The close

Brad and Jill sold their house five weeks ago for $1.895 million in a crappy-but-uppity part of the Big Smoke. In their late forties, this was their third place and not only had they grown disenchanted with old houses (“the deck was rotten… the roof was iffy.. the backyard was a swamp…”) but they had dollar signs in their eyes.

So they found some greater fools to pay them exactly double what they shelled out five years ago, will trash the $420,000 mortgage upon closing and walk with about $1.3 million. The plan is to invest, harvest four grand a month in income and move into a bigger, better place two streets away. “Just signed a three-year lease,” he says. “It’s perfect. I can’t believe we’ll be living for free.”

Not so much for the buyers. They’re Millennials, Jill says, shaking her head a little, who made a big withdrawal at the Bank of Mom and are taking on a mama of a mortgage. The deal is set for late June, and now B&J have only one thing keeping them up at night: “Will they close?”

Exiting a deal isn’t simple. Yes, you will lose your deposit – that’s a given. Unless the seller agrees to sign a mutual release letting you out of the deal (fat chance) also expect to be sued for breach of contract. The amount of damages claimed usually depends on what price the sellers are ultimately able to get for the property. If they sell for less, the original buyer will be expected by the courts to make up the difference, plus cover actual costs the sellers incurred in re-listing. If the sellers had already purchased another home, for example, and have to get out of that deal, the damages could be Trumpian.

Also there’ll be legal costs. Lots of them. Litigators ain’t cheap, so both parties will have to fork over five or ten grand just to get their claims and defenses rolling. The odds of a negotiated settlement, instead of a full-blown court case, are high since burning through judge time is even more expensive.

In this market anyone who bought in February, March or early April and decides to walk may end up severely pooched. Realtor-provided price stats haven’t moved a whole lot yet, but actual real estate values are tumbling. Look at this little report from blog dog Steve:

“Just thought I would share with you a couple of images as evidence that the housing market may be finally correcting itself. The first image is of a house in the Weston neighbourhood, which I took on April 20, when it was listed at nearly $1mil. Today, that same house is still available over a month later for $300K less, with an asking price of $699K. As a renter, I sure hope house prices continue to plummet across the GTA.”

Given that listings continue to flood in and buyers have lost their house lust, prices are destined to fall. The increases in late winter were so off-the-chart we could see a 20% decline within a few months, and still have an affordability crisis. Recall the charts published here yesterday. This is a classic bubble, the result of excessive speculation and human emotion detached from economic fundamentals. Worse, it’s a debt-fueled keg of risk. Of course it will end, as every asset bubble before it has. And there’s never a soft landing.

So, buyers who walk can look forward to a protracted process since jilted sellers may require months to find a new buyer. Guaranteed, it will be for less. So the damages could be substantial, with no place to hide other than personal bankruptcy or moving back in with mom on the Isle of Man and herding goats.

The question is simple: is losing your deposit, paying tens of thousands in legal costs, going through marriage-busting stress and facing a settlement for damages that could amount to hundreds of thousands – then ending up with no asset to show for it – better than actually closing? Maybe not. If this was a piece of property you’d planned on living in for a decade or more, running away could be folly since the needed correction won’t last forever, plus you get a house. On the other hand, if you’re a speculator everyone thinks you should fry.

Well, the next few weeks and months will test many people whose unshakeable belief was that real estate is safe, and ascendant. Surprise.

184 comments ↓

#1 Westie Jacklyn on 05.25.17 at 7:14 pm

First Vancouver housing, then GTA, can Bitcoin be the next bubble to pop?

#2 AK on 05.25.17 at 7:15 pm

GTA Home Sales Plunge 26% Following Ontario Foreign Buyer Tax

#3 smallcapsteve on 05.25.17 at 7:15 pm

But it’s different here!

#4 I'm Not Poloz on 05.25.17 at 7:16 pm

BREAKING! Bank of Canada Governor Stephen S. Poloz purposely not increasing the Overnight savings rate to devalue the Loonie. Currency manipulation:
http://www.bnn.ca/bank-of-canada-trying-to-keep-the-dollar-as-low-as-possible-with-rate-hold-cibc-s-tal-1.760101

How low will the Loonie go because of Poloz? 60 cent loonie? House prices aren’t the only commodity going down in value in Canada.

Investors are already indexing for a Bearish Long term short on the Loonie at 40 cents in 2019. They doubt that the Loonie will appreciate over 76 USc under Poloz.

#5 Mahai on 05.25.17 at 7:17 pm

Canadians hoarding $16B worth of unused loyalty points

http://www.cbc.ca/news/business/loyalty-program-rewards-1.4129867

#6 dontcallmeshirley on 05.25.17 at 7:22 pm

Who has stats on the successful settlement of damage judgements?

Like child support, damage judgements are routinely ignored, and very difficult to collect.

There is millions of dollars of unpaid child support in Ontario alone. Court orders are hardly cash in hand.

#7 Raj on 05.25.17 at 7:22 pm

Toronto area home sales sink after cooling measures

“One agent in his firm submitted an offer of $650,000 for a client bidding on a townhouse that was selling for $750,000 a month ago, and the bid was accepted. He said the agent hadn’t expected to get it, but he assumes the seller had no choice.”

https://www.theglobeandmail.com/real-estate/toronto/toronto-area-house-sales-fall-26-per-cent-after-ontario-foreign-buyers-tax/article35119450/

#8 DON on 05.25.17 at 7:22 pm

“So, buyers who walk can look forward to a protracted process since jilted sellers may require months to find a new buyer. Guaranteed, it will be for less. So the damages could be substantial, with no place to hide other than personal bankruptcy or moving back in with mom on the Isle of Man and herding goats.”

The personal bankruptcy part stood out. Definitely a viable option for Millennial’s under immense debt in a turning market. An option at least. It wasn’t rational at the top why expect rational on the down side.

#9 crdt on 05.25.17 at 7:24 pm

It begins…. The elation of the last 10 years will be turned into shock and disbelief, the drops will be as jaw dropping as the ascent. Lives will be ruined, fortunes made. As the news trickles in the bubble peak prices will look like Mt. Everest in the rear view mirror, never to be seen again, perhaps ever. Once the glow of delusion disappears, those pile of bricks will be nothing but a building needing ever more dollars to stay the same.

#10 TCContrarian on 05.25.17 at 7:24 pm

As they say: “bulls make money, bears make money – pigs get slaughtered.”

But how I wish I was… that pig! :-)

One question Garth: What happened to the ‘slow melt’ hypothesis you used to subscribe to with regards to the RE correction in GTA/YVR?
In your more recent posts, I’ve noticed that you’ve basically accepted the possibility (or likelihood) of a …

…’crash’! What changed?

TCC

#11 Newbie on 05.25.17 at 7:26 pm

A funny guy is preaching on CP24 )))) “do yourself a favour: take it off the market if it doesn’t sell within one week” ))))

#12 45north on 05.25.17 at 7:27 pm

The first image is of a house in the Weston neighbourhood, which I took on April 20.

Dalbeattie Ave, right next to Pelmo Park Public School. I went to Melody Road ( Public School ). Funny to think it would be worth $989,000. The sellers have aggressively lowered their price – probably because they could.

#13 Smoking Man on 05.25.17 at 7:29 pm

Things are still selling for strong prices in my hood.
They just take longer.

Sellers are a stubborn lot. Two months from now listings will dry up. Think the sweat spot to buy will be July. Finding someone in trouble is the trick if you want to vulch.

I think the burbs are screwed. 416 will prevale. Location Location Location.

