Say a prayer

Like this was a surprise. Thursday 10:30 pm, thirty-four and a half hours before the doors open to an engineered condo riot, vacant-looking people queue in the night between lengths of rope. This is a line-up for the right to spend a few hundred thousand dollars in a few minutes on an unbuilt condo in an unproven building. The developer’s provided heat lamps and a portable bathroom. Dignity, however, is in short supply.

Blog dog Michael snapped a few pix. “Why would anyone line up to buy a 400-square-foot condo,” he asks. “Beats me. Crazy times we’re in.”

I told you yesterday how real estate promoter Bob Rennie was hoping for a mass crush of people, all desperate to buy a south Vancouver condo in mere moments. This is just what will happen Saturday morning at nine. As planned. It’s what you get when 11,000 people are signed up, all believing they’re ‘pre-registered’ and special as snowflakes, with only 418 units for sale.

This is the marketing psychology of competitive herding. Make people feel like they have a stake in the project as registrants, then force them to climb over each other in a small physical location, foster an air of confused desperation, invite Global TV, watch the mayhem as panic buying ensues, then go back to the office and invoice the developer.

This is how it all ends. And it’s definitely ending in Vancouver. We’re in the final stages of the real estate game, when tulip mania abounds. And standing in the garden are housing pimps like Mr. Rennie, who went on city-wide radio Friday to say the best neighbourhoods, “are not for locals any more. They’re for foreigners.”

Buy now or buy never. They’re coming for our houses…

Tina isn’t buying it, but for Brent, it’s too late. And for a growing number of experts, what is happening on Canada’s house-horny west coast is little less than frightening.

By the way, blog dog Bogdan just sent me this listing. “1924 built house, 2000 sq ft, no renos. The price?…..only 2 million bucks. We’re entering the twilight zone.”

Now here’s Brent, who also comes to drink from this bloggy swamp. He makes $130,000, rents a nice house in Kamloops and is married to a pregnant woman with aspirations. “I cannot go 10 minutes without hearing something from her about buying a house. She’s got the house hornies big time!” he says.

“I’ve been reading your blog for a couple of years now and agree with what you have been telling people, we’re screwed! Anyways I guess I’m writing to you to make me feel less guilty about the retarded decision we’re about make, I’m telling on myself! I’m going to give you some numbers and I’m hoping you will say “It’s ok for you to buy!”. I am being pushed into buying a house for around the $435K range with about $40K down payment. We can afford it I just don’t want to. Hopefully in 10 yrs we’ve paid enough of the principle down with the low rate that we will be able to afford to renew at a much higher rate. Garth be like Trump here but instead of telling me “You’re fired!”, tell me “You’re screwed!”. Say a prayer for me!”

Buy a house with 90% financing in a backwater market when prices have never been higher and rates can only increase? Of course you’re screwed, assuming forty grand is all the cash you’ve got. And, worse, I hear children cost money.

Now let’s contrast this sad case with Tina. She’s a doctor. She makes $350,000 a year. She also reads this pathetic blog.

“The last 2 blogs have been significant for me because it really describes the anger and bitterness I had towards the unaffordable market.  Last year, I was one of those “house horny” individuals looking to get into the market.  After losing out on 4 bidding wars and building up a hatred for lying, arrogant RE agents on the Westside, my husband and I decided to stop looking.  It was ruining our lives!  I didn’t know who was on the other side of the bidding wars but whether or not it was an Asian immigrant with a million cash or some other crazy westsider like me, it didn’t matter.   Thank goodness we found your blog.  For those who comment on the fact that prices are not dropping, maybe they need to see the daily “red sheet” for the Westside that I still receive every day.”

Tina and her husband live in a $3 million house which they rent for $4,000 a month, and that’s cool with them.

“As a physician that earns approx $350k per year, this rent is affordable and still allows us to save, invest and be able to retire in 25 years.  But the discrepancy in what I can rent compared to what it would cost me to buy the same house is huge!  Of course all my doctor colleagues think I’m nuts to continue renting, but quite frankly Garth, if I get a big fat mortgage and a nice fancy “doctor house” as I like to call it, I won’t be able to retire….”

Smart girl. She is ahead of her city, and her time. No herd for Tina.

I was going to devote a lot of this post to three new warnings about the inevitability of a Canadian real estate correction, with the potential to be a Titanic event, but here we are already at the bottom of the page. Just know this: TD Bank Friday bluntly said our housing market poses “a clear and present danger” to the entire economy. Queen’s University prof Louis Gagnon says we could have a housing panic, if the borrowing does not stop. “It would be a classic case of everybody dropping their asset at the same time just to make ends meet.” And a new research paper from Pacifica Partners concludes. “Our outlook on Canadian real-estate remains negative and we believe Canadian housing will begin an extended contraction phase.”

Now, go back and look at the people Bob Rennie squeezed out in the middle of the night. By the morning they’ll be zombies, clawing for condos. The moment should remind us the only astonishment in life is that we never learn.

294 comments ↓

#1 T.O. Bubble Boy on 03.16.12 at 9:04 pm

Hey – I think I see some non-Asians in that line!

#2 TurnerNation on 03.16.12 at 9:10 pm

1. An brand new index on the VIX. A VIX index on the VIX.

If VIX is sleeping, this is it’s nightmare; I’m calling a short term top on the markets, based upon this sillyness alone! We have, already, VIX options, futures, options on futures, VXX, inverse VIX ETFs.

Calling all quants…who can price or touch this thing?

http://www.cboe.com/micro/VVIX/

The CBOE® VVIXSM Index

Every asset class deserves its own volatility index, including volatility itself. The VVIX Index is an indicator of the expected volatility of the 30-day forward price of the VIX®. This volatility drives nearby VIX® option prices. CBOE also calculates a term structure of VVIX for different VIX® expirations. The VVIX or any point on its term structure is calculated from a portfolio of VIX® options (VVIX portfolio) using the same algorithm used to calculate the VIX®. Approximate fair values of VIX® futures prices and their standard deviations are derived from the VVIX term structure. Selling a VVIX portfolio on a consistent basis can capture a volatility risk premium.

2. And, some funny pictures for future blogging use!

http://tinyurl.com/8yabuwm

http://tinyurl.com/7zztp5c

#3 Mike in Vancouver on 03.16.12 at 9:11 pm

Good Article. Second!

#4 Second on 03.16.12 at 9:18 pm

SECOND!!!

#5 Lance on 03.16.12 at 9:19 pm

Only $2.1 million?
Worth it… it has a “newer” hot water tank!

Why is that even worth mentioning? Is someone who is willing to drop $2.1 million on a house going to care if they have to install a new water tank or not?

#6 Observer on 03.16.12 at 9:27 pm

Hey, Renaldo & Comfortably numb!

I lived in Vernon as well. Any more tidbits you would like to share would be great. Have a friend who owns several rentals with no money down there. Don’t want to ask them what’s happening as I don’t think I’ll get an honest answer.

I had a look at the presentation center for MarineGateway. Very impressive. I am not surprised to see so many people lined up.When is the building supposed to be completed – I forgot what they said.

Is there not some sort of “waiting period” when you buy a presale where if you get cold feet you can get out?

#7 BC Bring Cash on 03.16.12 at 9:29 pm

Hard to believe. Is this Kerrisdale wreck listed for $2,000,000? Its on a 33 foot lot. Insanity ! Prestigious neighborhood ! So what. I guess the sky is the limit of fools to go for that sales pitch.

#8 Victor on 03.16.12 at 9:32 pm

Here is TD’s warning:

http://business.financialpost.com/2012/03/16/tighter-regulations-needed-against-overheating-real-estate-household-debt-td/

#9 Bottoms_Up on 03.16.12 at 9:38 pm

A lot of doctors don’t have common financial sense. Good on Tina for renting and planning for the future.

#10 Herb on 03.16.12 at 9:39 pm

Love the pic. Finally truth in advertising!

#11 Condo Sucker on 03.16.12 at 9:40 pm

How ironic that the MLS ad for that 1924 shack starts off with the words “Investor/Developper alert!”.

Basically the ad is admitting that this is a teardown intended for speculative buying. No other way to justify this kind of price tag.

#12 Blasé on 03.16.12 at 9:42 pm

That house must be in a highly prestigious neighborhood, so it’s just a land sale. The house itself is immaterial.

My favorite money book is “the millionaire next door”. There are a few mentions of doctors with big hats, no cattle. Btw, peace of mind is priceless.

#13 truth hammer on 03.16.12 at 9:44 pm

Garth, all this talk about ‘bunkers gold and squirrel recipies’ could get a person on a ‘certain list’ in the US of A. SSSSSHHHHHHHH….tone it down….they’re watching you shiver.

http://www.prisonplanet.com/dhs-terror-document-lists-yawning-goose-bumps-as-suspicious-behavior.html

#14 Freedom first on 03.16.12 at 9:48 pm

Incredible! Garth, thanks so much for this blog, and the opportunity to watch the insanity of the Vancouver and the rest of the Canadian housing market, live, and in colour, as it crests and explodes! And, then, the media, and economic experts, and the majority of Canadians, can say, “and nobody saw it coming”……. and no, it appears every generation gets it’s “Bubble”……be it….Nortel, housing, Tech Market, Stock market…….tulips:)…….the herd mentality…….unbelievable!!!!

#15 Losing faith on 03.16.12 at 9:50 pm

Hilarious blog tonight… Amazing what you can rent! I particularly enjoy lurking local real estate agents twitter posts these days… Highly amusing. Lies lies and more lies just desperately trying to get business. Pretend contests, giveaways and free business advice from people that have no idea what they are talking about. Even though we are Still apparently in the minority… I am happy people are finally seeing this blog and getting it.

#16 Jon B on 03.16.12 at 9:53 pm

I didn’t see a Vancouver Part Trois coming, but this was nice. I wasn’t sure yesterday’s Part Deux could be improved on. I was wrong.

#17 Third Chimp on 03.16.12 at 9:56 pm

So many times we’ve heard from people who understand the situation, and yet the pressure to own when kids are on the way seems overwhelming. We did the same 20 years ago, the last time T.O. had a real estate correction. I have to wonder if there isn’t some way of satisfying the intense female nesting instinct without sacrificing one’s financial future. I’m serious, there might be some other way to make them feel secure. It seems that people who just try to fight it straight on go down swinging.

#18 Fleabitten Monkey on 03.16.12 at 10:01 pm

HAM abounds in Kerrisdale. They can’t get enough of it.

#19 not 1st on 03.16.12 at 10:04 pm

Garth, have you heard any rumblings about the feds increasing lifetime capital gains exemption from $750K to a million? Is this ever coming?

No. — Garth

#20 Burnt Norton on 03.16.12 at 10:05 pm

Tina. My wife and I are happily in a similar situation. Only one other colleague that I know of in my age cohort is renting. Numerous others have large mortgages. Our department is having a very hard time recruiting because new MDs cannot afford housing in Vancouver.

#21 Losing faith on 03.16.12 at 10:05 pm

Maybe what we should be doing is encouraging people to take on more debt… I mean things can only change when the majority is so heavily in debt that they can’t survive…. Buy the two million dollar
Home, buy that car of your dreams… Spend spend spend :) Don’t be the party pooper… Encourage those around you to spend… Just kidding… But it might be more fun :)

#22 Furst on 03.16.12 at 10:08 pm

Garth, did you see this article today. It’s not specific to the housing market but could this be a sign that the ‘smart’ money is leaving Canada and if so, wonder what kind of impact that will have on the RE market.

http://www.canada.com/business/fp/Foreigners+dump+Canadian+stocks/6313961/story.html

#23 Jsan on 03.16.12 at 10:08 pm

I bought my first house in Calgary back in 1997. 1200 sq ft, “new immigrant” sort of neighborhood in NE Calgary, decent enough and quiet. I was fresh out of college, single, no kids and fully employed in a good career. I paid approximately 110,000 dollars for my house and put around 40k down so a little more than 1/3rd and my interest rate was around 6.5% and that was considered quite good at the time. Interest rates still had room to drop but also had room to go up some. House prices were low and nowhere near bubble territory and I was still nervous that I could lose money on my house.

Fast forward to 2012. People fresh out of college with no down payment and zero savings are dropping hundreds of thousands of dollars on houses that are at SCREAMING bubble levels, interest rates are as low as they can go and have TONS of room to go higher.

I can guarantee you one thing, It’s an emotional high when you close that deal and sign on the dotted line, it’s all new and exciting especially when it’s your first house but I can guarantee you when house prices turn and interest rates at the same time begin heading higher, all of these people that bought at the peak with practically nothing down will soon realize what living 24 hours a day with stress is all about. There will be allot of emotional train wrecks around this country when the realization of what a mess they have “bought” themselves into finally hits home.

For those who are renting, be very glad and relieved that not only will you not be a stressed out basket case as property values begin to turn, you can excitedly look forward to snapping up some great deals sometime down the road. You watch the news stories of Americans who are going around like kids in a candy store excitedly telling the TV reporter how much the house they just bought cost the previous owner a few years ago and just how much of a bargain they got it for.

Brent, good grief. Instead of buying an overpriced house and than working your butt off trying to pay the ridiculous price tag, why don’t you work your butt, save a ton and pay cash for that house that will probably cost considerably less a few years down the road. Than you could care less what interest rates are at.

#24 not 1st on 03.16.12 at 10:12 pm

University student jumps in feet first for million dollar bung in GTA.

Established doctor with big salary afraid to test the waters.

We are really in the twilight zone now.

#25 Uh Oh Canada on 03.16.12 at 10:12 pm

The Vancouver housing bubble is the bubble of all bubbles. When it pops, it’ll be like the titanic- gracefully fast. Looking forward to watching it all while munching on the squirrel sushi.

#26 Joe_blown_away_by_high _housing_costs on 03.16.12 at 10:17 pm

http://www.theglobeandmail.com/news/national/british-columbia/storm-clouds-forming-over-vancouvers-real-estate-market/article2372362/

#27 Marco from Van on 03.16.12 at 10:18 pm

Garth, you’re 100%, bang on, smoking right.

Before the comment section gets clogged by those with their own agendas off on irrelevant tangents I wanted to get a point in.

I’m going to drive by the gateway project tomorrow AM to take a pic of the line. I remember these back in the UK in the 2001-2003 time frame when lending got real cheap – you will not find them there today.

London has:
•0.33x the population of CANADA (not just Vancouver BPOE…)
•1.5X the “olympic effect” (Summer olympics are mor”real” than the winter ones – the greeks never got snow)
•2x the immigration of the WHOLE of Canada
•100% of the landmass (talk about running out of space) of the lower Mainland
•6 x the population density of “greater Vancouver” (10x when comparing downtowns)
•100 X the foreign wealth of “greater Vancouver” (including the largest proportion owned by the biggest crooks/oligarchs/bankers/stars/entrepreneurs/Iranian wealth/oil wealth etc.)
•30X the world renowned physicians (has private/public system)
•100X the best private school education
•10X world renowned Universities (at 1/3 the price of Vancouver’s UBC/SFU)
•20X more prestigious (in the real sense of the word compare to kerrisdale which is a bit of a dump in global terms) neighbourhoods each 10x larger than the ones in Vancouver
10X more real golf courses
50X more locales where really wealthy people can go for proper recreation
1000X more places to go to within 1.5 hours of flying/driving for real cultural/sporting/fashion/class/etc.
but 0.1x of the lending tolerance of Canadian “prudent” banks…

The result: wait and see it will happen to a street near you soon enough…

The smart ones heed the warning – it is NEVER different anywhere… If it all went boobs-up in China where HAM is from just because the government changed ownership rules, what makes you think it will not here?

I hope we will have enough physicians who have our health instead of their financial liabilities in mind a few months from now…

Boy do I hope I am wrong, because I’d hate to see what happened in London happening here (despite the SUMMER olympics being hosted this summer)

M from V

#28 Jsan on 03.16.12 at 10:19 pm

Here is a chance to tell the Globe what you want to see in the upcoming Federal Budget. How about suggesting that the same government that allowed housing prices in Canada to reach the worst affordability level in the history of this country, reign in this madness.

It really is in their control to do this. Take away the CMHC and you would not have the sort of sky high prices that we are seeing, regardless of interest rates being this low. There is no way banks would be lending at these levels if they were not fully insured against their losses.

“Tell us: What would you like to see in the federal budget?”

http://www.theglobeandmail.com/community/digital-lab/tell-us-what-would-you-like-to-see-in-the-federal-budget/article2371738/

.

#29 Narrowgate on 03.16.12 at 10:24 pm

This financial farce needs to end once and for all! Time to get real. Everybody is living a FAKE LIFE based on cheap money and debt. All this stinkin’ thinkin’ about “good debt” and how renting is a waste of money. This blog is the only truthful thing out in the Canadian media right now. Thank you Garth Turner. The truth shall set you free.

#30 TaxHaven on 03.16.12 at 10:26 pm

Don’t blame only the lenders – the pushers.

Canadians won’t like to hear that GOVERNMENT is responsible for this mania. And not just the “Harperites”, McGuinty or Christy Clark. Or the Liberals. Or the Tories. Or the neocons. Or the Fraser Institute.

The institution of government itself.

Caanadians think governments are impartial arbiters, that they’re “on the peoples’ side” or that government is some kind of safety net for those down on their luck…after all, they all have insurance for everything, trust “professionals” and all imagine they are net beneficiaries of government spending, don’t they?

Alright. Let’s go…

CMHC should be abolished immediately. The Bank of Canada – “Counterfeiter-in-Chief” – should go. The Canadian dollar should once again be redeemable on demand for a set weight of precious metals. That in turn would force all levels of government to immediately balance their budgets.

