So, what do you call it when the average price of houses in a city plunges by $88,522, or a riveting 17.5%?
If you’re Bonnie Wegerich, it’s a “stable and balanced market.†In fact, she adds, “there is no free fall here.â€
And so is born the nation’s latest spokesmodel for real estate, another blinkered career realtor voted into a position of market influence and media stature, as president of one of our largest real estate boards. Like her counterparts in Toronto and Vancouver, Bonnie has interpreted her job as meaning she must try to restore consumer confidence in housing by fibbing about it.
At a forecast conference on Wednesday the 19-year housing veteran declared the average house price in Calgary this year will drop by 2% from its 2008 average, to just over $450,000. At the same time, she adds cheerily, sales will rise by 10%. “My advice,†she told a breathless metropolis of pent-up buyers, “don’t wait too long.â€
But, there are a few problems. First, the average price now in Cowtown is $417,398, down from a peak of $505,920. So, for the average price to fall by 2% from the 2008 average, it will actually have to increase to $451,000, a jump of 8%. That’s about as likely as oil going back to $100 a barrel this year.
And speaking of oil, at forty bucks or so, it’s already low enough to have forced big cutbacks in new projects, to give Suncor its first loss in 17 years, to rob Alberta of $5 billion in royalties and cause the preem this week to say the collapse in oil sands expansion is “a No.1 issue for us in terms of jobs.†So where, exactly, is all this consumer confidence and money going to come from to jump housing prices in Calgary by four times the rate of inflation?
And what of market momentum? Fewer than 450 single family homes sold last month, a massive 47% decline from the same time a year earlier, and 33% lower than the previous month. Condo sales tanked by 48%. In fact, outgoing CREB spokesmodel Ed Jensen admitted how negative market sentiment is, saying “our third quarter really hurt us for unit sales.â€
So, given a US-style collapse in sales, a US-style dump in prices, crushed commodity prices, buyers on strike and a screeching halt to oil industry expansion, what does Bonnie Wegerich give as her reasons the housing market is a great thing to jump into right now? Well, here is it, as detailed in her speech at Stampede Park: “I think some buyers are trying to predict the bottom of the market. But record low mortgage rates, affordable prices and great selection will eventually get people buying again.â€
Then Bonnie closed her eyes tightly and clicked her heels three times.
Market update:
Here are the latest housing sales numbers, for the period ending a week ago. Is this what prompted Ms. Wegerich to declare the market ‘stable’? I guess ‘deceased’ was too colourful a word.
Road trip update:
For those of you in the magic Kingdom of Vancouver who might want to attend my speech on Thursday, February 5th, here’s an update. I was informed yesterday the location has changed. But, happily, the admission price has not. It’s free, and worth every dime. If you want to attend, then call the guys who are brave enough to sponsor it, Dundee Wealth, at (604) 731-8900. Here’s the venue and time:
February 5, Vancouver BC
Financial Seminar
Plaza 500 Hotel, 500 W 12th St., (at Cambie)
6:30 pm
(604) 731-8900
138 comments ↓
Heel clicking? More like Geppetto folded her up and put her back into her carry case.
Looks like the fiscal mismanagement of the Harper government will result in a $46 to $105 BILLION dollar deficit even BEFORE the costs of any stimulus package is calculated…and wipe out all of the deficit reduction that has occured over the past decade.
http://finance.sympatico.msn.ca/investing/news/businessnews/article.aspx?cp-documentid=17018660
I have said it here many times before and I’ll say it again.
“Realtor” is the only occupation where you have to deliberately lie all of the time in order to earn an income.
People in “professional” occupations are routinely drummed out of town on their coat tails for deceiving the public…..whereas realtor spin is preserved, elevated and sanctioned by the main stream media…..and they want to be considered “professionals”.
Calgary Herald today:
http://www.calgaryherald.com/Homes/Calgary+sales+price+drop+homes+condos/1202430/story.html
#2 TS
Let’s at least be thankful we payed down our debt the last ten years, so it won’t sting quite so bad. The U.S. on the other hand….
Ahhh, don’t you wish people like Bonnie, were just a little smarter, so they could truly appreciate how dumb they are.
PS: 19 years of selling real estate, during which time, the real estate sold itself. Bonnie is entering the first real estate market of her career – where ‘She’ will have to ‘Sell’ the real estate.
Good Luck.
After the Islamic revolution in Iran in 1979 car salesmen and realtors were declared “corrupt on earth” and were promptly shot. I always thought that was a strange over reaction. Then came sub-prime and articles like this and cause me pause and reconsideration of my original opinion. ” Stable and balanced market” WTF? You disingenuous clown. Twist up another one and inhale this time.
#2 TS;
Its not fiscal mis-management. Neo-cons/liberals discovered something about politics. Cut a program – result: placards,evening news and union boss on TV. Cut taxes or shift a tax loophole – result: happy friends and donors. Hard to march in the streets about less taxes isn’t it ? Going back to Reagan era, they talked about less gvmnt, but what they did was expand the deficit instead. Reagan, Bush I & II, Mulroney, Harris, Harper – all rapidly expanded their govts respective debt through tax reduction (and the money hasn’t trickled down).
I read this today in the Herald online edition, and wondered if it would appear in your blog… Strangely ironic I must say. I too wonder where all the money and confidence will come from to support beliefs like this. I’ve had a firsthand look at what’s happening in the oilpatch these last few days, and I can say it’s not looking promising. I guess maybe things other than rabbits can be pulled out of hats?
I see more ‘pent-up sellers’ then buyers, alot more.
Did anybody else notice there are still 0 down going on lately? there are lenders & realtors who ‘lend’ the 5% down payment to fools, and it appears that some local municipal government is somewhat involved with some program (new immigrant for example).
Will they stop before the last greater fool is suckered in?
It seems more & more obvious RE & the economy is in for a decade long bear market.
Oil is going to $100 and then to $200 by 2011. Wait and see.
There really “oughta be a law” against such bald-faced deception.
It is really sickening that she actually gets paid to spew out such nonsense.
BUt, I’m sure she snoozes thu the night with nary a complaint.
Realtors……car salesmen….already the next dead or dying breed.
…Will also see commissions drop substantially to say…..1 – 2% in total.
So much so that even the barter system may begin to take hold…eg trading properties …or perhaps back to VTB’s , Vendor take back second mortgages or even first mortgages, to sell of course.
even FISBO’s with the help of the Web…eg Craigs List…Course Vancouver will become the most desirable city in North America…just wait until European Women discover Vancouver’s (nude)Wreck Beach this summer instead of Miami’s (topless) South Beach.
#3 Keith, you are sooooo on the money with that description.
As said, 1/3 of the RE agents in Hong Kong and Singapore right now have gone back to driving taxis handling out fortune cookies which read “you will soon buy a house”.
Yes, having coffee, talking crap, and waiting by fax machine or computer the confirmed sale to come through makes for a top 1 % performer at Royal Lepage or any others.
I negotiate my own deals. I use a realestate lawyer and saved $17K in commissions along with another $10K in neg. that an agent could never deliver!
Bonnies’ last sentence said it all, …”record low interest rates, affordable prices and great selection…”
Gee, isn’t that
“Orwellian Speak from the Ministry of Truth “?
It sounds more like …” the Govt is freaking so their lowering rates as low as they can, There are no buyers so prices have fallen off a cliff, and There are way more greedy sellers who waited too long that are starting to panic dump their real estate.
Why buy now when Interest rates will be this low next year, real estate prices will be lower next year, and there will be bankruptcy sales to snap up( a la calgary in the early 80’s)
Yeee Haaawwwwww
CREBs pie in the sky outlook for 2009 in a nut shell
The Calgary Real Estate Board in its annual forecast released today says the average MLS sale price for a single-family home in the city will drop by 2 per cent this year while for condos it will decrease by 5 per cent.
The board also said single-family listings will remain the same as in 2008, but sales will increase by 10 per cent. In the condo market, CREB forecasts listings to increase by 5 per cent in 2009, but sales to fall by five per cent.
The average MLS sale price is expected to fall to $451,120 for the entire year of sales in 2009 compared with $460,327 in 2008. The average sale price for a condo is expected to drop to $287,300 compared with $302,408 the previous year.
actually for every week of sales under $451,120 they will need 1 week equally over $451,120 to average out
this is probably the most outrageous prediction from the CREB to date and does a grievous disservice to calgarians
#129 go green on 01.21.09 at 4:55 pm
Hello Go Green. Trust you are doing well.
The first link is a 5 min. video of a California bank doing the naughty, plus a few others.
http://tinyurl.com/cqe2u4 http://tinyurl.com/cc63da
http://tinyurl.com/bnqbop
http://tinyurl.com/cjoxwy http://tinyurl.com/8rj3b
We haven’t had a SDB in years now. Should we ever have enough moolah to buy gold bullion and silver, it would be an interesting conundrum
Banks follow what govts. tell them to do; if they are ordered to turn over the contents of SDB’s, then it was a pointless endeavor in the first place.
Having coins in small containers hidden throughout the house may work. I guess the only two things in life still guaranteed are death and taxes!
I’m not so sure we wont see a turn around in prices soon. If they dont there will be big problems in ‘elite circles’ and we know that they dont like to lose.
