is not as wide spread as it was before a year ago but it still is being done.
—————
* No income verification – Business for Self, Stated Income, No income tax returns, even no income!
* No beacon or credit score requirements – low or no beacon – we don’t care!
—————

I’m a licensed practicing mortgage agent… if you have no income, no beacon score, bad credit, but you have a pulse.. I will be able to get you a mortgage, all you have to do is sign on the dotted line. I always find it funny that people believe the reason why we survived 2008 was because we had a sound financial system, that is not true.. the reason was that we loosened our lending standard even more and US said, enough is enough… and they went through the period of fixing some of their issues. This is coming all ahead for us… and it will be much worse for us then it was for them. Wait and see.. wait and see what happens when you get almost 30% of GDP based on RE and what happens when there is no more people to lend to because everyone is up to their eyeballs in loans. That is crazy.. totally crazy. Canada is much smaller country then US and we have much less things t hat can get us through this rough waters ahead.

#129 Toronto_CA on 02.28.13 at 10:38 am

#100 Stomper on 02.28.13 at 2:48 am

Stomper I just got back from Sydney, and it’s expensive as shit to visit earning US or CAD dollars; not much better if you’re native earning Aussie Dollars. The minimum wage there is nearly double what it is in Canada, and outside of Sydney it’s much more affordable…but in Sydney proper..yikes!

The mortgage rates in Australia are a lot higher than Canada but the property values in Sydney are through the roof. They blame HAM there too (speaking with locals about the property bubbles). Rents in Sydney are ridiculously high as well, they quote by the week rather than the month to make it seem less expensive, but my friends were paying $600 a week for a pretty shitty 2 bedroom place a few stops from downtown. No Air Conditioning, no Amenities, full 15 minute walk to subway…yikes!

Then again, Sydney is a much more world class city than Toronto. Anyone who thinks Toronto is on the same level as Sydney needs to go visit. Their subway system, use of waterfront, and even the cutlure/nightlife makes Toronto look like Bouctouche in comparison.

#130 Regan on 02.28.13 at 10:39 am

I don’t agree – under power of sale, the seller (i.e. the bank) is legally obliged to get fair market value for the owner. Why shouldn’t information about the owner be kept private? The owner isn’t even the seller, in this case, it’s the mortgage holder, who isn’t suffering any financial stress at all. It in no way misleads about the property itself or withholds any information relevant to the sale. It allows the banks to do their duty to get market value, otherwise they could be sued by the owner. Additionally, the contract between the bank and the other is private as well – the details of the status of that contract should not be made public.
If you want CMHC to keep track of the volume of power or sales or mortgage defaults on mortgages it insures, that information can be tracked in aggregate and protect the privacy of individuals. This is why Zillow isn’t in Canada – big chunks of it run contrary to Canada’s privacy legislation. Before you say that this information should be made public, you should remember that it’d be public to anyone, for any purpose. Think very carefully about the implications of this before you throw away your rights to privacy.

#131 Dr. WAYNE on 02.28.13 at 10:45 am

#78 Mic D’angelo on 02.28.13 at 12:30 am

As you know, last week you were detected posting excessively, under multiple names. When I blocked further posts you attempted to bomb this site on Wednesday and Thursday of last week with dozens of entries interspersed with personal threats. As a result your service provider was contacted by my webmaster and you were temporarily blocked from accessing this site. Further actions will be taken if you repeat this behaviour. You are now permanently banned from posing here. — Garth
=========================

Jeeezzz … and I though I got a tongue lashing …

#132 gladiator on 02.28.13 at 10:54 am

Yes, right after my unit shipped back from WW2. — Garth

Wow! Garth, so you’re a veteran too? Wow!

Stand back. I’m still loaded. — Garth

#133 Penny Henny on 02.28.13 at 11:01 am

CHMC…..
manipulation…….
I thought that this was going to be Boomer week?

#134 Gunboat denier on 02.28.13 at 11:01 am

Garth – thinker has rebutted your response @122. Can you further explain why the CMHC should not try to recoup the highest possible proportion of its loss payout?

He rebutted nothing. CMHC is an insurer, not a loan providor. They typically do not pay out a claim until after a property is disposed of, which in reality means setlements are rare. The point is simple, that by withholding information about a listing they could deceive a buyer into paying more than an efficient market would determine. That is unethical. — Garth

#135 Daisy Mae on 02.28.13 at 11:06 am

#18 45North: “Why would this policy not be a case for a class action?”

*****************

What’s the point? All we’re doing is suing ourselves.

#136 jess on 02.28.13 at 11:06 am

72 is the new 30 perhaps it depends on which side of the gate one lives on
gated community
http://www.dailymail.co.uk/home/index.html

===========

Rationalizing – why pay no services

“Nearly half of the owners of Detroit’s 305,000 properties failed to pay their tax bills last year, exacerbating a punishing cycle of declining revenues and diminished services for a city in a financial crisis, according to a Detroit News analysis of government records.
47% of the city’s taxable parcels are delinquent on their 2011 bills. Some $246.5 million in taxes and fees went uncollected,
Delinquency is so pervasive that 77 blocks had only one owner who paid taxes last year…and inflated assessments
http://www.detroitnews.com/article/20130221/METRO01/302210375

#137 rosie "moving forward" on 02.28.13 at 11:12 am

#127

I’m not getting this attitude towards foreclosed properties. If the property was a grow op, crack shack, murder site, had aluminum wiring, urea insulation or was in Winnipeg I could see it having a price disadvantage when compared to other, like properties. The previous owners were forced to leave the home because they could’t afford it.. Their property is now the banks asset. Assigning less value to the property, simply because it was foreclosure, assigns a moral, almost puritanical penalty on an inanimate object, which when compared to other like properties is of equal value in the marketplace.

#138 Herb on 02.28.13 at 11:13 am

#131 Dr. Wayne,

you got a tongue lashing, Mic D’angelo got reamed. The punishment fit the crime in both cases.

#139 gladiator on 02.28.13 at 11:13 am

I think that “thinker” in message #114 meant that if CMHC gets a higher price for the foreclosed house, the shortfall that it has to cover is smaller, ergo pay less money to the lender, so we as taxpayers win by not having to pay higher taxes if CMHC had to cover a wider gap between the outstanding debt to the bank and the price it gets for the house.

That does not happen. The excess above the mortgage obligation, costs and commission goes to the legal owner of the home, who defaulted. — Garth

#140 Daisy Mae on 02.28.13 at 11:18 am

#35 Bottoms_Up: “So, they are trying to preserve the bubble, and protect the masses.”

********************

They are deceiving the public. Thereby, protecting their bottom line.