It would send interest rates through the roof, back to some point at which REAL savings – in real money – are valued again. Savers would be rewarded; those who borrowed to fund only consumption would lose the bailouts that they currently enjoy.

But it would also bring a flood of investment money into the country, reduce the tax burden and bring home ownership within the reach of the frugal and out of reach of the spendthrift.

Nice dream. After all, Canadians love their governments. EVENTUALLY, however, it is a certainty to happen. But maybe after I’m gone…

I believe you left already. — Garth

#31 TurnerNation on 03.16.12 at 10:28 pm

Homeowners should watch this repairman exposé

Looks like, a quarter of repairmen could be crooked:

http://www.cbc.ca/marketplace/2012/whentherepairmanknocks/

#32 young & foolish on 03.16.12 at 10:28 pm

I would have guessed that people in Vancouver would have picked up on the lower sales volume and softening prices by now.

#33 not 1st on 03.16.12 at 10:29 pm

Marco, just to add another fact you should consider, Britain also has 100x canada’s national debt and is by all accounts…dead broke.

#34 Marco from Van on 03.16.12 at 10:31 pm

Oh yes, London also has something like 5X the GDP Vancouver with REAL jobs in many sectors…

What don’t people here get? When money is so cheap that banks realize the best return is from consumer & mortgage debt AND that the risk is shifted to the government (via CHMC), what makes you think they won’t flood the streets with it?

Compare HAM vs. consumer and mortgage credit in Canada – you’ll see how the problem is local and not foreign.

When I see that people will not do simple due diligence on the purchase of goods that will cost them in excess of a lifetime’s worth of income but that they will worry about the cost of a 3D movie ticket, I understand the brilliance of the minds that belong to the Mr. Rennies of this world.

He skims off the top of people who are being served wholesale to a delusion they are willing to be deluded by. FANTASTIC business model and good for him!

#35 Marco from Van on 03.16.12 at 10:32 pm

And the last bit – that bank making money hand over fist because they can shift the risk to the government is EXACTLY why preferreds are so attractive!

#36 Paul on 03.16.12 at 10:33 pm

More trouble for Kelowna.

http://www.kelownadailycourier.ca/front-page-news/eastern-grey-squirrel-invades-kelowna.html

#37 Just Say No on 03.16.12 at 10:38 pm

Time to get some Detroitification! Once you get Detroitified you will have what it takes to step back from realestate in Canada. But it is your money, you were paid really high,the work is easy and you love your permanent job as much as your employer loves you and the high wage was easy to get and you can always get more,so by all means stand in line compete overbid who cares shop till you drop since we are different here.

#38 Something on 03.16.12 at 10:47 pm

I have a question for Garth.
Could you please share your personal prediction for overall % of correction in Ottawa?

Thank you in advance.

Ask me Mar 29th. — Garth

#39 Smoking Man on 03.16.12 at 10:54 pm

My most epic post coming tommorow, to wasted to type right now

Will cover why Hittler go t a hole population to turm on the jews, why the worshippers of james jones drank the poison cool aid and why property vergins enslave them selves for a hunk of granet

shit did i spell anty thing right word was torchering me with that dreded red under line

#40 Smoking Man on 03.16.12 at 10:57 pm

#27 Marco from Van on 03.16.12 at 10:18 pm
Garth, you’re 100%, bang on, smoking right.

smoking right
im blushing

#41 coastal on 03.16.12 at 11:00 pm

Bob the condo pimp, in his stove pipe pants and hands flailing around like he’s some suave architectural urban genius. He’ll be remembered in a classic Andy Warhol surreal type way, distributing his snake oil to the masses without the masses knowing what they just did.

Whats disturbing is this bullsh*t is still sucking in everyday people who have a brain but have been disconnected by “The Force” and fail to adhere to the media that is finally reporting the warnings with some vague degree of reality. Losing an acquaintance and family just this past couple of months to this disease has forced me to not feel the slightest bit of sympathy. I can just shake my head and say “I tried”.

#42 coastal on 03.16.12 at 11:03 pm

#31 Turner Nation,

Watched that last week, the guy pissing into the bucket in their garage as he scammed the door job was disgusting, not to mention the guy in the dishwasher job. I’ll do it myself thanks ! LOL

#43 Steven Rowlandson on 03.16.12 at 11:07 pm

By the way, blog dog Bogdan just sent me this listing. “1924 built house, 2000 sq ft, no renos. The price?…..only 2 million bucks. We’re entering the twilight zone.”

Try the cuckoo zone.
Are straight jackets and thorazine complimentary for people who would pay so much for so little?

#44 $$$BPOE$$$ on 03.16.12 at 11:08 pm

Like I was saying folks. I have been dead on on every prediction
********************************
like Mr. Rennie, who went on city-wide radio Friday to say the best neighbourhoods, “are not for locals any more. They’re for foreigners.”

Buy now or buy never. They’re coming for our houses…

#45 $$$BPOE$$$ on 03.16.12 at 11:11 pm

http://www.realtor.ca/PropertyDetails.aspx?PropertyID=11537897&PidKey=878401640
***********************************
Another example of what I have been pounding the table about. 20 years from now this home worth well north of 10 million.

#46 great on 03.16.12 at 11:13 pm

Rennie is a pumper. That’s his job. He’s like one of those stock promoters, but his stock is housing. Reading about his comments on a non biased radio station like CKNW (haha) i guess he stuck his foot in his mouth.

#47 $$$BPOE$$$ on 03.16.12 at 11:15 pm

These stories are posted as warnings to Canadians not to foreign ownership. Watch and learn folks everything is being bought up! Renting sucks always has and always will. Great for a very short term but totally destroying in the long run, plus you can never look in the mirror again
***************************************
TD Bank Friday bluntly said our housing market poses “a clear and present danger” to the entire economy. Queen’s University prof Louis Gagnon says we could have a housing panic, if the borrowing does not stop. “It would be a classic case of everybody dropping their asset at the same time just to make ends meet.” And a new research paper from Pacifica Partners concludes. “Our outlook on Canadian real-estate remains negative and we believe Canadian housing will begin an extended contraction phase.”

#48 Skatch on 03.16.12 at 11:16 pm

I have actually eaten squirrel and you may not believe me but it is actually good.

Fried on the BBQ with seasoning salt….delicious!

I am from Skatch and even after the bubble bursts here I will still eat squirrel.

#49 Nick on 03.16.12 at 11:23 pm

Great article Garth!

Tina do the right thing at this moment:

“While financial gains from home ownership are iffy at best, the opportunity cost is significant. When Alexandre Pestov, a strategic consultant and research associate at York University’s Schulich School of Business, compared buying a two-bedroom Toronto condominium to renting it over the past 25 years, he found that the renter ended up $600,000 richer than the owner if he invested the spare cash in low-risk bonds. Several other studies have reached similar conclusions: renting while you conservatively invest your savings is financially smarter than buying a home.”

http://www.canadianbusiness.com/article/33638–rental-complex

#50 $$$BPOE$$$ on 03.16.12 at 11:24 pm

BPOE, Rennie and the rest of the pros understand what’s going on. Rennie stated it best
“the best neighbourhoods, “are not for locals any more. They’re for foreigners.”
As I posted the other day, the only way to stop the selling of Canada to foreigners is to tax the hell out of housing to non locals. The Government will never do this and because of this housing is ROCK SOLID FOREVER. If the housing boom in BPOE is due to foreign (world wide not just China folks) ownership which does not rely on mortgages then how will real estate ever go down. That’s right folks It’ Can’t

#51 John G. Young on 03.16.12 at 11:27 pm

#46 $$$BPOE$$$ on 03.16.12 at 11:15 pm

“Renting sucks always has and always will…. totally destroying in the long run… you can never look in the mirror again.”

Well, seeing as you’ve sold your soul for $$$ (and even changed your moniker to reflect this), it begs the question: how can YOU ever look yourself in the mirror again?

#52 thinker on 03.16.12 at 11:47 pm

Caps – Why don’t real estate agents have caps – it takes the same work to sell a 200k or 2M place, they are getting richer as prices go higher. So we are worried about Wall Street incentive?

No one in a real estate transaction wants a lower price. Both agents, the banks, government will get more tax, mortgage loan guy, lawyer, etc…only the buyer, but his agent doesn’t want a lower price.

Why do I need a mls password to see historical prices? I can see them for stocks. How can a buyer have a clue about anything if they cannot see the previous sales. Why is the buyer just kept in the dark all the way like sheep waiting to be slaughtered.

Garth, you should start ORM – Occupy ReMax. Government should encourage an open, fair, transaction process where the buyer should have some neutral representation for a flat fee, etc. The whole process is skewed. Even the papers get bigger adds to show off the extra zero’s.

#53 ozy -bonds still dropping for 3 days on 03.16.12 at 11:52 pm

5y fixed morgages increases coming sooner, because bond yields (bot us and canadian) rises like never before
Variable should not be directly impacted.

#54 johnny5z on 03.17.12 at 12:04 am

Why are people waiting in lines for condos? Are there no Ipad stores in Canada?

#55 Debtfree on 03.17.12 at 12:08 am

@ the thing in the basement . I left the link to the B.C. gov. site for the new woodlot rules . And yes I have found more on the new rules . If it affected you. I’m sure you would also have found it by now . They are going to make some folks richer and one a little more comfortable and liquid . Just google and all will be clear.

#56 Van guy on 03.17.12 at 12:09 am

phil,

Did you see today’s sales?

That kerrisdale home is extremely overpriced and will not sell. Last month a renovated home on Balsam street in the same area, same size lot, listed for 1.4, sold for 1.7mil. So max is 1.7 mil. Many Van west homes have 33ft lots which foreigners don’t like. Bob Rennie is a big pumper. It’s his job. That gay mofo is a liar, and if BPOE wants to listen to him, maybe he’s gay too.

#57 Makaya on 03.17.12 at 12:10 am

I could not resist…

“The VIX index measures the expectations of market volatility out 30 days.

The VIX closed below 15 today – which means all is well, right?

As a reminder, the VIX was also calm like this about four years ago. And then the S&P promptly declined nearly 50%. As institutions pump up the price of equities, be very careful about who you’re trusting with your retirement funds – history tends to repeat itself, and if it does in the case of the VIX level, you can plan on postponing retirement… again.”

http://www.zerohedge.com/contributed/2012-11-16/friendly-reminder-vix

#58 JW on 03.17.12 at 12:12 am

As a proud Vancouverite, I have to say, I’m embarrassed. The city is out of control. People are completely detached from reality. At about 3-4% mortgage interest, money is so cheap, they say… Get on the money train ! Assuming their real estate will take care of all their financial needs for the future. Real estate, real estate real estate…Can’t lose! It’s been almost 10 years on this real estate money train. The train has been at full speed for far too long and it now has no brakes…. 40% drop is my personal bet, and that’s an average. That would only take us back to about 2005 or so, but it so be it. Bets are on.

#59 Mr Buyer on 03.17.12 at 12:14 am

A good friend of mine here in Japan is a top flight Cardio vascular surgeon (he would never blow his own horn but other unrelated friends have said he is famous in a doctor sort of way). Anyways this guy has told me stories of carrying out extended heart massage and litterally bring bringing a patient back. This specialist makes around 140k Canadian a year (possibly 160k all in) as do all specialists in Japan. He lives in a doctor apartment unlike most of his doctor house owning friends. Tuition here beats Canada’s hand down. There are doctors putting away serious cash if they own their own clinics but many people in the know avoid them like the plague and pay the extra $25 (first visit only) to go to a local University hospital.

#60 Mr Buyer on 03.17.12 at 12:15 am

Tuition is much more expensive generally speaking

#61 45north on 03.17.12 at 12:34 am

Jsan I can guarantee you when house prices turn and interest rates at the same time begin heading higher, all of these people that bought at the peak with practically nothing down will soon realize what living 24 hours a day with stress is all about. There will be a lot of emotional train wrecks around this country when the realization of what a mess they have “bought” themselves into finally hits home.

that’s what it’s really about, not making a lot of money, but avoiding becoming an “emotional wreck”. Read about the States.

example:

Many of them are retirees like Howard Evirs. Evirs says the housing bust wiped out half the value of his main nest egg — his home.”

“‘We had considered selling it just before the market broke,’ he says. ‘Then the value of the house went way down. So we made a decision — we’ll stay in there till we die.’”

http://thehousingbubbleblog.com/?p=6942

Brent read this carefully: Evirs lost half his money, but still has the other half. He says “so we made a decision” – that implies there was agreement between him and his wife. Compare and contrast Evirs to yourself, you will lose all your money ($40,000). Most importantly you and your wife will not agree.

#62 GeneticistX on 03.17.12 at 12:52 am

I had a conversation with a friend today who is living in a $2million dollar house, but problem is he hasn’t made a mortgage payment in 4 months (his business has gone sour), owes the CCRA a whack of dough, yet still (somehow) just bought new tv’s, computers, kitchen stuff, sends his kids to private school, sends kids to summer camp. I told him to sell now and stop servicing debt, and to invest the million dollars in equity he does have to make his money. His 3000 square foot house in an “upper scale” part of toronto is nice, sure, but when CCRA and Scotiabank come knockin (again), he’ll be in trouble. Unfortunately, his wife won’t work (she’s got cantworkitis), and has to live in a particular area to keep up with the joneseseses… He feels he can’t move his kids and needs 3000 square feet for his family to live in. Maybe he should make some friends from Tokyo.

Honestly, WTF, his kids are now 5 and 7, no RESP, he has NO RSP, NO TFSA (he’s 45). He got trapped in a bad economy. I hope for his sake, his kids sake, interest rates don’t go up 2% before he pays off his debts, as a doubling in interest rates would put him in jail.

I know this is one example of whats out there, and I know this one will NOT end well.

#63 Tim on 03.17.12 at 12:57 am

Bob Renne is a ^$%#^# weasel. I don’t know how he looks himself in the mirror when he shaves…

#64 Nostradamus Le Mad Vlad on 03.17.12 at 1:05 am


“It would be a classic case of everybody dropping their asset at the same time just to make ends meet.” — “Buy now or buy never.” Stick with the latter.

That would sure be a lotta fun if all potential new property virgins, across the country, held their collective noses and gave the one-fingered salute to Bob ‘special as snowflakes’ Rennie, banxters and politicos, and chose to rent for life. Thus, RE would die a natural death.

Instead, they could use their hard-earned cash for TFSAs, nominal amount in RRSPs and using all the tax-avoidance schemes they could to screw the rich and powerful once and for all.
*
#203 eddy on 03.16.12 at 8:01 pm — “we don’t have any governments, we have bank employees”
— and —
#210 jess on 03.16.12 at 8:10 pm — “and these banks want to be in charge of your money cause they are supposed to be good with money and the paperwork…”
— plus —
#204 GregW, Oakville on 03.16.12 at 8:03 pm — “Government Explained”

See above. That’s a joke in itself! Govts. use bafflegab and bullshit to confuse sheeple, and they are masters of doublespeak. 1:42 clip How govts. really work, from Python’s Life of Brian. Ask Donald Rumsfeld for clarification!

Be interesting to see when / if banks lay off staff (due to technological innovations), while TROTW is blowing itself to pieces.
*
Getting less while paying more (inflation?); Big Wage Cuts Just as the CPC is gutting govt. depts. here, so the same in the UK; Eight Men you have never heard of (they’re fantastically wealthy); Flash In The Pan? Good retail data, but Consumer Confidence dips; Yo-Yo Oil, and Oil Swinging Higher?

High Inflation coming soon enough; Cdn. Finance Friday links, and More Cdn. links; Scared Money; Derivatives or something similar; The Closer Various bits ‘n’ pieces; Sharing the Wealth But don’t take a slice of my pie.
*
The End Of The World As We Know It ‘Tho it won’t happen for a few millenia yet. Nice pic, ‘tho; Morgan Sports Car has gone electric; Good description of Harper; 0:20 clip Fukushima plume reaches Hawaii; Stardust military from the moon for the USAF; Opulence at the Dubai Boat Show; 78% Oppose US invasion of Syria; UN Global Gun Grab I believe that is the 2nd Amendment in the US Constitution; Supernova from 1987. Couple of nice pix. Didn’t the market tumble in Oct. ’87? Plus this.

#65 Island renters on 03.17.12 at 1:32 am

This is our old hood. Our rental, which really was a tear down went for 1.3 million. We had 2 or 3 houses on our street that went to HAM who tore them down, built brand new houses and never lived in them. It was kind of depressing taking the kids out at Halloween as so many houses were uninhabited. We did consider squatting in some of them though. Apparently these prices are cheap compared to the price of property in any larger Chinese city.

#66 Cy on 03.17.12 at 1:47 am

Well all the house poor in Kelowna could live off those Eastern Gray Squirrels kicking around

#67 BCBOUND on 03.17.12 at 1:47 am

Society is crazy. Growing up, my parents rented apartments with shag carpet and no furniture. Their cars were “used” and bought with cash. Now, 20 somethings have brand new houses with granite and stainless steel, they own brand new foreign cars and take 2 trips to Mexico per year. Our generation feels so entitled to all of this “stuff.” This correction is going to be a wake up call and is much needed to put everyone in their place. Start from the bottom and work up! This one is going to hurt.

#68 frozen trumpet on 03.17.12 at 2:12 am

Great Post. You are such a good writer Garth. Found Tina’s story inspiring.

#69 TRT on 03.17.12 at 2:21 am

#39 Smoking Man

You pressed the space bar 64 times in your post and you got it right 63 times (98% accuracy). Yet your spelling was off numerous times. What does this mean?

Actually, I’ll let you have your fun.

