On guard

“This house sold conditionally,” long-time realtor Yuri Kogan said in a note he sent along with a listing. “Look what the condition is. This probably did not exist anywhere close to GTA for decades!”

And he’s right. There it is – a frumpy but desirable sidesplit selling in the $1.4 million range in north-central TO – with an accepted offer conditional upon (gasp!) the vendor selling his existing property within the next month. Yes, just like back in the 1990s, when we endured Michael Jackson and Jean Chretien and all those irritating Millennials were in Huggies.

Conditions, in fact, are the new black. Upon securing financing. Upon obtaining a satisfactory home inspection. And now even upon the sale of another home. What a difference six months makes. The bidding wars, bully offers, surly realtors and imperious vendors are all but gone. The buyers are taking back the night.

Well, yesterday the Blog that Dog Wrought told you Friday would be pivotal for knowing if the great real estate unwind would pick up steam with higher interest rates. And, verily, it was. Up she goes.

Odds the Bank of Canada will increase in 12 days (for the first time in seven years) were running at 84% going into the long weekend. That was an 11% surge in 24 hours. Just six weeks so the probability was ten per cent. My, how things change. The dollar surged well past 77 cents, and realtor hearts sunk.

Next Thursday when the nation’s largest real estate board screws up its courage and releases June stats, it’ll be confirmed. Average prices will have declined about $100,000 in just two months, down by double digits from their April high. Freehold sales should be lower year/year by 40% and condos down 20%. In some areas (like the northern fringe of the GTA where drywallers and beauticians live) the sales plop could be 60%.

Do you remember back in the winter when this blog calculated there was about seven days of supply on the market as the bidding wars raged? Well, now there’ll soon be about four months’ worth of houses for sale. In fact, as Canada Day dawns, more than 23,000 properties are listed in the arc around 416, about 6,000 of them brought to market in the last week.

And soon, on July 12th, everyone will know there are more reasons to expect price declines. Rising interest charges will encourage buyers to start vultching, or just sit back and wait for twenty thousand vendors to grow more motivated. Meanwhile in BC, the centrist Lib government has gone down in flames, with socialist hordes now overrunning Victoria. The Greens and NDP both campaigned on platforms of whacking real estate owners and valuations, so no joy there, either.

Things for indebted homeowners are about to get worse, ironically, because the economy is doing better. Those two key reports Friday morning – on GDP growth and business conditions – were so good everyone is now expecting the rate romp to start in a few days. As reported, the chartered banks will be increasing their primes, lines of credit, business loans and variable rate mortgages. Bond yields are rising, so you can probably expect fixed-term home loans to be plumping as well.

The economy has been expanding for six straight months, and growth of 3.3% is the best it’s been in three years. That means we’re back to pre-oil-crash levels, meaning the Bank of Canada can (and will) increase rates twice in the next six months. That will double the current level. Meanwhile business confidence is swelling fast, the best in six years, with half of companies saying they expect sales to increase and two-thirds figuring they’ll need to hire within the next 12 months.

The logic of TPTB is simple. The housing boom must end before it implodes. What better time to prick the bubble than now, when a growing economy can wipe away some of the sting? Yes, there will be equity losses, falling prices, gnashing and wailing. Debt service costs will rise, many families will be squeezed and speculators eviscerated. But this moment was inevitable.

The end result may be houses people can afford. Imagine.

Happy Canada Day. What a place.

158 comments ↓

#1 Party on Garth on 06.30.17 at 5:58 pm

Household credit for Canada to the end of May, 2017 (from the Bank of Canada):

http://credit.bankofcanada.ca/householdcredit

Business credit for Canada to the end of May, 2017 (from the Bank of Canada):

http://credit.bankofcanada.ca/businesscredit

#2 Trex on 06.30.17 at 6:08 pm

Anyone check out zolo vancouver stats . 12% down in a month. Is that for real.

#3 ole Doberman on 06.30.17 at 6:11 pm

Banks will be looking to reposses houses and porches.

#4 Kyle Passamare on 06.30.17 at 6:11 pm

First! Thank for the amazing blog Garth!

#5 nick on 06.30.17 at 6:14 pm

Happy Canada day

#6 Till The Fat Lady Sings on 06.30.17 at 6:15 pm

Its not over till the fat lady sings.

Interest rates hikes were supposed begin their ascent in 2015 with rates reaching ‘normal’ of 5-6% in two years time.

Of course, we saw instead, interest rate cuts by the BOC. We also saw prices spike each time the threat of a rate increase was tabled, or the feds did something to ‘cool’ the market. Expect prices to rise before each rate increase and for realtors to tell buyers that ‘rates will inch up and they will not notice it because by the time they renew they will have paid off a chunk of the mortgage.’

And as outlined here the other day, interest rate hikes will slither up over several years, not even being noticed. And predictions have been revised for the rate of normalization – rates will now reach 3-4% rather than the 5-6%, which will more than moderate any real impact.

It will be interesting to see if rates truly are the driver – in a few short months we will know right? I have no faith that a rate increase will take place and even less that it will impact the market.

Prices have been completely detached from incomes in YVR for over a decade, and more recently for GTA. Since price to income ratios are defunct the YVR/GTA market, why would you assume that rates will actually impact affordability?

Every 1% increase in interest rates is supposed to reduce prices by 10%. Seeing how many places have gone up 30% in a year, and many places doubled or tripled in the last 8 years, that is a lot of 1% increases we need right? Otherwise, if we just get to 3-4%, we will be back in 2014 prices – hardly a concern for the vast majority (with the exception of new buyers that is).

#7 common sense on 06.30.17 at 6:18 pm

All the best everyone…..tomorrow and the rest of the year!

Enjoy!

#8 crowdedelevatorfartz on 06.30.17 at 6:22 pm

Happy Canuck Day all you greaterfools!
I’m so old I remember Canada’s 100th birthday and I hope to be around for its 200th…….

#9 Mishuko on 06.30.17 at 6:22 pm

Let’s see how the media and realtards spin the numbers

#10 AGuyInVancouver on 06.30.17 at 6:22 pm

Maybe its time for Poloz and the BoC to re-examine some cherished beliefs about inflation. They’re still myopically focused on the 1970’s battles. Maybe the dogma that came out of that period needs to be revisited, after all look at Japan. Years and years of low, low rates did nothing for them.

#11 Le Nanaimo on 06.30.17 at 6:24 pm

Rutting season has started on Vancouver Island. The ferry is packed with house horny Vancouverites lining up for hours to miss the next boat. My bet is that Nanaimo area prices will continue to go up for a while as the cash out continues in Van. We will see just how horny the season has been so far with the stats next week. Home prices were up 20% YoY for the first months of 2017 and the rutting hadn’t even started yet.

#12 Richard on 06.30.17 at 6:29 pm

So what’s the big deal in being first to comment? Win fabulous prizes? Esteem and envy of your peers? It’s a mystery to me…

#13 crdt on 06.30.17 at 6:33 pm

Back to sanity. Considering a house is THE biggest purchase in one’s existence on earth for the overwhelming majority, it is about freakin’ damn time. Imagine, the buyer taking steps to ensure he will not get caught in the double bind of over paying at the apex of the bubble while taking it on the other chin as well getting much less then needed as seller. My God, have buyers suddenly grown a pair, or lost their enthusiasm for real estate? What will sellers of scintillating real estate goodness do when they get less, instead of more then their neighbors. So easy to buy something big knowing Mr. Bricks got your back via the unrealized paper equity. Many will be very sad to see that go, and suddenly realize they will actually have to pay for those toys after all, Mr. Bricks is no longer up for the job.

#14 Davr on 06.30.17 at 6:35 pm

Garth can BC NDP/Green alliance hold power or are we off to another election in a few months???

#15 dr. talc on 06.30.17 at 6:35 pm

Be on guard against fake news.
I’m calling this one 100% fake news, CBC of course, a prelude to legislation:

Toronto-area couple loses $30K deposit after bad advice from double-ending real estate agent, lawyer says
Regulatory body responsible for agents in Ontario hopes story will shed light on problems of double-ending

http://www.cbc.ca/news/canada/toronto/toronto-area-couple-loses-30k-deposit-after-bad-advice-from-double-ending-real-estate-agent-lawyer-says-1.4156491

As always, it’s just of test of your gullibility.

#16 nubbers on 06.30.17 at 6:35 pm

Sounds great to me. I can return to my native Toronto, find work in a booming (relative to the UK) economy, and then in a few years, think about vultching a repossession from one of the many vocal property bulls in the steerage section.

#17 Luc on 06.30.17 at 6:37 pm

Happy Canada Day!

#18 i'M NOT POLOZ on 06.30.17 at 6:38 pm

Poloz really had a change of heart….It was only earlier this year that he was disappointed that the Loonie was at 72-74 cents in Q4 of 2016 because he wanted that lower.

I’m staying with my depreciated Loonies until July 12 to see if it can spike to 80 cents. Poloz may lower it at the end of the year to 70 cents once Trump stops bothering him over NAFTA.