#14 paulo on 05.25.17 at 7:31 pm

well in Barrie Ontario listings have been climbing at about 10% per week over the last few weeks,small price reductions starting to show. also a significant number of preliminary listings showing up- sign on the lawn promising “comming soon to re estate.ca/mls”
more marketing nonsense from the local realatards
im thinking there clients although stupid and greedy are forfeiting there chance to get out, time will tell.
also hearing from some inside friends that there is a growing number of previously done deals,that are unwinding or delayed most of the “purchasers” are from the GTA so it appears that there is already a domino effect effecting the market the numbers i am hearing seems to indicate that there is a rapidly growing number of defaulted deals in the GTA . i am also hearing from the same sources that mortgages are tougher than nails to get all of a sudden,many deals collapsing due to below sale price appraisals and banks unwillingness to bend the rules its about time on that one.

#15 Daughter of Ponzy on 05.25.17 at 7:33 pm

Look at these old shacks greater fools pay 1 – 2 millions. They are so decrepit and dirty even by third word standards. No wonder Chinese won’t live in them and tear them down. What’s wrong with Canadians?

#16 Buy Low Sell High on 05.25.17 at 7:33 pm

The suntanning ladies don’t have their clothes on but let’s hope Brad and Jill get their close on!

#17 Chaddywack on 05.25.17 at 7:36 pm

What I still don’t understand is why the run up in Vancouver is not correcting as fast as it did in Toronto.

Prices are still as high as ever and now condos are popping. It’s getting to the point that a starter condo is getting unaffordable.

I had two cousins who bought starter condos recently. One paid $450k (went about $38k over ask) for 600 sq feet in North Van and another paid $600k (went almost 50k over ask). They told me they had to because “so many asians were trying to out bid them”

Vancouver is definitely a different beast…..

Or maybe people are just smarter in Toronto.

#18 Daughter of Ponzy on 05.25.17 at 7:43 pm

#13 Smoking Man

Stop lying Smokey or should I say Jimmy Stojsin. You sold your crack shack for a million dollars, no wonder you are scared of buyers remorse. I wish they come to their senses and never close on such a crappy deal. You should know that for a million dollars you can buy a really nice house in much nicer countries than this one. You are such a con artist!

#19 crdt on 05.25.17 at 7:47 pm

TCContrarian

Slow melt thesis soon to be replaced with the Goldilocks economy theory just like in the US during crash. Goldilocks then will then be forgotten while discussing “too big to fail” which will make way for the crash for everyone else…

#20 prairie person on 05.25.17 at 7:47 pm

It is amazing the contracts people will sign without reading them, without understanding. A family member was in the business of approving people for loans. She would try to explain interest rates, the ratio cost of a house to income, the risks inherent by buying too much house. Most people weren’t interested. All they wanted to know were the monthly payments. They brushed everything else aside. Just give us the money was their attitude. Many of them could not calculate using percentages. Their friends and family, once a pricey house was bought, bragged about how rich their friends were. Trying to explain to them that having a house worth 750,000 dollars (this was some time ago) with a 650,000 dollar mortgage did not mean that you were worth 750,000 dollars.Went right over mom and dad’s head, over the uncle and aunt’s heads. Mikey and Anna were rich. Throw in a car bought on time and furniture bought on time and the parents were insufferable. Say to them, they don’t own the house, the bank does.I would say from my experience that the average Canadian does not understand math, or capital, or gross and net. If house prices drop and people lose their houses, and their furniture and car, they and their family will be angry. They’ll blame everyone else. Resentment will be the dominant feeling. At the first meeting at the bank to discuss increasing payments, they’ll be angry and frustrated but maybe they’ll actually listen. AT that point will it matter. Probably not. It’s sort of like being on a cruise ship and not bothering to attend any evacuation drills–when the ship starts to sink, it is too late.

#21 Mike on 05.25.17 at 7:48 pm

No crash until prices back to 2014 levels, or 2011

#22 VANTOR on 05.25.17 at 7:53 pm

#17 – I really think it has a lot to do with the natural barriers surrounding Vancouver. Toronto has a ton of available development land. I think betterdwelling said something like enough land to build at a steady rate until 2030. That’s with the current green belt boundaries. This city is geographically huge. Vancouver conversely has a better climate, a more sophisticated public transit system, and is surrounded by the ocean and mountains. No doubt it’s prices are in a bubble, but Toronto just has more growing room. Eventually group think breaks off and people realise the crap they’re buying isn’t worth it. With Vancouver there’s only so much room, with Toronto every high speed rail announcement results in another city you can commute from.

#23 Cottingham a bargain on 05.25.17 at 7:54 pm

Real estate salespeople on CP24 tonight continue to say that real estate market is still hot , cottage market is still hot and houses are still going above asking. Yes , vested interest for sure in continuing belief.

Our host, an investment guru for financial assets says otherwise .

Who do you believe ?

That’s easy. — Garth

#24 broader mind on 05.25.17 at 7:54 pm

Don’t worry about housing, the real story is the American’s going all out after our Great Canadian Banks. Moody’s et all are looking very powerful today. So they watched a movie and now they want a shot. Hope they fry.

#25 Lumpia on 05.25.17 at 7:54 pm

A realtor just sent me an email telling me that right now is the best time to buy because there are less bidding wars and a lot of listings.The prices have not dropped yet in the downtown Toronto condos. We will see what happens in a couple of months!

#26 Pete on 05.25.17 at 7:54 pm

Very good post, Garth. Nice work indeed!

#27 Newcomer on 05.25.17 at 8:01 pm

>>What I still don’t understand is why the run up in Vancouver is not correcting as fast as it did in Toronto.<<

———

The technical analysis is that people in Vancouver are what is known as stupider.

To put it in layman's terms, when prices for SFH dropped, the owners stopped selling because they were insulted by the idea of being offered less than millions that they deserved. As there were not enough SFH for sale, buyers took the money they would have ordinarily spent on a SFH and started spending it on townhouses and condos. Buyers are aware that, with less than 100,000 empty units in Metro Vancouver, and the population growing at a staggering 1% per annum, there is unlikely to be anywhere to live by the end of next week. This will end well, as it always does.

#28 For those about to flop... on 05.25.17 at 8:02 pm

Brad and Jill went up the hill to fetch a pale of water

When they returned ,their REAL buyers had learned

And said ” I wish we hadn’t been trying to help out our daughter”…

M42BC

#29 Wrk.dover on 05.25.17 at 8:02 pm

Poloz is stuck in a rut, so why shouldn’t I’m Not Poloz be in a rut too? If Harper’s appointee goes away, the other will probably leave us alone as well.

Suppose Princess Justin even knows who and what Poloz is?

#30 paulo on 05.25.17 at 8:05 pm

Throwing good money after bad: so your purchaser turns out to be a douchebag and walks on your agreement of purchase and sale. so lets consider recourse first the courts superior court of justice action, filing and completing the steps likely cost 30K and about 3-4 years till you get judgement. than comes the tricky part,enforcing or in plain English getting your money. this is where the devil is in the details, if you hunted down the dead beat got a multi 100 thousand judgement your chances of ever recovering a single cent are minimal,in most cases the dead beat will go BK on you and you will be rubbing salt in your wounds
civil litigation is not unlike divorce court usually the laywers are the only winners .
my advice: if you run into this problem,try to settel it with a minimum of legal expense, propose providing a release in exchange for forfeiture of deposit plus a reasonable contract break fee; get your RE agent on board for a reduced piece of the remaining pie,don’t worry they know if it goes to court they are also toast
usually the courts will order any deposit returned to the seller in full as the sale is a non event,and direct the real estate broker to also pursue the partie in default.
moral of the story if you have a dead beat purchaser,do not dream of reaping piles of compo from same you may just end up adding a costly insult to your injury

#31 BobC on 05.25.17 at 8:08 pm

Sorry, off subject but important to me at this moment.
I’ve been reading this crap for years now. You said sell gold at $1800US and I said you was crazy. I finally listened at $1600US.
You have repeatedly said have a balanced portfolio of etf’s and I said your crazy.
I put one together and put it in a watch list at the currant price at that time. As time went on I just knew more and more a crash was coming. You said no it wasn’t. I thought he’s nuts.
I put together a new list and sent it to you. You said yes, it would accomplish my goals. I again thought you were nuts. I started another watch list.
You said invest and “play with the dog”, in other words quit worrying about it and let it grow. I again said you were nuts.
I now have 8 watch lists.
I have lost (not earned) tens of thousands of dollars by not doing what you said but reading and listening to Zero Hedge.
I’m so sorry. Not to you but for me.
Why this buzzed letter?
I’m advising every young Canadian to do what you say. Don’t listen to the naysayers in the MSM or even the those in this comment section. The best you can hope for is to one day have an investment amount big enough that Mr. Turner will handle it. I have no idea what that is but there’s your goal.
Am I sucking up? I’m American. He’s not allowed to handle my account. I would hand him my last dollar if I could. “America, Land of the free” – bullshit.