#141 AK on 02.28.13 at 11:27 am

#6 simkev on 02.27.13 at 10:19 pm
“Ummm ….First ! :)”

#13 richard on 02.27.13 at 10:27 pm
“Furrrssstiiissssttttt!!!!! yeaaaahhhh babyyy!!!”

——————————————————————-

Okay, since Dr. WAYNE is on a hiatus, I will fill in.

Not only you 2 guys are losers, you are also A$$holes. :-)

Not this again… — Garth

#142 gladiator on 02.28.13 at 11:38 am

That does not happen. The excess above the mortgage obligation, costs and commission goes to the legal owner of the home, who defaulted. — Garth

Thanks, Garth, but I just wanted to clarify this matter a bit more – with numbers (all are fictitious for example’s sake).
Say, the outstanding mortgage amount is 500k. CMHC sells the house for 450k. Legal costs, commission, etc. are 20k. That means, the legal owner pays the 20k and defaults. CMHC will have to pay the bank 500k – 450k = 50k. Now, if the house was vultched, CMHC would have gotten say 400k for it, so now it would have to cover 100k, not 50k. That was what I meant.
Of course, the taxpayers would be dinged only after CMHC pays to banks more than it currently has in its reserve funds (60 bln or so right now?).

That’s why CMHC collected premiums and has reinsurance. — Garth

#143 Timmy on 02.28.13 at 11:44 am

Being as an insurance entity, CMHC should evaluate each of the mortgage contract to determine the insurance premium they charge. For example, the lower the credit score, the higher premium they should charge. Their current one rate for all home owner insurance contracts would need to change.

Yes, CMHC should try to sell their repo properties to the highest bidder, but has to be fair in its dealings. Intentionally withhold critical information from buyers just not ethical. By disclosing all information to the buyers, CMHC still can obtain their highest price possible becasue it still has the right to reject unacceptable offers.

#144 Mike on 02.28.13 at 11:46 am

I referenced one price range of resales in certain demand areas. New low-rise construction has collapsed 50% in the GTA. Something to fear about. — Garth

It leads me to believe the inventory will be even tighter. The 700-1M is the more bang for your buck range compare to high-rise multi-unit prices. Which is perhaps why sales is rising in that range.

Where did I say they are rising? — Garth

#145 Macrath on 02.28.13 at 11:47 am

#117 Ralph Cramdown

They hide more than the listing info. They hide the empty properties, eg. (keep them off the market) when foreclosure volume gets serious. They have deep pockets and can wait till the chipboard disintegrates rather than liquidate. Bulldoze where necessary and redevelop when the smoke clears.
Re-capitalize with tax payer funds and your good to go.

#146 Tony on 02.28.13 at 12:03 pm

The smart people will declare personal bankruptcy and the stupid won’t thus increasing their loses year over year. As more declare bankruptcy even the daft will figure it out and do the sensible thing thus paring their future loses. Personal bankruptcies will skyrocket in this country.

#147 Debt's Dark Embrace on 02.28.13 at 12:12 pm

If the house was a repo I would want to know, not necessarily because I would want to lowball an offer, but because perhaps the owner could not afford repairs and maintenance and I would want to do extra “due diligence” before I made an offer.

#148 gladiator on 02.28.13 at 12:19 pm

That’s why CMHC collected premiums and has reinsurance. — Garth

Yes, they collected premiums to the tune of about 10% of existing liabilities, which is scary if the stuff hits the fan, but the fact that they have reinsurance gives some hope that things won’t be that bad for us taxpayers. Thanks, Garth.

#149 Derek R on 02.28.13 at 12:19 pm

#106 Bailing in BC on 02.28.13 at 3:24 am wrote:

DELETED

#150 Mister Obvious on 02.28.13 at 12:23 pm

#137 rosie “moving forward”

I tend to agree with you in principle. If what you are saying is true, there is no reason to hide the fact a house for sale is in foreclosure.

But clear attempts are being made to do so and it has me wondering why. Maybe because:

Its just plain bad industry advertising all around

The owner probably did not default overnight but got into trouble over a long period of time and has been neglecting maintenance, not paying bills and perhaps attracting vandalism.

A foreclosed home has a much higher chance of having some negative associations with angry people.

Foreclosure is synonymous with distress. Distress usually equals vulture opportunity. Potential buyers won’t bother to take the analysis much beyond that. They will bid accordingly.

#151 Dr. WAYNE on 02.28.13 at 12:32 pm

#138 Herb on 02.28.13 at 11:13 am

#131 Dr. Wayne

=======================

‘HERB’ … go plant some Oregano …

#152 Spiltbongwater on 02.28.13 at 12:33 pm

Justin Trudeau will win the Liberal leadership, and then the next general election. All the foreclosed properties will be the next great Liberal social program, and the LPC will be giving free houses to single mothers, the disabled, and to ethnic minorities. Would not surprise me if they also provided free in house daycare as part of some job creation scheme.

#153 Tony on 02.28.13 at 12:34 pm

Re: #114 thinker on 02.28.13 at 8:36 am

Are you for real? Just keep on repeating that phrase when the Canadian taxpayers are on the hook for one trillion dollars in property losses on foreclosures.

#154 dave b on 02.28.13 at 12:34 pm

Any update on this blog entry “Moron Listing Service” :
McMullin has just finished testifying as the first witness in an action against the mighty Toronto Real Estate Board. The federal competition cop sued TREB for preventing its own members from having efficient access to their MLS data (and, of course, Viewpoint). The Competition Tribunal is expected to make a ruling early in 2013.

#155 Ralph Cramdown Ⓤ on 02.28.13 at 12:53 pm

#145 Macrath — “They hide more than the listing info. They hide the empty properties, eg. (keep them off the market) when foreclosure volume gets serious. They have deep pockets and can wait till the chipboard disintegrates rather than liquidate”

While lenders can choose when to sell (at least under non-judicial power of sale in Ontario), they are obligated to try to get the best price they can for a distressed property, and would have no reason not to. If things get bad, CMHC will likely be calling the shots. Thanks to our neighbours to the south, we’ve just seen firsthand what an unmitigated disaster it is to leave large numbers of repossessed properties vacant for long periods of time. Few things depreciate faster than a vacant house.

#156 Bottoms_Up on 02.28.13 at 12:55 pm

#128 Mortgage Guy on 02.28.13 at 10:33 am
———————————————-
You say you can get a mortgage for anyone…BUT, is that mortgage originating from a big bank with a low interest rate? I think not.

#157 Axxman on 02.28.13 at 12:56 pm

Privatize CMHC and have bankers bonuses paid in deferred CMHC shares. Skin in the game.