#19 chopstix on 06.30.17 at 6:39 pm

thank god the bc libs are out….like i said earlier i voted libs in the last election…but like many in Vancouver had had enough of them…heck they even lost seats here in the lower mainland (Real Estate golden goose territory) and it was close in both Richmond and False Creek ($$$)….so those loss of seats say alot about how fed up were others, too.

we were all supposed to be just swept away on the ‘growing BC prosperity’ with new jobs, rising wages as antidote to the crazy affordability issues here…like really?!…my wages haven’t gone up to match stupid real estate prices….

the bc libs only cracked down on greasy new coast realty’s shady real estate sales practices, shadow flipping due to globe and mail kathy tomlinson’s shaming exposes ..those and growing public outrage on affordability (fixed term lease gaming on rents, reno/demo victions, offering that $37k loan scheme to add more debt to one’s purchase), money laundering, tax evasion and speculation just revealed how tone deaf were the bc liberals.

even those with homes worth $$ on paper worried about their kids and younger generations never having a chance. to get into the home market due to the wild west mentality of ‘let the free market rule’.

and that they copied in their ‘clone speech’ the same goals of the ndp/greens shows how greasy they really were….why didn’t they offer those things before their backs were against the wall, fighting for their political lives?

and for all those dissing the ndp/greens as wanting to blow up the housing market, think again: they’re not friggin’ daft to the equity people have tied up in their homes for their retirement etc…instead a ‘soft landing’ is preferred with more crackdowns on the wild west attitudes of BC.

see below the you tube interview (esp 19min mark onwward) with David Eby (who represented $$$$ point grey btw) and Steve Saretsky…they talk upon money laundering, tax evasion, speculators, Fintrac and the lack of transparency across the lower mainland.
https://www.youtube.com/watch?v=7yRczBxZBhs

#20 Debtslavecreator on 06.30.17 at 6:39 pm

Happy BDAY Canada !
Here’s to great moose beer, the greatest hockey players in the world, the best poutine and bacon in the world and the most diverse but unified nation of all

#21 Keith on 06.30.17 at 6:43 pm

3.3% growth under a Liberal government????? The tax increases on the wealthy are supposed to create a made in Canada recession!!!! When the Liberals run big deficits, the economy is not supposed to grow this quickly, not when it comes from spending instead of from tax cuts on the wealthy. We’re living in upside down world!!!! Economics is fun.

#22 Cdn Mom on 06.30.17 at 6:44 pm

Thanks for keeping us current, Garth.

Sold the family home in northern Ontario, downsized to the self-renovated, recently purchased cottage on Superior, previously planned. Plonked the max annual prepayment on the cottage/now home mortgage.

Was saving more of the sale proceeds to do the same after the upcoming anniversary date, but we decided last night to wipe out the unsecured credit line (renos) instead. With the mortgage rate at 2.X%, and the unsecured LOC rate at 5% (and due to rise), it made no sense to apply it to the mortgage. The $2,000/mo. payment that I would have sent to the LOC can be saved to be put against the mortgage as we please.

The reappearance of conditions in the GTA is interesting. We had an accepted offer on our house 36 hours from listing, at peanuts below ask, but conditions are always present here. I guess the buyers market dropping of all conditions from the start is really indicative of a bubble.

#23 Keith on 06.30.17 at 6:44 pm

Signal of a market top:

http://www.cbc.ca/news/business/cmhc-special-dividend-1.4184244

#24 guru on 06.30.17 at 6:50 pm

This is my projection and it’s coming from someone who’s been in the RE and mortgage industry for almost 20 years (upper management for one of the banks). Mark this down and call me a guru in Dec 2017 if you want. Prices will be down by 30% in the GTA by Sept 2017, the decline will accelerate further by another 15-20% by XMAS. The commuter towns in Brampton, Barrie, Oshawa, Guelph, Newmarket will be down by 60%. The next 5 years will see prices stay stagnate and grow a very modest 1-2% per year thereafter.

#25 Jerry on 06.30.17 at 6:52 pm

RE: Le Nanaimo
Nanaimo is a dump. It stinks because of the pulp mill and it has a lot of drugs and greasy bikers.

#26 Fatlady...interest rates is supposed to reduce prices on 06.30.17 at 6:57 pm

Recessions are half economy and half psychology.

Prices drop as rates go up, that is economics based on valuation, cost of money etc.

And for the psychology (no interest rate increases in the past 2 months, and I quote from today):

“Average prices will have declined about $100,000 in just two months, down by double digits from their April high. Freehold sales should be lower year/year by 40% and condos down 20%.”

Thus there will not be an orderly home price devaluation as many assume, rates go up and prices drop by a fixed ratio…why we have had house price crashes.

#27 Zhang Liu on 06.30.17 at 7:00 pm

Poloz will be forced to lower the rate again when the economy tanks because it was all propped up he real estate.

That is if he raises anything which is highly doubtful imo. He talks a lot but let’s see some action from this guy.

#28 Vanrentor on 06.30.17 at 7:02 pm

This Twitter crusader wants to help the CRA collect unpaid taxes on Vancouver home flips

http://news.buzzbuzzhome.com/2017/06/twitter-crusader-help-cra-collect-taxes-vancouver-home-flips.html/amp

#29 Lulu on 06.30.17 at 7:05 pm

Raise Raise And More Raise!!

Anyone over 45 years old should remembered how the last 1989 crash look like, during the peak of the melt down, desperate sellers cut their asking price every week by 10k, it is not a myth, it is as real as Canada Day is tomorrow!!

Blood bath is gonna paint the market bright red, isn’t it a celebration for our country 150 B-Day? Great!!

And Crusty just got baked…Vanctiy may join this blood bath.. Wow, two major cities in Canada gonna smell like fish…lol

#30 Ponzius Pilatus on 06.30.17 at 7:07 pm

#205 crowdedelevatorfartz on 06.30.17 at 3:59 pm
@#196 Flopster

Re; Ponzi Pilates”
“I have you pegged as a prick….prove me otherwise…”
*****
Well said.
————————–
hey guys.
Tomorrow is Canada Day.
Canada the land of tolerance and inclusion.
Why can’t you tolerate and include me.
Your jokes always crack me up.
I think you should join the comic tour as The Sanctimonious Brothers.
Happy Canada day every one.
And Smokie, don’t pass out during the parade.

Your’s truly

Ponzius Pilatus
Proud existentialist prick.

#31 Ponzius Pilatus on 06.30.17 at 7:08 pm

Predicting 500+ comments.
Go blogdogs, go!

#32 Doug t on 06.30.17 at 7:09 pm

Thank god we took this country from its original owners (SARC) – what are we celebrating again?

RATM

#33 #24 guru what about YVR? on 06.30.17 at 7:16 pm

Thanks for info and you read a trusted/experienced source.

What about YVR RE?

#34 Curious on 06.30.17 at 7:22 pm

I am living in Edmonton now and I don’t see many house prices decreasing here as of yet. Are the decreases coming all across Canada??

#35 White Crock BC on 06.30.17 at 7:22 pm

i’M NOT POLOZ on 06.30.17 at 6:38 pm

Poloz really had a change of heart….

——————————————

He either had a change of heart or maybe you’ve been wrong about his wish for a 30/40/50 cent dollar (changes daily)

#36 Happy Housing Crash Everyone! on 06.30.17 at 7:24 pm

The housing crash in the GTA is going from terrible to a [email protected]#king disaster. You dirty shyster realtors deserve to feel financial pain for a thousand years for your RE crimes against Canada and Canadians. Happy Housing Crash Everyone! :-)

#37 Smartalox on 06.30.17 at 7:24 pm

So if the BofC prime rate is going up, what’s that going to do to the rate on a 5yr fixed mortgage? You know, not the rates that ‘good customers’ get, but the rate that rate that people get ‘stress-tested’ at, 4.64%?

Will it go up to 4.89%, if prime is raised 0.25% on July 12?

Given how thinly stretched most buyer’s monthly budgets are, how many potential buyers will fail to qualify at that level?

Or will the impact of rising monthly interest costs on debt payments for everything else have a greater knock-out effect by goosing total debt service ratios into the stratosphere?

All I know is that I’m glad that my mortgage pre-approval isn’t based on a salary calculation printed on some fraudulent letter of employment. I mean: if rates rise, it would suck to have put in all that time and effort, only to have an insufficient number for my fake salary.

#38 The Technical Analyst, CSTA, CPD on 06.30.17 at 7:26 pm

Happy 150th Canada!

#39 Happy Housing Crash Everyone! on 06.30.17 at 7:28 pm

Happy 150th Birthday Canada!!!!!! Realtors have tried their best to destroy you but with some luck you will punished those dirty shyster monsters. Happy Canada’s Day!!!!!!!!!! :-)))))))

#40 Ponzius Pilatus on 06.30.17 at 7:30 pm

Fair question on Canada Day
I think Trudeau is trying to right wrongs of the past.
Don’t think it’s fair and in the interest of the country, to label all First Nations as drinks and bums.
Their cultural contributions alone are immense.

#41 brian on 06.30.17 at 7:32 pm

Happy Canada Day everyone. Enjoy our special country.

#42 Michael King on 06.30.17 at 7:35 pm

“Meanwhile in BC, the centrist Lib government has gone down in flames, with socialist hordes now overrunning Victoria.”

Depends on your POV. I would describe the Liberals as neo-liberal radical and the NDP/Greens as centrist. What is the problem with having a new government that has sensible environmental policies and is willing to incorporate First Nations principles as part of those policies? A carbon tax and tolls are not enough. The planet is dying and you can’t eat money.

Garth, a sincere Happy Canada Day to you and yours and thanks for this blog.

#43 I thinks I know somethging on 06.30.17 at 7:35 pm

I’ve been hearing of this rate increase by the BOC for years. In fact, it was supposed to happen for sure in 2015 and by now rates were supposed to be in the 4 to 6 % range. Didn’t happen, did it?