You see, the turn around could be a simple as debasing our currencies. In the past, there was no globalism. If one contry started injecting liquidity, another country could exploit that weakness.
Now that corporation are global and collectily more powerful than governments we have as H. Kissenger calls it a ‘New World Order’. So as long as all the major governments inflat together, status quo is maintained and wholla, solvencey restored.
Only problem is that unless the average Joe gets a raise, he’s sunk. If your on a fixed income, your sunk. You loose your home in the mean time, your sunk.
So it would solve the elites problems quite nicely if they continue to print trillions and raise interest rates, for the average consumer, not so much.
Just returned from Saint Mary’s University on a Panel discussion on “Ethics in the Financial Industry” not to bore y’all but two important things came to light no matter how hard this educated group tried to white wash their industry.
a) ….. Greed was the problem for the crash but greed is good asm it is productive in the financial industry as drives profit margins….?????
b) ….. There is no such animal as Ethics in the financial industry because regulation will not work and there will be another crisis after this one but they do know what it will be so how can stop it …..
Oh how I wish Garth Turner was there to straighten them up on their views. I sat still knowing bankers are just like real estate agents …… hands in your pockets rang in my ears …..
God! I just hate Realt-whores.
The more people that get sucked in to investing in real estate in this uncertain market,the more credit that is extended to overextended borrowers and the more money that the government pumps into unworthy ventures the longer the fall and the bigger the crash in my opinion. We will end up with an overtaxed population living in poverty with no hope.
Garth, you have simply got to give the lady a suitably inscribed copy of Greater Fool!
Garth,
Why do you even write about these uneducated unskilled incredibly dumb people…..
BTW, why are u not coming to Alberta for your countrywide tour?Dump Calgary and Edmonton…Come to Red Deer……hehe
Wow…
You people really have a hard-on for realtors and home prices…
Get a hobby.
So… when home prices go down another 75% are you going to be all happy here?
Losers.
“It is difficult to get a person to understand something when their salary depends upon them not understanding it.”
MEO is a failed calgary realtor who has his own site hes bitter thats all and probably supports bonnies bonny take on the market
some realtors here in calgary have posted crebs market forecast on there web-sites..hoping to snare 1 more fool i guess
food for thought..whos home do you think a realtor would market the most
yours..or his own or his flipper friends after all realtors are the biggest flippers of all
#24 Meo
I’m sure I speak for more than myself when I say definitely not. I bought a house 6 years ago in an area that is definitely not Toronto or Vancouver, and I think I didn’t overpay. Look south to see what the real estate boom did for the US economy as a whole. I like to think that I won’t be a part of such a downfall, though I’m not liking my chances more and more. I realize most people are only too happy to live ignorant to their surroundings, be it economic, political, or otherwise. As long as they have it all bigger, better and right now, (and don’t have to pay for it right away) they’re happy. I like to stay informed as to what is going on in the world, but I will not stand by and have my information spoon fed to me by someone who is either making a living off the misinformation they’re giving me, or insults my intelligence by thinking I believe their BS. As someone who has a vested interest in the health of the economy, (that being my job), and as someone who would like to see real estate values not fall into the root cellar (ie. the US market) I think the info presented on this blog is a pretty eye opening bit of reading. I don’t wish for anyone to be in a negative-equity, foreclosed situation. Perhaps you are so well-off such trivial things don’t concern you. I can safely say that my position is not thus, and I really wish more people would open their eyes to what is right in front of them.
Meo
Easy come, easy go.
#2 TS
how can you blame the total collapse of the world economy on Harper? i mean give your head a big friggin shake and then go crawl under a rock you weisel.
#24
Meo. Yes we will all be happy. Because we will have a huge party in that big house you bought, when it goes into bankruptcy. If you buy a house that is worth 150,000 for 550,000. Then the shit hits the fan and it is now worth 120,000. That means you lost 30,000 to 400,000 (dependent on how you look at it). So, exactly who is the loser?
Let’s see now Alberta lost 16000 full time jobs last month. Oil is around $40/barrell. 9000 condos in the province coming to completion soon. Migration from Alberta in record numbers. House prices will only drop 2%?
Where do they get these people? Who has the balls to print this crap!!!!
Hey Meo….. In Alberta prices have doubled in 10 years. I won’t be happy if they only go down 75 %. Why don’t RE pimps like you get a life.
Ahem.
You know folks, I’ll be the first to say that the President of TREB has been out to lunch on a number of issues, and I wholeheartedly state on my own blog that the worst part about being a Realtor is dealing with most other Realtors.
However, not all of them are scum of the earth. There are some of us out there that put ethics and professionalism before the almighty dollar. (Maybe thats why I haven’t done so well $$ wise at Realtoring ;-) I’ve steered many of my clients away from homes that were overpriced and encouraged them to walk away when I thought the sellers were being greedy. I don’t need the money that bad as I want to be able to sleep at night, and actually care about the people I work with. What a concept.
There are good salespeople out there – its just too bad there aren’t more of them. As an example, I used to work at an office with over 100 salespeople. The vast majority of them “award” winners and “Top Agents”. Out of those 100+ salespeople there were perhaps 3 that I would want to work with if I was looking for someone to hire to sell my house.
Not great odds, but there are some gems out there.
Realtors, eh?
Since the overwhelming majority of news now is negative, it is nice to see the realtors have taken up the role of putting smiles on everyones faces, by bringing knee slapping comedy on circuit in which ever city the sideshow decides to release “an official debauchery”.
I laughed.
THanks Garth.
#24 Meo said,
” Wow…
You people really have a hard-on for realtors and home prices…
Get a hobby.
So… when home prices go down another 75% are you going to be all happy here?
Losers.”
Well your hobbies obviously are not keeping you away. Seems to me you are just as big a loser as anyone else. If you want to prove you have a life/hobbies, don’t ever post here again.
You’re obviously an Alberta speculator. Sorry man, no more easy money on the backs of average Albertans.
“”We get the question – why was Lehman Brothers allowed to go under? This was a seminal event in US and global finance. It had to be done to take the system down even though Lehman’s owners were ultimate insiders. Why do you think you do not hear a peep out of Wall Street? It is because the key people in the key firms are in on it and taking orders – that is why. In the blink of an eye trillions of dollars were lost. That amount of money is meaningless when you own the system. You can just create more. It is the power to create and control money and credit that always wins the day.””
…”He who controls the money supply controls the country”.
Rothschild
I gotta say, Garth’s new book is quite a read! Captivating, eloquent and straight down to the point. CONGRATULATIONS, Garth.
On my way home today I was pondering “worst case scenarios” and thought it might make sense to think about alternatives how to make a living if I loose my job.
What is your take on jobs and industries that could provide a niche during an extended bad recession? Is it smart to think about starting a business during bad times … e.g. use the time on EI to come up with a viable idea and prepare to lauch it when EI runs out? What is your plan when you get laid off?
Thanks in advance!
#25 Brazer – Great Quote… where did you get it? I feel like posting it in my office…
#2 TS …
“and wipe out all of the deficit reduction that has occured over the past decade.”
TS, for gov’ts to spend requires money from taxes …taxes come from people (can say companies but it all breaks done to people) …if the gov’ts spend less then they have money to pay down deficits, same if they tax more and keep spending the same …more money to paydown deficits …problem is it is our money …why does the governmnet have any of our money leftover …Liberals are using smoke and mirrors …if they had money to pay down deficits it was because they charged us too much …simple …reduce government, let us keep our money …we want government to butt out of our lives in soo many ways.
P.S. – do really believe that the Liberals reduced the size of government during their reins of power
#25, brazer, another good quote.
#24, I will be happy when home prices finally find a bottom.
We will all loose in this excessive greed cycle. This one could be a clear burn for many but if this is what is required to change the cycle then better in the long run.
The smart people, those you used common sense, lived within their means, read the fine print and didnt overextend themselves will prevail as always.
I havent used a realtor for decades, there is a reason. They are glorified admin assistants (and I think this gives them too much credit). I have one of those who can set up my face-to-face with the client and a standard agreement in tow from my lawyer.
RE Agents were a phenomenon created over the last 30 years during the housing boom. Somehow the demand in both housing, flipping and upgrading legitimized their existence.
This turn of events will find them dismissed.
This is why Garth and these posters likely have a hard-on as they see them as part of the problem (lowest form) not part of the solution.
If you want to find a bottom, protect any equity left in your home, try not to find yourself 100ft of a RE Agent.
#3 Keith in Calgary says Realtor is the only profession where you have to deliberately lie all the time in order to earn an income. Not quite true. What about politicians, lawyers, bankers, public defenders, presidents of large companies…. well you get my drift don’t you Keith. It’s all about the spin. In fact I suspect you’ve bent the truth a little yourself in your profession at the 7Eleven. Yes Ma’am, that burrito was brought in fresh just last week! After all you are the assistant night manager!