#70 The Real Jimbo on 03.17.12 at 2:25 am

#23 Jsan…

“…when house prices turn and interest rates at the same time begin heading higher, all of these people that bought at the peak with practically nothing down will soon realize what living 24 hours a day with stress is all about. There will be allot of emotional train wrecks around this country…”

Completely agree. You can’t possibly know what it is like to lose unless you live through it. It can’t be taught. It turns otherwise rational and confident individuals into emotional time bombs. I’ve been there… I once made a million and lost it. I didn’t know that I could feel such fear, bitterness, and hopelessness.

Before I lost, I thought I was the smartest guy in the world who could do no wrong. The loss thoroughly humbled me and taught me the meaning of fear.

I have a hard time trusting people who have never had a huge failure. Loss and failure are eye openers and make you wiser, stronger, smarter. That’s generally why older people are wiser – they’ve had enough time to win AND lose in life.

But many of Canada’s Baby Boomers haven’t financially experienced “the big loss” and so possess the wisdom of a naive 20 year old. They don’t realize they are potentially setting their kids up for disaster when they pressure them to buy a house at these prices.

#71 uk lad on 03.17.12 at 2:37 am

Make no mistake, to a renter who desires a house in such a market, it becomes almost unbearable to stand on the side lines watching friends and family taking the plunge and being bombarded with stories of ever higher prices in the press.

Classic bubble as the last contrarians and bears throw in the towel and join the heard, their nerve lost , peer preesure overwhelming.

This is why the majority of investors lose money, the basic human need to be included, the thought of being wrong and humiliated is too much, even though all the evidence shows you will be vindicated.

Anyone who was investing in the late 70’s early 80’s will recall people lining up all night just like this, but outside of bullion dealears, waiting for the store to open, to buy the latest delivery of gold coins.

Bubbles do not end with a whimper they end with a bang, it needs mass inculsion of the public to burst a bubble, the sheeple, the johnny come latelys, the chancers hoping to get rich, all of whom never study the market so they get burned, the ultimate greater fools.

This is why i disagree with the gold bubble top callers. The bubble today is in the bond market and the fiat currency markets, gold will continue trending higher to mirror the debasement and debauching of global fiat currencies, when joe public joins the market then it’s time to sell.

Just the right time to snap up a foreclosure in vancouver.

#72 Observer on 03.17.12 at 2:43 am

I’d rather line up for an iPad 3. Bought one today and I’m typing this comment from it. Why bother with overpriced real estate when I can spend much less on a magic tablet and surf to Garth’s site from the comfort of my couch.

#73 Winnipeg Jets Fan on 03.17.12 at 2:50 am

Crosby better! Crosby better! Crosby better!

LMAO

Go Jets Go!

#74 wollyone on 03.17.12 at 3:02 am

49th…………..

#75 Taxed to death on 03.17.12 at 3:46 am

Wow 350,000$ is a lot of money to be making annually until you realize that half of it goes to taxes. Sometimes I question whats the point of working harder myself, rather be less productive and spend time doing other things. When you consider how high the taxes are in Canada, and how high the house prices are, and government inaccurately reporting about inflation and how low interest rates. Some thing has to give…

Personally I do believe real estate will fall gradually… I think its going to collapse like the US… we took the ladder up, we will take the elevator down, well elevator if we are lucky more like a free fall…

#76 ANONYMOUS on 03.17.12 at 4:37 am

(“Brent, — He makes $130,000, rents a nice house in Kamloops.”)

Garth ! Kamloops? $130,000 income? People make more income in T.O, yet you just told me that the average FAMILY income in T.O. is $94,000 or less than $50,000 per person.

So please tell me, how is it possible for a guy who lives way out in the ‘Sticks’ of Kamloops able to make almost 3-times this amount?

TELL US ALL, we are dying to learn your wisdom?

#77 someduder on 03.17.12 at 4:56 am

http://www.cbc.ca/news/business/story/2012/03/16/td-overvaluation-debt.html

Housing bubble a danger to economy, TD says
Bank warns household debt also a hazard

It’s on now, main page

#78 John on 03.17.12 at 5:52 am

Tina’s making 350,000. She’s actually heard and has ingrained terms like “doctor’s house”. This is just one of a thousand invisible Canadian insanities that add up to a “willing victim” housing bubble.

In 2005 when a Toronto woman won “Miss Universe”, a guy in the office ( Chile), said…”wow, great you guys won Miss Universe”. Fun mindless chatter. How could you explain to a South American that a brutal feminist at the Toronto Star had ( Rosie) had “forced” the paper to not report on the event, other to say how ridiculous it all was, and how Trump was a scumbag. Where to start? I mean you couldn’t even explain it. This is the cultural context of Canada, and also it’s financial context. What kind of decisions would a man make in a place like that?

Same crap with men claiming to be “forced” to participate in the Canadian de-sexualization culture. How you do anything is how you do everything. Imagine claiming that a multi-year relationship ( now “guilt-forced” into psuedo reproduction) could be the source of sound economics.

How you do anything is how you do everything. One by one, add up all those “households”. Who is head of Canada’s central bank? He and his friends have all done the math. Everyone on the inside at Goldman Sachs has.

Tina’s talking about her “retirement” in 25 years. Does anyone really think that the housing bubble isn’t connected to her ill-gotten gains? Does she think money is made out of thin air ( apart from the Fed’s scheme)? Without the derivatives-backed last gasp Big Six debt grab pay out dynamic, where oh where is her over-stuffed health care system?

That day by the water cooler way back in 2005 was an eye-opener. For the comment on Miss Universe I just said…”thanks”.

That night I dreamt of Rosie’s face.

Who let you in? — Garth

#79 GregW, Oakville on 03.17.12 at 6:55 am

Thanks #64Nostra, The Python’s are great! But our human condition gives them some much to work with!

I’ve met a Toxicologist Dr. Paul Connett that went to University with some of the Python’s. He is also a truth teller, even if it is inconvenient for TPTB.

Was there something different about the University they went to at the time? Could it be reproduced again? We humans seem to be in need of as many enlighten and informed minds, that will speak up, that we can get! (like G’s)

#80 I'm stupid on 03.17.12 at 6:59 am

#49 Nick

Do you have a link to the study you quoted? I read the article you quoted and wanted to read the study because I think it’s flawed. Why use 25 years and not historically? Did they take into account taxes on income for the bonds? Do you think the starting in 1987 was done by accident? The author of the study chose that date for a reason. It’s the same thing the real estate industry does. Use numbers that work to prove your point.

#81 Statistics on 03.17.12 at 7:20 am

@ Anonymous

It’s called statistics.

Garth pointed out just one instance of an individual making $130k/yr in Kamloops vs. an entire population of households (i.e. Toronto) making a combined average of $94k/yr – with some earning much much higher and some getting by on minimum wage.

There’s no wisdom to share; just basic math.

#82 Deb on 03.17.12 at 7:43 am

A former Canadian PM once advised “Reason over passion”. This also applies to the completely different context of today’s residential real estate environment. We are presented with another opportunity to genuinely get to know ourselves – to understand the inherent danger of allowing our emotions to trump reason, particularly in the case of important financial decision-making.

#83 Bigrider on 03.17.12 at 7:46 am

Did you read this one from ellen Roseman Garth ? If an advisor encourages you to borrow to invest , he is a scammer !

Perhaps you advisors should ban together to get this B&^%& to stop the advisor hate on and the hidden agenda you are all being victimized by.

Of course taking a mortgage out on your house to invest in a second property, to buy a car or renovate your home is perfectly acceptable and not a scam.

Newspapers are dying. This is why. — Garth

#84 Bigrider on 03.17.12 at 7:47 am

http://www.moneyville.ca/article/1143502–three-signs-your-adviser-may-be-scamming-you

Sorry here is the link to the Roseman article I spoke of in past post.

#85 Aussie Roy on 03.17.12 at 7:50 am

Aussie Update

WSJ – Australia’s Housing Market Creaks

Australian homeowners sidestepped the worst of the global financial crisis as the country’s housing market held up well. But the party looks close to an end.

Despite the country’s resource riches, the economy is faltering. Corporate profits are down and the unemployment rate is worsening. When commodity prices dropped in the fourth quarter, growth in gross domestic product disappointed.

http://online.wsj.com/article_email/SB10001424052702304459804577282401287187084-lMyQjAxMTAyMDEwNjExNDYyWj.html#articleTabs%3Darticle

Victoria’s economy rode out the global financial crisis reasonably unscathed, but the inevitable bumps in the road have begun to take their toll.

http://www.theage.com.au/business/downturn-on-the-rise-in-a-state-of-fear-20120316-1vaux.html#ixzz1pNFSBsCa

Banks foreclosing on churches in record numbers

The surge in church foreclosures represents a new wave of distressed property seizures triggered by the 2008 financial crash, analysts say, with many banks no longer willing to grant struggling religious organizations forbearance.

Since 2010, 270 churches have been sold after defaulting on their loans, with 90 percent of those sales coming after a lender-triggered foreclosure, according to the real estate information company CoStar Group.

In 2011, 138 churches were sold by banks, an annual record, with no sign that these religious foreclosures are abating, according to CoStar. That compares to just 24 sales in 2008 and only a handful in the decade before.

http://mobile.reuters.com/article/idUSBRE82803120120309?irpc=932

#86 T.O. Bubble Boy on 03.17.12 at 8:23 am

Looks like it’s not a good time to be in the mortgage business… CIBC trying to sell their Firstline business, TD getting out of “non-prime” mortgages, MCAN insiders dumping their stock:

http://www.theglobeandmail.com/globe-investor/investment-ideas/features/who-is-buying-and-selling/as-rate-hikes-loom-mcan-mortgage-insiders-sell-shares/article2372088/

#87 HaRVEY mILKEN on 03.17.12 at 8:37 am

Bob Rennie is a batter for the other team. Canadians are so pathetic. Why dont you make anything? You are small minded pedantic gossiping losers. We will all enjoy watching you get that smug self satisfied smirk bitch slapped off your mugs.

#88 americanadian on 03.17.12 at 8:51 am

Could happen in Canada…

Ordos: The Biggest Ghost Town In China
http://www.bbc.co.uk/news/magazine-17390729

#89 Heinz Skitzvelvett on 03.17.12 at 9:00 am

One look at the many listings with multiple 8’s in the asking price on Vancouver’s West Side and you’ll see why this market is driven more by emotion than intellect.

#90 Grantmi on 03.17.12 at 9:03 am

Garth… Don’t you know that CKNW is the big shill station for Vancouver real estate.

Bill Good the other day had Ron Toigo on. He was talking up the economy here in Mayor Moombeam land….. And enevabily turned into Toigo’s new Tsawwassen Springs development free marketing discussion.

I’m sure when Ron got home… He signed a check to NW for the advertising air time… And slipped Bill a couple f comp tickets to the Giants in the reds.

Come here….. Go away!!!

#91 Heinz Skitzvelvett on 03.17.12 at 9:03 am

And it’s Crofton, not Crafton…you’d think that a $2.1 million deal would be worth a simple proofread. Then again, when buyers throw cash at a property sight unseen, perhaps a proofread is entirely overkill.

#92 Buyright241 on 03.17.12 at 9:04 am

Not sure if this has been posted
Still worth reading again

Open letter to Mr Flaherty

http://fishyre.blogspot.ca/2012/03/my-open-letter-to-mr-flaherty.html

.

#93 TurnerNation on 03.17.12 at 9:09 am

Art imitating life? People lining up to be “First” on this pathetic real estate/financial weblog!

#94 Grantmi on 03.17.12 at 9:14 am

#63 Tim on 03.17.12 at 12:57 am
Bob Renne is a ^$%#^# weasel. I don’t know how he looks himself in the mirror when he shaves…

Hopefully he doesn’t look in the mirror and uses a straight edge!

#95 Kris on 03.17.12 at 9:29 am

Interesting reading – Biggest Ghost Town in China.

http://www.bbc.co.uk/news/magazine-17390729

#96 Anotherlowlyrenter on 03.17.12 at 9:32 am

Garth,

On the back of Tina’s story you’ll be happy to know that this lowly renter (who is a multi-millionaire and chooses to rent) convinced his physician brother in Vancouver not only to NOT buy a bigger house, but to sell his condo there.

Excerpt from our conversation:

Dr. Brother: “But what if I get priced out of the market?”

Me: “You prove my point. You’re a doctor! If a doctor is getting priced out of the market, who will live there? It can’t be sustainable. And if foreign money keeps it high (which I don’t believe) then what will happen to the city? It will become like one of those resort towns with the poor locals waiting on the wealthy visitors – and if that’s the case, do you really want to live there? My prediction – exodus or property correction.”

#97 Mixed Bag on 03.17.12 at 9:52 am

People can be idiots. Lining up all night for the “right” to give a builder hundreds of thousands of YOUR dollars, in exchange for a piece of crap. Builders should be lining up for YOU, to sell you their product. People competing with each other to buy at those prices, for such little square footage – it’s backwards!

This competitive herd marketing situation, as Garth mentions above, creates the false impression of a good deal. It’s an outright lie. It’s like the line-up at a club, waiting for an hour to get in, only to realize once you get in that the place is empty.

Whoever came up with this marketing ploy is an Evil Genius.

#98 Herb on 03.17.12 at 9:59 am

#69 TRT,

it means SM was concentrating on getting the spelling wrong and could not give the same attention to the spacing.

#99 Daisy Mae on 03.17.12 at 10:02 am

TD BANK: “…..and a modest increase in the minimum down payment to 7% from 5%.”

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

Typical bank — recommending a ‘modest increase’ while keeping DPs dangerously low. Concerned only with their bottom line.

#100 Q on 03.17.12 at 10:04 am

yup…they’re about as “special” as a time limited Bateman print….and only 11,000 of these unique individuals were invited to piss away their money….must be nice to be so lucky…right up there with being named “most likely to lose everything” at high school (while riding on the “special bus”). I guess the old addage is true in spades “a fool and his money are soon parted”. Hope these idiots are wearing their walking helmets while they wait in line…..

#101 San Fran Frisco on 03.17.12 at 10:05 am

I’ve been living in the U.S. in San Francisco for 8 years, recently became a U.S. citizen, once from Brazil. Reading this blog is interesting and much like deja vu. I work in hotel management as an exec and we run into many different nationalities on a daily basis. No offense but watching Canada is like turning on a t.v. and watching 2004 all over again. So far behind the times. I can’t imagine a collective, national ridiculous attitude of thinking that renting is uncool. Even that never was the case in the U.S. I would venture to say you’ve all been bamboozled and even after knowing the consequences of such nonsense. It is true that Canada is on some of our minds because of the recent wealth that’s been experienced there, and Canadians have been traveling here in droves for the past five years. My friends and I will hear Canadians talking about real estate this and real estate that like there is nothing else to talk about. We shake our heads because we really cannot believe what we are hearing. And for the record Canadians are not polite like you all would want to think. Actually you exhibit some of the rudest and passive aggressive behaviors of any nationality we encounter. Canadians are constantly overheard insulting my nationality as an American and I do not appreciate it. So here is a reality check.

Vancouver is not a real city and it certainly is not worth anything like the money people are paying to live there. Really it just tries way too damned hard to be cool and the harder it tries the more looserville it appears to everyone else. Its kinda like the nerdy kid who gets a little wealth to his name and turns into a real asshole. It isn’t anything to be proud of. For me I prefer living here in SF. I’m perfectly happy living here in SF where the weather is great, the scenery is always beautiful, and there is some history to this place with things to do. Vancouver is the single most boring city I have ever been in North America. So please do this when you all are traveling – talk about things that matter, not about real estate, stop insulting everyone else’s culture and nationalities, and for god sake please start tipping.

#102 Smoking Man on 03.17.12 at 10:18 am

WHY does the herd keep bidding up real estate?
HOW did Hitler get an entire people on side to slaughter the Jews?
WHY are 90% of the people incapable of critical thinking?

Is it just a recurring an accident that I can predict major trend reversal in the markets, sometimes down to the hour, Perhaps, but just maybe there is something else at play.

Whenever I go downtown I take the train, there is always students rapidly flipping pages with a little yellow high liner marking things they want to memorize and regurgitate at a future date. They are not absorbing content the, sole focus is on memorizing what they think will be on the test. Everything they do is mark’s orientated, and nothing to do with getting educated.

That is not learning, or understanding, it is continuation of a belief system that starts at 5 years old. Respect authority; follow the rules, Obey.

For those of you who have gone all the way through you will never see it, it’s to late for you. Your biological hard drives have been cemented shut.

Apart from me and maybe a few others, most of you are bound by boundaries, your thinking and creativity is looked between A to Z

If you want to know why you can’t pay your bills, the answer is here

http://www.youtube.com/watch?v=okPnDZ1Txlo&feature=player_embedded

#103 Daisy Mae on 03.17.12 at 10:21 am

#29 NARROWGATE: “This blog is the only truthful thing out in the Canadian media right now. Thank you Garth Turner…”

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

That statement is very true. There is soooo much BS all around us from every conceivable source.

However, we can believe and trust what we read on Garths’ blog, and know someone actually cares about our wellbeing.

#104 Burnt Norton on 03.17.12 at 10:28 am

Garth wrote: This is how it all ends. And it’s definitely ending in Vancouver. We’re in the final stages of the real estate game, when tulip mania abounds. And standing in the garden are housing pimps like Mr. Rennie, who went on city-wide radio Friday to say the best neighbourhoods, “are not for locals any more. They’re for foreigners.”