#44 Bonhomme Carnaval on 06.30.17 at 7:37 pm

Vive le Canada !

#45 Smoking Man on 06.30.17 at 7:38 pm

Stay committed fellow Deplorables.

While we all party this werkend, the globalists through their proxi foot soldiers like Wynee and T2 are working overtime destroy our nation state.

If we let them there will be no bicentennial. Just poverty for all, no middle class.

Time to drink now.

Happy 150 O Canada and all our sons command.

#46 Dude on 06.30.17 at 7:40 pm

#24 Guru

Dude, right on man. I’m with you on the collapse of this market, based on the numbers.

The question is where does one buy inorder to get the best return? Toronto (casa loma), Unionville, Richmond Hill, Lorne Park, Mineola etc etc.

Does one buy in Toronto or York Region?

#47 Cdn Mom on 06.30.17 at 7:41 pm

http://www.greaterfool.ca/2017/06/30/on-guard/comment-page-1/#comment-525300

Don’t know about you, but as a Metis woman, I’m celebrating the day I can sue myself for reparations, or file a land claim against myself.

DAMN, I was wicked centuries ago. LOL

#48 Cdn Mom on 06.30.17 at 7:43 pm

Let’s try that again.

#31 Doug t on 06.30.17 at 7:09 pm
Thank god we took this country from its original owners (SARC) – what are we celebrating again?
……….

Don’t know about you, but as a Metis woman I’m celebrating the day I can sue myself for reparations, or file a land claim against myself.

DAMN, I was wicked centuries ago. LOL

#49 Sold out in Vancouver on 06.30.17 at 7:46 pm

#25 Jerry
Nanaimo
Don’t forget above the Ferries ! There so wonderful …not

#50 just a dude on 06.30.17 at 7:47 pm

Ours is not a perfect nation but damn, it is a good one. I’ve had the privilege of travelling to many fine places around the world over the years. Always glad to come home and wouldn’t want to live anywhere else.

Happy Canada Day to all!

#51 crowdedelevatorfartz on 06.30.17 at 7:49 pm

@#29 Ponzi Pride Parade.

I’m impressed!
No spelling mistakes.

However, Canada is the land of the politically correct and empowered … not the land of tolerance and inclusion.
And if you doubt me ….Just ask an aboriginal protester on Parliament Hill this weekend.

#52 JSS on 06.30.17 at 7:49 pm

Ok so it’s been established that shits going down in the housing market. So then when do we vultch on housing?

#53 Game Over on 06.30.17 at 7:52 pm

“The end result may be houses people can afford. Imagine.”

Cheers to that!

Unfortunately, I have to bank roll part of my wedding on my LOC but I am happy to see the rates raised. The insanity has gone on long enough.

For those of us that have been around since the beginning, it has been a really great learning experience to literally watch a bubble start from its infancy, follow it to its maturity and now hopefully view its demise.

Happy Canada Day everyone

#54 Todd on 06.30.17 at 7:58 pm

But, but, wait. CTV said the market is hot in Grand Bend Ont. I think they will soon run out of places to tout.

#55 Freedumb on 06.30.17 at 8:02 pm

#25 Jerry on 06.30.17 at 6:52 pm

RE: Le Nanaimo
Nanaimo is a dump. It stinks because of the pulp mill and it has a lot of drugs and greasy bikers.

——————————————————————

Greasy bikers. Sounds fabulous. I can find me a good woman there.

#56 Gasbag Boomer on 06.30.17 at 8:11 pm

I haven’t traveled a lot globally, but have covered coast to coast in Canada for over twenty years. I would rather live here more than anywhere else. We aren’t perfect, but more perfect than any place else IMHO.

What he have isn’t necessarily efficient, nor cheap, but I have no complaints.

#57 CMHC on 06.30.17 at 8:20 pm

#23 Keith on 06.30.17 at 6:44 pm

Heh… flush with cash I guess.
Yeah, all those premiums paid by borrowers.
And almost never having to pay out because of the low rate in which people default on their mortgage.

#58 Gasbag Boomer on 06.30.17 at 8:21 pm

Should read we not he.

#59 Ace Goodheart on 06.30.17 at 8:24 pm

Like a bulldozer. The Never Ending Story. We see the results misunderstand the cause and come up with an incorrect solution.

However it doesn’t matter.

If you can listen to it. Even if you don’t understand it. Just try to hear it. The giant bulldozer that can’t be stopped.

Guys like Warren Buffett can predict its movements. Most of us don’t even know It’s there. Crazy people on the TTC rail against it.

Listen. Word on the street. It’ll crush you otherwise.

Most people are crushed all their lives and don’t even know it.

#60 yorkville renter on 06.30.17 at 8:26 pm

That condition isnt as unique as you might think… however, that it was accepted is a sure sign of a market that’s changed.

Happy 150 Canada!
Greatest country in the world!

#61 crowdedelevatorfartz on 06.30.17 at 8:31 pm

June 30th and July 1st…..
Prime elevator times for movers…….I have work to do people!

#62 WUL on 06.30.17 at 8:35 pm

I just made a calculation. I hope Statistics Canada picks it up. 99.79% of GTA residents will not go to an Argos game. 13,000 / 6MM.

#63 Livin Large on 06.30.17 at 8:42 pm

That’s no crystal ball Guru. It’s exactly what has happened after every bubble burst in the past.

#64 Boombust on 06.30.17 at 8:44 pm

#28 Lulu…

Vancouver has already joined the bloodbath. Where the hell have you been?

#65 Average Joe on 06.30.17 at 8:54 pm

Just the facts, without speculation as to the reason.

In March, this house was listed for $899k and was reported sold for $936k a few days later.
http://watch.ohmyhome.ca/#/mls/W3722396

Today, it has been relisted, same sales rep, same pictures, at $839k.
https://www.zoocasa.com/search?listing-id=4664239

#66 InvestorsFriend on 06.30.17 at 8:56 pm

That’s Odds

Odds the Bank of Canada will increase in 12 days (for the first time in seven years) were running at 84% going into the long weekend. That was an 11% surge in 24 hours. Just six weeks so the probability was ten per cent.

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

Odds is the right word. It’s just people betting. It’s not a probability (last sentence). It always bothers me to see that referred to as a probability which would imply a random variable whereas this is a bet on what a group of bankers will do.

Good article today. I last bought a house in 1995 (yes a boring life at least location wise) and there were ALWAYS conditions. My first house purchase was in 1989 a 3 unit rental house at Strawberry Hill, Windsor Street Halifax I had about eight conditions including that I could have access to show an empty unit before closing! All accepted, and naturally the offer was under asking. Different times.

#67 TurnerNation on 06.30.17 at 9:01 pm

Those guest bloggers will be earning time-and-a-half this weekend for sure.

Million dollar Milton homes? Soon to be $500-600k their real worth.

Quick look at one of the top 5 businesses in the world: The drug trade. Late 80s we saw that actor’s wife proclaim The War [of] Drugs. 90s ushered in ‘crack’. It’s most dangerous quality was longer prisons sentences for more people in for-profit private prisons.

Now, in Canada, we are given breathless stories of people dying on Fentanyl. In what business would you wish to kill-off your own customers? Not this one.
All the stories I’ve seen portray likable, fresh faced young fair-skinned middle class girls. If these are not real events wouldn’t they be most likely to tug at your heart strings – and wallet? In the call for increased taxation and funding to our gold-plated police departments (we don’t have corruption in Canada right).

Watching this one develop…follow money.

#68 Jonathan on 06.30.17 at 9:04 pm

As much as I want it to be true, not going to expect any meaningful changes in crazyland Vancouver just yet…

Happy Canada Day everyone!

#69 For those about to flop... on 06.30.17 at 9:10 pm

#29 Ponzius Pilatus on 06.30.17 at 7:07 pm
#205 crowdedelevatorfartz on 06.30.17 at 3:59 pm
@#196 Flopster

Re; Ponzi Pilates”
“I have you pegged as a prick….prove me otherwise…”
*****
Well said.
————————–
hey guys.
Tomorrow is Canada Day.
Canada the land of tolerance and inclusion.
Why can’t you tolerate and include me.
Your jokes always crack me up.
I think you should join the comic tour as The Sanctimonious Brothers.
Happy Canada day every one.
And Smokie, don’t pass out during the parade.

Your’s truly

Ponzius Pilatus
Proud existentialist prick.

//////////////////////////

Hey Ponzi,all I’m saying is you knew darn well Boom’s family was going to read that post as Garth had alerted them to what was happening.

O.k Boom didn’t mean that much to you,I get it but to leave that comment was a bit uncalled for.
If you didn’t want to write anything nice for his tribute maybe you should have taken the night off.

There are too many people that come to this blog just to snipe a couple of easy targets and then piss off for a couple of weeks without adding anything to the conversation.

I often get asked why I bother to spend the time doing my Pink Snow posts.

Well,after Boom died I started to think about my legacy on this blog.

Not as in everybody say what a nice guy I was or the biggest tool this blog had seen if I was struck by tragedy,but had I during my many posts on here actually helped anyone out and had I supplied any information that was not reported by the media or the real estate boards.

I actually reported on here not long after I arrived on this blog through my contacts when I first got on here that the foreign ownership was way higher than being reported. Whole companies changed their business models.

I think I wrote that the number was most likely between 10 and 15% from everyone I had talked to.I vaguely remember OLC and I think it was Common Sense responding to this news.

I like to talk about things once or twice and then move on,I don’t see the point in having the same argument over and over.