#158 Greed is God on 02.28.13 at 1:07 pm

#51 My thoughts on 02.27.13 at 11:28 pm
Why do I see mike Stewart’s advertisements every web site I look?
————————————————
It’s google advertisement. Google keeps track of your browsing and sends you ads based on what type of websites you visit. That also means you are likely from the Lower Mainland if you see his ads. I see it everywhere and each time I see it, his face makes me wanna puke.
– See more at: http://www.greaterfool.ca/2013/02/27/oh-canada/#comments

—————————

Try Adblock for your browser. No more ads.

#159 Pr on 02.28.13 at 1:10 pm

….Those who get nailed rarely see it coming….

This is so right, its hard to believe. Well educated,sucesfull, intelleigent, name it, they just dont want to ear it, dont belive it, you must be rong, because they know better. Denial is a powerful force.

#160 Musty Basement Dweller Wannabe on 02.28.13 at 1:19 pm

I have the same freakin thing going on as some of the other posters…MIKE STEWART banners showing up on almost every web page I go to.. even Spanish ones!!! arggh! Is there some kind of virus going around? Any suggestions would be welcomed on how to rid a computer of it would be much appreciated. I have no idea where it came from but I first heard of this gentleman on this blog, so my apologies for being a little off topic but I didn’t know where else to start. thanks for any help.

#161 Daisy Mae on 02.28.13 at 1:27 pm

Westside Weekly, February 28, 2013:

Mayor Walter Grey: “We are the venue for the event (gangster Johathan Bacon, 2011) but it’s not a Kelowna story. This was about crime in British Columbia and it is not — nor should it be — a negative mark on the city of Kelowna. This was a British Columbia murder, folks, not a Kelowna murder.”

#162 pbrasseur on 02.28.13 at 1:33 pm

Not sure that removing the shame of having a foreclosure sign in front of the house when you decide to walk will help CMHC and the banks a great deal….

#163 Dontcallmeshirley on 02.28.13 at 1:45 pm

Properly planned and executed bankruptcy can be a strategy rather than a disaster.

Each province has a site like this as a starting point to learn the remedies and tolerances of lenders.

http://www.bankruptcy-ontario.org/

#164 Grim Reaper/Crypt Speculator on 02.28.13 at 1:51 pm

When I first heard Justin Trudeau was considering running, I laughed….

Now, the way things are going, I wouldn’t be surprised if he won.

Owww Canada

#165 Frank le skank on 02.28.13 at 1:57 pm

#75 new to the east coast on 02.28.13 at 12:23 am
Viewpoint is the best RE website ever created, no other site will ever touch it no matter how much they try. I was perusing this site on the weekend checking out properties in my former itty bitty home town of Arichat Nova-Scotia. You would crap your pants/diapers of you saw the detail it has on the sales history, current status of a property/house. Its unbelievable and you would never get this type of info from a realtor, no matter how good they are.

#166 Musty Basement Dweller Wannabe on 02.28.13 at 1:58 pm

#51 My thoughts on 02.27.13 at 11:28 pm
Why do I see mike Stewart’s advertisements every web site I look?
————————————————
It’s google advertisement. Google keeps track of your browsing and sends you ads based on what type of websites you visit. That also means you are likely from the Lower Mainland if you see his ads. I see it everywhere and each time I see it, his face makes me wanna puke.
– See more at: http://www.greaterfool.ca/2013/02/27/oh-canada/#comments

—————————

Try Adblock for your browser. No more ads.
——————————-
Thanks for the help, I will try the ad block.
I have never been to a Mike Stewart website or real estate ad related to him and live on the island.
It’s so insidious. His ads even show up when you start to play a Youtube video.
This stuff doesn’t usually both me that much but this one is over the top.
thanks again.

#167 Victoria (the original) on 02.28.13 at 1:59 pm

Tony,

Canada has one of the highest insolvency rates in the western world.

Interesting article.

http://www.walletpop.ca/2013/02/26/the-money-trap-how-banks-lure-you-into-debt/

#168 Dupcheck on 02.28.13 at 2:01 pm

CHMC is the root of all evel. If they did not exist the housing would have not inflated to the levels they are now. Gov of Canada is running a ponzi scheme with the CHMC, the winners are the Banks and the losers are the People.

Que the: Ohhhhhhh what can you dooooo? People with no balls. I’m tired of the people having no power.

#169 Tkid on 02.28.13 at 2:08 pm

Followup to yesterday’s comment:

Here was the situation in Greece:
http://m.guardian.co.uk/world/2012/jun/08/greek-drug-shortage-worsens

Here is the situation in Greece:
http://m.guardian.co.uk/world/2013/feb/27/greece-blames-drug-companies-shortages

From the same website:
“Separately, it was announced on Tuesday that the Swiss Red Cross was slashing its supply of donor blood to Greece because it had not paid its bills on time.”

Things are getting bad over there. They could continue to refuse to pay their debts and go bankrupt but that still makes for hard times (Argentina).

#170 Frank le skank on 02.28.13 at 2:15 pm

#137 rosie “moving forward” on 02.28.13 at 11:12 am
Foreclosures are cheaper because you are taking a risk. Forecloseure usually mean the owner had financial issues. Money issues probably means these people didn’t maintain the property. This will cost you money, why pay full value? Depending on how badly it was neglected, and what was neglected, you could potentially end up paying more than the house is worth.

#171 Dupcheck on 02.28.13 at 2:16 pm

#137 rosie “moving forward” on 02.28.13 at 11:12

You clearly know nothing about aluminum wiring. Aluminum wiring is just as safe as the copper wiring when installed properly. 100 % of Hydro Wires in Canada are aluminum. Lots of new houses are still being build with aluminum wiring. Insurance companies are assholes. They take advantage of people by increasing premiums on their home insurance just because they can. By the way if copper wire is not installed properly it has the same risks as aluminum.

#172 Snowboid on 02.28.13 at 2:24 pm

#84 DA why don’t you mention all the foreclosures in Kelowna too! on 02.28.13 at 12:56 am…

Where do you see these? The RE agents that posted foreclosures have stopped their updates – I wonder why?

#103 futureexpatriate on 02.28.13 at 2:57 am…

You may be correct in some areas, but just compared Zillow to our RE agents’ site and in our community of about 5000 homes, 2 foreclosures listed on both (and 2 short sales on RE site).

I use it as one of many online tools when looking at US real estate, but as with most online sources, take it with a grain of salt!

BTW, after seeing some foreclosures in 2010 and the condition many of them were in, we decided a traditional sale was the best route to secure our Valley of the Sun retreat.

Many ‘foreclosed’ homes were not maintained or trashed as the former owners left.

#173 Macrath on 02.28.13 at 2:31 pm

#155 Ralph Cramdown

Interesting that you mention the US , When I think of places like Detroit, Camden,Philly,St.Louis and a host of other places . They seem to be in a situation where there are not enough bulldozers to clean up the debris.