#65 Island renters on 03.17.12 at 1:32 am

This is our old hood. Our rental, which really was a tear down went for 1.3 million. We had 2 or 3 houses on our street that went to HAM who tore them down, built brand new houses and never lived in them. It was kind of depressing taking the kids out at Halloween as so many houses were uninhabited. We did consider squatting in some of them though. Apparently these prices are cheap compared to the price of property in any larger Chinese city.
—————

Aye, there’s the rub. Us “locals” must ask ourselves, what exactly are we being priced out of? Sterile non-neighborhoods?

It’s no secret that for a long time now in the GVRD, the best rec facilities, parks, community centres, public schools, etc… are not necessarily on Vancouver west side. Kerrisdale in particular has long been referred to as the blue rinse & botox district because everyone dyes their grey hair and obsesses over wrinkles. About the only benefit is the relative proximity to downtown, UBC and the beaches. Otherwise, why pay $1-2 million to live in an overpriced rainforest ghost community? I guess when you’re working twice as hard to pay the mortgage you won’t see your neighbors (or family) anyway.

BTW, a side note related to comment #59 and of interest to BC readers is that anesthesiologists in this province will soon likely be holding your access to health care hostage because they want more than their current $340K (average) annually, likely in part to pay off huge Vancouver mortgages.

#105 Stevenson on 03.17.12 at 10:38 am

Canadian RE is dirt cheap compared to other places in the world.

Immigrants may be buying our RE but no one is stopping you from buy theirs.

Comparing Vancouver to Kamloops? No brainer.

If you can’t afford or extremely risk adverse just live with your renting life and deal with it. Don’t blame immigrants. It’s fair trade so if you don’t own then you don’t benefit on any of the appreciation on RE these international buyers have caused.

#106 I'm stupid on 03.17.12 at 10:43 am

#57 Makaya

Don’t believe everything you read on zero hedge. I read an article last week on ZH about gold. The source was a gold dealer. Guess what his forecast was. ZH is a reliable source for those that don’t know any better or wet their bed every night because Armageddon is coming. Any stat can be munipulated to agree with any point of view. Remember that before you believe anything you read.

#107 Ret on 03.17.12 at 10:56 am

I hope that the developer runs right over all of them with air tight closing contracts and thousands of dollars of extra charges for crap upgrades, lockers and parking spaces.

Have a profitable day Bob Rennie!

#108 CrowdedElevatorfartz on 03.17.12 at 11:03 am

@ #78. John
I’m not sure whats scarier.
Your rambling diatribe or my grudging acknowledgement that I somewhat understand what you were trying to say……

#109 Kilby on 03.17.12 at 11:18 am

ANONYMOUS on 03.17.12 at 4:37 am
(“Brent, — He makes $130,000, rents a nice house in Kamloops.”)

Garth ! Kamloops? $130,000 income? People make more income in T.O, yet you just told me that the average FAMILY income in T.O. is $94,000 or less than $50,000 per person.

So please tell me, how is it possible for a guy who lives way out in the ‘Sticks’ of Kamloops able to make almost 3-times this amount?
——————————————————————
Maybe he is a manager of a “Future Shop”, car dealership, telecom business, sells equipment or just works a lot of overtime at the pulp mill, many jobs in the private sector pay these wages.

#110 Uh Oh Canada on 03.17.12 at 11:20 am

We’ve been watching the market and renting- yes, renting does suck. But what’s even worse is owing a home, fixing it up, living comfortably but barely making ends meet, only to have it all gone it an instant- like a rug tugged over your feet.

The sad part is that bubbles have happened decades before and the ones that ended up as winners are the ones that displayed self-control and saved their money. Why can’t we learn from history?

#111 Oceanside on 03.17.12 at 11:35 am

Penticton BC. 565 active listings.
Last 7 days…..7 sales, 6 under $390K

Summerland BC. 223 active listings.
Last 7 days….8 sales. Most expensive, $410K

Qualicum Beach. 237 active listings
Last 7 days….4 sales. Most expensive, $307,500

#112 Onemorething on 03.17.12 at 11:46 am

Dropping their asset (RE) all at the same time. Sounds just about right!

#113 The Thing in the Basement on 03.17.12 at 11:57 am

55 Debtfree – I did eventually find your link but couldnt make sense of your text.

“Not making any more land eh. Well guess again. Now
tolko can make da etal even more nuts.”

No matter as I did find the info on my own anyways. I
thought your followup comment implied some great
seismic event (“the buzz at timmies”) that was going to
effect the overall RE market. Given the small number of licence holders in total, and an even smaller number with private land within the licence, the effect will be zero.

If it works our for you in your particular situation that is
great. But beware any process that requires an
application to a bureacrat who holds all the cards.

#114 Buy Low Sell High on 03.17.12 at 11:59 am

“Tina and her husband live in a $3 million house which they rent for $4,000 a month, and that’s cool with them.”

Here is a calculation to ponder: if Tina and her husband rent that $3MM house for 5 years, they would spend $240k in rent. However, if a Vancouver RE market correction occurs, err, sorry, when it occuurs, that house could easily shave off more than that rent amount and they might not even have to wait for the full 60 months for the reduced price. Also, corrections always hit the higher priced inventory harder so that $3MM house could easily come down in price more than 60 months of rent. Renting is almost like buying an out of the money call option with a long time to expiration. (LEAP) Also, while they rent that same house, they’re not responsible for all the inherent attributes of home ownership like, taxes, repairs, etc. Is renting that bad???

#115 Mister Obvious on 03.17.12 at 12:07 pm

Renting may suck but negative equity sucks much harder.

#116 Form Man on 03.17.12 at 12:10 pm

#76 anonymous

Kamloops enjoys a higher average wage than many areas in Canada due to the following :

Both major railways meet in Kamloops, the largest open pit copper mine in North America is 20 minutes from town. There is a pulp mill. In addition, 3 major highways meet in Kamloops, making it a major repair and supply point for the trucking, mining, and lumbering industries in BC’s interior. It goes without saying that the majority of these are union jobs, with generous pay and benefits.
What is also true, however, is that the Kamloops market is showing all the same signs of over-building that we see in other interior BC cities…….

#117 Trader on 03.17.12 at 12:15 pm

A Korean millionaire I know from Vancouver told me this week that foreign investors are going to the States rather than Vancouver… “Vancouver is too expensive, States is cheap.”

A very senior Banker told me this week that developers aren’t seeing the presales response that they need, and that appraisers are tightening also. In his words “the market is soft”.

In my opinion, the correction is all ready happening. We don’t need higher rates to start it, or F to mandate 25 year mortgages. Now we have cautious bankers, and that will be the tipping point.

#118 Uh Oh Canada on 03.17.12 at 12:16 pm

“A world without savings is Feudalism.” – Gerald Celente

Great article in Huffington Post that supports it:

“Being heavily in debt means you don’t have the freedom to quit your job. People who have lost their job are unable to move because the enormous debt tied to homes they can no longer afford. Being tied to a piece of land is the definition of serfdom.”

http://www.huffingtonpost.com/garrett-johnson/slouching-towards-neofeud_b_568972.html

Once again, why can’t we learn from history?

#119 bert on 03.17.12 at 12:17 pm

Hi Garth, any chance you could do a blog post some day devoted to the distorted perception of what foreign capital is doing to the vancouver market? Just curious what background stats you may have on this topic. My brother thinks this is a key factor in Vancouver but of course I disagree and support the many factors that you often mention on this blog as the reasons for the run off on prices and softening in sales which is already happening.

#120 T.O. Bubble Boy on 03.17.12 at 12:23 pm

Calling all HAM!!!

This property is so HOT, it has increased in value over 35% in just 10 days!

Mar 7th: $698,800
Mar 17th: $948,000

http://www.realtor.ca/PropertyDetails.aspx?PropertyID=11644185&PidKey=468850813

Seriously, 3% a day! What is this, Zimbabwe? Is the financing provided by Cash Converters? Is the house included in the BCE purchase of Astral Media?

The saddest part — this place was actually renovated, just in time for it to be torn down for a McMansion.

#121 Cottage Country on 03.17.12 at 12:24 pm

Garth,

Do you think that cottage country (Muskoka, for example) will be hit with price drops? Will this be a leading indicator of real estate slippage? Or will core condos fall first?

#122 Storefront Sam on 03.17.12 at 12:30 pm

Re #72 Observer
I’d rather line up for an iPad 3. Bought one today and I’m typing this comment from it. Why bother with overpriced real estate when I can spend much less on a magic tablet and surf to Garth’s site from the comfort of my couch.
******************************************
This sums up the problem with today’s society in a nutshell. People are too lazy to even get their ass off the couch long enough to walk to their computer.

#123 truth hammer on 03.17.12 at 12:45 pm

Let’s examine this term ‘prestigious neighborhood.. What I am seeing is a classic case of urban migration that is turning a ‘once’ prestigious neighborhood’ into an ethnic ghetto. As with all instances of urban migration..once complete…you have Main and Hastings as an example of a once prestigious neighborhood.

Like every ethnic ghetto that becomes saturated…including Vancouvers Chinatown the eventual question becomes ‘who do you sell to?’ when the ghetto become rarefied to the extreme that only one small group of a specif etnic background occupies a particular area. Property values historically begin to fall when there is no longer a cross section of a population to attract offers from.

Think of it…..without doubt the new Chinese from the PRC will follow typical immigation integration and disperse into the greater community. This leaves the original base of sales opportunities weakened and prices fall.

Harpers Canada is moving towards normalizing legal relations with the PRC and extradition treaties to repatriate the frauds, con men and crooked seinlders and thieves will wreak havoc on money that thought it was safe. A precedent has already been set and there is more to come. The Liberals would have never done this and that was what the crooks were banking on……oh oh.

A recent pollobserves that Canadians are swing to the conservative values of basic common sense. and will support the move to clean out the rats nest of crooked escapee’s and their families who came under false pretences….the gov’t is already auditing these files……..we’ll see a shake up in the PRC runaways…and when the new law comes into effect…..kaboom go the thoughts of hiding in Canada. Minister Kenney has already announced that he doesn’t like these safe haven Canadians……this is not news to anyone not drinking heavily.

Kerrisadale statred out as a Surrey typ of place so far away from the city you could hear the cow flop hit the ground….I suspect there will be a time in the future when a like phenomena takes place…..Urban economics is a bitch eh? Think about it.

#124 Eviee 1973 on 03.17.12 at 1:20 pm

Moved to Calgary last spring, cannot believe the number of 20 and 30 somethings who are here fleeing the economic persecution of interior BC. Why would Brent pay Calgary prices for a place in Kamloops with no economy to keep current youth in their hometown.

#125 Junius on 03.17.12 at 1:39 pm

RE: BPOE,

i have never seen him make so many posts in one day. One more shrill and more ridiculous than the last. Must be sweating bullets these days.

To paraphrase Shakespeare, “He doth protest too much, methinks. “

#126 Lookoutbelow on 03.17.12 at 1:45 pm

Marine Gateway, brought to you by the Condo King Bob and that wonderful BC Liberal Government having just announced a $10,000 Refundable tax credit for first time buyers of a newly built condo.

Here is the problem, who is it that wants to slow down, let alone, stop the revenue coming in. Not the Feds, BC or the local City Governments, they are all collecting the taxes and they need them to balance the books.

It’s the Buyer that needs to wake up and save himself from financial ruin. Looks like the greater fools are a dying breed in Richmond. March sales numbers are going to need the very best spin doctors.

#127 ANONYMOUS on 03.17.12 at 1:53 pm

So the way i see it the world is going nuts.

– 20 year olds are getting jobs earning $500,000 year for doing nothing more than showing up.

– Homes in T.O. now cost $1 Million on average, soon to sell for $10 Million.

– Everyone is buying 2 to 4 of these ‘CHEAP’ homes for their retirement portfolio, all on ‘free money’.

– Everyone takes 2 to 4 Mexico vacations per year.

– Everyone is driving brand new AUDI, MERCEDES, BMW vehicles, because they are the ‘smartest’ people in the world.

– Interest rates are at record lows, but with the economics around the world in such a mess, most likely to stay this low for the next 10 to 35 years at minimum, possibly even go lower over the next 6 months.

– Me and others here at this blog are listening to Garth, we rent, and we will be priced out of housing forever. WE LOOK LIKE THE GREATEST FOOLS OF ALL.

So, does this sound about right to everyone?

#128 Westernman on 03.17.12 at 2:08 pm

Skatch @ # 48,
That’s the thing with people from Sask. – they started at the bottom and decided they liked it there…
They owe their stunning lack of success to nobody…

#129 westopia on 03.17.12 at 2:12 pm

Some fodder for the future Garth.

Vancouver housing math:

Do five of these (http://tinyurl.com/7rbpfaj), equal one of these (http://tinyurl.com/6us7fj9)?

#130 Westernman on 03.17.12 at 2:15 pm

Winnipeg Jets Fan @ # 73,
Your post is proof that sports worship leads to insanity….

#131 Hocus Pocus on 03.17.12 at 2:22 pm

Confucius say the pony tailed Caucasian directs traffic.

#132 DonDWest on 03.17.12 at 2:25 pm

What I find frustrating is that even if there’s a significant correction – it isn’t enough to make homes affordable to Canadians. Even if we have a 50% decline this junker Garth illustrated is still “worth” 1 million. Would you pay 1 million for that?!

This leads me to believe that logically a 90% decline is in order for many areas in Canada, but that will prove impossible to conceive for many Canadians. The result is I’m afraid that many homes will suffer from a “forever on sale” syndrome rather than take a 90% hit.

Homes are not like public stocks or bonds, the buyers are at the mercy of the sellers who have to agree to the transaction. The seller will ever agree to a 90% dip because in the mind of the seller that’s completely unreasonable – when truth be told it’s the seller who has been unreasonable all this time. Unfortunately, because we’ve had such a massive bubble for such a long time, I see expectations from sellers forever getting in the way.

The only way I can see solving this problem is to allow squating laws to return. It’s an old British law we used to have – and despite it’s controvery it’s a good law to have.

The government would be smart to allow squating legally and with sophistication rather than squating inevitably turning into an underground industry/political movement once the housing collapse starts. Though, I can’t see this happening with our current right wing extremist government. . .

#133 Beach Girl on 03.17.12 at 2:39 pm

I have bought and sold and keep a few of my 7 houses in my life. Never have lost. But also sold too early. But safer than sorry. Every one of them had rental units.

I would never, ever buy in this environment.

But I know from experience, that doctors and dentists are basically retarded financially. Because they think they are superior. They invest in restaurants, for Christ sakes. Which, if successful, have a shelf life of 5 years. The only people who can do this successfully are Greek or Chinese. That is not racist. Maybe a few exceptions but not many.

My own doctor, who I refer to as Caspar, who is whiter than the friendly ghost is complaining. He is on something better than me. LOL. Only drug addicts are that pale. Guy is nearly translucent. Went to school for 100 years and owes that much at least.

He said what do you do. I told him, he said it wasn’t fair. We live in the same neighbourhood. Buddy looks stressed. This is going to guide my longevity. Scary. He needs Prozac.

Even my gas station man, went this morning to buy my newspapers is scared. Medium sized little brown man. Nothing wrong with saying that. Guess the chips and pop sales are down. Works only 9 million hours a week.

Was asked out by a lawyer 6 months ago, I said no, My name is Cupid not stupid.

Good day to all hitting the beach with Miss Daisy.

#134 noodles 79 on 03.17.12 at 2:49 pm

What ever happened to the term ‘real estate is a good hedge against inflation”?.I havent heard that line in ages. When that line was floating around, people bought houses to make a home.Thats when RE made sense, a slow gradual increase to keep a few points ahead of inflation and taxation.In the last 7-10 years RE is being pitched like a lottery.The mouthpieces who benifit most are jumping on every RE winfall. How else can you explain line ups for a box in the sky.A lot of younge couples are hearing only the good side of RE, quik riches in a fast paced society.Evrywhere you turn, theres a rags to riches story.
The problem with quik riches is that it makes people lose their senses.Look around you, shinny rock is more of a priority than kids education.A bunch of clones who think their unique.Low interest and short sighted politicians have created this mentality.Houses are no longer homes, their a quik ticket to retirement.And a lot of people are falling for it because its been good for so long.Booms are good for the economy, to bad they have to end so badly. Great expectations turn bad when real stories make the headlines.Ponzi scams callapse when people start realizing the truth.A society cannot sustain itself when the average joeblow is taking on more and more debt.Sooner or later the math doesnt ad up anymore.
Ive read over what I just wrote and realise I answered my own quetion,’real estate is a good hedge against inflation’,is not an appealing tag line in todays fast pace world.Twenty years down the line is nineteen years to long for todays buyer.The lottery is about to go bust. Taxes, insurance,gas,and expenses are all going up, inflation is going to wake people up.And when they realize they cant make ends meet, even with low rates, theyll start to unload, supply and demand will determine prices, not the RE industry and government mouthpieces.Id say that day is right around the corner.Time to put on the seat bealt, cause the ride is going to get rough.I wont be affected, I drive a 1993 station wagon and Im already use to a bad ride, but a lot of people wont know what them. We’ll be hearing rags to riches to rags stories in no time.

#135 John H on 03.17.12 at 2:50 pm

http://www.realtor.ca/PropertyDetails.aspx?PropertyID=11537897&PidKey=878401640

As a Vancouver person I can tell you a lot more by reading this ad.
First the owner now is most likely Chinese and from China because the real estate agent is Chinese.
This house was bought by the current owner from China who is sitting on it for a period of time waiting to sell it to someone else from China fo more money.
When you see a western real estate agent on these tear downs it is most likely a long time caucasian owner who is selling out.
How much longer can this go on?
Well there are 1,400,000,000 people in China and about 34,000,000 in Canada.
I would say quite a long time … in fact well over 25 years now and counting.
As long as the billions of dollars in hard cash keep flooding into Vancouver from China, and let’s not forget the billions of dollars from grow-ops (BC’s largest industry, bigger than logging and mining combined).
Sad really.
But then again who said you needed a middle class in Canada anyway?
In Vancouver maybe the “middle class” is just one of those nice concepts your high school social studies teacher used to talk about that is now gone here.
BC = Bring Cash.