Nobody had a problem with me when I gave reports on the jobs I was working on or trends I had noticed,that all changed when I started doing my Pink Posts,yeah I drew a target on my back but I had to I endure months of being called a housing bear,renter loser and a heap of other crap,when all along I was simply trying to document a correction in Vancouver real estate, knowing full well if there was a full on crash I would most likely be out of a job.

I have tried to find a realtor on here with a conscience to try and help me report in real time instead of a three month lag but I have yet to find one.

Through construction, I breathe the real estate market, and a robust market means a more reliable pay packet and raises,but I also don’t want impressionable people to rush out and enslave themselves for a couple of decades.

Deep down inside of me is still a little kid from Tasmania who in his innocence wants everyone to treat everyone the way they like to be treated and those people who seek the truth have an easier time of accessing it.

Anyway,I hope everyone has a stellar weekend and I will try my best to keep contributing information I believe people should already be able to access from besides a bum like me…

M43BC

#70 SimplyPut7 on 06.30.17 at 9:12 pm

#64 Average Joe on 06.30.17 at 8:54 pm

http://watch.ohmyhome.ca

Thanks for the site!

#71 InvestorsFriend on 06.30.17 at 9:25 pm

Toronto House Price Crash 1990 and Delinquencies

Someone mentioned Toronto house prices peaked in 1989.

So let’s look at how the delinquencies went. We have figures only by Province and they start January 1990.

http://www.cba.ca/Assets/CBA/Files/Article%20Category/PDF/stat_mortgage_db050_en.pdf

Ontario delinquencies (90 days) that month were an incredibly low 0.11%. As others have said you don’t default when house prices are leaping, as they did until 1990. Delinquencies started to edge up that summer and reached a still low 0.30% by year end. This with the housing crumble fully underway as I understand it.

By end 1991 Ontario was at 0.64% delinquent and peaked at 0.70% in February 1992. (There was pretty much a Canada-wide recession in 1991 1992 as well. Even governments were laying off staff big time. Klein was slaying the deficit in Alberta.) After February 1992, delinquencies starting edging down very very slowly, not reaching 0.30% again until 2003. They continued to decline until the very latest data point, April 2017 when it was all the back to exactly 0.11%. Exactly the same as at the time of the last big house price peak in Toronto!

The claim that delinquencies are a lagging indicator is proven in this data.

But where will delinquencies peak this time?

Maybe lower as we don’t have a recession? yet?

Or maybe far higher as we have lots of people with mammoth debt and few assets other than the (soon underwater) house. In that situation bankruptcy beckons.

In 1991, lines of credit were around but as I recall they were not ubiquitous. People usually had ONE major credit card (with a low limit) not three (with gargantuan limits). Oh, and you could not put groceries on a credit card in those days and “points” cards were in their infancy if they were even around. I think the number of bankruptcies could be far higher this time. Some of the amounts owing on lines of credit and credit cards will be epic. But we shall see. Canadians have mostly been exceptionally good at paying their debts. Maybe delinquencies will never go past about 0.70% like last time.

#72 The BioTech Guy on 06.30.17 at 9:27 pm

Happy Canada Day everyone. Love this country.!

#73 Asterix1 on 06.30.17 at 9:30 pm

The financial fundamentals are just not there, charts/stats are all close or worst to pre-1990 crash levels. This market is dying for for a massive correction.

I could see prices (average) in Toronto fall to these prices below.

Highest = 940,000$
June (now) = 843,000$
September = 730,000$
December = 670,000$ (20.5% drop from June)
March 2018 = 600,000$ (36% drop from the Highest)
July 2018 = 550,000% (41% drop from the Highest)

#74 LP on 06.30.17 at 9:46 pm

#29 Ponzius Pilatus on 06.30.17 at 7:07 pm

++++++++++++++++++++++++++++++++

Don’t worry PP. In an old, old version of scripture a verse says, “Sufficient unto the day are the pricks thereof”. Now, the word as applied here on the blog is taken out of that context but that’s okay. So, welcome to my Canada PP! Glad you’re one of us!!!

F70ON

#75 bigtowne on 06.30.17 at 10:10 pm

Bank of Canada Governor shared his approval of the economy having shaped up and stating that the two most recent rate cuts had “done their job”. Yes Mr. Poloz the whole country has wormed their way into the housing scheme. Praise the Lord Amen we are into some real money and I am blessed.

Canada Day and our real eco-warriors the indigenous folks set up a tent to grab the attention of Prime-Minister Trudeau who is unable to forego such a media opportunity to accent his pro diversity multi-cultural portfolio to all the bruhaha onsite local and global. The Indigenous help us recall our start and our present. The French Canadians were the real “start-ups” opening up the Ohio Valley and all the Mississippi River to the first European trade settlements so maybe Mr. Trudeau’s ancesters were free traders as they did succeed without any language laws; enviromental regulations; duties; or special lobbies or special ethnic groups. Anyway the French rocked and we are grateful to the French for their effort.

My mother was a French Canadian and with seven kids to raise in the 1960’s she was busy as the stove was wood burning and there was no TV to keep the cranky unruly hoard civilized and the washer was one of those old ringer models which took up the whole kitchen when in use and could cripple the uninitiated. We made our “play-dates” independently without any adult supervision as mom was busy cooking; cleaning and figuring out how to feed 9 people on $10 a week…today the Children’s Aid Society would probably frown on kids organizing their own play-dates; going to the neighbor’s homes unaided on foot without any adult supervision at the young age of 7 or 8 and my poor exhausted mom would have no problem giving up custody of seven selfish; loud; inconsiderate and dirty offspring. She would probably insist on giving them a cup of tea and smile like a total saint or a United Church minister and tell them to keep the kids for as long as they want.

#76 jane24 on 06.30.17 at 10:12 pm

Garth I don’t understand how the GDP can go up so much when the middle class is dying on the vine in Canada. Housing is just so much of the economy and with that tap switched off how is it possible to have good economic news and a rising dollar. I have so many friends and so much family in Canada and they say that good paying, middle-class jobs don’t exist any more, other than public service ones. Same sources say that life is tough to pay for, not booming. I just can’t pull these to realities together.

Since in now live in England I had forgotten that it was Canada Day. I actually moved there as a child in 1967 when Expo 67 opened in Montreal. That 100th anniversary was wonderful and I hope that the 150th is too.

#77 april on 06.30.17 at 10:13 pm

#68 – Keep it up Flopster. I always like reading your posts. You do a good job. Take no notice of the idiot “snipers’

#78 jane24 on 06.30.17 at 10:15 pm

What will impact badly on the Canadian economy is that people spend unnecessarily because they feel rich, not necessarily because they are rich. If their ATM houses are not going up any more each month, than they no longer feel rich. They feel poor and will behave appropriately. This is what happened in 1989.

#79 Boombust on 06.30.17 at 10:17 pm

For those about to flop…

I REALLY appreciate your posts re: Van RE. You are telling it like it really is…BTW, I am seeing the same correction in the works here, too.

#80 Leddy on 06.30.17 at 10:37 pm

Garth – when interest rates go up, don’t people race to jump in before the following hikes? If interest rates go up to 5%, it will be quite motivating to get in while rates are low and lock it up for 5 years.

Have you ever played “Chair the Fed” online? it’s basically your job to chair the fed – you react by either increasing or lowering rates, and sometimes increasing rates increases inflation. It’s made by the San Francisco Fed. worth checking out

#81 Mohammed on 06.30.17 at 10:39 pm

I have lived in SE Asia, Europe, Middle East, USA and Canada. I decided to make Canada my home and raise my family here cuz CANADA is the best country in the whole wide world. Thank you Canada and a very happy birthday.

Happy Canuck day errybody. God bless Canada!

#82 Le Nanaimo Touche on 06.30.17 at 10:44 pm

#25 Jerry on 06.30.17 at 6:52 pm

We like our women well lubricated with powerful machinery over here in Nanaimo as you say. Besides, we can’t compete with the sewer plant in West Vancouver that delivers a fresh blossom each summer onto Ambleside. We need one of those to quintuple our house prices!

#83 Leddy on 06.30.17 at 10:45 pm

Here is the game for those interested. I managed to get the economy similar to what is happening here, started to raise rates and inflation started to explode

https://sffed-education.org/chairthefed/WebGamePlay.html

#84 Glen B on 06.30.17 at 10:47 pm

Happy Canada 150 the Garth and all the Blog Dawgs

#85 Pete on 06.30.17 at 10:55 pm

GTA housing price monthly average was peaked in April 2017 at $920k. In the first half of June 17, average has already dropped to $808k.

I am expecting the full month June figure to show average of $760k for GTA.

Looking ahead, July and August are traditional weak months, and with rate increases:

July 17 average $720k
August 17 avg $700k
Sept 17 avg $670k

End of the year $600k, down 35% from peak, but only down 17% from 2016 level. So Bank of Canada might think it is fine.

#86 Pete on 06.30.17 at 10:56 pm

If the odds are 84%, then raising the rate on July 12th is already a done deal. no questions about it.

#87 Smoking Man on 06.30.17 at 10:59 pm

Four glasses of wine, no ice cubs filled to the top.
Two mickeys of JD and I’m not even remotely buzzed.

My poor liver, screaming like naked female SJW

I had an amazing post come to me under the gazibo.
But I spent too much time thinking how great it was, by the time I found my key board it was lost.