#32 RyYYZ on 05.25.17 at 8:15 pm

Following up on a comment on the previous day’s story here, talking about the Hamilton market, and also whether we’ve hit the peak.

I bought a townhouse (strata) in upper Stoney Creek in 2013, for $220k. So I’m on the outskirts of a city which is on the outskirts of the GTA commuting area. I probably paid too much. A unit sold a month or so ago for about $380k. Another just sold a week or so ago for ~$420k (IIRC) (it might have been $430k). Insanity – I’d never pay that much for one of these places. You have to figure you’re in the end stages of the disease when people are paying the better part of half a million for a modest townhouse in this area.

#33 april on 05.25.17 at 8:17 pm

#17 -that question has been asked a number of times but no specific answer. No one knows or it’s just slower in coming in the Van area??

#34 TurnerNation on 05.25.17 at 8:17 pm

Ah but Kanadians value social conformity and uniformity. Is 1.3 million really worth their friends and family and
co-workers Tsk Tsking: you are paying your landlord’s mortgage? Leperage or Leverage?

TSK TSK You Are Throwing Your Money Down the Drain.
Ad-nauseam ad infinitum

#35 Happy Housing Crash Everyone! on 05.25.17 at 8:21 pm

http://www.financialpost.com/m/wp/personal-finance/mortgages-real-estate/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/toronto-bidding-wars-turn-to-homebuyers-remorse-as-market-gets-nervous

Happy Housing Crash Everyone! :-)

#36 whatever on 05.25.17 at 8:22 pm

Yup, the wind of change might be upon us…….NOT

https://www.youtube.com/watch?v=sg-4ATrE8n0

#37 Nonplused on 05.25.17 at 8:31 pm

Best photo ever.

#38 conan on 05.25.17 at 8:31 pm

The PTB put the economy on cannibalization mode over 20 years ago. We might not see the house prices of today, 10 years from now.

Who is going to pay these prices,Millennials? They have pressures on hours worked in a week, how much they they are paid, learned skills, that become worthless, or shipped out to Mumbai . Most of the wealth, over the last decade, has been house money moving around, that’s it.

Garth, you hire people, what % do you pay a salary large enough to buy a home?

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

#39 George on 05.25.17 at 8:31 pm

If anyone is curious about the whole story, 7 Dalbeattie was first listed on March 2 @ $799k, with “offer date” on March 8.

It didn’t sell and it was relisted @ $989k with “offers at any time”.

It didn’t sell again and now it’s priced @ 699k with “offers to be accepted May 29. We’ll see how it goes.

#40 crash-rash on 05.25.17 at 8:33 pm

This sudden (if expected) down-draft in prices makes me wonder how the Millenials at my 905 workplace are going to manage in this market.

Most have jumped into the housing market within the last year, often with help from the Bank of Mom. These are part-timers with zero chance of ever getting full time.

The crap advice they got from parents and friends and partners to buy now for FOMO can’t put them in a worse situation financially. I stopped trying to mention renting and the money they could save in this market. It just doesn’t register.

These kids have grown up believing that houses with 5 appliances and finished basements are their youthful destiny, and renting is for losers and skids. Many have never rented in their lives. In fact, most have never even jumped a public transit bus bc mom and dad taxi’d them around.

Meanwhile, the parents are out shopping for furniture and area rugs with their spawn.

These are lovely people. It’s their parents I have difficulty with.

And when I see these kids come to work with huge starbucks drinks and designer purses, I know there’s a MATH issue here.

It’s gonna be a hard lesson for them. Thankfully humans are highly adaptable. We’ll need to be when suddenly they’re hand-washing their dishes from a rented, 1 bedroom flat – like the rest of the world does.

#41 dakkie on 05.25.17 at 8:34 pm

Danielle Park – Canadian Real Estate Bust is Contained!?
http://investmentwatchblog.com/danielle-park-canadian-real-estate-bust-is-contained/

#42 Timberr on 05.25.17 at 8:36 pm

Looks like the toilet bowl is flushing down under in Australia as well…

“Chinese investors are pulling out of Melbourne’s apartment market, prompting a downturn.”

http://www.abc.net.au/news/2017-05-25/chinese-investors-pull-out-of-melbourne-apartment-market/8557182

#43 Happy Housing Crash Everyone! on 05.25.17 at 8:37 pm

Everyone wants out of this monster of a housing bubble. Its going to crash so hard. Driving from north york to Down town T.O. for sale signs everywhere with signs broken and cling by a thread. Speculators, realtors , and mortgage shills posting with such anger and fear you can smell it. The house of fraud is crumbling.

#44 the Jaguar on 05.25.17 at 8:38 pm

Curious….in a market like the GTA what would 1st and 2nd deposits look like given the 1-1.5 million price tag? Even at 5% these buyers would be walking from minimum 50,000 (likely borrowed). Quite a perp walk..
Ouch! Brings out the schadenfreude in me..

In the hot times most agents would ask for a certified cheque for $70,000 or $100,000 with the offer, even before acceptance. — Garth

#45 Happy Housing Crash Everyone! on 05.25.17 at 8:41 pm

4 broader mind on 05.25.17 at 7:54 pm
Don’t worry about housing, the real story is the American’s going all out after our Great Canadian Banks. Moody’s et all are looking very powerful today. So they watched a movie and now they want a shot. Hope they fry.

Canada is a house of mortgage fraud. People have been getting fraudulent mortgage fraud since 2006.

#46 Hairhead on 05.25.17 at 8:46 pm

Yes, in Vancouver, people are stupid(er).

Remember last month I told you about the Vancouver family who sold their (barely) west-side house, had $1.7 mill in tax-free cash? They turned around and bought an east-side house for $1.7mill cash, and the house still needs about $100,000 in renovations?

Well, family friend, career service job, never owned anything, inherited east-side Vancouver house from Mom. Sold last week for 1.8 mill tax-free (he was living there). So what is he going to do? He’s moving to Victoria AND BUYING A HOUSE THERE! At the peak of the market. Whereas he could put the 1.8 mill n various Garth-approved investments, and make $100,000 per year, rent, and retire early.

But NO! Buy another house! Keep working! And then . . . what?

I give up. People here are nutz!

#47 Pete on 05.25.17 at 8:50 pm

Vancouver price did drop 26% in a matter of month in 2016. Price is still not back to the peak set march 16. Van is about half the size of Tor. So if Tor did not sink, Van might feel some relief. Now the bubble is burst in Tor, so Van is done too.

Home Capital is one big reason too. They have about 3% of GTA mortgage market. If you take 3% off the table, that is huge. Who knows when Home Capital will be bankrupt?

#48 NoName on 05.25.17 at 8:56 pm

I grew up watching Del-Boy, Rodney and G-pa… last scene when they actually become millionaires.

https://www.youtube.com/watch?v=RiIIkQO95z4

and Dell-boy and Triger, at uk version of south side jonis.
http://bit.ly/2qpcuTc

#49 Random Punter on 05.25.17 at 9:04 pm

Finally, the reckoning. I’m enjoying the schadenfreude from afar while I wait for the same carnage to finally start being felt in Australia.