#136 Chaddywack on 03.17.12 at 3:09 pm

Sure enough they pumped this on Global Vancouver just now. The anchor sounded so excited as she said that “11,000 people showed up!”

#137 DonDWest on 03.17.12 at 3:25 pm

I have some difficult decisions to make as a “foreign investor.”

Should I buy this:

http://www.realtor.ca/propertyDetails.aspx?propertyId=11536595&PidKey=1628216108

Or this:

http://www.realtor.ca/PropertyDetails.aspx?PropertyID=11537897&PidKey=878401640

My Mandarin speaking real estate agent tells me that the property in Vancouver is a better deal for my 2 million. What do you think?

#138 Last (been a while since I posted) on 03.17.12 at 3:29 pm

http://isaacbrocksociety.com/2012/03/17/a-story-from-ovdi-hell-or-how-to-exact-tribute-from-a-country-without-firing-a-shot/

Nightmare situation for those who dual citizenships. And those buying real estate state side

#139 oslec on 03.17.12 at 3:38 pm

#67 BCBOUND on 03.17.12 at 1:47 am

“….. Start from the bottom and work up! This one is going to hurt.”

You know what sucks and hurts more?
Our tax money will be used to bail out these entitled people courtesy of our friendly, neighborhood CMHC.
Why am I living within my means? I should get on this debt orgy before it is too late.
It’s my parents’ fault LOL!!!

#140 salonist on 03.17.12 at 3:38 pm

TRT
in regards to s.m.
sit back,enjoy the show

#141 Benny Hill on 03.17.12 at 3:55 pm

Sorry Garth ,but F is not serious about cutting fed jobs…
60000 cuts over 3 years,but 33000 are going to be from
civil servants retiring….big deal…. 27000 jobs net across the country over 3 years….

#142 blase on 03.17.12 at 4:13 pm

I street viewed that $2.1 million property. Vancouver is in for such a rude awakening. As too are many Chinese nationals. If the Chinese are that dumb or desperate to spend their money like that, things must be much worse in China than is being reported.

#143 blase on 03.17.12 at 4:13 pm

BC= Big Crash

#144 John G. Young on 03.17.12 at 4:17 pm

#91 Uh Oh Canada

“The sad part is that bubbles have happened decades before and the ones that ended up as winners are the ones that displayed self-control and saved their money. Why can’t we learn from history?”

Self-control is not a strong suit of many humans.

And besides, it’s different this time.

#145 Just Say No on 03.17.12 at 4:21 pm

http://www.youtube.com/watch?v=02x8EHXPfB0&feature=related this will help get a new vision http://www.youtube.com/watch?feature=endscreen&NR=1&v=fs6l3Au837M Canadians live for houses! http://www.youtube.com/watch?v=J7KwUJ7nt-M&feature=fvwrel these are a couple of years old but you can buy for 1.00 but I would have to be paid to take one……It is different here!

#146 brainsail on 03.17.12 at 4:23 pm

#97 Form Man

…”the largest open pit copper mine in North America is 20 minutes from town.”

Please define largest. Besides, living near an open pit mine is not a good thing.

“Bingham Canyon Mine, located near Salt Lake City, is the world’s deepest man-made open pit excavation. The mine is 2.75 miles (4,5km) across and 0.75 mile (1,2km) deep. Since mining operations started in 1906, Bingham Canyon Mine has been the granddaddy of all copper mines. When you’re talking about the actual size of the mine, Bingham Canyon is simply the largest copper mine in the USA. If the mine was a stadium, it could seat nine million people.”

“Bingham Canyon is primarily a copper mine, but it has also yielded a wide range of byproduct metals. These include 620 tons of gold, 5,000 tons of silver, 276 tons of molybdenum and large amounts of platinum and palladium. The Kennecott mining company extracts daily approximately 450,000 tons of rock out of the mine. With these production statistics, it’s no wonder that the Bingham Canyon Mine has been nicknamed “the Richest Hole on Earth.” The value of metals produced yearly at Bingham Canyon is US$1.8 billion dollars.”

“The deadliest mine
Just outside Butte, Montana lies Berkeley Pit: a pit filled with greenish poison a mile and a half wide and over a third of a mile deep. It was once a thriving copper mine where millions of tons of copper ore, silver, gold, and other metals were extracted from the soil.”

http://www.losapos.com/openpitmines

#147 Canadian Watchdog on 03.17.12 at 4:24 pm

I’ve obtained some new stats on Canada’s big five banks’ covered bond issuance. Here are some charts of consolidated figures.

http://i39.tinypic.com/142sqi8.png

More interestingly, one of the five banks holds 71% of total condo loans pooled into covered bonds. Stay tuned for more…

#148 Just Say No on 03.17.12 at 4:29 pm

we are just so much better in Canada!! aren’t we?http://www.youtube.com/watch?v=NL_YdRxBhzI&feature=related

#149 Bill Gable on 03.17.12 at 4:41 pm

#83

Bang on. Dumpy Vancouver is like living in a permanent TV commercial. The City is boring, the people are wannabes and their is no soul here.

I wish I could leave (renting, btw). Trouble is, health has turned on me, and my Wife has only Son here….so…here I sit.

If I moved to the States, the treatments would kill a goodly portion of a, so far, healthy bank account.

If you are young, and have skills – get the hell out of this rainy hell, while you still can.

Missed my chance, don’t miss yours.

I didn’t even mention Fukushima…that is the hell that is starting to visit our shores.

Avoid Vancouver. If I had the chance, I’d leave this City in a heartbeat, and never come back.

#150 Freedom first on 03.17.12 at 5:19 pm

I wunder? ……wood it be to much too ask for peeple to do sum proof reeding/editting of there comments before they submit what thay right to the Garth’s collum? Tank you:)……..latr…..

#151 Freedom first on 03.17.12 at 5:29 pm

…..I just wanted to add….to my last post #118?…..this does not include Smoking Man of course:)…..as he is either drunk, or playing mind games when he posts:)…….He is so smart………in his own mind anyways…..in mine……not so much:)…..

#152 Suede on 03.17.12 at 5:34 pm

Thinking out loud…

Could the timing be any better for the governments now entering an era of cutbacks and austerity? Corporations have done so very quickly during and post the ’08/’09 market correction. Governments have to deal with a lot more bureaucracy and red tape so it has taken this long to get the axe sharpened.

Teachers, Nurses and other unions whose contracts are up may just be shown by the Provinces and Federales that they should be thankful just to have a job.

How would they do that? Warn everyone of housing over-expansion and debt for several quarters now until the axe starts swinging (Maybe during the budget announcement in 10 days).

A generality could be made that tighter mortgage restrictions and layoffs in the public sector will beget reduced prices of housing (in certain areas) which leads to the argument “Prices are going down, what do you need a general wage increase for in these tough times?”

#153 Pr on 03.17.12 at 5:52 pm

How clear it is! Since 1999 the government with the Bank of CANADA AND the majors banks, do every thing to inflate the housing market. The one major event was in 2007 the introduction of 0$ cash down to buy a house with 40 years amortization. If you think its by chance that we have a housing bubble and…bust! I have a bridge to sell!

#154 renters rule on 03.17.12 at 6:11 pm

Anyone caught this USA Realtors’ ad on the US tv stations…..

http://www.youtube.com/watch?v=uMksxWpEk_M&feature=related

I had to reach for a tissue.

#155 Jasmine on 03.17.12 at 6:14 pm

Apparently, according to some realtors, Marine Gateway is SOLD OUT as of today.

You guys missed your chance to own something that is $670/sf and next to a dump.

#156 renters rule on 03.17.12 at 6:23 pm

Has anyone esle seen the Realtors’ industry ad on US tv?

http://www.realtor.org/pac.nsf/pages/television

I had to reach for a tissue… realtors are here to protect us, and to protect home ownership!

And here I thought they were here to earn commissions.

#157 renters rule on 03.17.12 at 6:27 pm

Oops, sorry for the incorrect link in my #118 post… but enjoy it if you are a MTM fan (the stand up guys spoken version of Old Man River at about 2:00 mark is killer)! ;-)

#158 grantmi on 03.17.12 at 6:35 pm

#100 Trader on 03.17.12 at 12:15 pm
A very senior Banker told me this week that developers aren’t seeing the pre-sales response that they need, and that appraisers are tightening also. In his words “the market is soft”

Hence my comments earlier on about Ron Toigo on the Bill Good show on CKNW last week pumping up his Tsawwassen Springs resort project…. it’s not attracting the same pre-sales they had hoped.

Maybe they need Pat Quinn and Bruce Allan to pump out a few more radio ads!!

Come Here! Go Away!

#159 Devore on 03.17.12 at 6:49 pm

#76 ANONYMOUS

So please tell me, how is it possible for a guy who lives way out in the ‘Sticks’ of Kamloops able to make almost 3-times this amount?

Do you know what average/median means?

#160 Devore on 03.17.12 at 6:52 pm

#78 John

What did I just read? Can you do that again, in English this time please?

#161 Devore on 03.17.12 at 7:07 pm

http://www.vancouversun.com/news/Vancouver+police+investigate+downtown+shooting/6319212/story.html

Another shooting in Vancouver. Two individuals hit walking out of a busy downtown restaurant.

Some people walking past the restaurant roughly an hour after the shooting seemed nonchalant about what could be another suspected gang shooting in the downtown core.

Of course, why would they be surprised, barely makes the news these days when shots are fired in a middle- high-class area.

#162 Foggy on 03.17.12 at 7:11 pm

@102 Cottage country –
“Garth, Do you think that cottage country (Muskoka, for example) will be hit with price drops? Will this be a leading indicator of real estate slippage? Or will core condos fall first?”
————————–
I sold my cottage in Nov/2007. I’ve since been following listings in my old area just to see what has been going on. My old neighbour listed after me and did not sell after 3 years on the market. Prices have not increased one penny and not much sales activity. The market appears to be dead. As people get in trouble with their city houses, or retire, the cottage will be the first to go. And they will need to be price lowered to stand a chance of selling currently. And HAM? Have you ever in your life seen an Asian family at a cottage, let alone buy one?

#163 JMB on 03.17.12 at 7:58 pm

Marine Gateway sold out in 4 hours this morning. Hope all the buyers enjoy the scent of the waste transfer station from their verandas.

#164 Canis on 03.17.12 at 8:00 pm

That small house in Kerrisdale has had a sign in front of it for many months; so has the house next door, for sale by the same realtor. Some houses on the west side are selling quickly, but many others, like these, have had signs out, sometimes off and on, from as long ago as last summer.

#165 Smoking Man on 03.17.12 at 8:04 pm

I feel like puking. O Garth what about muskoka what about equities bla bla bla bla bla

The way these lossers worship you freaks me out. Why don’t my fellow humans have no nuts. Why do they always celebery worship. I don’t know.

What I do know is I have more wealth than 90 on here combined and it means nothing to me

I don’t respect any one or any thing other than people that explore
whats before A and light years past Z

OMG. — Garth

#166 Oceanside on 03.17.12 at 8:06 pm

Front page and inside business sections of the Globe and Mail today….

Storm clouds forming over Vancouver’s real-estate market

VANCOUVER— From Saturday’s Globe and Mail

For the past few years, Bill Liu has sold homes at a steady clip, averaging four or five sales a month in Richmond and other communities in the Lower Mainland.

This year, his sales are running at about half that, as the once white-hot British Columbia real-estate market cools off. Sales are down, though prices are holding firm for the most part. The slowdown has cast a shadow of uncertainty over the direction of the market – although real-estate agents such as Mr. Liu still see some rays of hope amid the clouds.

#167 Devore on 03.17.12 at 8:14 pm

#156 renters rule

That’s better than the message CREA is running with: use a realtor(tm)(r) or you might die! Nothing but a bunch of desperate rentiers.

http://www.theglobeandmail.com/report-on-business/economy/housing/online-house-listings-expose-sellers-to-assault-break-ins-treb-says/article2368525/

#168 The guy in the Orange Shorts on 03.17.12 at 8:14 pm

I’m here at a condo pre-sale line-up in Tuktoyuktuk.

Where is everbody? Only people(?) here are from Ontario.

We have the break wind amongst smokers to stay warm.

#169 Gregw, Oakville on 03.17.12 at 8:16 pm

Hi #64 Nastra, This online magazine usually has interesting article. The one on cell phones should give us all pause, I think!
http://spectrum.ieee.org/magazine/

Some are titled:
-Complaints Over China’s Rare Earth Export Policies Get Serious
-No Nukes and No Blackouts in Japan?
-Mixed News from Nuclear Energy’s Darker Side
-Robot Car Intersections Are Terrifyingly Efficient

(this next one, if I were younger I might say it was sick/cool. But I find it more disturbing for its implication for mans ability to kill each other. Or maybe some future AI? Unfortunately I’m sure the Military industrial complex is paying attention to this stuff too.)
-Help Kickstart Real-Life Mech Warfare with a New Arena

-Cell Phone Radiation Leads to Hyperactive Offspring in Mice. (March 15, 2012) “Researchers at the Yale School of Medicine have presented the first experimental evidence showing that exposure to cell phone radiation in the womb affects fetal brain development and could lead to hyperactivity.
The study was done on mice…”

#170 Losing faith on 03.17.12 at 8:22 pm

How quickly could the market turn downward in Toronto or Vancouver? Could it be quick? Thoughts?

#171 TurnerNation on 03.17.12 at 8:25 pm

#124Junius on 03.17.12 at 1:39 pm

Yesterday you claimed personal knowledge of this ‘Renny’ sales guy.
But if one hangs out with dogs, they get fleas?

Surely you with a pet monkey at home would wish to avoid picking up fleas. Then again, perhaps he could help groom you?

#172 $$$BPOE$$$ on 03.17.12 at 8:29 pm

You got it bud. Buy it with cash, tear it down with cash and rebuild with cash. Mortgages are not required in BPOE and that’s a FACT! Was in the richest zip code in the Country the other day sales are going gangbusters and the money is flowing from the Middle East. Lovin it!!!!!
*******************************************
65Island renters on 03.17.12 at 1:32 am
This is our old hood. Our rental, which really was a tear down went for 1.3 million. We had 2 or 3 houses on our street that went to HAM who tore them down, built brand new houses and never lived in them. It was kind of depressing taking the kids out at Halloween as so many houses were uninhabited. We did consider squatting in some of them though. Apparently these prices are cheap compared to the price of property in any larger Chinese city.

#173 TurnerNation on 03.17.12 at 8:32 pm

Attn. new blog dogs:

The following user name are still available. Reserve yours today:

Never used yellow highlighters
Smoking girl
Beach man
xdisciple
Shirley Cooter
Codesmithe
VIXen
HAMster

Reserved:

Blog Dog Carney

#174 TurnerNation on 03.17.12 at 8:36 pm

#145Just Say No on 03.17.12 at 4:21 pm

Those are some decent- short – vids – recommened for the other blog dogs.

#175 SickOfBc on 03.17.12 at 8:37 pm

2.1 million in vancouver
http://www.realtor.ca/PropertyDetails.aspx?PropertyID=11537897&PidKey=878401640

3.3million in dallas

http://www.ottawacitizen.com/sports/Gallery+Iconic+Mary+mansion+grabs/6306815/story.html

that 2.1 million dollar vancouver slum , wouldn’t even pass for an outhouse on Mary Kay’s estate..

yaa and there is no bubble in Vancouver..lol

#176 John H on 03.17.12 at 8:39 pm

http://www.realtor.ca/propertyDetails.aspx?propertyId=11624465&PidKey=-2125569582

At $2,560,000.00 such a deal.

66′ X 130.25″ building lot.

It is not 130.00, no, it’s 130.25.

Those extra three inches count bucko.

In Vancouver size does matter. ;-)

#177 Nostradamus Le Mad Vlad on 03.17.12 at 8:43 pm


St. Patrick’s Day. What better way to begin than by discussing Giant Leprechauns?
*
A scuffle started in the local one Friday night. Words were exchanged, then insults and finally blows. Bottles, glasses, people, flew through the air and Casey ended up being hit in the face by a sharp piece of glass which cut off his nose.

‘Stick his nose back on and hold it with your hand,’ ordered McGinty. ‘And we’ll get him to the hospital.’

Out into the street they flew to be greeted by sheets of rain pelting down.

Quickly they bundled the injured man along and into the casualty department.

‘Will he live?’ inquired the boys.

Too late,’ said the doctor, ‘he’s a goner.’

‘Was it loss of blood?’ asked Finbar.

‘No, he drowned. You put his nose on upside down,’ sighed the doc.
*
Mary Clancy goes up to Father O’Grady after his Sunday morning service, and she’s in tears.

“So what’s bothering you, Mary my dear?”

“Oh, Father, I’ve got terrible news. Me husband passed away last night.”

“Oh, Mary, that’s terrible. Tell me, did he have any last requests?”

“That he did, Father . . .

“What did he ask, Mary?”

“He said, ‘Please Mary, put down that damn gun’.”
*
#79 GregW, Oakville — “Was there something different about the University they went to at the time?” — G’day Greg.

If memory serves me well, the five of them attended Cambridge Uni. When they formed the Pythons a few years later, Terry Gilliam, the cartoonist, was an American living in the UK trying to find an outlet for his work.