Something tells me this will not end well !

Did you hear that Bernanke just said he wants all the yield starved boomers and seniors he created to put their dead money in the stock market if they want to survive? Is that a sell signal or what?

#174 Holy Crap Wheres The Tylenol on 02.28.13 at 2:42 pm

Famous Liars
Most people don’t want to be famous for lying, but the following people will be, for better or worse, remembered for the lies they were accused of telling. Believe me this is just the short list of liars. Now we have another liar to add to the list!

Bill Clinton: The 42nd President of the United States. Lied under oath about his relationship with Monica Lewinsky and subsequently, in 1998, became the second president in U.S. history (the first was Andrew Johnson) to be impeached by the House of Representatives.

Richard Nixon: The 37th President of the United States. After it came to light that he had been involved in illegal activities, including wiretapping and harassment of political opponents in the Watergate scandal, Nixon lied and tried to cover up the misdeeds. The truth eventually came to light and he resigned before he could be impeached.

Baron Munchhausen : A German baron who served in the military and returned home with tall tales about his adventures. He reportedly told people that he’d traveled to the Moon, ridden cannonballs, and escaped from a swamp by pulling himself out by his own hair.

His supposed adventures became the subject of many books. Over the years, the tales of Munchausen have become popular adventure stories told to children. In 1998, filmmaker Terry Gilliam adapted some of the stories into a movie called The Adventures of Baron Munchausen.
Two psychological disorders are named after him. Munchausen syndrome is a disorder in which someone feigns illness in order to get attention. Munchausen syndrome by proxy is a disorder in which a caregiver (usually the mother) fakes or induces illness in his or her child or in another person in his or her care in order to gain attention and sympathy.

CMHC
“The Canada Mortgage and Housing Corporation (CMHC) has stated that real estate brokers should not indicate, on a detailed sheet for a property that is for sale by the CMHC, that the property is a repossession. We inquired with the CMHC, and they informed us that this publication rule stems from a national policy that applies to all Canadian provinces.” There you have it. The government is trying to hide foreclosures. Perfect.
http://www.youtube.com/watch?v=uPe0hhyUCx0

#175 walltiger on 02.28.13 at 2:43 pm

“Yes, right after my unit shipped back from WW2. — Garth

Wow! Garth, so you’re a veteran too? Wow!

Stand back. I’m still loaded. — Garth”

its my turn to spill the coffee now. Mr.GT, you are too much.

#176 Silent Fan on 02.28.13 at 2:46 pm

Garth, I’m going to have to stop reading your blog because I don’t seem to be able to follow your advice.
I got a helluva bonus, so I was going to buy a car, but a couple of weeks ago you recommended leasing instead. My wife found out and said I need to top up our TFSA’s and then she started bathroom renos. (we did the kitchen last year). Now you’re both going to be mad at me, cause I went and bought the f’n Porsche.
Anyway, don’t despair, I’ll still come back for the humour.

#177 Dorothy on 02.28.13 at 2:49 pm

CMHC is not the cause of high RE prices. Bad government policy surrounding CMHC rules such as 40 years ams and 5% down is what caused the high prices, together with much looser regulation over bank lending practices.
CMHC has been around since the end of WW2. It was a CMHC insured mortgage that enabled my spouse and I to buy our first home in 1983. In those days, you had to have a minimum of 10% down, the banks were not allowed to lend you the downpayment, and the longest amortization you were allowed was 25 years. You also were not allowed to extend the life of your mortgage beyond your 65th birthday so, if you got a mortgage when you were 45, the longest amortization allowed would have been 20 years.
Those stricter regulations worked well, and it was only when the Government began tinkering with them that most of our current RE problems began.
So if you want to lay blame, direct it to where it properly belongs, which is the GOVERNMENT, not CMHC. There are many, many Canadians today who would not be living in their own homes if they had not had access to CMHC insured mortgages. The idea behind CMHC is a good one, provided the Government does not loosen the rules for their own political purposes.

#178 Holy Crap Wheres The Tylenol on 02.28.13 at 2:49 pm

Oh Oh who is going to build our cheap crap?
What happens if everyone in China gets sick?

http://behindthewall.nbcnews.com/_news/2013/02/28/17130220-sandstorm-pushes-beijing-pollution-levels-off-the-charts?lite&ocid=msnhp&pos=6

#179 Dr. Hoof Hearted on 02.28.13 at 2:49 pm

Re: CMHC

Not surprised re the CMHC lack of disclosure….that was likely part of the plan since day one..

By involving them…the political powers that be can keep a lid on it and prevent panic.

Mind you, technically, we the citizens are the CMHC shareholders who should get full disclosure no matter how ugly it is getting…we are “the banks of last resort”.

#180 Dorothy on 02.28.13 at 2:54 pm

I think this whole foreclosure disclosure discussion is a bit of a “red herring” because I can’t imagine any Realtor in the country who would not disclose the information to a client at some point in the process. They may not advertise the fact in the listing information, but they would definitely mention it if you’d already viewed the property and told them you were ready to make an offer.
They’d have no choice because foreclosed properties go through an entirely different process when being sold than do homeowner owned properties.

#181 bob in bmore on 02.28.13 at 3:02 pm

re: Canada will never see a jingle mail revolution as in some US markets, since the only way out of debt here is bankruptcy.

bankruptcy is merely a formality

if the home is your only asset then expect the twentysomethings who own condos to do same

why carry at a premium an underwater condo for years when your credit will be restored before this market recovers, just in time to buy at the bottom

#182 Frank le skank on 02.28.13 at 3:06 pm

Real Estate Roundtable 2013

http://www.postcity.com/Eat-Shop-Do/Do/March-2013/Real-Estate-Roundtable-Spring-Market-2013/

#183 bob in bmore on 02.28.13 at 3:17 pm

re: #16 – the CMHC will come after you for the difference of what they sold the property for vs the outstanding mortgage amount. Except in Alberta.

that is why you declare bankruptcy and you are relieved of that debt in its entirelty, a mortgage is not like a student loan where the government can still pursue you for the debt even after declaring bankruptcy

#184 Ford Prefect on 02.28.13 at 3:26 pm

Dorothy. First, I agree with your post at 177: Government tinkering with CMHC has been problem.

However (#180 )the plot thickens re disclosure. Apparently CHMC is taking orders absolute of foreclosure making CMHC the legal owner. Thus any sale goes through in the normal process. Unless a purchaser knows what CMHC is (I was surprised to find that many people have never heard of CHMC) you would purchase the property not knowing it was a distressed sale, with all of the possible problems related to such a sale. As Garth says, this is unethical.