Every day brings a new revelation of the so-called losses being incurred by the banks in the UK and USA. Banking in England is just about nationalized much as it has been in the US. Canada is attached at the hip to our Big Brother next door who is attached to Queen Mother across the pond. Its only a matter of time before oh so unexpectedly it is revealed that Canadian banks are just as toxic as their cousins in the UK and US. Since our country trails these economies by two years or so the extent of the toxic debt our banks carry will not be revealed for a few more months; maybe another year. It is then that we will enter uncharted territory much like our kinsfolk in the UK and USofA. So don’t nobody go around calling bottom just yet; we are still teetering on the edge of a very high cliff and the real fall has not even begun yet. Once we do go over the edge later this spring or summer who knows how long and how far we will fall but it will be a fall of unprecedented proportions; so buckle your seat belts and also tighten your belts for it ain’t gonna be pretty; all the cheery forecasts of all Realtors notwithstanding.
PS …Meo I don’t have a hard on for realtors. One of my wifes best friends is a realtor. She thinks the Alta. re prices are stupid too.
The problem with realtors is they believe their own hype.
as I said before…WOW her statements are unreal. Especially the one about how she refered to prices may go down if the weather stays cold… or something. Anyway, look at it this way
Calgary peak average price…$505,000 ( approx)
Calgary average price TODAY $419,000 ( approx)
Difference = $86,000
Months since Peak 18 months
So…. $86,000/18= $4777
CALGARIANS ARE ON AVERAGE LOSING $4777 PER MONTH ON THEIR HOMES WHETHER THEY BOUGHT THEM 10 YEARS AGO OR TWO YEARS AGO.
Some investment.
This reminds me of the buy and hold investment strategy.
Work your whole life, save and “invest”. Woops…you waited to long to sell. You lost half your life savings in few months. Then, you panicked and sold for a huge loss. Its a brutal game.
I’m waiting for the bottom before buying my first new home. Once prices start climbing for a few consecutive months, it will be time. I’d rather know I missed the bottom by five per cent than get in too early and find out the bottom was another 15 per cent away.
I am worried about interest rates. My understanding of economics is basic, but won’t the eventual effect of printing the money to fund these bail-outs be major inflation? And isn’t the tried-and-true answer to inflation higher interest rates? No wonder the prices on 10-year fixed mortgages isn’t budging.
WOW
#24 Meo
Yes Meo, that’s right, hopefully you can get everyone out there in blogland to hurry up and buy buy buy, “before it’s too late”, or “priced out forever”, or whatever the catch phrase of the day is, and then watch them lose value. Yup, that’ll make you happy.
GROW UP!!….Loser.
Looks like Baghdad Bob* has finally found a soulmate…
*Iraqui “Information” Minister, Saddam Hussein Regime
#24 Meo on 01.21.09 at 9:29 pm Wow…
You people really have a hard-on for realtors and home prices…
Get a hobby.
So… when home prices go down another 75% are you going to be all happy here?
Losers.
===========
Let me guess, you work for Remax? Try to remember that is isn’t us ‘losers’ driving the market down, it was your industry pushing the market to where it never belonged. None of this would have happened if realturds worked for a straight wage. The commision driven system helped create the problem and your scurvy industry is in the process of devaluing properties to ensure sales are made. Eventually enough people notice the manipulation and revolt. It’s happening, get used to it. MEO, if you don’t like the group think here, head on over to one of your pro realturd blogs and participate in the group hugs.
My prediction for 2009/10; Realturds will replace Lawyers as the least respected “profession.”
Just got mail from our real estate agent yesterday. He’s offering a gift certificate if there is a successful referral or if we sell/list our house with him.
Very clever idea, but it’s a sign of bad things to come and a sign of bad things already here.
#24 “Wow…
You people really have a hard-on for realtors and home prices…
Get a hobby.
So… when home prices go down another 75% are you going to be all happy here?
Losers.”
*snicker* I guess we can write what we please and this person won’t be around to read it.
“You people…”
Makes me think some grade schooler who tosses a stink bomb into a classroom and runs like hell. Only it didn’t go off…and the prank was ignored… probably because this person didn’t spend enough time on the web site showing how to make a proper stink bomb.
Well, I probably gave that little outburst more time than it deserves. *snicker*
#24
Ground control calling, sorry but we have to call you back to earth.
As much as I dislike Realtors, I used one for my sale this month. I previously have sold 2 homes privately, one in Toronto and one in Ottawa, but in this market it’s very difficult to go it alone. My agent has 39 yrs. experience and it has been valued throughout the process. One example: spending 3 hrs. with the purchaser and home inspector to ensure the inspection goes smoothly and does not torpedo the deal over something stupid.
Is she worth 20k$ + GST? I’m still not sure of that and me thinks their ranks will be significantly thinned in the next 3 yrs.
I think the bottom will be fairly easy to find. It’s when prices stagnate for months-years. We are not going to come out of this bust right into another boom. It will take years to rebuild buyers confidence about the investment potential of real-estate.
“stable and balanced market.†… “there is no free fall here.â€
What planet is this woman living on? Balance = supply = demand. This is not what is happening in the Calgary market.
lalalalala…
“Perfect conditions for a hot market
The Bank of Canada’s record low interest rates are great news for the Edmonton housing market.
At least that’s the feeling of the Edmonton Realtors Association.
Former president Marc Perras says, it’s a buyers dream here in our city.
“You will typically see fluctuations in the average sales prices,†Perras begins, “but there is absolutely tremendous value in our market place right now. I think this is probably one of the best buying opportunities that we’ve seen in years here in Edmonton.â€
Perras says sales inventory is high which makes the market even more attractive.
He also feels it’s the perfect time for new home buyers to test the waters.”
http://www.inews880.com/Channels/Reg/LocalNews/story.aspx?ID=1055699
That last bit is just cold.
“I think some buyers are trying to predict the bottom of the market. But record low mortgage rates, affordable prices and great selection will eventually get people buying again.â€
1) You can never predict the top or bottom of markets. However why try and catch a falling knife?
2) Interest rates will be low for some time to come. Lots of time to look for a house.
Can’t change a lot about others, but can help yourself and many
http://ca.youtube.com/watch?v=wd7nWvqIDf0&feature=related
The industry will change over the next ten years, as a realtor now, your required to do twice the work for less. Only those that have come to the conclusion we’re at the start of a secular RE bear we be able to maneuver in the upcoming climate, and prosper.
Just like Y2K and the dot com bubble brought a lot of newly trained technical personal in for the tech party, RE has done the same, now a lot of these new agents that don’t acknowledge and prepare for the environment we’re in, will simply drop out of the industry and jump on the next eco-wagon that comes along.
The public can be swayed but credibility only last for so long. You can tell then its going to be a sunny day when its going to rain and they’ll believe your for a time, but eventually when your soaked to the bone, they fess up to themselves and the rain clouds above.
Make sure you have an umbrella handy, its sunny out!
Garth
As soon as I saw the newsclip on Calgary Global I immediately thought of After the Crash and was almost stunned by the news commentator’s remarks and thought “This is total bullshit!”. I wonder now why I feel insulted by watching the news. Ah well, I cannot say I am not surprised anymore by the attempt to have a positive spin on everything so that way the masses to not give in to panic and hysteria.
I think my belated new year’s resolution should be to not watch the news (for the majority of it) and what I do watch is to be doubted beyond any rational sense. Curious to see what the At Issue Panel will have to say over the past 3 weeks or so.
“Statistics are like people. Torture them long enough and you will get the information you need.”
#11 TheWhiteKnight,
Sure energy will go up with all the production cut backs. $200 by 2011… it might … it might not.
#29 bob on 01.21.09 at 10:32 pm
Hey Uncle Bob, no one is blaming the World Economic Crisis all on Harper ….. what we are saying is: he who stood on the largest soap box in history said “Accountability and Transparency” along with other Conservative values that would fill a book and broke each an every one plus …. Bob the facts out this morning state Harper ran a $13 Billion deficit even before his budget ….. now some simple math …. $12 Billion surplus plus $3 Billion reserve fund = a spending spree in about 2 years of hm mm $28 Billion ….. now bobby boy reports in this morning paper states $100 Billion deficit reported …. hello he gave $75 Billion to the banks ….. for what ….? (and do not give us taxpayers that crap the banks are going to give it all back plus interest, hello tell the banks to make an interest payment now!) so there you go …. look out your window or walk down the street or talk to the million of unemployed people and just ask them what good things Harper & Co have done? ….. better still list & cost them here yourself …. then state in Bold Print who was minding the store.
Real Estate ….. look south ladies and gentlemen …. all those homes that were left vacant ….. thieves moved in and even took the kitchen sink complete with faucts …. hello? stand by the guns crew!
#17 Charles Oxley
WOW!
So it begins, this is one of the disadvantages Peter Schiff discusses about owning physical precious metals in the USA, the government had confiscated it during the Great Depression, why wouldn’t they again.
Guess under the bed or in a foreign country is the way to go with your coins…
Has anyone thought about the possibility of the US government trying to hold the price of gold down, buying it up and then unleashing the fury when they start printing Obama bucks? That’s one way to play their deficit, inflation shrinking their debt and selling off gold during the next commodities bull from the upcoming inflation.
Realtors are desperarte for deals and will lie to make their commissions. They spend $2000.00 to get their license and another $1200.00 a year to keep it up.