He met with the Pythons and the rest is history. They really liked his sketches and cartoons, using self-made sound effects for emphasis.

The one thing the Pythons did was to spoof society, because society’s ‘rules and regulations’ are really a joke in themselves.
*
Interesting how one’s life can turn on a dime. This morning, a soccer player for Bolton, 23, collapsed from a heart attack. The first half wasn’t even finished. We all have best by, or expiration dates. ‘Tho he is still alive, he probably won’t play again.
*
53:16 clip Cdn. economy is toast; War There has to be a war before the US$ craters; 2:48 clip Foreign record holding of US debt; 9:56 clip Five reasons why the US may have ugly riots; 3:19 clip Nigel Farage is a hoot, as good as comedians; Shoplifting has become a way of life for the hungry; Pipelineistan War “To compound Washington’s fury, “isolated” Iran, by the way, is about to start exporting an extra 80,000 barrels of oil a day to Pakistan; and has already committed $250 million to the Pakistani stretch of IP.”; GS Making money the old fashioned way — Stealing It; 4:50 clip So who is running the world’s economies? TPTB? Good guess; Food Stamps exchanged for drugs, weapons etc.;
*
Pro-Assad demonstrations “The images speak for themselves – watch the video’s.”; Irving, TX is no longer part of Agenda 21; Rendell “MEK is the “terror” group thought to be assassinating the Iranian nuclear scientists and is also the group that provided the “Laptop of death” used to claim Iran is building nuclear weapons.” wrh.com; Madness A more fitting description of the Caucasian Race is white trash; Dog Poop The UK must be desperate for money; Shrink Talk “A leading psychiatrist faces extraordinary claims he deliberately misdiagnosed parents with mental disorders – decisions which meant their children were taken away from them.”

Iran Seems they have parked some of their boats in the Mediterranean; Global Governance Help! Help! I’m being repressed; Fake Meat is killing people; Romney Jeb Bush will be a shoo-in for the GOP; 11:04 clip Ex-CIA agent explains why The Toilet is make-believe; Money and Politics I luv the smell of napalm during an election campaign!

#178 TurnerNation on 03.17.12 at 8:54 pm

Canadian Watchdog – I have a project for you.

Pick a number of ATMs in your city. Break down their locations by city census and socio-economic data.

Dumpster dive into the garbage slots and cans located beside the ATMs and collect bank balance data for analysis. :-)

Which area carries the highest bank balances? Chop chop son.

#179 Westernman on 03.17.12 at 9:00 pm

Smoking Man @#166,
Your post reminds me of a line by George Jefferson in reference to his doorman … ” Man! That weirdo is getting weird! ”
You are cracking up, baby…

#180 eaglebay - Parksville on 03.17.12 at 9:03 pm

#101 San Fran Frisco on 03.17.12 at 10:05 am

Are you gay?

Looking for a date? — Garth

#181 ShipsNGiggles on 03.17.12 at 9:15 pm

CTV news just reported on the sold out Marine Gateway deal, interview included an Asian fellow who said,” i am lucky i just found out about it this morning, i came down and had 5 minutes to make a decision” Nuts

The project is supposed to be completed in 2015, i can just imagine the regret that will crystalize when closing time comes around.

#182 Smoking Man on 03.17.12 at 9:18 pm

#174 TurnerNation on 03.17.12 at 8:32 pm
Here is some one worth of being Smoking Girl

http://www.youtube.com/watch?v=6jZHNjc4Xk0&feature=related
what ever you do after her speach turn off the vid

#179 Westernman on 03.17.12 at 9:00 pm
Go shot something Hick

#179 Westernman on 03.17.12 at 9:00 pm
You calling me weird is a complement,

#183 Fabrega on 03.17.12 at 9:22 pm

#118 Bert
Of course foreign capital is a factor. Also drug money. Easy money is another.
Do you think for a minute that only people born or raised in Vancouver with their cash earned from jobs can sustain these price levels?

#184 TRT on 03.17.12 at 9:25 pm

Marine Gateway 400 units sold out in hours!!

Does the fact that there is a 1,000,000 immigrant applications backlog (equates to around 3,000,000 total people already in the pipeline waiting to come to Canada) have anything to do with the frenzy?

And this does not include foreign buyers and temporary workers/students.

Most of the backlog are going to end up in Vancouver or Toronto. That is the reason behind the frenzy.

In my extended family, there are about 80 people in the pipeline with applications submitted. Where they going to live once they get here??

With you. — Garth

#185 Suede on 03.17.12 at 9:28 pm

Roughly 3/4’s of the listings in MetroVan end in an 8. The most important 8 to have is in your address, silly!

Just finished reading Volume I of “Popular Delusions and the Madness of Crowds” by Charles Mackay. Very well written and recounts the tales of the biggest manias in history.

Mississippi, South Sea Bubble, Tulips, etc… Bob Rennie possesses some of the same characteristics of John Law when it comes to business. Nothing but paper changing hands and people lining up in the streets to exchange them.

When businesses arise out of selling items to the crowd lining up to buy the big ticket items (pay for my spot in line, hot dogs here! etc..), things get interesting

#186 eaglebay - Parksville on 03.17.12 at 9:29 pm

#133 DonDWest on 03.17.12 at 2:25 pm

No dumping on the boomers today?

#187 Observer on 03.17.12 at 9:31 pm

@ #122 Storefront Sam
Re #72 Observer
I’d rather line up for an iPad 3. Bought one today and I’m typing this comment from it. Why bother with overpriced real estate when I can spend much less on a magic tablet and surf to Garth’s site from the comfort of my couch.
******************************************
This sums up the problem with today’s society in a nutshell. People are too lazy to even get their ass off the couch long enough to walk to their computer.

Internet on a desktop computer? That’s so 2000.

#188 Fabrega on 03.17.12 at 9:38 pm

Smoking Man,

Get a grip dude…

#189 Foggy on 03.17.12 at 9:38 pm

And in the spirit of Irish jokes:

Into a Belfast pub comes Paddy Murphy, looking like he’s just been run over by a train. His arm is in a sling, his nose is broken, his face is cut and bruised and he’s walking with a limp.

“What happened to you?” asks Sean, the bartender.
“Jamie O’Connor and me had a fight,” says Paddy.
“That little twit, O’Connor,” says Sean, “He couldn’t do that to you, he musta had help.”
“That he did,” says Paddy, “a shovel is what he had, and a terrible beatin’ he gave me with it.”
“Well,” says Sean, “you should have defended yourself. Didn’t you have something in hand?”
“That I did,” said Paddy. “Mrs. O’Connor’s breast – and a thing of beauty it is, but useless in a fight.

#190 TurnerNation on 03.17.12 at 9:43 pm

Here’s our homegrown GS-styled expose. Myself, I do not work in Finance or Sales but I do see/hear some very interesting things related to traders, trades, and their antics. At work I have access to institutional- grade news and quotes (all lit and dark markets), while occassionaly dropping by Bymark or Ki, or an industry event for a free drink. Them’s the perks, but no oversized salary or even a bonus for me.

—————–
Why I gave up my six-figure salary and quit Bay Street

Posted on Friday, March 16, 2012 7:00PM EDT

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/why-i-gave-up-my-six-figure-salary-and-quit-bay-street/article2372106/?

#191 T.O. Bubble Boy on 03.17.12 at 9:44 pm

@ #185 TRT:

You really think that 80 of your family members would all want to live in 400-500 sqft condos?

#192 John G. Young on 03.17.12 at 9:50 pm

#181 eaglebay – Parksville

“#101 San Fran Frisco on 03.17.12 at 10:05 am

Are you gay?”

Sorry I missed this earlier — we gay people take pride in responding to inquiries prompty.

So how can I help you?

#193 Canadian Watchdog on 03.17.12 at 10:01 pm

The one chart showing why our recession is NOT going to be like any of the past and even longer then the 1980s.

http://i44.tinypic.com/20a9a4l.jpg

Say bye bye to sub-dollar gas per litre. You’ll never see it again.

#194 Westernman on 03.17.12 at 10:02 pm

Smoking Man @ # 183,
I may or may not be a hick but at least I can spell and form a coherent sentence… which has you beat by a long shot…

#195 eaglebay - Parksville on 03.17.12 at 10:34 pm

#100 Trader on 03.17.12 at 12:15 pm
“A very senior Banker told me this week that developers aren’t seeing the pre-sales response that they need, and that appraisers are tightening also. In his words “the market is soft””
_________________
There are no very senior banker in Vancouver.
They’re in Toronto or Montreal.
The Vancouver bankers are pawns.

#196 Makaya on 03.17.12 at 10:36 pm

#106 I’m stupid

Critical thinking is indeed required whenever you read something online, and that applies with what you read on this blog too.
The VIX, like any other index or indicator aimed at predicting the future based on past data, is, well, useless. I know Garth loves to use it to make his points (maybe that impresses some people), which is why I copied ZH’s article here.

I agree ZH is a place where doomers love to hang out, but there are still some articles that deserve attention. What Goldman Sachs’s Smith just wrote in his resignation letter published on the NY Times has been described ad nauseum on ZH for years. They do, sometimes, deserve credits too…

Full disclosure: the only gold I own is around my wife’s finger.

When it comes to looking at what might happen in the future, I prefer listening to people whose job is to do just that and who are good at it. And according to this european think tank (LEAP), here is what’s coming:

“Five devastating storms will mark the summer of 2012 and thus accelerate the process of world geopolitical swing:

. US relapse into recession against the background of European stagnation and BRICS slowdown
. dead end for the central banks and interest rate increases
. storm on the foreign exchange and Western sovereign debt markets
. Iran, the war « too far »
. new crash in the markets and financial institutions. ”

Before you start laughing, just know that this people have predicted the crash of 2008, and predicted correctly pretty much everything that has happened since then, including the Greek crisis and how it would end up (have you heard about it on the news these past few days?). These people don’t sell gold either, only their newsletters (not cheap!) that is read by a large and influential audience (I know a lot of eurocrats are reading it).

If you want to know more about them, here is the link to their website:
http://www.leap2020.eu/English_r25.html

#197 Min in Mission on 03.17.12 at 10:37 pm

That Gateway thing was unbelievable!! Something is definitely wrong, somewhere!

I cannot understand any of this. Hopefully, this all works out, but, I am in my house for a minimum of another 10 years. By then things should be normal???

#198 Smoking Man on 03.17.12 at 10:40 pm

Therapy , who needs a shrink

http://www.youtube.com/watch?v=BLKiMbC6s2k

drink , get stoned, get naked , go in back yard, look at the stars/ and crank it

ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

#199 45north on 03.17.12 at 10:43 pm

GeneticistX: I had a conversation with a friend today who is living in a $2million dollar house, but problem is he hasn’t made a mortgage payment in 4 months

from what I have read, he is out of time. This is Toronto, how long before he gets a Power of Sale?

salonist: in regards to s.m. sit back, enjoy the show

sitting back

The Real Jimbo: The loss thoroughly humbled me and taught me the meaning of fear.

thanks for your insight Jimbo

Buyright241: two for one: pretty funny: I read your link: CMHC needs sorting.

Cottage Country: Do you think that cottage country (Muskoka, for example) will be hit with price drops? Foggy’s answer is right on. His final question: Have you ever in your life seen an Asian family at a cottage, let alone buy one? I can say from personal knowledge that they go to the best houses in the most attractive locations. They pay by the week.

Anonymous: Me and others here at this blog are listening to Garth, we rent, and we will be priced out of housing forever. WE LOOK LIKE THE GREATEST FOOLS OF ALL.

it may seem so but when it turns around you will have a new task. Your task will be to console and support those who will be under severe financial and emotional stress. Your time is at hand.

Beach Girl: They invest in restaurants, for Christ sakes.

two weeks ago we went to Tucson’s in the south end of Ottawa. The next day the owners shut the doors for the last time, they were just tired. For twenty years, they kept up a great place where I was always happy to go.

noodles 79: The lottery is about to go bust. I’d say that day is right around the corner.

me too

#200 Smoking Man on 03.17.12 at 10:46 pm

.#195 Westernman on 03.17.12 at 10:02 pm

You s\deserve a nob;e peace prize, hala fn loya you can speel what an achivment. Im not worthy, I bow to the speller

ba haaaaahahahha

#201 disciple on 03.17.12 at 10:48 pm

TurnerNation… I’m sorry but xdisciple is spoken for…

#202 blase on 03.17.12 at 10:53 pm

I love the logic of people who say immigrants are going to buy up all the condos, regardless of price.

So, what, price doesn’t matter? Critical thinking is dead.

#203 Ret on 03.17.12 at 11:32 pm

Congrats to Bob Rennie. You da RE Man in Van. Brad Lamb in T.O, stands in your shadow.

Marine Gateway II on that transfer station site next door? Bring it on. Planeloads of HAM are arriving daily, all eligible for Permanent Resident status and CMHC insured mortgages! Now don’t get complacent on us Bob. Get out there and sell you a$$ off. Time is of the essence.

Connect up with #185 TRT and you should be able to flog at least 80 units to his incoming family, although most buyers will probably want 2-3 units!

#204 eaglebay - Parksville on 03.17.12 at 11:45 pm

#193 John G. Young on 03.17.12 at 9:50 pm
“#181 eaglebay – Parksville

“#101 San Fran Frisco on 03.17.12 at 10:05 am

Are you gay?”

Sorry I missed this earlier — we gay people take pride in responding to inquiries prompty.

So how can I help you?”
__________
Just put an l before the y.

#205 Aussie Roy on 03.17.12 at 11:53 pm

True to my distant Irish heritage

Cue strong Irish accent, “Whale oil, beef hooked”.

Aussie Update

Signs aren’t too good in the property market. According to this article in the SMH, credit ratings agency Standard and Poor’s (S&P) has stated the blindingly obvious by saying a slowdown in China will hit residential property hard.

It reckons that if China’s growth rate drops to 5 per cent, Australian property prices could drop more than 20 per cent. S&P quickly distanced itself from such a scary prediction by saying such a fall is unlikely. But even Chinese growth of 7 per cent would result in a 10 per cent fall in Australian house prices.

So what is the link between China and residential property? In a word – commodities. Below, we join the dots between China, commodities and house prices. But first, check out the chart below, which will help you understand the explanation that follows.

http://www.dailyreckoning.com.au/the-link-between-china-and-australian-property-prices/2012/03/09/

#206 Had enough... on 03.18.12 at 12:39 am

I understand Tina’s situation perfectly. West side agents being arrogant, lying, smug, among many other negative traits.
I have bought and sold on the west side several times and the agents are all the same.
I would never buy here again( currently rent). Expect to get the hell out of this rainy dump of a city very soon.
I agree with San Fran sisco and Bill Gable’s comments. This city is over rated…The city needs to be slapped in the face. I believe the coming earth quake will help.

#207 Blacksheep on 03.18.12 at 12:41 am

Smokin dude,

Your link is good, but only tells part of the story.
This shows the big picture.

http://www.youtube.com/user/stefbot
——————————-
eaglebay – Parksville

I’m gay. So what.

take care,
Blacksheep

#208 truth hammer on 03.18.12 at 12:42 am

What the government should beconcerned with is when their own advice begins to turn back and start biting them in the ass. This ‘substitution’ thing works both ways. The government economists are saying we can go without cars if gas prices get too high, eat canned spam if meat is too expensive, live in a condo if house prices are unaffordable…but Marco…….you are maybe not aware of the number of professionals who are leaving Canada….for good. We also have the choice to leave. If you think you’re going to run the country as a refugee camp on the backs of wealthy HAM dollars…five your head a shake. Of course as a good civil servant you don’t care….the pensions locked in for you isn’t it. It’s the Canadian people who are being left behind in the shithouse you built.

#209 Nostradamus Le Mad Vlad on 03.18.12 at 12:59 am


GS Gambling on starvation; Oil Rise What is behind it? Hungary PM EU same as USSR? He is right; Cost of Living at 10 month high; Union Busting in UK; Office of Unintended Consequences; GS But it’s not just Goldman; Expect a monster rally, but only under certain circumstances; Greece and Sweden Two cashless societies; Boomers Why not? Nothing else for us to do.
*
Fear of Heights? Sure hope he remembered to put his parachute on! New Executive Order Hope and Change is what Obama campaigned on. Now he seems to have bought full change in; What if a nuke went off in DC? Social Destruction with absolute brutality; Invasion? US Marines now set up in five African countries; NDE Curious, but it takes all sorts.

#210 Junius on 03.18.12 at 1:11 am

#172 TurnerNation,

Yes, I have met Rennie. I know he is a sales guy but I liked him. I have been to his art openings and do respect that he is putting something back into the community. However he is a salesman through and through as he proved again today.

The monkey crap is from an impersonator.

#211 JR on 03.18.12 at 1:15 am

I agree to #100 SanFran’s post.
Vancouver is full of latte sipping, materialistic, cool-aid drinking do gooders. I have just arrived back in Van after a long time abroad. WFT???
-500mil roof on bc place and huge olympic’s for the 1% while we can’t give teachers any $.. Which means really a -3% raise.
-Various outfits illegally being forced into labor contracts?? BC Teachers, Air Canada? Labour rights anyone? By byee middle class jobs.
-Super sized jails for Canada with huge costs while crime statistics are at an all time low? With american firms bidding on the contracts to build an run them??
-Pensions byyyee by
-Fighter Jets?? Because war pays, i get it. But really, a single engine fighter for one of the most isolated geographic area on earth (the north). Hmm wouldn’t like to be that pilot when a turbine has a problem.
-Internet spying?? Thanks Vic Toes
-6.75$ to drop in at the local rec centre for a workout? Umm thats a lot of inflation i remember is was just 4 bucks a year ago i swear..
-Try to buy the 10x pass and they won’t issue it unless you give your photo,address, probably sin # bank account.. talk about overkill!!! Just give me a paper punch card i don’t want to register with homeland security!!
-Oh ya… ICBC profits (retained earnings) getting sucked by the BC governement into general revenue!! And BC Hydro as well?!! And there rates are up 11% or something like it.
-And our winters suck!!!!!!!! I just left 37 degrees

Anyways, i rent here and will be here for a while because i was born and raised and my career is here for now. There are many great things about BC and Vancouver, but really, the real estate should and will crash. People should travel more.