#50 Daughter of Ponzy on 05.25.17 at 9:05 pm

The fact that things changed so quickly tells you that it was a classic Ponzy scheme. These are greedy and totally amoral people who bought these shacks for few hundred thousands and now trying to make millions and basically ruin these buyers. No wonder nobody is saying they are earning money any more. They just talk about making many. All signs of a very sick society.

#51 Daughter of Ponzy on 05.25.17 at 9:13 pm

Home Capital is just the first of these mortgage lenders that is going bust. The others will follow shortly and the banks will stop lending since the party is basically over. The game is over people and rats are jumping the ship.

#52 Fiendish Thingy on 05.25.17 at 9:14 pm

Frustrated, but I’m guessing Van will stubbornly stagnate until early 2018 when, after 2-3 more hikes by the US Fed, Poloz will finally cave and begin hiking rates to stave off more painful inflation from the purposely devalued loonie.

Loans resetting in 2018 (and variables adjusting) will provide the proof of the theories of how stressed debt slave households are, as mortgage payments go up, up, up!

When it’s all said and done, I’m guessing the lower mainland (esp. Maple Ridge and Mission) will bottom out somewhere in the 2006-08 price range

#53 Ronaldo on 05.25.17 at 9:14 pm

Here is what Ross Kay was saying about the Vancouver housing market a year ago.

http://www.cknw.com/2016/05/17/is-vancouvers-real-estate-market-a-ponzi-scheme/

#54 Al on 05.25.17 at 9:17 pm

I guess there will be less people watching HGTV from now on.

#55 Pete on 05.25.17 at 9:17 pm

Home Capital liquidity dropped $30 million today although deposits remained flat. Wonder how long they will last. They have $760 million cash in hand compared to more than $2 billion at the start of 2017. One thing is for sure, they will still cut new mortgages to a minimum to conserve cash.

#56 choptstix on 05.25.17 at 9:19 pm

#17 Chaddywack on 05.25.17 at 7:36 pm
What I still don’t understand is why the run up in Vancouver is not correcting as fast as it did in Toronto.

Prices are still as high as ever and now condos are popping. It’s getting to the point that a starter condo is getting unaffordable.

I had two cousins who bought starter condos recently. One paid $450k (went about $38k over ask) for 600 sq feet in North Van and another paid $600k (went almost 50k over ask). They told me they had to because “so many asians were trying to out bid them”

Vancouver is definitely a different beast…..

Or maybe people are just smarter in Toronto.
———————————————
former Torontonian here living in Vancouver some 20 yrs…i agree in that i have no idea what keeps Scamcouver afloat…nicer more temperate weather? (yeah when it’s not pissing down and gray all the time) or that ‘west coast and islands’ vibe (now the island or sunshine coast i could understand moving to…).
or just that Vancouver has a bigger Asian connection (even with trade we do more with Asia than central/eastern canada) due to time zones, distance etc….but i really have no clue….

overall there is still so much arrogance out here that Scamcouver really is special and unique from the rest of Canada.

#57 mathman on 05.25.17 at 9:20 pm

was at an open house in the west end of Toronto on Saturday…crickets. The real estate agent was in full PT Barnum mode, chatted my ear off. Nice guy but the desperation was coming out his ears. Looked on MLS today and the house has be re-listed with a higher price. No bidding war and seller clearly digging their heels in because they already bought another property and are probably pooched if they don’t get what they are asking.

value is what someone is willing to pay at a given time. what we will see is all the smug amature property god’s turned into humble, broke and back to living with their parents. What was so liquid a few months ago will turn into an illiquid albatross and I will be waiting on the sidelines cash in hand, no tears, no sympathy just capitalism.

#58 Rural Rick on 05.25.17 at 9:23 pm

Hey bearded guru do every think about putting together an ETF that reflects your views on a balanced investment strategy so us poor folk could start to invest our meagre pittance.

#59 I'm stupid on 05.25.17 at 9:24 pm

As I searched the Mls tonight I thought; how ridiculous to see all these homes with 8s in the price. I began to laugh, some are going to look back at this and really feel stupid. An industrialist from China wanted all our houses. Writing this comment is making me laugh, it sounds so stupid.

If you want a laugh repeat after me; rich industrialist from China want all our houses. Hahaha

#60 Yuus bin Haad on 05.25.17 at 9:24 pm

Careful kids – I think you’ll discover that the “deposit” is
really just a “consideration” – there’s a bit of a difference.

#61 espressobob on 05.25.17 at 9:25 pm

Had to visit someone on Jefferson ave. in liberty village yesterday. A new business, something to do with cheese and whatever.

The daunting part of this little story is, standing outside looking north over King west and seeing this ominous development being erected on the north side. Insane. Not that the village has any sanity east of Atlantic blvd.

The gridlock alone should prove amusing in time, but why build a new city on old infrastructure?

#62 mathman on 05.25.17 at 9:32 pm

HCG is the canary in the coal mine. All the ALT lenders i would suspect are praying the housing market stays a float just a little longer, so the quality of their loan books does not get revealed. Home Cap has low default rates because they are short term mortgages and in a rising housing market, any idiot can refinance and or sell before defaulting and or falling into arrears.

When the market turns you will see defaults up the wazoo within 3-6 months as the refinance tap is shut off and banks stop falling over themselves to give you more money. Once the tap even mildly closes, this market is cooked along with our “economy”, which is really just a housing ponzi scheme.

#63 Whatsmyname on 05.25.17 at 9:38 pm

You have to be nuts to consider buying anything in the GTA at these prices.

Foreign money launderers can still make a buck for a little longer on certain properties. CRA and RCMP are still asleep at the switch, allowing our cities to be massive money laundering pits. Go Canada!

Cant wait for a small interest hike to tumble it all.

#64 MF on 05.25.17 at 9:43 pm

#40 crash-rash on 05.25.17 at 8:33 pm

Sorry but that’s because renting sucks. I am a millennial in the GTA who has been renting, working two jobs for years, and diligently saving/investing the whole time.

The results:

-my portfolio is up something like 4% in two years (who cares).
-my rent has gone higher and higher, now taking up 50% of my take home pay
-the unit I rent was sold (sweet profit, way more than I made saving and investing), but the process meant fear of eviction and random people entering my unit for a while.

Add that people who bought houses have done way better than renters for the last 15 years and you can see why. There are lots of us in this position, many priced out of our own cities. That is what doing the “right thing” has gotten us.

Add to that the idea of having a “landlord” is something myself and most others detest.

MF

If rent equals half your income, I suspect there is no way you could ever (now or previously) afford to buy real estate. So deal with it and stop coming here to whine. You’re irritating. — Garth

#65 me again on 05.25.17 at 9:47 pm

mva, think about it: mva is actually a tax on your debt

how cool is that?

#66 Pre-retiree on 05.25.17 at 9:51 pm

#62 mathman
HCG had low default rate allegedly because it would sell the bad loans to other companies with ties to HCG like Re-Charge (google it with HCG, see Globe article). The situation may be way messier than it seems and already it does not look pretty.

#67 KLNR on 05.25.17 at 9:54 pm

even with the influx of new listings most everything is moving in my west end hood’ near the humber. although the openhouse frenzies have ended with the spring

#68 traderJim on 05.25.17 at 9:55 pm

@Conan

I agree with you completely Re NATO spending. Like most government endeavours it is wildly inefficient and corrupt.

Instead of asking Europe to pay their fair share Trump should be bringing the US budget down to the level of euro nations.

This is only one of the areas where I disagree with him. I was hoping he would pull out of the mid -east entirely, but I fear the neo -cons might have gotten to him and convinced him to double down in Afghanistan for one. Horrible mistake if he makes it.

The US could cut military spending dramatically and stop fighting other people’s wars and be more secure themselves.

Europe formed the EU to be economically as big and powerful as the US. Great, let them pay their own way from now on.