Can you really expect much from a realtor? They can come out of highschool and get their license!!! They don’t have University educations. They are not economists and I don’t even know if they know how the economic cycle works. They are all taught 50 phrases that they constantly repeat to everyone to sound credible no matter the property or the buyer/seller. C’mon! Realtors are not the brightest but earn a killing. ONLY BECAUSE YOU LET THEM. IF you demand a lower commission and higher service eventually you’ll get both.
They charge you 4-5% in commission so that they can cover all their costs. If they sell 6 homes in one year and make 8k per home that’s a comfortable living for them. I don’t know how many times I’ve heard realtors say…”I have to charge you 5% to cover all my costs…if your house doesn’t sell I’ve put in a lot of expense into it…then the next one might sell so it warrants charging that much”. So they’ll take it from whomever gives it to them. So we basically pay for their inability to sell a property, lack of market knowledge, an online system that is not reliable -mls.ca.
Real estate agents do have to take community college courses to qualify for a license. In fairness, let’s not forget that earning a living via commissions is far more difficult and risky than most people understand or could accomplish. They must fight for both listings and sales, and they also see their ranks swell incredibly during good markets, which makes survival in bad ones even more difficult. Paycheques can often be few and far between, while daily operating costs (and family obligations) are constant. While I have a great deal of criticism to heap on real estate spokespeople who try to prime the market without justification, let’s reserve our harshest abuse for the media who lazily, uncritically and sometimes unethically report this drivel as news. — Garth
Ah, T.O. Does have its very own Sarah Palin.
Yes, nothing more impressive than a
SoccerHockey Mom authority vopcie to calm one’s angst!Now, for those interested in connecting dots I offer you this insightful article on the real story of how power corrupts and it is like trying to kill off the cockroaches. It CAN’T be done!
Mafia Forever
#11 TheWhiteKnight on 01.21.09 at 8:38 pm
It is possible to be much higher – but that just mean that $ is worthless (even more that is now – around 10c/$1).
Funny story… I went to a Rent-To-Own investor session in Wpg last night put on by a few top realtors. Their pitch was the bubble is bursting in Wpg so now is the time to buy.
It works by paying a fee and the company finds a house and a tenant with no credit to pay the down payment and rent. The agreement also states the tenant must purchase the property after the time at a pre agreed price, which is higher than what you paid for it. After a year or two, the tenant purchases the property and you get the profit!
My thinking is sales are not too great and are trying to drum up business. Plus you are screwing over a new Canadian with no credit and take their savings.
If you have no morals, it sounds like a great way to make money. :/
Stable and balanced is the new euphemism for the real estate industry. Home prices in Calgary are slowly going under the limbo stick and there are no 0/40 mortgages to fuel the speculative bubble. Don’t wait too long to sign up for half a million of long term debt, especially if you might not have a job next week or have a minimal down payment.
This new more balanced market has already left thousands of families in negative equity territory and potentially having to cough up hard cash to actually sell the home.
Banks do not want any more putrid risky assets on their books and seem intent on offloading this crap onto the government.
Good Luck Bonnie.
I’m looking forward to hearing what you have to say in Vancouver!
Paul
The bottom line is that the average family like mine cannot afford the current average house in Calgary. Regardless of what Realtors like Bonnie say most people like me have no intention of buying overpriced shelter. The same bullshit comments like now is a great time to buy as the selection of houses is great and these will not last just don’t fly anymore or that with all the people leaving the manufacturing jobs in Ontario will move here and need a place to live. Do you really think the poor families of Ontario who become unemployed can first of all sell their existing home and then move lock stock and barrel to Alberta and pay $400K for an average house, i personally don’t think so.
I guess Meo doesn’t realize that with falling prices, eventually people who have been outbid with home prices in the past, will be welcomed back in the future.
There’s a whole slew of people that couldn’t or wouldn’t buy in the conditions we’ve experienced recently. Isn’t it a positive for them? Not everyone owns a home
More news from Cowtown. City getting ready to cut costs from the Calgary sun.
http://calsun.canoe.ca/News/Alberta/2009/01/22/8107581-sun.html
#66 Kevin In WinterPig.
Wow! That sounds like a “Lease to Own” for House? Who’s financing it ? GMAC?
Desperate times call for desperate measures
i appreciate this website for its unbiased real estate Canadian information and statistics- there’s nothing like it.
In regards to general economic and social conditions, I’d encourage people to read more than just Garth Turner. He’s a man with a good grasp of things but he won’t be perfect. If you want to read perfection, read resumes. There’s tons of economists/analysts that have made great predictions the past few years. Not all of them are telling people to buy bulletts etc.
Read more books get more information – from different sources. This isn’t a knock against Garth because I appreciate what he’s said (i also enjoyed ‘Greater Fool’), but some of you take his word as gospel…
Not perfect? Are you looking to be smitten, or what? — Garth
#41……
I said that it was the only occupation where you had to deliberately lie “all the time” (and those are the key words)…..whereas those other jobs you listed can all be accomplished by employing the truth the majority of the time.
Your suggesting that work at a 7/11 only shows how hard I hit the bullseye with my remark. In fact, I work in an occupation where I unforunately have to deal with these individuals from time to time, so I know what a waste of flesh they are. And, if I find out I am dealing with one I fire them as a client, as I simply cannot be bothered with them.
How’s that for “no spin” ?
Yesterday I watched Don Newman’s ‘Politics’ and listened to the Alberta Oil Lobbyist wiggling like a punctured worm about the fact that the Cap & Trade system is exactly what is coming to his clan under Obama.
It was a most satisfying experience to watch this clown, who looks like the Navigator in The Tank from ‘Dune’ when his lips move, try to justify the environmental disaster the Tar Sands has become.
Well, the day has changed, and they will be finding they no longer will be getting the Bush Party treatment because there is now a real, ethical, informed, and caring President of The United States.
The Times They Are A Changing for sure!
Harper will be wiggling soon too, if he isn’t already!
Garth,
I note that each day I have to re-enter my name and email. Can you fix that so it comes up whenever we come here to post our name and email remains?
Thanks!
PS: I tell the computer to remember the info, but it does not.
Some Realt-whore lingos
http://patrick.net/wp/?p=176
In Ontario, realtors take 3 courses Phase 1, 2, 3 and there they go selling people’s homes. That’s all it takes.
The cost of this “education” is $1,430.00
http://www.orea.com/index.cfm/ci_id/10438/la_id/1.htm
Anyone else you know with this kind of education that holds as much control over one of the biggest purchases/sales of your life?
Pricing is relative. It’s mostly emotional and based on the highest commission a realtor can get based on market comparables which are pushed by the entire realtor’s mafia – the associations, the boards of every real estate group etc…
YES, consts are constant and realtors have families BUT can you really justify having someone with so little knowledge sell such a huge piece of your pie?
The entire industry is ignorant. I’m all for what the Scottish and Irish do – for sale by the owner and let the lawyers take care of the paper work. Who isn’t able to say …this is the kitchen…this is the living room…etc…
For those who missed it, here is Dana Perino’s last message from the White House (01-19-09)…HILARIOUS!
(Or try this link Final Message From The White House
(Note: The Daily Show videos must be watched on Comedy Central in Canada)
(I bet Steve would love to have one of those?)
Garth, I’m not taking any jabs at you. Far too often people depend on one person and cling to their every word though….
Your real estate information is great. I didn’t expect a response and am not looking for a debate or disagreement. I appreciate your work
Looks like Steve is out to undo things so the doo-doo can flourish?
Tories aim to gut environmental rules, NDP says
Pssst: Somebody drop Steve an email and tell him Dubya is GONE!
I am outraged by this women! How can the real estate industry get away with being so unethical?! Where is the legislation or regulation? How can this happen?!!!
“It’s a tenants’ market.”
http://www.time.com/time/business/article/0,8599,1873081,00.html
Garth,
In your new book you say interest rates are going to continue to drop or go to zero. Obviously you give your opinion on what you personally predict, and I will not hold you to this, but when do you see this happening?
When do you “ball park” see rates going up again?
Your expertise is appreciated.
Thanks for all your help…
US rates have already hit zero, and the Bank of Canada is down to 1%, and will be at 0% by the autumn. A rate increase will depend on the pace of recovery, but certainly not begin in earnest until at least the middle of 2010. — Garth
I have had good luck with my realtors over the years. They were worth every cent. The only reason I have had more than one is because of different locations.They have all worked hard for me and have saved me time and money. Mind you this has been in small town markets. I might feel differently about million dollar properties.
Hrmm, I’m starting to see unfinished reno homes for sale.
Here’s two in my area:
http://www.realtor.ca/propertyDetails.aspx?propertyId=7894745
http://www.realtor.ca/propertyDetails.aspx?propertyId=7873333
#82 RS on 01.22.09 at 11:59 am
Ask the MP’s, MPP’s which Lobbyist paid them to NOT write regulations.
Community housing without sprinklers, evacuation plans resulting in DEATH.
Bar owners who serve idiots too irresponsible to be held accountable for their actions resulting in DEATH.
Investment firms, real estate, and the financial industry who take the life savings of the elderly, and not so eledrly resulting in DEATH.
Government which abhors regulations, like food, nuclear, automotive, environmental resulting in DEATH!
Then they all act amazed when someone loses their life due to their actions.