On the ear buds when that lost post found its way.

https://youtu.be/XFkzRNyygfk

#88 Tony on 06.30.17 at 11:00 pm

Re: #45 Dude on 06.30.17 at 7:40 pm

Things could change but right now my guess is Ajax.

#89 Ben on 06.30.17 at 11:13 pm

#6 Till The Fat Lady Sings on 06.30.17 at 6:15 pm
Its not over till the fat lady sings.

Interest rates hikes were supposed begin their ascent in 2015 with rates reaching ‘normal’ of 5-6% in two years time.

Of course, we saw instead, interest rate cuts by the BOC. We also saw prices spike each time the threat of a rate increase was tabled, or the feds did something to ‘cool’ the market. Expect prices to rise before each rate increase and for realtors to tell buyers that ‘rates will inch up and they will not notice it because by the time they renew they will have paid off a chunk of the mortgage.’

And as outlined here the other day, interest rate hikes will slither up over several years, not even being noticed. And predictions have been revised for the rate of normalization – rates will now reach 3-4% rather than the 5-6%, which will more than moderate any real impact.

It will be interesting to see if rates truly are the driver – in a few short months we will know right? I have no faith that a rate increase will take place and even less that it will impact the market.

Prices have been completely detached from incomes in YVR for over a decade, and more recently for GTA. Since price to income ratios are defunct the YVR/GTA market, why would you assume that rates will actually impact affordability?

Every 1% increase in interest rates is supposed to reduce prices by 10%. Seeing how many places have gone up 30% in a year, and many places doubled or tripled in the last 8 years, that is a lot of 1% increases we need right? Otherwise, if we just get to 3-4%, we will be back in 2014 prices – hardly a concern for the vast majority (with the exception of new buyers that is).

—-

This is why with math geniuses like the above, Canadians are screwed. this comment is so ignorant, it doesn’t even merit a response. (Disclaimer I own my own west side Vancouver home which has done WORSE than my equities ever since 2008-09 after factoring in taxes, fees, etc)

#90 millmech on 06.30.17 at 11:16 pm

#31
That’s what I was missing , the white guilt, now I’m feeling truly Canadian!

#91 WUL on 06.30.17 at 11:17 pm

Re: My Plans For Canada’s 150th:

Please excuse the irrelevance off-topic verbosity which follows. I was skidded from the gig in Ft. Mac today so I will enjoy the vast landscapes between the Taiga and Calgary on an 11 hour ride on an old bus named “Honeysuckle Rose”. *

A crackerjack litigation file awaits. My good fortune continues (it is Canada after all) and knee deep clover awaits where the Great Plains meet the foothills.

Cheers mon amis!

“An old Greyhound named Honeysuckle Rose
She’s the only woman I ever loved
She’s a 4 speed lady and she rolls real easy
There’s tequila in the driver she loves

She’s got a Detroit diesel and an air cushioned ride
And she smokes at the top of the hill
She’s got a two lane road and an oversized road
And we don’t have time to kill”

*Hoyt Axton

#92 Smoking Man on 06.30.17 at 11:23 pm

When a lefty lunatic understands Al Gore was in it for a faster jet.

https://youtu.be/xwtdhWltSIg

#93 Mark on 06.30.17 at 11:34 pm

“If the odds are 84%, then raising the rate on July 12th is already a done deal. no questions about it.”

If you recall when the Bank of Canada lowered the policy rate from 1%, the professional ‘economists’, particularly with the big chartered banks were, at the time, on TV claiming that the next BoC move was a hike. The rate cut at the time basically came out of nowhere and shocked them. I pointed out, in this comment section, much to Garth’s disdain, that the next move by the Bank of Canada would be a policy rate cut, based on the profound weakness in economic data that was present at the time. Data that is little unchanged even as of today, with the Canadian economy now in explicit month over month consumer price deflation.

It would not surprise me if this turns out to be another giant headfake. And if the CAD$ keeps rising and does not promptly reverse its climb after the next announcement, we still could be in a rate cutting regime.

As we get closer to the fall, a better picture should emerge of just how distressed consumers are in response to falling house prices. The past 3-4 years of RE price stagnation have produced quite muted inflation, but if there are explicit and significant falls in RE prices, and corresponding reductions in creditworthiness and credit availability, the Bank of Canada will be forced to move to pre-empt a further rise in the CAD$ and the dramatic slowing of the Canadian economy.

#94 Smoking Man on 06.30.17 at 11:35 pm

https://youtu.be/tAGnKpE4NCI

Writers escape. No one gets it.

#95 InvestorsFriend on 06.30.17 at 11:37 pm

Happy 150th Birthday Canada

I was lucky enough to attend Expo ’67 as a seven year old. At the time I thought it might be nice to come back to the 200th as a 107 year old. Unlikely, but I am halfway now.

#96 acdel on 06.30.17 at 11:41 pm

Happy Canada Day. What a place.

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

Could not have said it better myself; hey all, let’s take take a breather and celebrate all that there is to celebrate; look at the what is important. Beautiful summer day today and tomorrow, lots of free entertainment in each area, take advantage of it and JUST enjoy! Happy 150th to all of us lucky ones.

#97 WUL on 07.01.17 at 12:03 am

I meant “mes” amis. I’m a member of Les Deplorables. A Broadway hit.

#98 FLHTK on 07.01.17 at 12:22 am

Houses people can afford? Good I’m looking to upgrade.

#99 Andrew Woburn on 07.01.17 at 1:13 am

#25 Jerry on 06.30.17 at 6:52 pm
RE: Le Nanaimo
Nanaimo is a dump. It stinks because of the pulp mill and it has a lot of drugs and greasy bikers.
=================

Apparently you don’t get out much or you haven’t been to Nanaimo in years.

Nanaimo consists of two main parts, North and South. The south is the old mill town around the port and the first nations reservation. It is pretty tired looking and may have drugs and bikers though probably not more than any other comparable community and certainly nothing like Surrey. You can smell the pulp mill some days in that area but it is nothing like it used to be. We don’t notice it in North Nanaimo

People desperately cling to the notion that Nanaimo consists only of bikers and strip bars even though the cops shut down the HA clubhouse years ago and the very last strip joint gave it up three years ago.

North Nanaimo is about as far from the crap areas of South Nanaimo as Point Grey is from the Downtown East Side. It ranges from average suburban to spectacular with a full range of shopping and services. People on our street are gladly paying over $1 million for some of the best water/mountain views on the planet.

As to worrying about the ferries, why would you go to Vancouver more than two or three times a year? Between here and Victoria we’ve got everything we need. This is why prices are escalating rapidly here and the last two new arrivals on our street were from Ontario.

#100 Scoops on 07.01.17 at 1:19 am

Hey Flop, I am not a realtor but have access to the real time info you want. I can help, let me know if you want it.

#101 waiting on the westcoast on 07.01.17 at 1:36 am

Happy Canada Day!

#102 Ronaldo on 07.01.17 at 2:03 am

#25 Jerry on 06.30.17 at 6:52 pm

RE: Le Nanaimo
Nanaimo is a dump. It stinks because of the pulp mill and it has a lot of drugs and greasy bikers.
—————————————————————–
What part of town do you live?

#103 Ronaldo on 07.01.17 at 2:08 am

#48 Sold out in Vancouver on 06.30.17 at 7:46 pm

#25 Jerry
Nanaimo
Don’t forget above the Ferries ! There so wonderful …not
—————————————————————–
Not a thing wrong with the ferry service. They do a great job.

#104 Ronaldo on 07.01.17 at 2:13 am

#74 bigtowne on 06.30.17 at 10:10 pm

Good story. That could be mine as well.

#105 Mark on 07.01.17 at 3:53 am

On a side note, my unsecured line of credit has gone up from 4.20 to 5.5% in the last 2 months without any notice. So clearly the banks are factoring in rate increases even if the population is not…

Rates on consumer/retail loans include a significant component for credit-worthiness. As housing prices go down (and they have been nationwide, don’t believe Realtor nonsense, especially in Vancouver of all places), borrowers become more risky. Banks have to raise their prices to reflect that risk. If the Bank of Canada were to increase its policy rate at the next announcement, your LOC rate would likely go up even further. And in a sort of feedback loop, the higher rate increase may trigger a decrease to perceived consumer HELOC credit-worthiness, and trigger even further increases by the banks on such credit.

The feedback loop, that of decreasing rates, increasing credit-worthiness, decreasing rates, increasing asset values, etc., feels awfully good on the way down, but the way up, where its the goal of the bank to not extent more credit, but rather, to strangle you, is brutal. If the 1990s were any model to go by, owning the banks was a profitable thing to have done in that era.

#106 Stock Picker on 07.01.17 at 4:26 am

Poloz will not raise rates. His iron ore brain trust has the looney tune currency at fifty cents and less. Trudummy just spent thirty billion on the condition that more cheap money was the new normal. Poloz won’t sink the Libs chances at reelection …….he’ll find any excuse….. like he has all along……the porridge is always too cold and the skies are grey in Poloz’ world….and FYI , Mansbridge is the front runner in the GG coronation for services rendered in the Hate Harper Campaign.

#107 Howard on 07.01.17 at 6:34 am

There were a few comments about deflation in the previous thread and Garth stated that it would be ruinous for the lower and middle class.

I say that as long as Canadian corporations (or Canadian offices of foreign companies) categorically REFUSE – and that’s the correct word here – to raise wages, I say deflation would be a highly welcome development for every non-rich fiscally prudent taxpayer in Canada. Wages have been stagnant in Canada for 20+ years while the cost of everything has gone up with the exception of electronics and books, which are “wants” not “needs”.