I also disagree with Sessions and amping up the war on drugs. Cozying up to Duterte just because he’s anti -drug is a bad idea.

But Trump lost his brother to alcohol addiction so I can see he’s emotional about it.

#69 Penny Henny on 05.25.17 at 9:58 pm

I believe that Y to Y prices will​ be down in the GTA but not until December

#70 MF on 05.25.17 at 10:04 pm

“If rent equals half your income, I suspect there is no way you could ever (now or previously) afford to buy real estate. So deal with it and stop coming here to whine. You’re irritating. — Garth”

Come on Garth irritating or not this is the truth on the ground. My rent has gone up along with prices. So has everyone else’s in the same position.

What is the average wage growth been like over the past 15 years?

Anyways, My wage is fine, as are my savings. We have doctors and lawyers making hundreds of thousands a year also posting here how they are priced out, and that was the point of my post: millennials are turning to debt because there is no other way, and the alternatives (renting) are a gamble as well.

MF

In other words, I am correct. — Garth

#71 crowdedelevatorfartz on 05.25.17 at 10:07 pm

@#22 VanTor

That was a longwinded way of saying the prices are still skyhigh because……
“Its different here”

#72 Smoking Man on 05.25.17 at 10:10 pm

Cultral Appropration scared the crap out of me. That shit is retro active.

I’ve checked with my attorney, I’m safe. Writing from the perspective of an drunken alien from outer space. I’m safe.

Unless a bunch of loony lefty aliens file a complaint to the human rights tribuneral I’m good.

Do you dogs not see how I got away with murder in my fiction novel. Probably not now. But in a year or so. You will see pure brilance, but only if you read the book.

Outer wise sleep dogs. It’s what dogs do most of the day.

#73 In Markham on 05.25.17 at 10:12 pm

Another house was listed in this neighborhood’s “Let’s find the next fool to buy our house” party:

21 Dundas Way, Markham $788,800
23 Dundas Way, Markham $798,000
53 Dundas Way, Markham $769,900
105 Dundas Way, Markham $779,800
122 Dundas Way, Markham $699,900
233 Dundas Way, Markham $799,900 <– New

#74 crowdedelevatorfartz on 05.25.17 at 10:14 pm

@#37 Nonplused
“Best photo ever….’
******
I agree.
Soooooo….
What EXACTLY was it about the pig that did it for you?
It’s devil may care nudity?
The sleepy, coy, half smile?
That , oh so blonde hairy back?
The slightly sunburned tummy?
The unspoken request for suntan lotion from an as yet unknown admirer(you)?
Inquiring minds wanna know.

#75 Smoking Man on 05.25.17 at 10:16 pm

Watching a great tv series.

Reserecton. It’s amazing. Amazing dialog.

I can read between the lines. The writer lost a loved one.

And the script was a healing procces.

Dr Smoking Man
PhD Herdonomics.

#76 Mike on 05.25.17 at 10:22 pm

https://www.yorkregion.com/news-story/7318150-new-home-buyers-want-answers-after-builder-cancels-sales-in-georgina/

Look at what a builder in keswick is doing to speculators
Or is it a sign that lenders will not give financing to build out the homes.

#77 AnonStar on 05.25.17 at 10:22 pm

Titanic will sink, it is a mathematical certainity!

https://www.youtube.com/watch?v=qoTirOwta4w

#78 MSM-Free Zone on 05.25.17 at 10:23 pm

64 MF on 05.25.17 at 9:43 pm
“….Add to that the idea of having a “landlord” is something myself and most others detest……”
_________________________

There’s always the alternative, prostituting yourself to the [email protected]

Myself, I prefer renting. Liquid, and most importantly, quickly mobile if I want to be.

btw, is America great yet? Inquiring minds need know….

#79 Tony on 05.25.17 at 10:29 pm

In America in a city in the middle of nowhere a townhouse can easily be purchased for $50,000. In a city in the middle of nowhere such as Sutton, Ontario a townhouse costs more like $500,000. When you can buy ten townhouses in America for the price of one in Canada something had to give.

#80 teknohippie on 05.25.17 at 10:43 pm

@#37 Nonplused
“Best photo ever….”
******
I really want to see the “ten years later” photo.

#81 Tony on 05.25.17 at 10:47 pm

Re: #31 BobC on 05.25.17 at 8:08 pm

Read the comments on Zero Hedge instead. Everyone on Zero Hedge in the comments section said the exact same thing early in January 2016. Buy First Majestic Silver. The stock went better than ten fold.

#82 My Wife Loves Garth on 05.25.17 at 10:48 pm

Several beautiful 2 million dollar homes for lease in the Richmond Hill area. Average lease is around $2800 to $3500. Rent to own ratio is a no brainer. Plop down a mere 7 grand first and last with good credit and its yours. Owners getting desperate.

#83 Tesliens Unite on 05.25.17 at 10:57 pm

#75 Smoking Man on 05.25.17 at 10:16 pm

Watching a great tv series.

Reserecton. It’s amazing. Amazing dialog.

I can read between the lines. The writer lost a loved one.

And the script was a healing procces.

Dr Smoking Man
PhD Herdonomics.
..
How’s your HBO screenplay going?

#84 MF on 05.25.17 at 11:08 pm

#78 MSM-Free Zone on 05.25.17 at 10:23 pm

He is doing great. Let me explain.

There is always drama in politics, and Trump being an outsider meant he was going to be a target from the beginning.

This explains 90% of the negative publicity.

-The Russian story is grasping for straws and nobody cares either way.
-His health care reform will be rolled out, but it will take time. He’s only been in office a few months. His tax reform will take time for the same reason.

Foreign policy has been superb. The world desperately needs a strong United States, and the US themselves were in need of a strong leader. So far, it looks like they have one.

MF

#85 Smoking Man on 05.25.17 at 11:12 pm

DELETED

#86 Smoking Man on 05.25.17 at 11:17 pm

#83 Tesliens Unite on 05.25.17 at 10:57 pm
#75 Smoking Man on 05.25.17 at 10:16 pm

Watching a great tv series.

Reserecton. It’s amazing. Amazing dialog.

I can read between the lines. The writer lost a loved one.

And the script was a healing procces.

Dr Smoking Man
PhD Herdonomics.
..
How’s your HBO screenplay going?
…..

No work ethic. Sorry.

#87 Fake News on 05.25.17 at 11:30 pm

Vancouver housing is as high as its ever been.

#88 millmech on 05.25.17 at 11:55 pm

MF
I read an article the other day that stated that the average American pays $600,000 in interest over their lifetime on average(will post link as soon as I find it)
Do the math on owning at these prices and look at how much interest your going to be giving to me as a shareholder of said bank stock over the lifetime of your mortgage.
I rent, love watching the landlord do all the maintenance while I have a beer and grill my steak on the bbq on the weekend knowing full well that if I leave he is financially screwed. He needs me to keep the roof over his head, the homeowner down the street has tried to poach us away as his suite has been vacant for 3 months but I will not leave because of all the perks of being a good renter.
I love not paying all that interest to bank as it goes into the markets every payday, it also gives me labour mobility to chase better pay if so inclined. Also your employer will love to hear that you leveraged yourself to the hilt for 25 years to the bank and to them as well, you will do as your told and not rock the boat because of that mortgage anchor around your neck.

#89 Tan on 05.26.17 at 12:37 am

Cute graphs from GTA. Could someone explain why Calgary charts can go only one way when there is plenty of parking @downdown core at business hours?

#90 Rich Young on 05.26.17 at 12:40 am

AND WHEN WILL CALGARY COOL? … I’ve been waiting so long I’ll need a cane soon. Still $500,000 for the average detached. I last bought at $145,000 and sold for $280,000 thinking that was a high price to pay for the home I lived in. Now I’ve been renting for years scratching my head. Another home down my street sold for $500,000 and they are renovating it hard… probably spending over $100,000 fixing and expanding. All this while a big chunk of the population here are stripping the food bank shelves. Crazy times!