Next time you vote, ask this question ‘Who will the candidate serve, their constituents or their party?’
Will the candidate stand up for the welfare of the people or their party leader?
‘We has found the enemy and they is US!’
Don’t wait too long indeed!!!
#49 TheFirstRick
“Let me guess, you work for Remax? Try to remember that is isn’t us ‘losers’ driving the market down, it was your industry pushing the market to where it never belonged. None of this would have happened if realturds worked for a straight wage. The commision driven system helped create the problem and your scurvy industry is in the process of devaluing properties to ensure sales are made. Eventually enough people notice the manipulation and revolt. It’s happening, get used to it. MEO, if you don’t like the group think here, head on over to one of your pro realturd blogs and participate in the group hugs.
My prediction for 2009/10; Realturds will replace Lawyers as the least respected “profession.â€
—————————————————-
Ahhh. Insightful comments from an immature poster.
Please grace us with your profession…
Prices in Alberta were driven up by too many people and not enough houses. I saw it. Now there are too many houses and not enough buyers, so prices go down.
Wow, I didn’t know that we could force folks to buy or sell homes. You and your kind can hide behind an anonymous post and slag REALTORS®. Bet you would be a bit quieter if you had to prove your statements.
@ OttawaMike:
“Is she worth 20k$ + GST? I’m still not sure of that…”
A good realtor is worth at *least* that as insurance. The horror stories you can run into if you don’t have a good realtor who keeps on top of everything go all the way through the entire buying process from bribable home inspectors up to lawyers that don’t discharge the previous mortgage properly.
I haven’t believed a shred of news or statement that came from a property pimp for the last 35 years, and I sure as heck won’t anytime soon.
Do you see doctors issuing statements about how many lives they’ve saved?
Do you see police issuing statements about how many crooks they’ve locked up?
How about lawyers and how many legal battles they’ve won?
Or accountants and how the total value of tax dollars saved for clients?
They don’t need to, because they are PROFESSIONAL and the duty of the job comes first, money follows.
Commissioned house sellers are far from professional, and statements frought with conjecture and blind hope such as this lady’s, prove that greed and money is motive #1.
There has got to be much mental anguish being a commissioned used home seller, as living in smoke and mirrors all the time has to be tiring. I am assuming you have a conscience, of course.
->
trust and confidence are shakey worldwide. The pbs website tells us that it was journalists who alerted congress to the truth. Should we go back to chopping off heads…
Companies that follow best practice should be rewarded…People are tired of the old mantra which was to compete you must cheat. The case below is a good example of change coming too slow.
http://www.pbs.org/wgbh/pages/frontline/mcwane/
two men have been given the death penalty for their involvement in China’s contaminated milk scandal.bbc
http://news.bbc.co.uk/2/hi/asia-pacific/7843972.stm
Here’s a link to CREB’s January 2008 predictions. These people are clowns.
http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=e466a542-3440-480a-895b-419390655464
“In its 2008 forecast Wednesday, real estate board president Ed Jensen said the MLS average will increase by five per cent this year to $495,800 while condominium prices will rise by six per cent to an average of $335,300.”
US rates have already hit zero, and the Bank of Canada is down to 1%, and will be at 0% by the autumn. A rate increase will depend on the pace of recovery, but certainly not begin in earnest until at least the middle of 2010. — Garth
Garth even though the bank of canada has lowered interest rates , lending to consumers still remains high.. who exactly is this benefitting the banks ? business ? surely not the guy wanting to buy ..
By the way your book is awesome .. almost finished reading it …
Bob, rather than criticize my posting about Harper’s economic mismanagement and calling me names, it would be better if you read the linked article, then took the time to understood just how short-sighted and ill-advised Harper’s policies have been. Facts are facts. You would be well-advised to educate yourself and stop swallowing everything fed to you by the Harper spin machine.
There was nothing in my posting about the global economy, and blaming Harper for that. The point that was made in my posting is that Harper blew the Federal Government surplus during good times and has now left the cupboard bare during bad times. This is NOT leadership or prudent fiscal management.
My posting was about the results of Harper’s fiscal mismanagement in terms of massive spending increases during his tenure as PM, coupled with ill-advised GST tax cuts which eroded the Federal government’s fiscal capacity. These short sighted decisions are now coming back to roost.
We now face the real risk of Harper’s policies resulting in a structural deficit for Canada for many years to come. But don’t take my word for it…do some work on Google etc. and you will find lots of factual information.
Here is something you can read:
http://www.nationalpost.com/news/story.html?id=1203985&p=2
Kevin Page, the parliamentary budget officier has stated in his official report that the Harper government’s policies will generate somewhere between $46 to $105 BILLION in deficits over the next 5 years, and this is BEFORE the costs of any stimulus activities are costed in.
This is NOT my opinion…it is an estimate from an officer of parliament who’s job it is to provide the Canadian public with accurate reports on the fiscal management of government. You may not like what he has reported, but don’t blame me….this individual was actually appointed by Harper himself.
Taking cheap shots at a factual posting says a lot about you, and the lack of logic and intelligence that you bring to your postings. I hope we can expect better from you in the future.
An amendment to the Realtor Oath (if there is one)
should read something like:
” I will at all times disclose the true market conditions to both seller and buyer… Even when they do not want to hear it. I will put honesty and fairness above commission”
We can dream, can’t we?
Straight from the horse’s (you choose which end?).
Federal government to go $64-billion in red
Gotta love the sheepish grin from the Leprechaun FinMin, eh? Great job he is doing. In a mere two years he has emptied our treasury of the surplus Paul Martin created.
Why, bank robbers would not have been able to haul those billions off in such a short time.
Oh, and this is soooooo typical of the Problem Children that brought about this FUBAR mess.
In early 2008, just as Merrill Lynch CEO John Thain was preparing to slash expenses, cut thousands of jobs and exit businesses to fix the ailing securities firm, he was also spending company money on himself, senior people at the firm say.
According to documents reviewed by The Daily Beast, Thain spent $1.22 million of company money to refurbish his office at Merrill Lynch headquarters in lower Manhattan. The biggest piece of the spending spree: $800,000 to hire famed celebrity designer Michael Smith, who is currently redesigning the White House for the Obama family for just $100,000.
Here is another link that readers may wish to follow re: the fiscal impact of the Harper government. Even without ANY stimulus for the economy the Federal government would have been in a deficit of about $15
BILLION for the upcoming year, and $13 BILLION in the following year.
This from a government that claimed only 3 1/2 months ago that there would not be any deficit for the Federal coffers. Misleading the Canadian public is not a sign of a responsible, ethical government…even though such actions help to win elections.
http://finance.sympatico.msn.ca/budget/article.aspx?cp-documentid=17018660
Readers may also want to bookmark the following site:
http://www2.parl.gc.ca/Sites/PBO-DPB/index.aspx?Language=E
It is the website for the Office of the Parliamentary Budget Officer. Various reports, presentations, and statements are available.
Here is a link to the latest pre-budget briefing by the Parliamentary Budget Officer:
http://www2.parl.gc.ca/Sites/PBO-DPB/documents/Pre-Budget_Briefing.pdf
Make some tea or coffee and give it a good read…the better informed we are as taxpayers and voters, the less we can be duped by misinformation coming out of the Harper government.
Third Chimp on 01.21.09 at 8:20 pm #2 TS;
Its not fiscal mis-management. Neo-cons/liberals discovered something about politics. Cut a program – result: placards,evening news and union boss on TV. Cut taxes or shift a tax loophole – result: happy friends and donors. Hard to march in the streets about less taxes isn’t it ? Going back to Reagan era, they talked about less gvmnt, but what they did was expand the deficit instead. Reagan, Bush I & II, Mulroney, Harris, Harper – all rapidly expanded their govts respective debt through tax reduction (and the money hasn’t trickled down).
Third Chimp….the ‘trickle down’ economic theory of the Reagan-Bush Republicans has been clearly shown to be completely inefficient and has done nothing except to bloat government deficits in the US. This has done nothing to actually improve productivity and innovation, which are two key reasons why North America is in economic decline.
bob on 01.21.09 at 10:32 pm #2 TS
how can you blame the total collapse of the world economy on Harper? i mean give your head a big friggin shake and then go crawl under a rock you weisel.
And this kind of comment is supposed to add to an intelligent discussion? BTW if you feel compelled to insult people at least spell your insults correctly…..the proper spelling is ‘weasel’.
Do you have anything factual and of substance to add to the discussion?
#17 Charles Oxley on 01.21.09 at 9:13 pm #129 go green on 01.21.09 at 4:55 pm
Hello Go Green. Trust you are doing well.
The first link is a 5 min. video of a California bank doing the naughty, plus a few others.
Hi Charles – yes doing ok. And hope you and your family are as well.
Re SDB – Yikes, seems we can’t trust anyone. I haven’t as yet checked if such could happen here.
http://tinyurl.com/8rj3b
Thanks for posting the above. Have been aware of much of it, but wish I had read it in 2005. Could have bought gold coins then. He’s still predicting gold to go to $1500 an oz. Some predict $2k an oz. I’ve forwarded to article to a few people.
I didn’t realize the Euro was backed by gold, but my husband was. I’m glad as we hold some.