#185 Bottoms_Up on 02.28.13 at 3:28 pm

#177 Dorothy on 02.28.13 at 2:49 pm
——————————————
Well, it looks like we’re almost back at 1983 rules then, but today you can have 5% down (instead of 10%) and a 45 year old can take out a 25 yr mortgage. At least with these new stricter lending rules we will get back to something similar to normalcy.

#186 Bottoms_Up on 02.28.13 at 3:36 pm

#123 Rusty Venture on 02.28.13 at 9:59 am
—————————————–
The timing thing is funny eh? The US began to crash 7 years ago, and here we are in Canada waiting (watching?) for it to begin. If the US picks up steam over the next several years, it could very well help buffer things here.

#187 Old Man on 02.28.13 at 3:36 pm

Just a memo about CMHC, as at one time the buyers could document home improvements they wanted to make before closing for approval. Thus with a modest downpayment could close with a holdback well over 100% of value to be advanced in stages, and if the couple did the work themselves would be given a credit for their labour to be factored in. The holdback was staged with inspections to release more mortgage money. So if a couple took out an original mortgage of $50,000, and closed with the agreement in place for an additional $15,000; they in effect had a mortgage for $65,000 with CMHC inspections. This was a gem that few knew about, as did this all for a few young couples.

#188 Triplenet on 02.28.13 at 3:40 pm

foreclosure sale
divorce sale
somebody died sale
mommy cheated sale
we’re broke sale
neighbour’s a prick sale
owner transferred for quick sale
pedophile in the neighborhood sale
too many old people in the building sale
neighbour is gay sale
wife got too fat sale
daddy got cancer sale

I’m almost positive there are federal and provincial laws in place to protect individuals from any form of discrimination or economic loss due to privacy invasion.
Similarly I’m sure there are laws governing Agency.

Perhaps some of us should beetle down to the local law library and find out just how silly some of our comments are.
Perhaps there’s a law that protects us from our own stupidity.

#189 Alta Lad on 02.28.13 at 3:40 pm

#19 Grim Reaper. If you avoid mentioning bottom-feeders, maybe they will go away. Personally, I love those who post ! first ! They are so much better than the other sanctimonious individuals who are worse than reformed smokers and who were probably tattle-tales when they were young. Go for it Dr Hoof-Hearted!

#190 Bottoms_Up on 02.28.13 at 3:41 pm

#32 OttawaMike on 02.27.13 at 10:59 pm
———————————————-
Funny, I had my eyes on a property in Val des Monts, it clearly said in the mls listing that it was a repossession, and it was a new build listed for $100,000 under assessment. However, you start to dig deeper and it really wasn’t that good of a deal once factoring in lot size, proximity to neighbours etc.

#191 rosie "moving forward" on 02.28.13 at 3:45 pm

# 170

A home inspection by a reputable inspector should uncover any faults in a property, foreclosed or otherwise.

# 171

If aluminum wiring is o.k. why do home insurers ask about it?

#192 Ralph Cramdown Ⓤ on 02.28.13 at 4:05 pm

#173 Macrath — “Did you hear that Bernanke just said he wants all the yield starved boomers and seniors he created to put their dead money in the stock market if they want to survive?”

But he’s been saying that for a few years now for anybody who was listening. I sold out of a junk bond fund yesterday; in the year I held it, the current yield went from 7.5% to 6.5%. Now the only debt I’m in is a few emerging market funds and an agency mortgage fund (and I no longer have the urge to run around screaming “My junk is ON FIRE!”) Equity yield plays look like the only game in town for an income oriented investor. The Canadian market has a lot more opportunities than US in this space right now, and if you pick carefully, you can find ones that shouldn’t be too impacted by a Canadian recession.

#193 Sebee on 02.28.13 at 4:06 pm

Funny…no one is reporting this CMHC move either except for Financial Post.

Can we please bring back the communist propaganda machine? I think they were more truthful.

#194 bob in bmore on 02.28.13 at 4:10 pm

re: bankruptcy, true you must meet a solvency test which may make it harder to walk on mortgage debt but time will likely take care of that as interest rates rise, and the general cost of living

#195 Timmy on 02.28.13 at 4:14 pm

re: #16 – the CMHC will come after you for the difference of what they sold the property for vs the outstanding mortgage amount. Except in Alberta.

Do not underestimate the power of the masses. When huge numbers of people dumping their houses at the same time, I bet that this rule will change. Remember, those in power are politician. This is also the main reason why this rule apply except Alberta (National Energy Policy caused their real estates melt down back in the early 80’s)

#196 Bottoms_Up on 02.28.13 at 4:24 pm

http://www.cmhc-schl.gc.ca/odpub/esub/64187/64187_2013_M02.pdf

Recent Ottawa city housing stats, not looking pretty. 100 sales over $425k in Jan. 2012 — but only 43 this past Jan., for a decrease of 57%. Average price (higher priced homes skew the stats) is UP, but median price (where the market is heading) is DOWN.

#197 jess on 02.28.13 at 4:47 pm

deceit than death

Abstract:
We contend that buyers received false information about the true quality of assets in contractual disclosures by intermediaries during the sale of mortgages in the $2 trillion non-agency market….

Piskorski, Tomasz, Seru, Amit and Witkin, James, Asset Quality Misrepresentation by Financial Intermediaries: Evidence from RMBS Market (February 12, 2013). Available at SSRN: http://ssrn.com/abstract=2215422 or http://dx.doi.org/10.2139/ssrn.2215422

http://neweconomicperspectives.org/2013/02/pervasive-fraud-by-our-most-reputable-banks.html#more-4880

#198 Holy Crap Wheres The Tylenol on 02.28.13 at 4:48 pm

Just can not stand the politics of politics on this CHMC stuff. Going for a walkabout tonight!

We’re the psychedelic warlords
Playing spaced out rock and roll
Hang on to your heads now
Because we were born to go
We’re sick of politicians
harassment and laws
All we do is get screwed up
By other people’s flaws
You think you know the answers
But we don’t tell no lies
We can take you any way
Through seven different highs
The world’s turned upside down now
There’s nothing else to do
Except live in concrete jungles
That just block up the view
We’re the psychedelic warlords
And that ain’t no joke
Travel with us to lands far out
And just disappear in smoke

http://www.youtube.com/watch?v=x5leza_ATxY

#199 bigrider on 02.28.13 at 5:00 pm

I guess the gold bugs have all been fumagated.

Don’t see any anymore

#200 Grim Reaper/Crypt Speculator on 02.28.13 at 5:00 pm

#189 Alta Lad on 02.28.13 at 3:40 pm

#19 Grim Reaper. If you avoid mentioning bottom-feeders, maybe they will go away. Personally, I love those who post ! first !

====================================

No problem…duly note it was not a critique, but sincere concern for our colleague Dr Wayne.