#108 oot 've hoos on 07.01.17 at 6:56 am

Liberals are extremist, for example bill C-16. Garth, you said Liberals are going extreme left, not centre. You got duped by them, or you are duping us. Vote NDP or Conservative. Liberals goals are always some more communism, while calling themselves centre for marketing. So vote NDP for some communism. Liberals are out.

#109 Daryl Blackfeather on 07.01.17 at 7:16 am

Happy Canada Day!
Sad that Trudeau cares more about Syrian refugees than First Nations folks. That protest will be removed quickly from parliament hill.
Anyways, my bet is that rates are not going anywhere. That is why BoC is talking about it, trying to get a response from the markets etc without actually taking any action. This has been their modus operandi the last few years.

#110 Smoking Man on 07.01.17 at 8:16 am

Home School your kids now.
https://youtu.be/32tjtRRkVO8

#111 Penny Henny on 07.01.17 at 8:33 am

after reading the headline I thought it was a story about fat chicks

https://www.thestar.com/news/gta/2017/06/30/billy-bishop-airport-removes-ad-that-activists-called-insulting-to-cows.html

FYI-cows are people too

#112 Wrk.dover on 07.01.17 at 8:35 am

CANADA probably Garth Turners greatest love.

So congratulations on 150 years Canada!

( at the most Canadian place to post this )

#113 waiting on the westcoast on 07.01.17 at 8:48 am

#92 Mark on 06.30.17 at 11:34 pm says… ““If the odds are 84%, then raising the rate on July 12th is already a done deal. no questions about it.”

If you recall when the Bank of Canada lowered the policy rate from 1%, the professional ‘economists’, particularly with the big chartered banks were, at the time, on TV claiming that the next BoC move was a hike. The rate cut at the time basically came out of nowhere and shocked them. I pointed out, in this comment section, much to Garth’s disdain, that the next move by the Bank of Canada would be a policy rate cut, based on the profound weakness in economic data that was present at the time. Data that is little unchanged even as of today, with the Canadian economy now in explicit month over month consumer price deflation.”

Mark – it is often shown that Central bankers keep rates too low too long. This is why so many professional economists expected a needed rate hike. The economy was doing well (except for oil) and the risk of continuing asset bubbles (like the RE gains over the past years / although Vancouver likely peaked in 2016).

You are looking for evidence to support a political decision. Poloz wanted to keep the dollar low to support the oil industry (and manufacturing) and arguably RE (lots of jobs/money there over the last decade). He did this knowing that it was going to create longer term troubles in the real estate sector (and other assets – even cars).

This is exactly what the US did in the early 2000s. In their case, it was to prop up the economy after the tech meltdown. Same RE run-up / collapse caused by rates too low too long.

#114 Grey Dog on 07.01.17 at 8:56 am

Happy Canada Day to all! Remember, take your dog for a walk.

Thanks to Garth for all the wisdom you share.

#115 maxx on 07.01.17 at 9:27 am

#6 Till The Fat Lady Sings on 06.30.17 at 6:15 pm

Mmmmmm………not really.

Consumer debt levels are a critical and unavoidable factor going forward and any rate increase, especially the ones to come, will put ALL of people’s past (mal)investment decisions into question.

I’m certain that realtards wish to believe that re is and always will be the investment center of the universe, however, liquidity is where it’s at in this world, not re alone. Increasing numbers are realizing this and it’s way beyond time that realtards got a major kick in the pants.

And out the door, because what the world needs now is fiscal health, brought about by the avoidance and repayment of debt.

#116 LP on 07.01.17 at 9:34 am

#106 Howard on 07.01.17 at 6:34 am

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

Speak for yourself – I NEED books; they’re lifesblood to me.

#117 Dharma Bum on 07.01.17 at 9:42 am

#86 Smoking Man

“My poor liver, screaming like naked female SJW.”
——————————————————————-

Ha ha ha ha!!! That is the funniest line ever!

Man, them SJWs oughtta be taught a lesson.

Party on Smoking Man.

#118 Grantmi on 07.01.17 at 9:43 am

#19 chopstix on 06.30.17 at 6:39 pm
thank god the bc libs are out….like i said earlier i voted libs in the last election…but like many in Vancouver had had enough of them…heck they even lost seats here in the lower mainland (Real Estate golden goose territory) and it was close in both Richmond and False Creek ($$$)….so those loss of seats say alot about how fed up were others, too.

Easy to steal seats when you’re giving away free shat. Free day care. Free tolls, free, free, free…

And whose going to pay for it??? Up taxes go.

We’re screwed here.

#119 Grantmi on 07.01.17 at 9:44 am

Oh.. and Happy Canada Day eh!

#120 conan on 07.01.17 at 9:58 am

Happy Canada Day everyone. Many peeps are in $ calamity mode until INTERAC gets their E transfer system up and running again. It is a nationwide F up.

https://www.youtube.com/watch?v=gWttL4gs078

#121 Ace Goodheart on 07.01.17 at 10:07 am

Ace Goodheart’s foolish and likely wrong suggestion of the day: Rate reset preferred shares in Canadian companies.

#122 45north on 07.01.17 at 10:08 am

Mark: The feedback loop, that of decreasing rates, increasing credit-worthiness, decreasing rates, increasing asset values, etc., feels awfully good on the way down, but the way up, where its the goal of the bank to not extent more credit, but rather, to strangle you, is brutal.

that’s what I was thinking – as rates go up assets go down so creditworthiness go down and the rate that the banks actually charge goes up even higher. So if the Bank of Canada rates go up in July, that’s the end of an era.

Stock Picker: Poloz will not raise rates. His iron ore brain trust has the looney at fifty cents and less. Trudeau just spent thirty billion on the condition that more cheap money was the new normal. Poloz won’t sink the Libs chances at reelection

I agree that was Poloz’s mind set but I think he has just been told otherwise leading to a complete inversion of the political hierarchy – political leaders lower interest rates which leads to more borrowing which looks like more wealth. The opposite puts the political leaders in charge as it looks like everybody’s getting poorer.

#123 SamC on 07.01.17 at 10:08 am

Hello Garth,
I read your blog everyday and by forwarding it a close relative was stopped from buying a cottage.
I wish you and your family a Happy Canada Day.
And, please thank Mrs. Garth for allowing ALL the time/energy that you devote to this blog!!!

#124 David Hawke on 07.01.17 at 10:35 am

Happy Canada Day.

As a former Quebecer, I sing this version, no wussy PC BS about “son’s command”.

O Canada! Terre de nos aïeux,
Ton front est ceint de fleurons glorieux.
Car ton bras sait porter l’épée,
Il sait porter la croix.
Ton histoire est une épopée,
Des plus brillants exploits.
Et ta valeur, de foi trempée,
Protégera nos foyers et nos droits.
Protégera nos foyers et nos droits.

#125 pBrasseur on 07.01.17 at 10:56 am

Bonne fête Canada!

You’re the best country on earth! Period.

#126 Wack on 07.01.17 at 11:07 am

Rates rising and P values falling, gonna be no extra dough for JT. No extra capital gains tax now and lots of interest to write off for everybody’s bsmt suites!
All good!
Happy Canada Day all!

#127 For those about to flop... on 07.01.17 at 11:09 am

99 Scoops 17 at 1:19 am
Hey Flop, I am not a realtor but have access to the real time info you want. I can help, let me know if you want it.
////////////////////////////////

Hey Tommy Two Scoops,I don’t recall seeing your handle before ,but Im gonna take you up on your offer if you don’t mind.

You sound like the missing link I have been looking for maybe you are my Canada Day present.

Anyway,I have lots of cases but I will just ease you into it with these three that apparently went in the last little while.

I have no clue whether they lost money,made money or broke even,that’s what we’re gonna find out…

M43BC

4249 Hudson st. Vancouver paid 6.2 asking 6.88

4765 Pilot Rd West Vancouver 5m.paid asking 5.295

96 6300 Birch Street, Richmond paid 1.03 asking 1.08

#128 Russ on 07.01.17 at 11:09 am

I like it.
web-based translation below – is it close enough?

O Canada! Land of our ancestors,
Your forehead is girded with glorious florets.
Because your arm can hold the sword,
He can carry the cross.
Your story is an epic,
Most brilliant exploits.
And your value soaked faith,
Will protect our homes and our rights.
Will protect our homes and our rights.

#129 rainclouds on 07.01.17 at 11:12 am

It could be worse…………

“All of these problems are governance and management weaknesses,” Hampton said.
That’s a polite way of saying the political leaders broke the system.

http://money.cnn.com/2017/06/29/investing/illinois-budget-crisis-downgrade/index.html

Happy Canada Day!!!

#130 Pete on 07.01.17 at 11:13 am

#92 Mark on 06.30.17 at 11:34 pm ,

The CAD’s rise has nothing to do with rate increase. The US dollar is down more than 8% against a basket of currencies. It is called US dollar index. You didn’t know that?

#131 Balmuto on 07.01.17 at 11:17 am

Canadian economy on fire. 3.3% in the last twelve months, best in the G7. Best business outlook since 2011. Happy Canada Day!

https://www.google.ca/amp/s/www.bloomberg.com/amp/news/articles/2017-06-30/optimism-growth-will-last-strengthens-poloz-s-case-for-rate-hike

#132 Dude on 07.01.17 at 11:26 am

#87 Tony

Where would you buy after the prices have bottomed out?