#91 phily on 05.26.17 at 12:42 am

Why Isle of Man

#92 Donald J Trump on 05.26.17 at 12:58 am

Is going to be the greatest president in American history.
Go president Trump!!!

https://twitter.com/hashtag/NATOMeeting?src=hash

#93 waiting on the westcoast on 05.26.17 at 1:03 am

27 Newcomer on 05.25.17 at 8:01 pm says “>>What I still don’t understand is why the run up in Vancouver is not correcting as fast as it did in Toronto.<<
———
The technical analysis is that people in Vancouver are what is known as stupider."

+1… It appears to be sad but true…

Mind you I'm about to pay a stupid amount on a lease in Victoria hoping that it is just an expensive option until land prices return to sanity…

#94 westcdn on 05.26.17 at 1:13 am

As a shareholder, I get invited to company annual meetings. Most are in Toronto or Vancouver but I also invest in Alberta companies listed on the Venture exchange. I like to go to them and meet the prime movers. My favourite was Big Rock as they would let us loose after the meeting to sample their wares. I sold my holding a few years ago and miss their annual. The company was weak and suspended their dividend. I am not known for loyalty to underperforming companies. I may step back into them as they seem to recovering from operational mistakes.

There was one meeting a few years back where I was the only independent shareholder to attend. The company owner greeted me at the door and took my coat to hang in the closet. I have held that ownership position as the owner, founder and CEO earned my respect. I asked a bunch of stupid questions and have been embarrassed since.

The company has done well since – a five bagger for me plus dividends. I can only dream to repeat. I intend to go to the next meeting to see what has changed and hear directly from the owner. The current company numbers have made me suspicious.

#95 PROTEST_PROTEST_PROTEST!!!! on 05.26.17 at 1:58 am

We need to organize a protest, it is time to take the streets and tell that this market is insane.
Is there anyone organizing anything?
Canada’s day would be perfect, lets dress in black instead of red and white.

#96 Sydneysider on 05.26.17 at 2:02 am

Glanced at one of the posts tonight and the following anagram soon emerged:

Poloz in = Lo, Ponzi!

Strange how the mind works.

#97 yorkville renter on 05.26.17 at 2:34 am

MF – if your rent is 50% of take home then you are living WAY too large or need a roommate or a new job.

I was on EI, my wife was on mat leave, and we hit 60% of “take home” but that was temporary and you can guess where we live.

#98 Freedom First on 05.26.17 at 3:09 am

May 26th/2017. For a # of Canadian ETF’s there will soon be bargains coming which will be hard to believe. R.E.I.T.’s will be #1.

Whether it be houses, or any other asset, buy and sell using sound financial principles.

Somebody here mentioned listening to a RE salesperson or Garth. Well, Garth advises balance, liquidity, and diversification. Including RE, using the rule of 90.

But the RE salesperson advises now is the time to buy.

Over a lifetime, Garth wins. No contest.

I know, I invested very closely to what Garth teaches here. Yes. Gamblers can outdo Garth. But it is high risk. Garth’s way is idiot proof.

Freedom First
Master of Freedomonics

ps Garth, I would appreciate pictures of real women.

Love your Blog

#99 Willy2 on 05.26.17 at 4:03 am

– If one wants to understand why Real Estate was going up then one needs to read Harry S. Dent (Yes, the deflationist).
– With his demographic model(s) he predicted that Japan would “weaken”in the 1990s. And he got it right. But the demographics of e.g. North America were since say the early 1990s very favourable but those demographics are turning in the “wrong direction”.
– It has surprised me that canadian real estate took so long to tank.

#100 Willy2 on 05.26.17 at 4:08 am

– And there’s a MAJOR stock market sell off coming. Because that’s predicted by the socalled “DOW Theory”.

Sources:
http://www.howestreet.com/
http://www.investopedia.com/university/dowtheory/

#101 Looney Baloney on 05.26.17 at 4:12 am

@#6 dontcallmeshirley

So if one spouse ‘owes’ the other ‘child support’ (how much of that money is spent on the kids anyways?), maybe, just maybe, the judge should have simply given the kids to the owing spouse?

#102 where did they find Poloz? on 05.26.17 at 5:39 am

the lower and longer Poloz keeps rates, the further and faster they will have to rise later. it’s that simple.

#103 Wrk.dover on 05.26.17 at 6:39 am

I just noticed a piece about Tembec being sold stateside.

Low looney makes this so possible. Great national strategy…just great!

#104 varano on 05.26.17 at 7:15 am

Sorry Garth,
That house posting that “went down” 300k is a joke.

Its games that the real estate agents create.

Ive been tracking my property value. I saw a house in my area that was listed at 819, then got listed a week later for 699, then a week later for 779, and finally sold for 849.

Houses are not dropping by 30% much to the chagrin of most of the posters on this blog.

Not yet. — Garth

#105 maxx on 05.26.17 at 7:34 am

#20 prairie person on 05.25.17 at 7:47 pm

“…….If house prices drop and people lose their houses, and their furniture and car, they and their family will be angry. They’ll blame everyone else. Resentment will be the dominant feeling. At the first meeting at the bank to discuss increasing payments, they’ll be angry and frustrated but maybe they’ll actually listen. AT that point will it matter. Probably not.”

So many borrowers like these. But seriously, angry?
Idiots such as these don’t have the remotest right to be angry. Angry…..that’s soooo Canadian…..”I’ve got a right to everything and nothing and nobody has a right to take it away”. Americans learned that it can indeed be taken away, and quickly, 9 years ago. Here, nearly a decade later, in the global landscape of re idiots, borrowers believe that we’re “different” and jumped into that steaming debt cowpat with both feet expecting a different outcome.

“It’s sort of like being on a cruise ship and not bothering to attend any evacuation drills–when the ship starts to sink, it is too late”.

Avoid the drill and risk being marched off the ship. These are generally the same idiots who overpay for re or bankroll their undeserving, wannabee brats.

#106 cto on 05.26.17 at 7:38 am

It’s all about extremely low interest rates distorting the market.
Our central banker is frozen into this idea that keeping rates at emergency levels for decades is the way to keep the economy going.
The fact that this is creating dangerous excess and irrational exuberance everywhere is irrelevant to his trying to prove his economic theory as right. (let the others deals with the bubble side effects).
So….in Calgary, its easy to hold on to a $500000 mortgage at 2%. If the rates started rising they would be more inclined to sell and loose money. This would lower market prices and create normal balanced housing prices.
Interest rates. It’s all about the interest rates.

#107 maxx on 05.26.17 at 8:12 am

#29 Wrk.dover on 05.25.17 at 8:02 pm

“Poloz is stuck in a rut, so why shouldn’t I’m Not Poloz be in a rut too? If Harper’s appointee goes away, the other will probably leave us alone as well.

Suppose Princess Justin even knows who and what Poloz is?”

Tools are only as good as their users and many tools are simply acquired for display.

This central bank-created rut will need outside intervention.

Anyone equipped to live and live well within today’s economic parameters is unquestionably successful. The indebted, on the other hand, subject to the whims of cb’s, not so much. Because borrowers are so numerous, form a large part of the voter base and their debt hangs so heavy on the economy (potentially terminal as it exceeds national GDP), tptb will do all possible to protect their a$$e$.

One solution: save like mad, invest well and buy everything you can off the grid (second-hand, etc) to save even more and avoid retail taxes. In other words, bet the other way.

Our CB can continue to kick the stuffing out of the dollar, but no matter the background, cash is and always will be, king. The lower rates and the dollar go, the worse the fabric of the real economy gets, the lower prices get and bargains of all kinds come sprouting out of the woodwork.