#212 TRT on 03.18.12 at 1:22 am

Hope everyone enjoyed their Green beer! At first I thought it was the colour of the glass…lol

#213 Morry on 03.18.12 at 1:31 am

Guess it’s about time to put my house on the market. I have been offered over 1.2MILL by walkers-by. I should be able to let it go for 1.7MILL after the horny buyers bid it up.
and it’s got feng shui coming out of the yin-yang .

#214 CalgaryBoy on 03.18.12 at 2:33 am

http://www.youtube.com/watch?v=UK-vWGuK83M&feature=g-u-u&context=G2f103a4FUAAAAAAAAAA

“Vancouver Condo Tower Sells Out In 4 Hours!”

WoW!!!!!

#215 Timbo on 03.18.12 at 3:28 am

http://www.ritholtz.com/blog/2012/03/barrons-home-prices-are-about-to-bottom-take-2/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29

As the current rate of Barron’s Housing bottom cover stories, we should expect to see a third bottom call 43 months from now — around October 2015. I expect that bottom call will be mostly right and perhaps even a touch late.

#216 gtrz4peace on 03.18.12 at 4:54 am

#101 San Fran – And for the record Canadians are not polite like you all would want to think. Actually you exhibit some of the rudest and passive aggressive behaviors of any nationality we encounter. Canadians are constantly overheard insulting my nationality as an American and I do not appreciate it. So here is a reality check.

YES! This is what surprised my husband and I the most in moving here. The “polite” Canadians are very passive aggressive. Thought it was just us who noticed.

That said, there are nice people everywhere — and jerks everywhere. Very hard to classify those traits by nationality.

#217 Crash Callaway on 03.18.12 at 5:10 am

“As special as Snowflakes” sums it up.
Now comes the Spring melt.

It’s pretty bad when a Dr. making 350k has to arm wrestle “house millionaire” grade nine drop outs for home ownership.
See what happens when you stay in school Doc?

This country is ack basswords.
There should be some kind of vaccine for those Kool Aid drinking idiots.

#218 Sky on 03.18.12 at 6:19 am

Weekend bizarro question ( not a joke, I really want to know) – Is anybody else, especially in BC, noticing that hair and fingernails are growing at about 2 times normal speed ?

#219 Ex-Cowtown on 03.18.12 at 7:01 am

#217 gtrz4peace on 03.18.12 at 4:54 am #101 San Fran – And for the record Canadians are not polite like you all would want to think. Actually you exhibit some of the rudest and passive aggressive behaviors of any nationality we encounter. Canadians are constantly overheard insulting my nationality as an American and I do not appreciate it. So here is a reality check.

YES! This is what surprised my husband and I the most in moving here. The “polite” Canadians are very passive aggressive. Thought it was just us who noticed.

That said, there are nice people everywhere — and jerks everywhere. Very hard to classify those traits by nationality.
+++++++++++++++++++++++++++++++++++

Canadians aren’t passive aggressive… we just have better things to do than pay any attention to you.

Now excuse me while I go and re-arrange the snowflakes in my back yard.

#220 Pr on 03.18.12 at 7:45 am

I guess that 99% of the people dont know who say this:

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

#221 Sky on 03.18.12 at 9:10 am

@ Bill Gable # 150 We have family in Van. Most are on their 3rd or 4th round of bronchitis this winter. Fukushima?

It’s not much better here in Kelowna. Still snowing most mornings and grey day after grey day. Major sun deprivation and waaay too cold here for this time of year. Meanwhile back east they’re getting July in March. What’s wrong with this picture?

Boredom- Not sure it’s fair to blame the city. Life is mostly brutalized monotony in one form or another. Hence, caffeine, alcohol,antidepressants, illegal drugs,adrenaline sports, video games, etc are enormously popular. And the USA is the world’s biggest user of antidepressant meds.

You know what they say – Where you come from is gone. Where you thought you were going to weren’t never there. And where you are ain’t no good unless you can get away from it!

Sorry to hear about your health.If you can’t escape physically then take a mental trip. Rx- immerse yourself in some deep reading.

#222 ANONYMOUS on 03.18.12 at 9:37 am

HERE ARE THE FACTS:

– Brent earns $130,000 per year
– Brent’s wife wants a house valued at $435,000

– Normal price for a house = 3 to 4 times one’s family income.

– Normal price for a house based on Brent’s income
= 4 X $130,000 = $520,000

= Brent SHOULD buy the house, it is within his means and not expensive.

He has 30K and a kid on the way. Buying would be insanely irresponsible. — Garth

#223 Victor on 03.18.12 at 9:50 am

Why you need to pay off your debt NOW

Jonathan Chevreau Mar 17, 2012

For debtors, today’s historically low interest rates have constituted somewhat of a fool’s paradise. Central banks around the world, including Canada’s, have kept interest rates as close to zero as possible.

But if we thought we could keep our boat forever afloat on this sea of low rates, there are many lining up to convince us the time has come to get on dryer land.

Whenever they get a chance, Bank of Canada governor Mark Carney and Finance Minister Jim Flaherty warn Canadians to get their fiscal houses in order. It’s not a matter of IF interest rates start rising, just a matter of when.

And on Friday, Toronto-Dominion Bank chief economist Craig Alexander joined in, with a stern warning that debt levels have risen to “unsustainable” levels. He said without new mortgage regulations to temper borrowing, a correction in housing prices or a hike in interest rates would be “disastrous for the economy.”

“Make no mistake, such a combination of forces would likely cause a recession,” he said, grimly.

“We need to acknowledge that a significant imbalance has developed and it poses a clear and present danger to Canada’s medium-term economic outlook. If the overvaluation was fully unwound rapidly, it would be three times the correction in the early 1990s.”

http://business.financialpost.com/2012/03/17/why-you-need-to-pay-off-your-debt-now/

#224 San Fran Frisco on 03.18.12 at 9:57 am

Eaglebay – Parksville. You prove my point. Yes, i am gay. In fact, I am so gay that when I open my mouth a purse falls out. In all seriousness, Ill venture that I have more masculinity and muscls in my middle finger alone than you do in your whole body.

Are you asking me out on a date? Sorry to disappoint you, but I am not attracted to uneducated, biggoted, geriatric, fear loathing morons such as yourself.

#225 maxx on 03.18.12 at 10:27 am

#64 Nostradamus Le Mad Vlad on 03.17.12 at 1:05 am


“It would be a classic case of everybody dropping their asset at the same time just to make ends meet.” — “Buy now or buy never.” Stick with the latter.

Well said Vlad. It’s a joke the way realtards have appropriated the mantle of power to predict the future of RE…..and so many sheeple swallow it whole. Buyers determine the future of RE prices. All they need do is wake up, eschew the old tart of cheap (debt) loans and take back their wealth creation potential. Not always easy, but definitely possible.

#226 Form Man on 03.18.12 at 11:11 am

#147 brainsail

I believe you are correct. The Highland Valley mine outside kamloops is advertised as the largest in Canada, and one of the largest in the world. While Highland Valley’s pit may cover a larger area, it does appear that Bingham has higher grade, therefore larger daily production.

#227 cto on 03.18.12 at 11:11 am

#209 truth hammer

If you are refering to Carney,
I think he is just a player in this great game started by our supreem leader – “Harper”. I may be wronge but i’m guessing this “all stakes or nothing” politician is telling F and the others, including Civil Service officials to keep the game going all all odds. He smiles to the voters, but in the back of his mind he hoping like heel the Americans get out of their funk soon!

In the mean time, keep suckin in the public to spend every last $ they can possibly owe to the bank.

#228 vreaa on 03.18.12 at 11:35 am

Bob Rennie, Vancouver Condo Marketer, Radio Interview – ‘Real Estate is a Sport’; ‘No Parking’; ‘I Love My Prius’; ‘Buy-Downs’; ‘Emerging Communities’; ‘Ghost-Town’; ‘Front-Row-Seats’; ‘Condo-Watchers’; ‘69% Of Buyers Own Homes’; ‘Repatriating Money’; ‘Passive Investment?’; ‘Like Trading Baseball Cards’

http://wp.me/pcq1o-3Qg

#229 Mister Obvious on 03.18.12 at 11:50 am

#194 Canadian Watchdog

“Say bye bye to sub-dollar gas per litre. You’ll never see it again.”
————————

When I first started driving there were a few places you could buy gas as lows as 35 cents per gallon. I said bye-bye to that forever in 1968.

Yeah, that’s right… I’m a fossil.

#230 TurnerNation on 03.18.12 at 12:01 pm

Vancouver, eat your heart out. And the Leafs won last night’s game?
Time for a local “arab spring”?
——————-

An intoxicated crowd of up to 1,000 people spent much of Saturday night fuelling a large street fire and attacking authorities who tried to intervene as St. Patrick’s Day celebrations in London, Ont., went awry.

The upheaval on Fleming Drive in the city’s east end drew about 65 police in riot gear and 10 firefighters to the scene.

http://www.theglobeandmail.com/news/national/st-patricks-day-mob-in-london-ont-torches-tv-van-battles-police/article2372870/

#231 City Slicker on 03.18.12 at 12:03 pm

#102 Smoking Man on 03.17.12 at 10:18 am

WHY does the herd keep bidding up real estate?
HOW did Hitler get an entire people on side to slaughter the Jews?
WHY are 90% of the people incapable of critical thinking?
———————————————————-
Smoking man, now take your critical thinking to the next level, worth every minute, this one was removed recently from Youtube, but google still has it so you better hurry.

http://video.google.com/videoplay?docid=7503526094925036067

Also an extra addition:

http://www.youtube.com/watch?v=iXKHw0EZrqM

#232 Morry on 03.18.12 at 12:03 pm

“and for god sake please start tipping.”
Bozzos all.

We canucks carry our own luggage and open our own doors. If you insist on doing these things don’t expect $5 from me mate.

PS In Europe NOBODY tips. So take it out on europeans while your at it.

b

#233 TurnerNation on 03.18.12 at 12:15 pm

Was this posted?

Why bad bidding wars happen to good people

From Saturday’s Globe and Mail
Published Saturday, Mar. 17, 2012 6:00AM EDT

http://www.theglobeandmail.com/news/national/toronto/globe-to/bidding-wars-infect-toronto-real-estate/article2372192/

#234 Deano on 03.18.12 at 12:46 pm

Hey San Fran…where should I start with generalizing…Brazilians or Yanks?

#235 Fabrega on 03.18.12 at 12:52 pm

Guys,

What is HAM?

#236 Fabrega on 03.18.12 at 1:02 pm

#212 JR

Moved to BC from overseas. Been here for 13 years now. Boy oh boy..what a disappointment.
Lots of backward thinking narrow minded people that do not have a clue of what is happening in the world.
BC “the best place on earth”…what a joke.
Politicians in BC? What a bunch of crooks and hypocrites. 10 years in power and all they did was f*** up the economy.

#237 maxx on 03.18.12 at 1:08 pm

#88 americanadian on 03.17.12 at 8:51 am

Fascinating article. We are, without a doubt, living in a global “wild West” of scams and scamsters of every stripe and proportion imaginable.

#238 John G. Young on 03.18.12 at 1:21 pm

#205 eaglebay – Parksville

“Just put an l before the y.”

I’m sorry sir, I need clarification of your request before I can proceed.

By “l” do you mean the 12th letter of the alphabet, or the capitalization of “i”?

And which “y” am I supposed to put it before?

As soon as I receive your response I will attend to your request.

#239 kc on 03.18.12 at 1:23 pm

Do these people who are buying into the “Rennie” hype understand that it is close to 3 years before they get the keys to their new digs? The crash in Vancouver is going to be comparable to the fall of Florida in the 1920’s housing BUST…

After you give your 10% down payment, tell yourself “it is different here… BPOE” … then read this page

http://www.doctorhousingbubble.com/florida-housing-1920s-redux-history-repeating-in-florida-and-lessons-from-the-roaring-20s/

“Everywhere vast new hotels, apartment houses, casinos were being projected. At the height of the fury of building a visitor to West Palm Beach noticed a large vacant lot almost completely covered with bath- tubs. The tubs had apparently been there some time; the crates which surrounded them were well weathered. The lot, he was informed, was to be the site of “One of the most magnificent apartment buildings in the South”-

ahhh time heals all wounds …

cheers

#240 John G. Young on 03.18.12 at 1:24 pm

#56 Van guy

“That gay mofo is a liar, and if BPOE wants to listen to him, maybe he’s gay too.”

The only “mofo” I see here is Van guy.

#241 John G. Young on 03.18.12 at 1:29 pm

#199 Smoking Man

“Therapy , who needs a shrink”

With respect — you do.

Your form of “therapy” isn’t working — never has, and never will.

#242 doc on 03.18.12 at 1:44 pm

134 beach Girl I resemble those remarks. 14 years of school post secondary. Delayed gratification. Big Loans. Bought west side fixer upper 2006 for 1.3M. Reno’s 400K. Psychiatry, if done conscientiously, pays less than other specialties but can be very satisfying. Chronic overwork to pay bills however led to burnout. Sold 2010 for 1.9M and escaped to Okanagan with honeybunny. Now have chickens, small house with big view and happy life living simply. Work part time and love it. Escape is possible. Tell Caspar.

#243 lilyflor on 03.18.12 at 1:52 pm

I’m no real estate expert, but if this were true, that would have to been there has been a boom in immigration, which I don’t believe is the case. Would that be right?

http://blog.buzzbuzzhome.com/2012/03/canada-housing-prices.html

#244 TurnerNation on 03.18.12 at 2:17 pm

#202disciple on 03.17.12 at 10:48 pm

Thought you were no longer a poster here, eh.
Looks like I’ve unmasked your vanity ;-)
Don’t worry buddy I’ve bookmarked your blog.

Smoking man – are you around, maybe still lying in a green coloured pool of urine?
Here’s what our school system has produced: paper shufflers aka project managers. Produce nothing, no technical skills, a cost centre.

Video is: Sh*t Project Managers Say

http://www.youtube.com/watch?v=UBr3MM9_zd4

#245 maxx on 03.18.12 at 2:21 pm

#92 Buyright241 on 03.17.12 at 9:04 am

Yikes! A bit of conflict of interest vis-a-vis primary occupation for a bunch of these members of the board of directors. What a farce. No wonder Canadians are getting fleeced to the bone. That installation ought to be scraped clean immediately, the organization dismantled and pure “market forces” allowed to prevail.

#246 Debtfree on 03.18.12 at 2:27 pm

Biggest re drop in 70 years .
http://www.cphpost.dk/business/rental-prices-explode-while-housing-sales-fall

#247 coastal on 03.18.12 at 2:30 pm

re: Bob Rennie, ‘Like Trading Baseball Cards’

Bob the condo pimp forgot the baseball card craze crashed from it’s peak in the mid 90’s. This condo ho will leave thousands in his wake.

#248 rockerchic on 03.18.12 at 2:48 pm

You’re awesome Garth… love love love this blog!!!

#249 bill on 03.18.12 at 2:49 pm

wow eaglebay is out of the closet.
who would have known?
feels way better eh man?
think of all the new friends you will make.

#250 jess on 03.18.12 at 2:53 pm

predators vs vultures

J.P. Morgan Chase’s Ugly Family Secrets Revealed | Matt Taibbi …www.rollingstone.com/…/j-p-morgan-chases-ugly-family-secrets-rev…Cached
You +1’d this publicly. Undo
5 days ago – From Horwitz’s piece: Nearly half of the files [Linda’s] team sampled were missing proofs of judgment or other essential information, she wrote to colleagues. Even more worrisome, she alleged in her wrongful-termination suit, nearly a quarter of the files misstated how much the borrower owed. In the “vast

#251 VMD on 03.18.12 at 3:04 pm

Wall Street Journal (Chinese Edition)
[Australia’s Housing Market Creaks]
2012年03月16日
Australian homeowners sidestepped the worst of the global financial crisis as the country’s housing market held up well. But the party looks close to an end.

Despite the country’s resource riches, the economy is faltering. Corporate profits are down and the unemployment rate is worsening. When commodities prices dropped in the fourth quarter, gross domestic product growth disappointed.

A shock to the economy─for instance, negative signals out of China, which would be bad news for commodity prices─could see borrowers coming under strain.

Last time the property market looked like it was getting in trouble, in 2008, the government boosted demand by ramping up grants for first-time buyers. These incentives have been scaled back, though Canberra could revive them if the housing market were to sink further. That could keep sales ticking over but it would be a short-term fix only.

http://chinese.wsj.com/gb/20120316/hrd115249_ENversion.shtml

#252 Junius on 03.18.12 at 3:05 pm

I love my pet monkey, he comes with me to the office every morning. I even trained him to make coffee. Beat that smoking man with your critical thinking.

#253 Tom on 03.18.12 at 3:10 pm

#101 San Fran Frisco

“I work in hotel management as an exec”

oh, that’s what they call dishwashers nowadays, eh?