#133 For those about to flop... on 07.01.17 at 11:50 am

Pink Streets of Shame.

O.k to Celebrate Canada Day I will do something different to try and keep anyone who is going to take it easy like me entertained.

This is the potential carnage going on in just one street in West Vancouver.

You can probably tell some of them have a little bit of breathing room between buying and ask but this segment of the market isn’t doing so well.

This sort of thing ,a heap of people trying to cash out at the same time on the same street and struggle is likely to become common in the subdivisions of the GTA as some posters have suggested…

M43BC

2160 Mathers Avenue, West Vancouver paid 3 m in May 2016

Oct 26:$3,685,000
Feb 6: $3,350,000
Change: – 335000.00 -9%

https://www.zolo.ca/index.php?sarea=2160%20Mathers%20Avenue,%20West%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOTlDRQ==

2292 MATHERS AVE WEST VANCOUVER paid 4.7 ass 5.16 ask5.48

https://www.zolo.ca/index.php?sarea=2292%20Mathers%20Avenue,%20West%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOTNNOQ==

1165 MATHERS AVE WEST VANCOUVER paid 2.93 ass 2.93 ask 3.49

https://www.rew.ca/properties/R2175967/1165-mathers-avenue-west-vancouver-bc

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOUJaTA==

1515 MATHERS AVE WEST VANCOUVER paid 2.33 ass2.2 asking 2.79

https://www.zolo.ca/index.php?sarea=1515%20Mathers%20Avenue,%20West%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOUM1Mw==

2495 MATHERS AVE WEST VANCOUVER paid 3.01 ass 3.16 asking 3.44

https://www.zolo.ca/west-vancouver-real-estate/2495-mathers-avenue

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAyOTRMMg==

#134 Damifino on 07.01.17 at 12:01 pm

#14 Davr

Garth can BC NDP/Green alliance hold power or are we off to another election in a few months???
—————————–

Also Garth… will this be a bad year for hurricanes in the South Atlantic?

#135 For those about to flop... on 07.01.17 at 12:04 pm

Pink Streets of Shame.
Part two.

This street has always cracked me up when I see people struggling on it with the tie to the bosses surname.

I’m sure there are a couple more ,but I have that many cases now that it is getting a bit out of control,especially with me going back to work.

I know that I will not be able to keep up with everything as I struggled when I was working on it daily,but i still should be able to provide a fair snapshot as to what is going on.

What i do is not perfect ,but no one takes the time to show the other side of the story,only onwards and upwards.

Either that or you can take your chances and read the Vancouver Sun and Province…

M43BC

2995 TURNER ST VANCOUVER paid 2.53 ass2.53 ask 2.78

https://www.zolo.ca/index.php?sarea=2995%20Turner%20Street,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMlJTOA==

3621 Turner Street, Vancouver

Apr 26:$2,988,000
Jun 6: $2,380,000

Change: – 608000.00 -20%

https://www.zolo.ca/index.php?sarea=3621%20Turner%20Street,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMlJWWg==

3509 Turner Street, Vancouver paid 1.4 ass1.39

Mar 10:$1,599,000
May 31: $1,399,000
Change: – 200000.00 -13%

https://www.zolo.ca/index.php?sarea=3509%20Turner%20Street,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDAwMlJVVw==

#136 Lahdeedah on 07.01.17 at 12:11 pm

I asked a Toronto realtor who had sold a friend’s condo (bought pre-construction for approx $300,000, sold in summer 2016 for $600,000), what she thought about the current RE market, and this is what she had to say:

(Are some buyers aware the prices have dipped slightly at the moment?) Yes, some are aware there is an opportunity and are capitalizing on it and doing well. The ‘herd’ though is sitting on the fence and watching to see if it goes down more over the summer. The fall will be an interesting market for sure. I suspect buyers who need to move this year before it’s ‘back to work for winter’ will be back for the fall. I am expecting a very busy fall.”

I didn’t ask her how the predicted rate increases affected her long view. Typically, April, and then Sept, Oct and Nov see increased prices. June July and August are lower, just because everyone’s in vacation mode. This is obvious from looking at TREB data. Makes you wonder how the possible rate increases will affect that pattern, if, how some have suggested, buyers will hurry to buy before rates go up again (this would be another panic mode, irrational buying spree, if true, and would be the last peak before the final descent). So, one has to wonder, is it better to sell in July/Aug when prices are somewhat depressed and rate shock hasn’t hit everyone yet, or sell in Sept/Oct when things pick up again, supposedly, and people are either scrambling to buy before more hikes, or is it possible that the predicted July hike will scare everyone away altogether?

#137 M on 07.01.17 at 12:28 pm

The stellar GDP is based on 70% housing contribution.
Yes , 70% of the GDP in Canada IS housing via financials and everything else.
Next GDP will be negative and massive recession will hit by the end of the year.
Not that it matters much, but if the barrel takes a dump to 30s, T2 will sing a different song. He might actually ask Trumpy to adopt him :)
Wouldn’t THAT be cute ?

#138 InvestorsFriend on 07.01.17 at 12:38 pm

Immigration to Canada, Then and Now

So who was immigrating to Canada in 1867 and before that and in the decades after that?

It was not likely the more comfortable people of Europe, those living well in Europe.

And I don’t think many of the laziest and least ambitious people would have come.

Instead a lot of them were likely people who were not living that well in Europe but who were ambitious and industrious. Usually you had to be able to scrape together money for your passage at least. I have looked into what would have been typical for my Scottish ancestors circa 1830 and those were the type of people who came. Some but not most had their passage paid by land owners who wanted them gone.

The result was that Canada (and the U.S.) was stocked mostly by industrious and ambitious people. This I think explains the success of the two countries to a certain degree.

And is it all that different today? It’s not at all easy to immigrate to Canada. Even a refugee has to be persistent and ambitious to get here I think. A good stock of people, mostly, I suspect.

Do they bid up house prices. Probably and that could be due to their industriousness.

Is it mostly really wealthy people who come? I doubt it.

Immigration has been good for the country.

#139 DON on 07.01.17 at 1:03 pm

#11 Le Nanaimo on 06.30.17 at 6:24 pm

Rutting season has started on Vancouver Island. The ferry is packed with house horny Vancouverites lining up for hours to miss the next boat. My bet is that Nanaimo area prices will continue to go up for a while as the cash out continues in Van. We will see just how horny the season has been so far with the stats next week. Home prices were up 20% YoY for the first months of 2017 and the rutting hadn’t even started yet.

****************
It could just be the long weekend???

Zolo Nanaimo says different.

#140 DON on 07.01.17 at 1:12 pm

#41 Michael King on 06.30.17 at 7:35 pm

“Meanwhile in BC, the centrist Lib government has gone down in flames, with socialist hordes now overrunning Victoria.”

Depends on your POV. I would describe the Liberals as neo-liberal radical and the NDP/Greens as centrist. What is the problem with having a new government that has sensible environmental policies and is willing to incorporate First Nations principles as part of those policies? A carbon tax and tolls are not enough. The planet is dying and you can’t eat money.

Garth, a sincere Happy Canada Day to you and yours and thanks for this blog.
***************

Nicely said!

I spit out my drink when I hear Garth say ‘centrist’ -lol. Like real estate, politics is local and must been seen from a local perspective. The neo-liberal are not left, centre or right – they are opportunists. MLAs who go in with no money and come out being multi-millionaires thanks to their ties to developers. In terms of corruption in Canada – BC leaves all Provinces behind. Makes Quebec look sane.

#141 A Reply to #65 InvestorsFriend on 07.01.17 at 1:21 pm

“Odds is the right word. It’s just people betting. It’s not a probability (last sentence). It always bothers me to see that referred to as a probability which would imply a random variable whereas this is a bet on what a group of bankers will do.”

https://en.m.wikipedia.org/wiki/Probability

https://en.m.wikipedia.org/wiki/Odds

“Probability is the measure of the likelihood that an event will occur. In statistics, the odds for or odds of some event reflect the likelihood that the event will take place, while odds against reflect the likelihood that it will not. In gambling, the odds are the ratio of payoff to stake, and do not necessarily reflect exactly the probabilities.”

https://en.m.wikipedia.org/wiki/Prediction_market

“In practice, the prices of binary prediction markets have proven to be closely related to actual frequencies of events in the real world.”

#142 T r u m p ’ s L i e s on 07.01.17 at 1:38 pm

“Many Americans have become accustomed to President Trump’s lies. But as regular as they have become, the country should not allow itself to become numb to them. So we have catalogued nearly every outright lie he has told publicly since taking the oath of office.”

https://www.nytimes.com/interactive/2017/06/23/opinion/trumps-lies.html?smid=tw-nytimes&smtyp=cur

#143 Trumpapaloosa on 07.01.17 at 1:44 pm

“President Trump’s Election Integrity Commission is asking all 50 states to turn over all publicly available voter registration data, including highly sensitive information about voters’ political affiliation, Social Security numbers, criminal history and military status.

“Voting rights groups immediately pushed state governors to reject the request, saying it would put a massive trove of information in the hands of people who couldn’t be trusted with it. The request was initiated by commission co-chair Kris Kobach, the secretary of state in Kansas and a fervent believer that voter fraud is widespread despite decades of evidence to the contrary….