We’ve had a SDB for 20+ years, partly because some of my husband’s educational certificates from France, once lost, can never be obtained again – French law. Not sure if has changed since he immigrated.
We got rid of debt many years ago. Paid off our mtg in 7 years, etc. We’ll survive. Pity those who got caught up in the ‘spend beyond your means’ mantra.
BTW, I’ve only owned 2 homes – 1 with my sis & one with my husband. Really only had one RE guy who both sold the first home and helped my husband & I buy our current home. He worked on his own – not affiliated with any of the RE firms. We negotiated his commission and were pleased with his work. We found him to be hard working and honest.
rory on 01.21.09 at 11:29 pm #2 TS …
“and wipe out all of the deficit reduction that has occured over the past decade.â€
TS, for gov’ts to spend requires money from taxes …taxes come from people (can say companies but it all breaks done to people) …if the gov’ts spend less then they have money to pay down deficits, same if they tax more and keep spending the same …more money to paydown deficits …problem is it is our money …why does the governmnet have any of our money leftover …Liberals are using smoke and mirrors …if they had money to pay down deficits it was because they charged us too much …simple …reduce government, let us keep our money …we want government to butt out of our lives in soo many ways.
P.S. – do really believe that the Liberals reduced the size of government during their reins of power
Rory, you seem to be taking a rather simplistic view of things. The Federal government deficit was built up over time by both Conservative (huge deficits under Mulroney) and Liberal governments (huge deficits under Trudeau), so from that perspective both parties can share the blame.
Government debt happened because successive Federal governments did NOT TAX citizens ENOUGH to pay for the services that they were receiving. The math is very simple…cost of service – revenues = surplus or debt.
So, your position about Canadians being overtaxed has no logical basis. As long as there is Federal government debt, then taxpayers in Canada at some point have paid less than it cost the Federal government to deliver programs to them.
The following link details that the Federal government net debt was just over $508 BILLION. Considering that there are just over 33,000,000 people in Canada, each man, woman and child owes about $15,400 each for services that we have received as a nation but have not adequately paid for.
http://www40.statcan.gc.ca/l01/cst01/govt03a-eng.htm
Until we have retired our Federal government debt of $508,109,000,000,000 it is completely illogical to say that we are being overtaxed…the reality is that we have been chronically UNDERTAXED for decades – and it is that imbalance that resulted in deficits during the past tenures of both Conservative and Liberal governments. It was not until the tenure of Paul Martin as Finance Minister that Canada began to get its fiscal house in order.
Financing public debt consumes a high percentage of tax dollars to simply pay the interest on the debt, and reduces the quality of life in the country. If we were a debt free nation we would have a significantly higher fiscal capacity to pay for the massive increases in programs that our aging population will consume in the decades to come.
The tough decisions made during the Martin years represent the coat-tails on which Harper has been riding for the past two years. During the next 5 years we will be paying the price for Harper’s fiscal mismanagement….the result of which appears to be another $1,400 that each man, woman and child will owe to other nations etc. that hold Canadian Federal government debt. So, each of us now owe at least $16,800 by 2013. This is NOT leadership, nor is it fiscal prudence…it is fiscal mismanagement by the Harper government. Who wants to send Stephen a thank you note?
So Mark Carney from the Bank of Canada is now predicting that Canada will experience a remarkable recovery in the second half of 2009 thanks to the massive stimulus package. Huh? Have the big elephants ($65 Trillion CDS market and crippling household debt) already packed their bags to leave the room, and is our biggest trading partner already set to buy whatever we produce out of this stimulus package? Or is Mark taking queues from his ex-Goldman Sachs counterparts turned US financial ‘leaders’ in the States, that central banks and government must do anything possible to calm the masses and avoid sudden bank runs?
http://www.cbc.ca/money/story/2009/01/22/bankoutlook.html
WOW, I just looked at the amount of multi-family buildings for sale in Alberta. It has exploded!
There are now about 5 TIMES as much for sale than a few short months ago!
Totally overpriced obviously still but man oh man are landlords panicking…
There is even an 8 and a half mil one in Lethbridge that will not sell. Who the hell has 8 mil and would want to invest now or in the near future?
“Statistics are like bikinis. What they reveal is suggestive, but what they conceal is vital.” Aaron Levenstein
So dont just fall for them…the vital info is always concealed…
Keith wrote: “Realtor†is the only occupation where you have to deliberately lie all of the time in order to earn an income.
No, you don’t have to lie, ever, to earn an income as a realtor. In fact, the more straightforward you are with people, the more referrals you get and the more money you earn. Don’t believe it if you don’t want to. I realize it doesn’t fit your world view.
Dishonest people exist in all occupations.
for those who asked; the quote in my posting was paraphrased from Upton Sinclair.
=====================================
“It is difficult to get a person to understand something when their salary depends upon them not understanding it.â€
Offering further to strengthen TS’s arguements, the Conservative government just bought out 75 billion dollars worth of shaky real estate debt from our Canadian chartered’s, leaving the bank of Canada itself in shaky territory. They did it before some of these bad mortgages defaulted to avoid the publicity and stall the numbers by 2 to 3 years, perhaps more and they did it without so much as a question offered in the commons as to why. This number (75 billion) is likely a low figure to anyone who is concerned about the fallout of Harpers solely owned 40 year nothing down CMHC approved housing regulations (Canada’s version of subprime).
Keep in mind that these are our taxpayers dollars. The 75 billion dollar figure is likely to be higher and the losses are bound to be between .50 to .70 cents on the dollar with such mortgage bailouts which, in case readers haven’t caught on, is what CMHC is required to insure by law. This is the most costly Conservative regulatory oversight they’ve had so far, far surpassing jacked up military spending and its bound to cost taxpayers between 50 to 80 billion outright. This is before TS’s links on http://www.msn.ca or anywhere else highlighting projected budget deficits before or after stimulus is factored in.
In other words readers, keep adding. I’m personally predicting between 120 to 200 billion over 3 years (4 tops, the numbers can be delayed through creative accounting, but thats all) with what I predict will be 75 billion coming from red ink from CMHC alone due directly to Harper/Flarehty’s 40 year nothing down regs which they introduced and along with the Bloc, passed in the commons.
I’m sorry to those who believe that Harper/Flarehty know what they are doing but they don’t and they’ve been lying to the public as to the extent of the damage caused by their ineptitude. And… it will cost Canadians dearly. Canadians should be thinking another election and damage control at this point. Forget about brands and what they once stood for or that favorite color, folks. We don’t need bobbleheads or yes men/women at MP seats in the commons and we certainly don’t need them at the voters level. Leadership is seriously lacking in this nation and the impostures need to be replaced before the damage becomes more severe.
As much as some don’t like to read or swallow this, heads need to roll. Clean house and get rid of those responsible, get rid of the deadwood or things will only get worse, especially in the long term never mind the short. And as humiliating as it might be for voters who were duped into thinking our government is solid and right for the times to admit that this is no longer so, its time to step up and replace liars and fakes with those who are honest and know what they are doing.
By the way, such individuals exist.
Its beyond wounded pride now, something must be done to restore our faith in government and it begins with the voter at the base level. Its up to us to make the right choices too, and elect men and women into office that are honest and competent or voters will ultimately reap what they sow.
There can be NO sadder or more pathetic profession in the universe than one in which you are paid to consistently lie.
And unfortunately, this planet has WAY too many of such professions.
#76 “I note that each day I have to re-enter my name and email. Can you fix that so it comes up whenever we come here to post our name and email remains?”
Hopefully someone with direct experience will respond, but in case not:
Not remembering your name I think is because cookies is turned off in your browser. If you use internet explorer…I think it is under Tools | Options | Security settings.
Sorry I don’t have better directions than that…once again I’m typing on a PDA in the bath tub.
Randy, you are so far out to lunch I can hear the dinner bell clanging between your ears.
I don’t know which planet your Ireland is on, but the one where I own property has estate agents. They charge a negotiable fee to list a property. And they, along with one’s lawyer, help put buyers and sellers together.
As for your earlier post that “realtors will lie to make their commissions”. If that has happened to you, I suggest you talk to your lawyer about suing that realtor for negligent misrepresentation. If that’s just bloated rhetoric, on the other hand, maybe you should just get back to your mop and bucket.
You further contend theye “spend $2000.00 to get their license and another $1200.00 a year to keep it up.”
Again, clueless. It costs something close to $3K (in BC, anyway) and $1200 a year would barely cover the weekly board fees, much less the annual board membership fee, the licensing fee paid to the provincial regulator, bookkeeping, accountant, marketing, office, phone. Your fees: mop $29. Bucket: $14.
You also wrote: “They can come out of high school and get their license. They don’t have University educations.”
Well, aside from the fact most of the realtors I’ve worked with are university educated, what is it about a university degree that confers infallibility in your mind? Enlighten us. You are a credentialist. Look it up.
You also suggest realtors “are not economists and I don’t even know if they know how the economic cycle works.”
If you’re referring to the paid board shills who contradict economic reality, you’re probably right. But if you’re making another blanket statement about all realtors, you’re wrong. I”ll put up my grasp of economics against anybody – realtor or non-realtor.