The man has sent so much business my way, I tried to convince him to not be a middle man(aka health care professional) and go to the next logical step.

PS: where is the olde ZZZhole

#201 Dorothy on 02.28.13 at 5:29 pm

#184 – “Apparently CHMC is taking orders absolute of foreclosure making CMHC the legal owner. Thus any sale goes through in the normal process”
An “Order Absolute” is the final step in the foreclosure process. It is only issued after the Mortgagee (usually the Bank) has attempted unsuccessfully to sell the property during what is termed the “Redemption Period” (which is the period of time the Court has allowed for the property to be sold and for the Mortgagee to be paid from the proceeds). If the property is sold during the “Redemption Period” the Mortgagee is paid first, and if there is any money left over, then any others registered on title, known as “Respondents” (such as second mortgage holders), get paid according to the order in which they were registered. However, if the property is NOT sold during the Redemption period, the Mortgagee can apply for an “Order Absolute” which transfers ownership of the property to the Mortgagee “free and clear” by terminating the rights of all “Respondents” (which includes the original property owner). At this point, if the property is ultimately sold for a loss, the Mortgagee “eats” that loss, but if it is ultimatly sold for a profit, the Mortgagee can keep the difference (the other Respondents no longer have any claim).
So, based on the statement made in post #184, it sounds as if CMHC is choosing to take title to the property, rather than pay out any cash, once it reaches the “Order Absolute” stage. But I don’t know for sure if that’s the case; maybe someone can enlighten me? However, if it IS the case, then at this point the property would have already gone through the process of trying to be sold as a “foreclosure”, and would now simply be an asset belonging to CMHC which they are trying to sell for the best possible price (just the same as anyone else). Therefore, it would actually be inaccurate for a Realtor to describe it as a foreclosure. And being as how CMHC is owned by the taxpayer, it would make no sense to require it to “shoot itself in the foot” by making rules that could limit the price the property ultimately sold for. So I don’t see it going through just like any other sale as being unethical at all; simply good business sense.

#202 Westcdn on 02.28.13 at 5:37 pm

The Canadian dollar is falling and if the fall continues then I would expect further downward pressure on housing prices. My rational is that if I was a foreign purchaser, I would be losing money based on exchange rates. Think of the typical offshore Asian who purchased Cdn real estate a few or more years ago. No doubt Canada would have been perceived as a safe jurisdiction for his/her investment, the loonie was strong and rising plus Canadians were willing to pay higher prices every year to be a home owner.
Fast forward to today where not only is your Cdn investment declining in terms of your home currency but the Cdn real estate market appears to be entering a prolonged slump. What would likely do if you were the offshore investor? Me, I would sell Canada while the getting is good and buy US or any other place that had the kind of environment I found desirable. We will have to wait and see if the nervous foreign money leaves.

#203 The Prophet Elijah on 02.28.13 at 5:39 pm

#199 bigrider on 02.28.13 at 5:00 pm I guess the gold bugs have all been fumagated.

Don’t see any anymore
———————————————————
Garth will be proven wrong about gold, but right about RE. Will be 1979-80 all over again. Watch and learn.

Gold 2011 = $1,900, Garth says sell. Gold today = $1,590. Garth’s already right. — Garth

#204 Old Man on 02.28.13 at 5:42 pm

#192 Ralph Cramdown – the equity yield plays have come and gone, as you are a few years late to eat at the table. DO NOT BUY EQUITY YIELD PLAYS NOW, AS IT IS TOO LATE, as the train left the station back in 2009 and hitched a ride.

#205 InvestX on 02.28.13 at 5:44 pm

“The correction will be immensely uneven (bidding wars still erupt in Toronto for $700,000 to $1 million properties), but that’s the nature of housing.”

It’s different here.

But I kid…

Will Toronto prices revert to the mean, or is it really different there?

The GTA is several dozen markets glued together. Some will suffer, some survive. There is no monolithic outcome in a region of 6,000,000 people. — Garth

#206 Ralph Cramdown Ⓤ on 02.28.13 at 5:47 pm

#201 Dorothy,

What happens when a mortgagor defaults varies by province, and also according to whether the procedure is spelled out in the mortgage contract itself, or alternatively the mortgagee relies on statutory procedures in provincial legislation.

#207 new canadian on 02.28.13 at 5:55 pm

CHMC is like socialism, but worse. In socialism, gov’t lends you, it will take the risk and profit, whichever.

CHMC means profit will be for banks (read BMO 1B profit) and risk will be on gov’t, which is taxpayers.

So you are living in a kind of communism that was screwed in one way to help corporate banks.

To fix a problem, firstly one must admit there is a problem. This is one of the many problems I observe in Canada but most will be never fixed because majority won’t acknowledge that there are problems. Media isn’t lying only about RE. Economy is in bad shape but you are happy because they compare Canada with all other failing economies of G8.

#208 AK on 02.28.13 at 5:59 pm

#199 bigrider on 02.28.13 at 5:00 pm
“I guess the gold bugs have all been fumagated.

Don’t see any anymore”
——————————————————————-

This is nothing.

Turn the clock back to 2005 and you will see the future price for Gold.

Year: 2005 – $444.74 per ounce. :-)

#209 Dr. Hoof Hearted on 02.28.13 at 6:11 pm

Re House Inspection:

I see the SHTF in BC…and this is a few years after they decided to regulate the industry.

Short and sweet…..I don’t give a dam how good the inspector is, there is LOTS that can be missed, and not be claimed as errors or omissions.

My understanding is BC’s best known inspector ” E.W. ” still sublets out each facet to an expert ie Electrician does the electrical…plumber checks the plumbing.

I met “E.W.” once near his home, and at the time he lived in a 1950’s rancher in East Van. What does that tell you?

At best it is an educated guess.

What the average potential buyer should do is educate themselves on some basics, create a short list,” subject to inspection by another set of eyes”. Some things stand out like a sore thumb and go NO further.

Another tip I read was the offer price goes down 2 X’s the estimated repair cost..ie if the inspection says $25,000 in repairs, take $50,000 off the offer.

#210 johnnny on 02.28.13 at 6:13 pm

#129-Toronto_CA – at least Bouctouche doesn’t have a spider,exclusive to it,that can almost kill livestock.

#211 zeeman1 on 02.28.13 at 6:22 pm

Garth, it never ceases to amaze me how many people have no problem with the CHMC and its practices, and how many people hate Julian Assange and Wiki leaks.

Ignorance is Bliss?

I think I just came up with a great name for a new blog, watch out Garth!

Garthy leaks? — Garth

#212 syfon on 02.28.13 at 6:27 pm

Stop right there
This is not a gold blog.
200 + hits everytime someone mentions Gold, works like a Swiss watch.
Buy Gold for your Golden Years and relax.