“One final red flag in the commission’s request, according to Levitt, is the inclusion of data on voters’ party affiliation. While states are allowed to maintain this information, the federal Privacy Act of 1974 prohibits the federal government from keeping records of voters’ party affiliation except in rare circumstances, Levitt said.”

https://www.washingtonpost.com/news/wonk/wp/2017/06/30/how-trumps-nationwide-voter-data-request-could-lead-to-voter-suppression/?utm_term=.79bcf7382228

#144 For those about to flop... on 07.01.17 at 2:29 pm

O.k so here is original stat that I keep a track of.

When I did my two month study the number of sellers that had purchased in past three years after noticing a spike February and was consistently around the 25/30% mark and was what I labeled as my Motivated Sellers Index.

Here is the latest snapshot from the listings I processed from June 28/29th

Number of listings processed… 98

Number of listings that were purchased in the past three years…31

So yet again it clocks in at roughly 30% and as I have mantained before this can only help put a slow squeeze on prices as a lot of my cases seem happy to walk away pretty much breaking even and happy to pass the closing costs onto the next party…

M43BC

#145 For those about to flop... on 07.01.17 at 2:44 pm

Pink Lemonade stand in Burnaby.

These guys paid 1.3 in June 2016.

These guys are at least being sociable for Canada Day buy taking 12 bucks off their asking price to show that there is some negotiating to be had.

Either that or they are going to charge you $12 bucks for a jug of Pink Lemonade on the front lawn to try and keep the losses to a minimum…

M43BC

8455 14th Avenue, Burnaby

Nov 21:$1,399,900
Jun 29: $1,399,888
Change.$12.00. 0%

https://www.zolo.ca/index.php?sarea=8455%2014th%20Avenue,%20Burnaby&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzV0tTRQ==

#146 Long-Time Lurker on 07.01.17 at 2:48 pm

Happy Canada Day!

Yesterday was the 20th anniversary of the turnover of HongKong to Red China from Britain. Thank your lucky stars for the Magna Carta.

Hi, Garth. Thank you for continuing your blog.

Flop, those are interesting looking stats. Maybe some people are making a run for the exits before the herd catches on.

Smokey, I tried to post this up for you days ago but the website failed twice.

#79 Smoking Man on 06.25.17 at 10:26 pm
I need help blog dogs.

Try this one:

Details

Looking for a talented copy writer with wit, charm, with a conversational flavor to your copy banter. Marketing fluff need not apply. An understanding of SEO and the online/social media content drivers would also prove beneficial. Also particularly helpful to be well versed regarding all things snack and beer related.

https://www.upwork.com/job/Creative-product-descriptions-needed-for-fun-product-BEER-NUTS_~011045e907a2df07f2/

#147 rainclouds on 07.01.17 at 2:55 pm

#139 Don “BC leaves all Provinces behind. Makes Quebec look sane.”

True Dat, I give you the deposed “Duchess of Dunbar”

Free New Car !
Rent free house on the west side !

http://thebreaker.news/

What other skeletons are rattling around in Clarksville?

Industrial Shredders needed ASAP………………

#148 For those about to flop... on 07.01.17 at 3:00 pm

Pink Lemonade stand in Vancouver.

These guys got caught holding the bag after shelling out 2.93 in April 2016.

It’s bloated 2016 assessment came in at 2.81 after coming up the best part of a million.

If you look at the assessment the two parties that flipped it before made good money in a short period of time but now these guys seem like candidates to show that the market can giveth and the market can taketh.

Some Pink lemonade they will maketh….

M43BC

2306 W 12th Avenue, Vancouver

Jun 16:$3,280,000
Jun 29: $2,998,000
Change: – 282000.00 -9%

https://www.zolo.ca/index.php?sarea=2306%20W%2012th%20Avenue,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMERKRw==

#149 For those about to flop... on 07.01.17 at 3:17 pm

Pink Lemonade stand in Vancouver.

This type of example I have showed many a time when people try to tell me that Vancouver is on fire.

The lower end detached houses in Vancouver proper are not selling like they used to.

These guys are struggling to get their 1.22 back.

I check zolo detached houses under 1.3 million to see if the developers are swooping in and the past few months out of the 50 to 60 options that come up close to half of them have had some sort of price reduction.

The elderly lady that lives nearby my house is on her 8th or 9th open house tomorrow and there is next to no traffic despite it being one of the cheaper options in Vancouver,totally liveable and in a decent area except for dodgy characters like me…

M43BC

3581 E 28th Avenue, Vancouver

Jan 24:$1,375,000
Jun 29: $1,299,000
Change: – 76000.00 -6%
https://www.zolo.ca/index.php?sarea=3581%20E%2028th%20Avenue,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMzBLWQ==

#150 Millennial905er on 07.01.17 at 3:29 pm

@137: Nope. It’s a different ball game now.

Let me ask you a question, what happens when the vast majority of jobs are lost to AI/tech? Growth for the sake of growth (GDP) is especially problematic in this context.

https://www.therebel.media/debunking_liberal_myths_about_mass_immigration

#151 TurnerNation on 07.01.17 at 3:30 pm

The Interac email transfer system down for over a day now? Hacked or software being rolled out ahead of a banking shut down?

Snowflake Millennials never have known an interest rate hike. Sure condo fees, insurance, property taxes trickle higher. But have you been on the wrong side of 70-90% levered investments.
Cuts like a knife.

It’s over. A whole new generation of living in an open air debtors prison.
Our elites roar with laughter. We’ll swallow anything. “Warmbeer”? Haha nice one.

#152 Entrepreneur on 07.01.17 at 3:44 pm

The Liberals made this mess (in power for 16 years) so can not blame the Greens/NDP who just got in.

And have to agree with many bloggers the First Nations should be given respect and dignity. Two groups of First Nations fought for two years in court over the Site C dam but only to be ignored again. I find that disgusting that a court does not recognize the First Nations style of living.

I have to agree with #75 jane on the middle class dying here in Canada. Canada is celebrating as a nation with governing boundaries, rules/regualtions (to keep Canada as a nation) but with the free international trade agreements with cheaper products/labour no same governing boundaries, rules/regulations (if any, not enough).

We are a nation with boundaries and not all people can work for the government who has rules/regulations to protect their employee. Who is protecting the people outside this institution?

Canada Day but do not the ignore the people within it’s boundaries. Especially the First Nation’s people.

#153 A Reply to #114 maxx on 07.01.17 at 3:59 pm

“Consumer debt levels are a critical and unavoidable factor going forward and any rate increase, especially the ones to come, will put ALL of people’s past (mal)investment decisions into question.”

It’s only when the tide goes out that you learn who’s been swimming naked. — Warren Buffett

#154 45north on 07.01.17 at 4:58 pm

InvestorsFriend: And is it all that different today? It’s not at all easy to immigrate to Canada. Even a refugee has to be persistent and ambitious to get here I think. A good stock of people, mostly, I suspect.

20 years ago my son was a security guard at Les Jeux de la Francophonie. He was stationed at the residence of the athletes from Niger. Most of whom defected. On the one hand I thought this was an easy way for them to get into Canada but on the other I thought these were their best athletes and maybe just their best.

https://www.jeux.francophonie.org

#155 Lah-dee-freakin-dah on 07.01.17 at 7:24 pm

Well, you aging Boomers are never going to see this, but there’s going to be a “basic income” coming for people in industrialized nations, regardless of employment status.

It will help cover basic basic needs like food and shelter, for people who are between jobs or trying to upgrade their education…to meet the needs of today’s changing economy now strongly tied to AI/automation, especially in 1st world countries where all labor and manufacturing is outsourced to India and China…thanks globalism, G20 or whatever thing I was watching Gen-X-ers demonstrate against in 1999, which was the same year Fight Club came out. Great movie. Perfect example of Gen-X cynicism.

Heck, there are stories of Trumps beloved miners quitting their laborious trade and getting schooled to write computer code. Smart idea for those who are getting a second, more relevant career. They’ll know how to code once those trillion dollar companies either go bankrupt and extinct like the dinosaur sludge they are mining for, or when those companies pivot to become bona fide clean energy companies.

Although, I think Elon Musk will beat all of those old cronies to it. He’s a Gen-X-er with a smart head on his shoulders and an understanding of how to make clean energy and clean cars a thing of reality. Koch brothers will not be able to keep up in 10 years. They will eventually join their beloved dinosaur sludge because they weren’t able to adapt to this changing world.

But you know, I digress.

BTW, there is a newly defined demographic you Boomers can whine about. Xennials. Born 1977-1983. I be smack dab in the middle of that. Analog childhood, digital adolescence/adulthood. Aka the Best generation. Truly a rare breed.

#156 MarketPundit on 07.01.17 at 7:59 pm

I, too, saw the same condition on a newly built house in Brampton, just recently. The asking price was $1.7M. The only condition attached was – if the buyer can sell his/her house. I only saw such conditions in the text book. Now being licensed for 4.5 years.
The history always repeats itself!

#157 chopstix on 07.02.17 at 12:39 pm

to both Garth and ”for those about to flop”…what do you think will stem the condo prices …they’re cfrazy..
telus gardens 1bdrm 500 sq feet 760k….even the new joyce station condos going for similar (and they’re on the burnaby/van border)…so much speculation and presales overseas happening….i mean think about it: who the hell would pay for a 500sq ft ‘glorified bachelor’ (as i call it) for $750k
$1500 a square foot!

#158 chopstix on 07.02.17 at 12:41 pm

and sorry for not being clear: my post above is about stupidly priced Scamcouver condo prices…they do seem immune from Toronto’s prices…but then again, how are the condo prices in toronto doing? approaching $1500/sq foot too?