But I”ll just pwn you to prove the point: you suggest that if consumers “demand a lower commission and higher service eventually you’ll get both.” Go ahead, call every realtor you can find and “demand” that they lower their commission. Meanwhile, the other thousands of people who enter into a contract whereby they agree to pay their realtors the freely agreed-upon commission will just have to feel silly for not having “demanded” that the world spin in the direction they want. Granted, if enough consumers felt as you do, maybe commissions would come down as low-cost competitors started taking market share away from high-cost brokerages.
But just as an example, here in Victoria the low-cost brokerages (mine and a few others) have basically given up. I thought it would be organized real estate that would crush me. But you realtor-haters and econo-nincompoops want to know the truth? Consumers killed us. Nobody wanted to believe that I could sell their house (i.e. deliver a service) for an amount that was less than the commonly charged commission in this city.
Frankly, I got tired of convincing people to pay me less. But while Keith, TheFirst Rick, Squiggly, and all the other hard-0ns spent their lives obsessing over whether a realtor has a graduate degree, people who are ACTUALLY buying and selling houses were convincing the low-cost brokerages that their business model does not work.
I realize that’s a bitter pill to swallow, RAndy. But the market has spoken.
But go ahead, tell me about what a genius economist you are. I can’t wait.
#88 EdmRon
=========
I’ll say it again;
My prediction for 2009/10; Realturds will replace Lawyers as the least respected “profession.â€
As a realturd yourself, this concept should concern you a hell of a lot more than what I think personally.
The weather’s not very nice in Calgary today… look for house prices to drop tomorrow. Crazy weather-controlled market… how could anyone predict what is going to happen?
islander #111
you have expose yourself..the only blogger to spell my blogger name as *squiggly* is a failed calgary realtor who runs his own censored blog
#103
“dead cat bounce” deleveraging = volatility
cash is still king.
#76 “I note that each day I have to re-enter my name and email. Can you fix that so it comes up whenever we come here to post our name and email remains?â€
Hope this works: (Vista)
Click Tools on the Menu bar, follow
Tools | Internet Options | Privacy
drag the bar down to ‘Mediem’
I lost my job today (NOVA Chemicals, Calgary)…
who cares about the housing price and interest rate!
I am sorry for you. — Garth
You simply must read this article in the Vancouver Sun. Vancouver’s answer to Bonnie!
http://www.househunting.ca/buying-homes/story.html?id=5bf45104-1bfa-4400-9d41-b1b5f181d9c9
#101 go green
why would your husband think that euros are backed by gold?
they’re not.
and even if they were 15% backed (as some rumours suggest)…so what?
Islander, you sound sincere. Sadly, the realty market in your area has been, like all the rest, just an irrational feeding frenzy that most of you and your ilk were pumping up. Is a run-down 2 bdrm shack off the Gorge really worth 1/2 million? Your “market” was so baldly pumped up that it had to collapse under the weight of all that greed back down to some semblance of reality. Sounds like you are reasonably well educated, why not look to a career that adds real value to society. Good luck.
“A good realtor is worth at *least* that as insurance. The horror stories you can run into if you don’t have a good realtor…”
I cringe a bit when people use horror stories to scare people away from doing things themselves. I don’t think that is the intention of this poster either. I too have been guilty of passing them on even though they are not first or second hand.
I’m not saying go wire your own 200 amp service with a backup generator. But don’t be suckered into the “you’d better use an expert or else ” type talk. You could sell your own house quite easily especially when the market is good for selling. Let the reason that you choose to use a realtor be that you don’t have the time or patience to learn..not some horror stories. Of course, I’m becoming a believer in being your own expert.
Islander…..
My “world view” as you like to frame it, was formed by direct personal one on one interaction with over 100 different realtors over the last decade.
PT Barnum would have been proud of his offspring.
#111 islander on 01.22.09 at 7:27 pm
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Islander, I am not Randy but I can’t resist.
–
“”As for your earlier post that “realtors will lie to make their commissionsâ€. If that has happened to you, I suggest you talk to your lawyer about suing that realtor for negligent misrepresentation. If that’s just bloated rhetoric, on the other hand, maybe you should just get back to your mop and bucket. “”
–
The first property I bought in Van almost two decades ago became nothing short of a nightmare because of the listing agents misrepresentation. The strata square footage was over estimated by more than 35%. I suppose you will tell me, caveat emptor, no one made me sign the paperwork and all your standard rhetoric that you always seem to fall back on. A first time homebuyer who thought he was dealing with a “professional†got duped. No one told me that I should have done anything different. No one told me that realtors lie. YOUR industry told me that they are the professionals and would act in my interest. This mess took me over 8yrs to correct. Many lawyers involved. Each one had a different opinion and plan. I eventually represented myself as it was the only way to end this. I eventually got compensated, but not nearly what the total costs were. I “won†but I still felt as though I was raped. You suggest to Randy to hire a lawyer to deal with unscrupulous realtors – too funny. You assume everyone has the resources to do this. You suggest a judgment by the courts is even enforceable. What happens if the listing agent has died? Take the board and their insurance company to court. Yeah, right. I have a spare $50K kicking around. If the shoe was on the other foot, your board would defend your case. The singular consumer is hung out to dry, left on his own, better have deep pockets. Fair system, eh? Things shouldn’t end this way when we are led to believe that your industry “professionals” are the cure for what ails us. Do you even observe your own industry advertisements? or just choose to ignore them? I can go on about my second home, the purchase was a pleasure, the realtor was exceptional. She guided me away from problamatic issues that weren’t even on the radar for me. I even bought the third home with her. One problem. She actually quit the real estate business, telling me she got tired of having to ‘mislead’ people to earn a living. You see Islander, I DID have a good realtor at one point, unfortunately she had a conscious and had to leave. These are my experiences greatly condensed, I could go on for hours. Who really cares, even I don’t so much any more. My point to you sir; my distain for realtors is real, not imagined. Oh, can I actually say realtor? That is copywrighted, isn’t it? Pompus asses copywriting a word found in the dictionary. Why do you think I started using “Realturd?”
–
“”You further contend theye “spend $2000.00 to get their license and another $1200.00 a year to keep it up.†Again, clueless. It costs something close to $3K (in BC, anyway) and $1200 a year would barely cover the weekly board fees, much less the annual board membership fee, the licensing fee paid to the provincial regulator, bookkeeping, accountant, marketing, office, phone. Your fees: mop $29. Bucket: $14. “”
–
Your point? All business’ have expenses and overhead. Some might think that your commissions remain unjustified. Your expenses seem to be less than what an automechanic would spend on tools for a year. When you take your car into a shop for an estimate, do they all have fixed rates? Do you want to walk the walk Islander? Lobby your board to allow each agent to negotiate commission with the vendor. No minimums, no maximums? Even better, a flat fee per sale tempered by the hours spent on the listing? How about an hourly wage? Good realtors get a raise, bad realtors get laid off or reduced to the mail room? This would certainly take away, or at least reduce the boards need to manipulate numbers for self serving gain, increased percentages and all that many of us here have railed against, ad naseum. I doubt you will see any of this.
–
“”You also wrote: “They can come out of high school and get their license. They don’t have University educations.†Well, aside from the fact most of the realtors I’ve worked with are university educated, what is it about a university degree that confers infallibility in your mind? Enlighten us. You are a credentialist. Look it up. “”
–
I’m not sure why a person selling real estate would need a university education. I’m amazed that someone WITH a university education would WANT to sell real estate for a living. But then again, that’s just my opinion Islander, just as valid as your opinion.
–
“”You also suggest realtors “are not economists and I don’t even know if they know how the economic cycle works.†If you’re referring to the paid board shills who contradict economic reality, you’re probably right. But if you’re making another blanket statement about all realtors, you’re wrong. Iâ€ll put up my grasp of economics against anybody – realtor or non-realtor. “”
–
Nothing but hubris Islander, yes you are a genius. Do us a favor, talk to your board about those paid “shills†you often mention. For some strange reason I envision you at a board conference patting the “shills” on the back and buying them drinks. I’d bet my life you wouldn’t have the balls to criticize them face to face. I have never once seen a personal attack on this sight against a realtor. That would be improper. It’s your industry as a hole that pisses a lot of us off. The realturds I am related to get it ten times as hard as anything I’ve ever posted here. Yet they keep coming back for more. Probably just using me for practice. LOL
–
“”But Iâ€ll just pwn you to prove the point: you suggest that if consumers “demand a lower commission and higher service eventually you’ll get both.†Go ahead, call every realtor you can find and “demand†that they lower their commission. Meanwhile, the other thousands of people who enter into a contract whereby they agree to pay their realtors the freely agreed-upon commission will just have to feel silly for not having “demanded†that the world spin in the direction they want. Granted, if enough consumers felt as you do, maybe commissions would come down as low-cost competitors started taking market share away from high-cost brokerages.