#213 Mr Buyer on 02.28.13 at 6:38 pm

#186 Bottoms_Up on 02.28.13 at 3:36 pm
#123 Rusty Venture on 02.28.13 at 9:59 am
—————————————–
If the US picks up steam over the next several years, it could very well help buffer things here.
………………………………………………………..
Japan has endured 21 straight years of property price decline and counting since their bubble burst. All this while their biggest trading partner (the US) had huge booming economic periods. This notion that America is going to save the Costco worker and the entire network of people said worker knows is baseless. As people get further burned during this national tragedy it will not matter what is happening anywhere (barring houses coming with unencumbered bricks of money). People will not buy into real estate for any reason other than shelter (and that at greatly decreased frequencies) for the next generation or two.

#214 syfon on 02.28.13 at 6:52 pm

For what is worth.

CHMC is a form of taxation. It is a tax on poor.

If the banks will run into trouble like they did in USA and others
countries, government will bail them out.

Who needs CMHC?

#215 maxx on 02.28.13 at 6:52 pm

#57 Mark W on 02.27.13 at 11:41 pm

Will wonders never cease.
Below zero interest rates (what a farce) would damage the economy even more. The egos of TPTB will never win this one. The real economy needs to heal and it won’t as long as money remains this cheap.
They really have a few screws loose in punishing the fiscally responsible.

#216 TakingResponsibility on 02.28.13 at 6:55 pm

Hola….did this post ever wake up the Apologists or what?!

Come, come, now….there are comments that actually argue NOT to complain or lay the blame on the Harper government? Bwahahaha….you know, of course, that it is exactly that kind of disinformed pathetic apologia that this dangerously fascist government WANTS. I cannot believe that there is anyone in this country who still “believes” that the Harper government has ‘good intentions’ toward the public.

And, what the hell is with trying to separate CMHC from the government???

CMHC apologists??? Omfg.

CMHC must be completely transparent in a participatory democracy. I don’t care whether it is 2013 or 1983 – any property sheets – non-profit, residential, or commercial where the PUBLIC has insured mortgages needs to be fully disclosed – purchase, sale, or foreclosure. In other words, if the public is backing Dottie Smith’s or any property mortgage [whether it is 0 or 10 percent down), those addresses, amounts, and, indeed, names of mortgage title holders need to be PUBLIC.*

Should CMHC be transparent when it comes to the sale of a foreclosed property or the numbers of foreclosures? After all, won’t CMHC get the best price if they hide how much the taxpayer lost, etc., etc.? Pffft. Such a blatant diversion tactic…

Shamefully, CMHC has been the Housing Bubble’s biggest cheerleader – indeed, CMHC PR shills sound exactly like various city or national real estate associations – similarly using whatever statistical methodology and analysis suits that house pumping message. Never heard a negative “outlook” from CMHC.

Seriously, at this time of year, when everyone is really p.o.’d about TAXES – nevermind the freaking TAXES coming down the pipe due to CMHC insurables – do not even try to disinform or apologize for Harper’s freaking bonehead economics via CMHC.

#217 polecat on 02.28.13 at 6:58 pm

Young guy at work was asking whether to buy or not. All the other guys saying yes, don’t waste money on rent. I said, no, this job isn’t secure and you should keep options open to move where work is. I think he listened to me. Score one for the word of Garth. He actually has a lot of money saved up too, so I told him to get a good advisor, not the bank either. Just figured we could all use one good news story, saved one person from houseaggedon and pointed him to this blog.

#218 InvestX on 02.28.13 at 7:07 pm

“The GTA is several dozen markets glued together. Some will suffer, some survive. There is no monolithic outcome in a region of 6,000,000 people. — Garth”

Understood. And won’t these individual markets revert to the mean, even the more affluent ones?

#219 Steven Rowlandson on 02.28.13 at 7:17 pm

Global cooling is usefull after all! One can save money by not having to buy a beer fridge.

#220 TEMPLE on 02.28.13 at 7:19 pm

#192 Ralph Cramdown Ⓤ on 02.28.13 at 4:05 pm

The Canadian market has a lot more opportunities than US in this space right now, and if you pick carefully, you can find ones that shouldn’t be too impacted by a Canadian recession.

This is interesting- I’m curious to hear some of your ideas. I never buy stuff on yield alone, but it is definitely one of my proxies for value. However, other than Dorel (which I don’t own) and Calian (which I no longer own), only US stocks have been popping up on my screens in the last couple of years.

TEMPLE

#221 Who Cares on 02.28.13 at 8:01 pm

Can someone clear up this bakruptcy stuff? Bankruptcy is for unsecured debt. As a matter of fact you can, in certain circurmstances, manage to keep your house while declaring bankruptcy. I’m not sure how that would work other than if you had so little equity as to make it not worth selling the property, however I have read it in the rules.

With a mortgage being secured debt how can bankruptcy get you out from under it? Is it that the house is reposessed and any outstanding money owing after the sale would be unsecured?

#222 Dr. Hoof Hearted on 02.28.13 at 8:15 pm

CMHC…..

This is what can happen when the sheeple get angry!

http://www.youtube.com/watch?v=MoATWN68IZA

#223 Nostradamus Le Mad Vlad on 02.28.13 at 8:16 pm

-
#111 I’m stupid — “Now I don’t care about brand name clothing and only buy what I need.” — It’s not hard to change, is it? Needs take priority, but wants are a dime a dozen, they’re fleeting and temporary.

#113 T.O. Bubble Boy — “If China can buy Nexen, why not CMHC? Then it can be a direct money laundering service for HAM dollars . . .” — Well pointed out. Having seen the CPC in action, there is no doubt that if CMHC’s sale to China enriched their pockets, they would do so in a heartbeat.

#198 Holy Crap Wheres The Tylenol — Nice poetry and a great clip! Recall neighbors in the early 70s would tell me to turn the sound (Space Ritual) because it was disturbing!

#214 syfon — “CHMC is a form of taxation. It is a tax on poor.” — Just like lotteries.
*
Slovenniz govt. falls; Banxters The real NWO — banxters taking over the world; 3:02 clip Vatican bailout? 3:12 clip Uncle Sam is robbing the children; Restocking Shelves Wal-Mart has seen better days; EU vs. UK UK trying to rewrite laws; Sequestration A lot of talk about nothing.
*
Only 6% Which means 94% are highly evolved and intelligent bloggers; Sent a bill A restaurant does not usually charge for letting customers use the rest room; WH threatening First Bob Woodward, now a second; Secret Service agent speaks against gun control, but apparently Obomba is going ahead with mandatory gun control; Six strikes visualized; 10:02 clip The Nazis confiscated peoples’ guns; Greece Drug shipments stopped; Propaganda Party China – US ramping it up.