#108 crowdedelevatorfartz on 05.26.17 at 8:22 am

Another day, another Trump episode.
Yesterday NATO.
Today the G7 summit in Italy.
What mindbogglingly boorish, rude, crass utterances will emanate from the “World’s most Powerful Man”?
China only needs to sit back and wait…

#109 fancy_pants on 05.26.17 at 8:22 am

#64 MF on 05.25.17 at 9:43 pm

With the low interest and high taxes, gov’ts have sent a clear message that hard work and old fashion saving is for losers. so sad

#110 The real Kip on 05.26.17 at 8:35 am

Owners a suing builder in Keswick over returned deposits so they can sell at higher prices. What a mess!

https://www.yorkregion.com/news-story/7331631-cancelled-contracts-for-keswick-homes-prompt-potential-legal-action/

#111 TurnerNation on 05.26.17 at 8:35 am

Going back to what I said, the most important thing is getting approval from peers (See: social media).
School teaches this.

Posting about your million dollar house on FB is very good. Talking about your large portfolio? Well that’s just bragging – no one wants that.

At the age of 5 kids are ripped form home into control of the State for 15 years of “education”. If the kid doesn’t want this or acts up, they get other agents of State control, into custody of the police.
Either way you are a ward of the state. Then on to “higher education”.
Meaning: your years of peak fertility (age 15-25) are spent in State re-education camps.

Our elite tax farmers control our breeding, as on any other farm. And they control 7 billion people with a few well-places real or fake events, a few cowboys or collie herding dogs do this. (We call them t-t-terrorists).

Gawd and I haven;t even replaced my flouride water filters lately. Cannot wait.

#112 maxx on 05.26.17 at 8:43 am

#38 conan on 05.25.17 at 8:31 pm

“The PTB put the economy on cannibalization mode over 20 years ago. We might not see the house prices of today, 10 years from now.

Who is going to pay these prices,Millennials? They have pressures on hours worked in a week, how much they they are paid…….”

Absolutely true, I hear convos about this very thing in coffee shops all the time. Looks like ma and pops will need to forego a few cruises and dust off “101 ways with tuna”.

#113 traderJim on 05.26.17 at 8:45 am

You would think that cottage country would be hit hard with the GTA slowdown, but it hasn’t shown in the stats yet, up to the end of April:

http://cottagesinmuskoka.com/muskoka-cottage-market-watch-jan-apr-2017/

Listings are waaay down and sales are up.

So perhaps there is just a time lag and cottages will be hit soon, or maybe money is flowing from GTA to cottage country as the local paper says is happening, causing many locals to complain about the damn ‘citiots’ coming up here and driving prices up.

I haven’t seen many chinese dudes up here, but I’m one of several that I know of personally that sold in Toronto and bought a much nicer, larger lakefront place here at about half the cost of big city prices.

#114 Franco Mazzuca on 05.26.17 at 8:46 am

Suing is a long process with the large backlog in the Ontario court system. It costs money and time.
If you receive a favourable judgement then you have collect. If you sold to someone with no assets good luck on ever seeing the money you are owed.

#115 maxx on 05.26.17 at 8:55 am

#46 Hairhead on 05.25.17 at 8:46 pm

Most don’t understand what money IS. They haven’t the first clue.

I liken them to lotto winners who blow it all on junk and end up with a mamma of a life hangover at the end, wondering about the kind of life they could have had……

#116 HOME BANK GIC on 05.26.17 at 8:55 am

So it looks like CDIC will cover Home Trust Company GICs that investors bought totaling over the coverage amount of $100,000.00

I received a letter from RBC Direct Investing that my Home Cap GICs ($ interest amount) are now fully covered.
The $ amount value over $100k was re-registered as ‘HOME BANK GIC – AT MATURITY’.

Bank of Canada, CDIC, and Finance Minister, making sure this bank run finally stops.

Home Trust GIC interest rates now:
Broker GICs for 1 year = 2.15%
others range from 0.70% to 1.7%

#117 Smoking Man on 05.26.17 at 9:13 am

#18 Daughter of Ponzy on 05.25.17 at 7:43 pm
#13 Smoking Man

Stop lying Smokey or should I say Jimmy Stojsin. You sold your crack shack for a million dollars, no wonder you are scared of buyers remorse. I wish they come to their senses and never close on such a crappy deal. You should know that for a million dollars you can buy a really nice house in much nicer countries than this one. You are such a con artist!
…..

Although I brag about being the world’s biggest lier. The truth is I rarely lie. I call it like I see it.

Con artist? That’s complimentary thank you.

But I’m telling how the herd reacts, I sold my place at a deep discount for where prices will be next year.
If sellers don’t get close to were they think their place is worth. They will de list on mass. Drying up inventory again.

Watch and learn grasshopper.

Dr Smoking Man
PhD Herdonomics

#118 Leebow on 05.26.17 at 9:28 am

#84 MF

Look at Trump’s nato charade. Both pushing and speaking. That’s what Trump is.

Robbing contractors by offering them 20 cents on a dollar has nothing to do with negotiation. Perhaps one of the few.times when Obama is right – T is a bullshitter.

#119 Ole Doberman on 05.26.17 at 9:33 am

#90 Rich Young on 05.26.17 at 12:40 am

AND WHEN WILL CALGARY COOL? … I’ve been waiting so long I’ll need a cane soon. Still $500,000 for the average detached. I last bought at $145,000 and sold for $280,000 thinking that was a high price to pay for the home I lived in. Now I’ve been renting for years scratching my head. Another home down my street sold for $500,000 and they are renovating it hard… probably spending over $100,000 fixing and expanding. All this while a big chunk of the population here are stripping the food bank shelves. Crazy times!
———————————————————
I hear ya bro, another house listed in my hood of Varsity, $684K sold in one week.

Nicely renovated, but still….

#120 maxx on 05.26.17 at 9:41 am

#57 mathman on 05.25.17 at 9:20 pm

“”….The real estate agent was in full PT Barnum mode….”

You mean, more than the usual puke-level of braying about how solid the “market” is?

“No bidding war and seller clearly digging their heels in because they already bought another property and are probably pooched if they don’t get what they are asking.”

Greedy sellers who expect buyers to make up for their stupid money mistakes and oversized kitchens are in for a deep well of “coulda-shoulda-woulda” in the not-too-distant future. IMHO, the stage is quietly being set for a magnificent interest rate harvest.

#121 CV5 on 05.26.17 at 9:45 am

Sorry folks, but here is what is REALLY happening in the markets…

http://traderzoogold.blogspot.ca/

“All that matters now is that central bank “A” is bidding and ramping the indices higher through buying during the thinnest and most illiquid hours of the day; something you would most definitely do if you didn’t care about price and wanted to get the most bang for your buck.” 

#122 Brian on 05.26.17 at 10:10 am

You know, I truly did not believe that house horny millennials were financially ignorant.

Then I happened to chat with a 30ish guy from Toronto on vacation a few months ago.

He was positively salivating, chomping​ at the bit to get back to Toronto and buy a house so he would “be a millionaire like all his friends”.

He had a down payment plus money from mom and honestly believed that if he paid out $150k on a million dollar shack he’d be a “millionaire”. Even though he’d have a massive mortgage and everything he owned invested in one highly leveraged asset.

I gently tried to explain what NET worth meant and in return was ridiculed for being a clueless old guy who is out of his depth and doesn’t understand todays financial ways. “It’s not the same world as when you were young like I am.” says he while sporting a condescending smirk.

He even uttered the words “houses never go down in value”!

I wish I was making this up!

I am quite sure that he flew home and bought.