But just as an example, here in Victoria the low-cost brokerages (mine and a few others) have basically given up. I thought it would be organized real estate that would crush me. But you realtor-haters and econo-nincompoops want to know the truth? Consumers killed us. Nobody wanted to believe that I could sell their house (i.e. deliver a service) for an amount that was less than the commonly charged commission in this city. “”
–
That’s ripe! Blame the customer for your business failings. May I suggest people didn’t “believe†because of the market control, misrepresentation, false advertising and such, from the “mainstream†real estate industry. You forget, that for the majority of us, real estate transactions are a rarity. When we decide to do so, we tend to go with the “establishment.†Unfortuately, for many of us, the status quo has left us disillusioned and disappointed. Oh, I know, sue, right? Caveat emptor, free will, all the rest of your repeated rhetoric, right?
–
“”Frankly, I got tired of convincing people to pay me less. But while Keith, TheFirst Rick, Squiggly, and all the other hard-0ns spent their lives obsessing over whether a realtor has a graduate degree, people who are ACTUALLY buying and selling houses were convincing the low-cost brokerages that their business model does not work. “”
–
Why do you feel the need to convince anyone of anything? You sound like an educated and honest man hung up in a disgraceful industry. You demonstrated you left the mainstream, probably somewhat disillusioned and tried it your own way. You fell flat on your face and now choose to blame the consumer instead of looking inward. May I suggest YOU “look it up” Islander. Maybe give Dr Phil a call or something. At least watch his show, you will undoubtedly be having lots of free time in the upcoming years to do so. If you managed your commissions a bit better, you might even have a benefit plan to cover the costs.
If you are as educated as you claim, quit, do something else. Even better, stand up and be heard. Speak against the “board shills†and others in your industry you have criticized. Until you do, you are just one of the crowd and your proselytizations are really meaningless. Yes, I have done MY part. My points are on record with The Real Estate Council of BC and the federal regulators. It’s humorous how these governing bodies tell me I should just sue as well. No Islander, I don’t have your superior economics education, but I do know spending 2 bucks to make a buck isn’t even taught in the Warsaw school of economics.
The bottom line is, that when it comes to real estate, it really is buyer beware. That’s fine with me, I know that now. Never again will I put my faith or trust in a “real estate professional.†It’s probable that in the future I will use a realtor, under different degrees of circumstance, what choice do I have? The only difference this time is I know I cannot believe or trust a word that comes out of their mouths. That is a sad commentary on YOUR industry Islander. A belief held by a hell of a lot more people that just this peon. Good luck with your crusade for clarity. Any business that remotely attempts to convince the customer that they need to understand something is doomed to failure.
I can only hope you put as much effort into cleaning up your industry as you do defending it.
I was talking with this dim-bulb woman the other day (from Alberta, of course). She’s telling about her shitty condo on Gull-lake or something, that they are thinking about selling it but waiting until next year when prices go up again. Then she does the “…you know?” thing to me.
Well, I’m not capable of lying. I’m sure everybody else is like “oh, yeah, for sure”. And promply changes the subject.
I’m no saint. I could care less if she ends up on the street with her kids. It’s not for moral reasons I tell her the truth.
I pause… then I launch.
“Nope. Next year your place will be worth less. And for the next five years it will continue to drop. We won’t see these home prices for at least 10-15 years. Alberta was in a housing bubble, and the bubble popped.”
The look of shock on her face. “How do you know?”
“Because I’m really fucking smart.”
Well, that was the end of my job interview.
The secretary stops me on the way out and says… “You know that bitch has been trying to dump her crappy lake-lot on everybody who’s been coming through for interviews all week.”
I laughed.
#110 TomOfMilton on 01.22.09 at 7:24 pm
Thanks, but that is NOT the problem. It is something to do with the site. All other sites ask for a cookie to be allowed (I use Netscape, not that horrid Microslop IE), but this site does not. Garth’s old site remembered nicely.
I shall check, regardless, to see if I disallowed cookies from here.
#117 PhD on 01.22.09 at 8:36 pm
I am sorry you lost your job today and
I hope you will find another job real soon ..
BTW, in Ontario (at least) one must use a lawyer for closings. We bought last August and the realtor did a good job, but could have been better. The lawyer covered our investment with the proper paperwork and checks on title, etc..
Interestingly, in the States there are Title Companies who search and warrant the title, but not here in Ontario. no lawyer requried, but still a good idea. Real Estate in 99% of the cases is all paperwork.
The real estate industry has also locked in their Six with mandatory fees being paid regardless. read the contract carefully, and take all the time you need to ask questions, make exceptions, and if necessary tell them NO! Do not buy based on emotions because if you do you will be finding the joy turn to long term sorrow.
Count ALL costs before signing.
Lawyers have gotten a lock on such business as well, which is both good and bad. At least the fee was reasonable and the work performed timely with them handling the money transfers, etc. Both Seller and Buyer were represented.
As to realtors, they are NOT necessary with the plethora of means available today. Most are dreamers of glory and wealth, but a good one is a real help.
I note quite a few are now ‘shopping’ brokers trying to find the action. Hint: There is very little of it.
Oh, a tip for those buying a home with oil heat. The tank cannot be filled to its capacity because there must be ‘head room’ for expansion, so do not pay for a ‘full’ tank because you are not getting one.
Most are sized at 200 gallons (909 litres) but cannot be filled to the max.
I am currently one of those greater fools who caught caught in the emotion of buying in Sept when we were told this is the bottom.
We are now with 2 homes hoping to sell in a deflated market. We are realist and listed 35K below “market value” at 299K.
http://www.asaadhomes.com/intermediate_listingDetail.jsp?searchType=listingsDetails&listingNumber=1946885
Hopefully we get a buyer….
#123 First Rick
How can anybody “misrepresent” a strata area? The boundary dimensions are clearly shown on the registered strata plan along with the area of the strata lot. Could you elaborate? Thanks.
@ TomOfMilton:
“I cringe a bit when people use horror stories to scare people away from doing things themselves. I don’t think that is the intention of this poster either.”
Well, actually it is. Let us take the second horror story I mentioned about lawyers not discharging mortgages. That would be my sister-in-law, who thought she was clever enough to not need a good Realtorâ„¢ to buy a house. Said house now has two, count em’, two mortgages they’re officially responsible for and who knows when/if it’ll ever get sorted out; since she is, in fact, not as competent as a good Realtorâ„¢ and did not catch that the cut price lawyer she relied on had completely stuffed the pooch on the assignments.
Now, are you *quite* sure you want to count on yourself being smart enough to catch things like that? Personally, I think paying for the best professional advice you can find is much more prudent than chewing back a few percent is. For her it *definitely* would have been. YMMV…
Don’t worry McGuinty is going to put windmills all over the place to capitalize on all the hot air that is being spewed about the economy.
http://www.thestar.com/Business/article/575870
More money down the rat hole, a guarantee of higher electric rates and more fossil fuel plants to back them up.
Awesome idiot
A few posts touch on media irresponsibility and I fully concur. The general population is also to blame. I sense that far too many people approach our world of mass media with less than the critical eye or ear that is needed.
They run around and repeat what they hear in little bites without further research; pinching themselves to ensure they’re not dreaming because they own a big house with a big mortgage at a really low rate and they have stocks that will keep going up as long as you hold them long enough. Yeah, right.
I cite BNN and CP24. Why hasn’t Garth been a guest on BNN or Hot Property? Is it because he doesn’t own a pair of rose-coloured glasses? Maybe he has been but I missed it or perhaps his opinions undermine the greater interests of these networks?
Maybe the media is correct in knowing what the public wants – just dish up what satisfies the herd mentality.
BNN’s sponsorship by TD Bank is an unfortunate conflict and landed Patricia Lovett-Reid on air so often I am not sure how she can be an effective SVP. She preaches some, only some, practical albeit rudimentary information for the average consumer on one hand, but is regularly corrected by ‘experts’ on anything more complex. Her response is to plough forward as if she wasn’t corrected. She will promote the benefits of a 40 year mortgage one week and, after the government disallows them, preach about the importance of paying down your mortgage sooner than later. I realise she is mandated by her employer in the TD Bank spots. What I don’t understand is that TD Bank does not realise their highly visible self-promotion has actually succeeded in undermining their credibility with flip-flopping and their not-so-bright or objective spokesperson.
CP24’s Ann Rohmer has absolutely no clue about basic economic fundamentals let alone real estate. As a ‘reporter’ she completely lacks objectivity. Am I missing something or should people in her position work hard to probe the multiple sides of every issue instead of saying things like thankfully the Toronto market won’t go down too much because some sleazy real estate promoter on her show says it won’t? I don’t get it. Keeping that show on the air without an intelligent host and only with guests who have a vested interest in the real estate market is a disservice to their audience.
Unfortunately there are a lot of sheep out there and instead of helping people make informed decisions, all too often the media is promoting and allowing special interests to remain unchallenged.
#124- anonymous on 01.22.09 at 10:15 pm
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Lol.
So,…did you get the job?
I`m a UK citizen in the process of emigrating to Canada in the next 12 months with my very young family.
As bad as Canadas situation might be it surely has far better prospects then the UK over the next 20 years doesen`t it?
Hi everyone, Garth – appreciate your insight as to conditions of finance and where it’s all heading – especially Real Estate. Question…pg 232 “After The Crash” #5 “BUY Rv & park it on acreage”….really?? Now?? If I think this situation calls for “This Will Get Bad” action today – I still feel hesitant to buy anything right now. I sold my condo last summer but don’t want to waste a cent! Please advise – thank you.
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