#254 Harlee on 03.18.12 at 3:14 pm

#101 San Fran,#217 gtrz
Can either of you tell me where this mythology of the “nice,polite Canadian” orginates from ? Was it some nice,polite American having to come up with something to say about (not “aboot”) Canucks that came up with that line ? I’ve been Canadian for over fifty years now and I can’t ever remember a fellow Canuck ever describing themselves with that classification. Maybe you heard some talking head on TV (Americaniski or Canucky CBC boob-tube) use that term, but in real life…? And if someone actually has told you that for real,well remember…don’t believe everything you’re told….

#255 Junius on 03.18.12 at 3:17 pm

#245 lilyfor,

You are correct. Immigration levels have been stable for years. People like TRT come on all the time and post that immigration levels will keep pushing prices higher. However that has been shown to be untrue time and time again. But it doesn’t stop them from continuing to post it.

#256 Junius on 03.18.12 at 3:19 pm

#241 kc,

When the dust settles we will see that many, if not most, of the Gateway buyers are speculators looking to flip. These people believe as does BPOE that there is no end in sight.

#257 jess on 03.18.12 at 3:21 pm

246 TurnerNation

From Pizza Making To Bank Vice-President: How Big Banks …thinkprogress.org/economy/2012/03/13/…/pizza-banks-robo-signing/Cached
You +1’d this publicly. Undo
5 days ago – Before becoming vice president, one employee worked at a pizza restaurant. […] As at Wells Fargo, employees at JPMorgan Chase took on titles like “vice president of Chase Home” even though “the titles were given by … with recent accounts provided by former Wall Street employees and whistleblowers.

#258 Junius on 03.18.12 at 3:23 pm

#236 Fabrega,

HAM is “Hot Asian Money.” Specifically it refers to the recent wave of money leaving China in advance of their economic slowdown and possible government crackdown on funds leaving the country. It is “Hot” because it doesn’t look for value but just buys up what it can to get the money out.

Generally the term is being used to refer to virtually any purchase from Asia that appears to be without care for market values – in other words – insane.

#259 Junius on 03.18.12 at 3:26 pm

#221 PR,

Let me guess……Thomas Jefferson?

#260 Canadian Watchdog on 03.18.12 at 3:47 pm

Which Canadian bank just dumped $17 billion in toxic condo mortgages on to taxpayers via CMHC?

See here: http://i43.tinypic.com/194cat.png http://i42.tinypic.com/20f9s7a.png

#261 disciple on 03.18.12 at 4:01 pm

#246 Turnernation… Yes, you suckered me in there to post again. Not the first time. Worry not, though I may not post as often, I have my eye on you and that other im-poster Junius. The pattern is revealing itself, you both are like virtual bookends for each comment section. Good cop, bad cop…Time for Plan B?

#262 bill on 03.18.12 at 4:16 pm

255 Tom on 03.18.12 at 3:10 pm
actually they call the dishwashers ‘tom’ ….

#263 GregW, Oakville on 03.18.12 at 4:20 pm

Hi #178 Nastra, re: “The images speak for themselves – watch the video’s.”
There is nothing in the video, like todays paper, to prove when it was taken. But you get this kind of stuff from both sides. A kind of (1984 by G.O.) double speak.

#264 Hocus Pocus on 03.18.12 at 4:27 pm

U.S. Can’t Stop Spending

http://campaign.r20.constantcontact.com/render?llr=orkbnrcab&v=001-uqe82qIMgmADNCWRZuqQtlhL0kg0xQhE1m-171mednWMXKvWckoLVXY54FXTkhKjTLn87LAGIqqQvnDjabYSUMYgwenLNZbp44-tlD1xEk%3D

#265 TRT on 03.18.12 at 4:28 pm

The 80 incoming are very extended yet related family members that are immigrating…they will need a place to live. i would rather them remain in India…believe it or not, they are going to be a net drain on the economy (excluding developers, banks, etc)

While in India, they look at you as Canadians saviors…get into Canada at any price. But once here, that respect is gone in an instant.

Thus what happens…in order to maintain a hierarchy, the relatives previously here coerce the newly arrived to buy RE.

So the hierarchy is restored. The older immigrants have bought at a much lower price point while the newer immigrants have bought at a higher price point. The newly arrived drown in debt and they subsequently coerce the next set of arrivals to buy ASAP.

Seeing it happen all the time. The happiest people are those that are coercing.

In any case, they will need space to live..be it a 500 sq ft condo.

#266 45north on 03.18.12 at 4:30 pm

Sky: It’s not much better here in Kelowna. Major sun deprivation and way too cold. Meanwhile back east they’re getting July in March. What’s wrong with this picture?

Ottawa hits an all-time record: high of 24° C previous high was 16.1° C 1966

http://www.ottawacitizen.com/weather/index.html?city=ottawa&rg=on

I looked up some old photos, March 9, 2008 we had a major snow storm in Ottawa.

#267 Junius on 03.18.12 at 4:44 pm

#254 Junius Imposter,

Don’t you ever tire of impersonating others?

#268 GregW, Oakville on 03.18.12 at 4:55 pm

Hi Nastra, This doesn’t sound good.

Iran threatens Hormuz and world oil supply after trade links cutoff.
“Former Intelligence Minister Ali Falahian, Iran’s senior spokesman on sanctions, said Sunday, March 18, that if the US and Europe think they can ignore international law to promote their interests, they should know that Iran will respond in kind everywhere it can. “I suggest that the West take seriously our threat to close the Strait of Hormuz,” he said in Tehran’s first response to the SWIFT decision to sever ties with Iranian banks to enforce European sanctions on its nuclear program….”
http://www.debka.com/article/21837/

#269 GregW, Oakville on 03.18.12 at 4:59 pm

Hi Nastra, IMO Canada should do the same!

France Bans GM Corn Amid Mass US Protests against Monsanto
http://www.globalresearch.ca/index.php?context=va&aid=29828

#270 eddy on 03.18.12 at 5:16 pm

PR quoted:

‘The issuing power should be taken from the banks and restored to the people, to whom it properly belongs’

The banks have their own army (NATO ) that will stop anyone that tries that. It works great, the troops don’t even know who they are working for.

#271 DonDWest on 03.18.12 at 5:33 pm

Here is an interesting video I came across on YouTube showing Vancouver in 1949:

http://www.youtube.com/watch?feature=fvwp&v=8RHu663GxXM&NR=1

Immediately, the video was met with replies by stressed youth who felt they’ve been robbed, along with the usual blame of immigration to go around.

Garth is correct; houses have destroyed this once great city. The video wasn’t seen as a historical clip, but as a memorial for a funeral. Although this was well before my time – I prefer to remember this version of Vancouver than today’s version whenever I come to visit my uncle in his 400 sq. ft. glass box hundreds of stories in the sky.

The Vancouver than sort of reminds me of the Halifax I knew just 10 years ago. Already though, Halifax is changing fast, I see it – the culprit again will be real estate along with our politicians relentless push to “make the city attractive to global corporations.” Time to get out of Halifax – the disease of big real estate and corporate globalization is starting to suck her up whole.

Running out of Canadian cities to move into that are truly Canadian. I’m looking at Niagara Falls right now. I don’t care too much about the job picture because the reality is I’ll probably be working crap jobs for most of my life. I can’t see myself becoming a doctor, engineer, real estate agent, or stock broker. These are the only jobs that allow a person to purchase real estate – even at modest levels- in cities that have embraced globalization. Of course the “Iron Curtain” that is globalization will one day suck up any city I decide to settle – hopefully that will happen the day after a die.

#272 Westernman on 03.18.12 at 5:59 pm

[email protected]#273,
What in the world does “truly Canadian” mean anyway?
We have two systems of measurement, two languages, half of the third world has taken up squatting here etc. etc. etc.
There is no such thing as ” truly Canadian “…

#273 Nostradamus Le Mad Vlad on 03.18.12 at 6:11 pm


Of Human Bondage, but this requires Herculean effort . . .
*
Training

An airline captain was breaking in a very pretty new blonde stewardess. The route they were flying had a stay-over in another city, so upon their arrival, the captain showed the stewardess the best place for airline personnel to eat, shop and stay overnight.

The next morning as the pilot was preparing the crew for the day’s route, he noticed the new stewardess was missing. He knew which room she was in at the hotel and called her up wondering what happened to her. She answered the phone, sobbing, and said she couldn’t get out of her room.

“You can’t get out of your room?” the captain asked. “Why not?”

The stewardess replied,

“There are only three doors in here, one is the bathroom, one is the closet, and one has a sign on it that says ‘Do Not Disturb’!”
—–
A gentleman was having some physical problems and his doctor told him that he had to drink warm water with Epsom salts one hour before breakfast.

At the end of a week he returned and the doctor asked if he was feeling better. The man said that he actually felt worse.

“Did you drink warm salt water an hour before breakfast each day?” the Doc asked.

“No,” replied the man somberly, letting out a sigh.

“I could only do about 15 minutes!”
*
#271 GregW, Oakville — Hi Greg.

Sure is fun to watch all these changes happening thick and fast, and notice how citizens react to them.

By reacting to something that no one can do anything about, it removes critical thinking skills which makes the populace (unknowingly) dumbed down sheeple. Unless something like a French Revolution forms, this is the way we will be living — Yes Sir, No Sir, when do you want me to bend over?

#274 Fabrega on 03.18.12 at 6:23 pm

Junius,

HAM= Asian Hot Money

Now I get it.
Thanks.

#275 Fabrega on 03.18.12 at 6:24 pm

or Hot Asian Money…

#276 TurnerNation on 03.18.12 at 6:26 pm

Regarding the Vancouver and London riots: these young people know they’re priced out of houses, school. They likely see the police & fire depts’ fat union salaries and gold plated pensions (along with sick leave, overtime, personal days, vacation, full benefits for family, indexed DB pensons, free legal defense and paid diciplinary leave, and jobs-for-life), and reacted.

This is what they look foward to? Or instead, to many decades of student loan and mortgage re-payments. Along with yearly tax increases.

I dunno. Boomers may well remember that the Viet Nam war did not end itself. Action had to be taken. Today’s goverment is out of control. Like: 1 billion dropped on G20 meeting. Yet our road crumble and kids suffer 1:35 teacher ratios. Toronto Mayor Ford promised to bust the unions’ demands. He did not. He shuttered libraries, programs while allowing Canada’s most highly paid police force a budget increase! Why must we suffer?

This will not end well?

#277 TurnerNation on 03.18.12 at 6:44 pm

Young people know their main chance at employment is as a $10/hr bank teller pushing LOCs.

Idea for future blog title: S.O.Bs (Sons of Boomers).

Yes the Sons of Boomers are rioting!

#278 TurnerNation on 03.18.12 at 6:49 pm

Breaking news in Winterpeg. This is an Air Canada facility.

Aveos closes its doors
CJOB News Team reporting
3/18/2012

Employees of aircraft repair company Aveos find themselves unemployed.

Aveos closed its doors in Winnipeg at three o’clock this afternoon.

Lorne Hammerberg, President of the local aerospace workers union, tells CJOB employees working this afternoon were told they had to go home…

#279 Van guy on 03.18.12 at 6:57 pm

#242 John G. Young on 03.18.12 at 1:24 pm
#56 Van guy

“That gay mofo is a liar, and if BPOE wants to listen to him, maybe he’s gay too.”

The only “mofo” I see here is Van guy.
____________________________________

Yes. Did your mom tell you that?

#280 Timbo on 03.18.12 at 6:58 pm

http://www.bloomberg.com/news/2012-03-18/china-home-prices-fall-in-more-than-half-cities-tracked.html

“China’s February home prices fell in more than half of the 70 cities monitored by the government with only three cities recording gains as the country maintained curbs on the property market. ”

Poor Vancouver might have a dry spell this year…

#281 Westernman on 03.18.12 at 7:13 pm

Turner Nation @ # 278,
You sure do enjoy sticking up and making excuses for criminals ( rioters ) don’t you? I think one day it would be enlightening for you if some of these ” misguided youths ” burned down your house and/or car and maybe attacked you and/or your family and we’ll see how sympathetic you are then.
Remember- a liberal is someone who hasn’t been mugged yet…

#282 Timbo on 03.18.12 at 7:17 pm

#280 Turner Nation,

That is sad. High Canadian wages and dollar will destroy our industrial base. Most of the move is to china from what I can gather.

Thank god for free-trade.

And yes, Canadian pilots have nothing to fear ..yet

#283 DonDWest on 03.18.12 at 7:21 pm

#274 Westernman

Don’t know what truly Canadian is – but I know what truly Canadian isn’t. You can always detect a global corporate cesspool of a city when the residents have big attitudes, obsess over expensive real estate, treat the stock market as if it’s a sporting event, and riot when their sports team losses a big game.

A lot of Canadian cities are jumping on the bandwagon – I find the culture repugnant. Would rather retreat far off into the woods in insolation than worship on the altar of what we call “modern global capitalism.” Of course, this overlooks the fact what we call “global capitalism” is more centralized and homogenized than the Soviet Union. . .

Global capitalism, the system where it’s a crime to be different, think different, and be creative. . . A system that rewards people for playing the game rather than earning their own way. Disgusting, hate it with every fibre of my very being. . .

#284 new-era on 03.18.12 at 7:26 pm

Garth you say wait til the 29th, but not much will happen.

Your political buddy will do more of the same old.
Mabey lower the term to 25 years, but keep interest rates low low low, and probably raise the ceiling on CHMC.

They will cater to the preditory lendors and will not stomache any type of reform to lower the debt.

The only thing which will eventually cause this government to address the problem is when the suckers who are buying our debt with next to zero return, stops buying our debt.

#285 TurnerNation on 03.18.12 at 7:34 pm

#283Westernman on 03.18.12 at 7:13 pm

Are you too scared to take to the streets? I thought so. Stay at home, let the “system” take care of you. It will not do so.
How far will Harper go? Just watch him. I have never voted for liberal have no plans to.

Sure, this was mindless rioting. But the underlying cause…if we do not learn it then nothing is gained or will change. I suppose those Arab freedom rioters were criminals…

#286 TurnerNation on 03.18.12 at 7:39 pm

This is Canada – I do not doubt the G20’s events are a nation-wide underlying cause of unrest. Here is a rare front line glimpse of what we fight for?

G20 Toronto – Police shoot at protestors point blank

http://www.youtube.com/watch?v=oETzR2pTw0M

#287 Westernman on 03.18.12 at 8:36 pm

Turner Nation @ # 287,
Listen up chump, I take care of myself and carry this system on my back as I do so.
People who run amok in the streets destroying property and attacking people are criminals, Sir… nothing more – get it straight.
And get this straight as well, fear and good judgement are two different things…

#288 TurnerNation on 03.18.12 at 9:22 pm

The rioters are criminals, yes. But why are their doing it? We’re told we’re living in the BPOE? Yet, we are greater economic slaves than ever…the slaves are rioting. Laws, prisons, will not change this.

#289 Hicksville Alberta on 03.18.12 at 9:48 pm

Turner Nation

I totally agree with you. I have children and see how effed up everything is and if the arseholes that “we” have trusted to provide Good Governance either don’t know what they are doing or are too incompetent or too corrupt then if they can’t be voted out the next thing to expect is that some people take things into their own hands.

Happend in the last depression and ultimately something has to play out in this one.

As for Weternmoron he can blow it up his spout along with his surprising politically correctness.

#290 Westernman on 03.18.12 at 10:28 pm

Hicksville [email protected]#291,
You too, huh? Maybe someday these criminals will show up at your door with a molotov cocktail in hand and you can tell them you understand why they are tossing it through your front window.
Maybe you can tell them ” I feel your pain ”
I’ll bet your opinion will change then and in a big hurry…

#291 palebird on 03.19.12 at 5:05 am

#280
Air Canada under Robert Milton took all the necessary steps some years ago to ensure this would happen. It was written on the wall for all to see if one cared to see it. I worked for Air Canada and then was transferred to Aveos. I then quit in disgust some five years ago and went on to bigger and better things. Feel sorry for all those unemployed people but, as I said, it was written on the wall.

#292 “All my doctor colleagues think I’m nuts to continue renting, but quite frankly, if I get a big fat mortgage and a nice fancy “doctor house”, I won’t be able to retire.” | Vancouver Real Estate Anecdote Archive on 03.19.12 at 9:01 am

[…] a $3Million house that she and her husband rent for $4K per month (as featured by Garth Turner at greaterfool.ca 16 Mar 2012): “I had anger and bitterness towards the unaffordable market. Last year, I was one of those […]

#293 Mark from London (UK) on 03.19.12 at 1:02 pm

#27 Marco from Van

Sorry Marco, but you’re wrong on London. All your points are true, but the housing market has not collapsed here. Only a few crappy boroughs, the rest has prices still rising at 5%/year or more. A whole generation is turned into renters (like me). Money from China, Russia and the Middle East is pouring into London like mad. But at least the British government is frank about that.

If you want the necessary correction in the housing market in Vancouver and Toronto, make it hard, or better impossible for non-residents to invest in real estate. Prevent Canadian banks from giving mortgages to non-residents.

Let’s not forget that rising house prices do not make a country better off, they just redistribute money from young to old, and early buyers to latecomers. There is zero real gain to an economy aside from construction.

In the meantime, I’m renting and saving whatever I can for the day when things turn… but I’ve been waiting for a long, long time already.

#294 “All my doctor colleagues think I’m nuts to continue renting, but quite frankly, if I get a big fat mortgage and a nice fancy “doctor house”, I won’t be able to retire.” on 03.19.12 at 4:04 pm

[…] a $3Million house that she and her husband rent for $4K per month (as featured by Garth Turner at greaterfool.ca 16 Mar 2012): “I had anger and bitterness towards the unaffordable market. Last year, I was one of those […]