#224 Devore on 02.28.13 at 8:16 pm

#134 Gunboat denier

Garth – thinker has rebutted your response @122. Can you further explain why the CMHC should not try to recoup the highest possible proportion of its loss payout?

Interesting. When a business does sneaky and unethical things to suck the most money from a customer, they are evil corporate scum, but when the government does it, a-ok?

#225 Canadian Watchdog on 02.28.13 at 8:19 pm

#220 TEMPLE

Canadian food and related agriculture companies will perform well if you like growth stocks. Here’s one company I hold. CVL

#226 JustTryingToProtectEquity on 02.28.13 at 8:24 pm

Mr. Turner,

A while back, months ago, you posted some advice for a young man who felt very down on his luck. You were very clear in pointing out to him that, while his financial net worth was indeed not stellar, he had a lot to be proud about, in that he had no debts whatsoever. And, in many ways, he was better off than the people he envied.

I’m having difficulty finding it. Could you(or anybody else)please post a link to it? Thank you.

#227 maxx on 02.28.13 at 8:38 pm

#109 Devore on 02.28.13 at 5:31 am

http://www.telegraph.co.uk/finance/personalfinance/savings/8028884/Savers-told-to-stop-moaning-and-start-spending.html

The more rates drop, the more savers are going to save. Simple survival- protect yourself from government.
Reduce, reuse, repair, recycle and resource. Barter, banter, trade and use imagination. Oh, how it pays!
Raising rates will encourage people to spend again which will produce durable green shoots.
Savers and those who know how to avoid useless debt should most definitely be rewarded- so should investors who are less risk averse. Diversity in the marketplace- what a concept!
Otherwise, society is just supporting the 1%. Not healthy.

#228 Ralph Cramdown Ⓤ on 02.28.13 at 8:52 pm

#220 TEMPLE — “This is interesting- I’m curious to hear some of your ideas.”

Out of respect for the host and not turning his blog into a stock picker’s forum, I’ll demur on individual names. Not all the Alberta oils are producing heavy and selling it at the Western Canadian Select discount, but they all seem to be priced that way. Last year the lifecos were priced for TEOTWAWKI (though I usually stick to profitable value plays). I also take positions in small caps if they pay… My portfolio has a long tail of smaller names that I run like a junk bond fund; one or two will unexpectedly blow up and a few more will cut their dividend, but the aggregate yield and capital gains compensate. It seems that a lot of people don’t want to even think about equities, many of those that do want to stick to BCE and the banks, and most everyone else dismisses small cap and high yield out of hand.

#229 Devore on 02.28.13 at 8:54 pm

#203 The Prophet Elijah

Garth will be proven wrong about gold, but right about RE. Will be 1979-80 all over again. Watch and learn.

Regardless, houses are hard to buy and sell, and transaction costs are high. Not so with gold. Even if you are a gold die hard, you sell when it goes parabolic, and buy it back @ 20% off when it inevitably falls. Or maybe you see it go flat for a year, and decide to put your money elsewhere.

#230 Observer on 02.28.13 at 9:15 pm

After reading the current article, I just set my browser to search the current page for “— Garth”. I can then jump through to all the pithy Garth-Goodies in the comments section.

#231 Mr Buyer on 02.28.13 at 9:16 pm

Imagine a world in which a house depreciates markedly with age right from day 1. Further imagine the land it sits on losing value due to the presence of the aging house. This is now the widespread reality in Japan once home to one of the largest real estate bubbles in history. All this in the presence of really cheap financing. Imagine people talking about things like how are sales going for local manufacturers and being concerned about lost manufacturing and exit of talent from the work force. These are dominant elements of fighting trim mentalities kept keen by periodic catastrophes visited upon the national psyche by the very land upon which the houses sit. We Canadians were likely kept clear thinking to a higher degree in days of yore by the punishing white death of our winter environment. Central heating has allowed us to day dream a little more of late and this day dream while a source of limitless creativity has also brought with it idleness, and wishful thinking in the not so best sense of the term. Now bedtime stories and expectations of money for nothing abound. A paradigm shift is in order. It has come to pass and it is being dressed up as a liquidity trap but those aware of real peril are not hypnotized by the phrase at all.

#232 Gunboat denier on 02.28.13 at 9:36 pm

224 Devore – by reading some of the other comments about the reality of “foreclosure” sales, it doesnt even look like there is any advantage/disadvantage in many cases. What other than the financial hardship of the previous owner does this convey? Physical and historical
aspects of the house can still be obtained. Please see
triplenets comment at 188 and Dorothy’s reasoning at 201 as to the ethics.

I actually tried for some type of foreclosed property for
my first house. The condition was obvious and we had a
contractor do an estimate for the repairs. I did pay him
for his time as I didnt expect to get the house. I didnt, missing by just $1000 to an all cash offer. I bought a similar house down the street, for little more than the winning offer plus the estimated repair costs.

#233 Ralph Cramdown Ⓤ on 02.28.13 at 9:40 pm

#227 maxx — “Savers and those who know how to avoid useless debt should most definitely be rewarded”

They are rewarded. They have their savings, and they haven’t spent money on interest. Further, they can lend or invest their savings anywhere that will pay for the money in an attempt to stave off inflation or even increase their wealth.

#234 DreamingInTechnicolour on 02.28.13 at 10:53 pm

Bring back the good old days
Some House prices in:

– Toronto mid 60’s- less than $ 20k
– Montreal early 70’s less than $ 50k
– Vancouver early 80’s less than $ 100k

With any luck, older boomers may get back what they originally paid

#235 Soylent Green is People on 03.01.13 at 12:52 am

Ha yr making seth macfarlane look human

#236 Soylent Green is People on 03.01.13 at 12:53 am

Whoops postedwrong post

#237 thinker on 03.01.13 at 5:56 am

The point being missed on my comments is that if CMHC is cash is gone, think Freddie or Fannie, the taxpayer is on the line. Garth seems its unethical for the listing to include this information.

Who cares? Do you really think if someone is going to buy a property, if they knew it was a foreclosure it would impact the decision?

If they like it, they find a price, they buy it. If CMHC had listings for houses and people thought they were getting a “deal” it would be worse.

The process has been done in Whistler many times, the government makes it easy for new bidders to enter the process, but hard to follow the process.

BTW Garth, it’s not HE, it’s SHE

#238 Calgaryboomer on 03.01.13 at 12:12 pm

“Calgary resale housing market sets all-time record for average sale price

February 2013 MLS sales eclipse prices set in boom of July 2007″

Calgary Herald.

average MLS sale price for a single-family home during the month was $518,452, up 10.32 per cent from last year (was $506,671 in July 2007 peak).

What will happen when the real spring market starts?