#123 the Hammer on 05.26.17 at 10:19 am

Hey MF,
50% of your take home on rent? Sounds like you’re living a little high on the pig’s back, boyo. You are way too young to be as angry as you are. Leave Toronto. Stop whining.
I am on slightly better terms with God than Smokey and I think I can arrange for you to spend eternity in a small room with Donald, Steve Bannon, Stephen Miller, Kellyanne Conway and Roy Cohn. Would you like that?
See Ambrose Bierce’s ‘Devil’s Dictionary’ for a definition of ‘self esteem’… repeat it daily when you first awake and put your feet on the floor.
Stop whining. You were born in North America after WW 2… i.e. you won the lottery.
Peace

#124 Doug in London on 05.26.17 at 10:34 am

So it appears a lot of recent house buyers want to back out after they’ve signed the offer to purchase. Why didn’t they think of that BEFORE signing the offer to purchase? It appears that I actually give more thought to whether or not to buy a 50 cent item at a yard sale than some people give to whether or not to buy a house.

#125 Renter's Revenge! on 05.26.17 at 10:41 am

#65 me again on 05.25.17 at 9:47 pm
mva, think about it: mva is actually a tax on your debt

how cool is that?

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

WTH is MVA?

#126 Damifino on 05.26.17 at 10:44 am

#119 Ole Doberman

Still $500,000 for the average detached.
———————————–

Must be nice. It wouldn’t get you a tool shed in YVR.

#127 Damifino on 05.26.17 at 10:47 am

#108 crowdedelevatorfartz

What mindbogglingly boorish, rude, crass utterances will emanate from the “World’s most Powerful Man”?
——————————

You must at least admire his consistency.

#128 Renter's Revenge! on 05.26.17 at 10:50 am

#74 crowdedelevatorfartz on 05.25.17 at 10:14 pm
@#37 Nonplused
“Best photo ever….’
******
I agree.
Soooooo….
What EXACTLY was it about the pig that did it for you?
It’s devil may care nudity?
The sleepy, coy, half smile?
That , oh so blonde hairy back?
The slightly sunburned tummy?
The unspoken request for suntan lotion from an as yet unknown admirer(you)?
Inquiring minds wanna know.

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

My guess is that the underlying meaning of the photo is that if you’re a debt “pig” you get all the babes, and has nothing to do with bestiality.

#129 Space dust blowing on a solar storm on 05.26.17 at 10:50 am

#117 Smoking Man on 05.26.17 at 9:13 am

#18 Daughter of Ponzy on 05.25.17 at 7:43 pm
#13 Smoking Man

Stop lying Smokey or should I say Jimmy Stojsin. You sold your crack shack for a million dollars, no wonder you are scared of buyers remorse. I wish they come to their senses and never close on such a crappy deal. You should know that for a million dollars you can buy a really nice house in much nicer countries than this one. You are such a con artist!
…..

Although I brag about being the world’s biggest lier. The truth is I rarely lie. I call it like I see it.

Con artist? That’s complimentary thank you.

But I’m telling how the herd reacts, I sold my place at a deep discount for where prices will be next year.
If sellers don’t get close to were they think their place is worth. They will de list on mass. Drying up inventory again.

Watch and learn grasshopper.

Dr Smoking Man
PhD Herdonomics
..
Why would you sell your place if you actually think it will continue to rise.. you lie constantly about everything all the time! How’s life in Antigua?

#130 MillennialExcel on 05.26.17 at 10:52 am

We sold our small condo in March and it closed on April 27th….
We were so happy it closed!
Now we are renting something much bigger for much less :)

#131 James on 05.26.17 at 10:54 am

#193 traderJim on 05.25.17 at 3:57 pm

#189 James

That was a good moment too James, as the obvious alpha male takes his place at the front.

I get it now, Trump’s the guy who picked on you in school. That’s not fun, but time to get over it and realize some people are born alpha and some people are born beta. Not much you can do about it. Life’s not fair, sorry.
…………………………………………………………………….
Sorry my ass Trader Jim, I’m the alpha male in my family at 6’4″ played football and hockey, graduated university with two degrees, own my home, owe nobody anything and have pilled up enough cash to buy out people like you at a whim.
While Trump may act like an alpha male he is a twisted jerk with no class. That is why he is not on top of the New York social clubs, he has been shunned and he is a pariah. There is a difference between being wealthy and being a wealthy jerk. The fact is Trader Jimbo Boy your barking up the wrong tree my little dog. Oh and I just pissed on your tree.

#132 jess on 05.26.17 at 10:58 am

Spanish construction bubble

The so-called Gürtel case, launched last October after nine years of investigations, implicates former lawmakers and civil servants from Rajoy’s ruling Popular Party (PP) in a vast kickbacks-for-contracts scheme that allegedly fueled Spain’s boom years.

http://www.politico.eu/article/spains-cash-corruption-and-construction-trial-caso-gurtel/

================
“bankers at the German lender have been part of an international criminal organization.”

suicide by dog leash
http://nypost.com/2016/06/12/why-are-so-many-bankers-committing-suicide/

http://www.newyorker.com/magazine/2016/08/29/deutsche-banks-10-billion-scandal
Jesse Eisinger
https://www.propublica.org/article/deutsche-bank-trump-conflict-of-interest-despite-settlements
https://www.reportingproject.net/therussianlaundromat/

==================================
Malta Leaks Playing the Shell Game in the Mediterranean

Malta poses as a model member of the European Union, but it makes its living off of large European companies seeking to avoid higher tax rates back home. DER SPIEGEL went to the island nation to investigate, and found a lot of empty offices and empty words.
http://www.spiegel.de/international/business/malta-the-european-union-s-very-own-tax-haven-a-1148915.html

#133 rainclouds on 05.26.17 at 11:05 am

“For the purpose of demonstrating a strong response to an industry that, it seems, involves considerable money laundering”

http://vancouversun.com/news/local-news/ian-mulgrew-b-c-law-society-panel-finds-west-van-lawyer-guilty-of-washing-26m-through-trust-account

Oh My, the axe is swing in all directions to kill the Multi headed hydra. Spanking House sales “Professionals”/ now Lawyers? Somebody on high ( Wild Bill?) has waved his do your job wand over certain government departments formerly uninterested in vetting regulatory bodies.

Makes perfect sense, scapegoat a few in hi profile cases and the rest will get the message quickly.

My bet is Buddy gets hammered by the society, or they get beaten like a rented mule……….

#134 Ole Doberman on 05.26.17 at 12:00 pm

#131 James on 05.26.17 at 10:54 am

#193 traderJim on 05.25.17 at 3:57 pm

#189 James

That was a good moment too James, as the obvious alpha male takes his place at the front.

I get it now, Trump’s the guy who picked on you in school. That’s not fun, but time to get over it and realize some people are born alpha and some people are born beta. Not much you can do about it. Life’s not fair, sorry.
…………………………………………………………………….
Sorry my ass Trader Jim, I’m the alpha male in my family at 6’4″ played football and hockey, graduated university with two degrees, own my home, owe nobody anything and have pilled up enough cash to buy out people like you at a whim.
While Trump may act like an alpha male he is a twisted jerk with no class. That is why he is not on top of the New York social clubs, he has been shunned and he is a pariah. There is a difference between being wealthy and being a wealthy jerk. The fact is Trader Jimbo Boy your barking up the wrong tree my little dog. Oh and I just pissed on your tree.
———————————————————-
I would say majority of wealthy people are jerks, some just hide their un-humbleness better than others.

Lots of money screws with your head, but most won’t have to worry about being in that position :)

#135 Johnny Boy on 05.26.17 at 12:02 pm

#117 Smoking Man on 05.26.17 at 9:13 am

#18 Daughter of Ponzy on 05.25.17 at 7:43 pm
#13 Smoking Man

Stop lying Smokey or should I say Jimmy Stojsin. You sold your crack shack for a million dollars, no wonder you are scared of buyers remorse. I wish they come to their senses and never close on such a crappy deal. You should know that for a million dollars you can buy a really nice house in much nicer countries than this one. You are such a con artist!
…..

Although I brag about being the world’s biggest lier. The truth is I rarely lie. I call it like I see it.

Con artist? That’s complimentary thank you.

But I’m telling how the herd reacts, I sold my place at a deep discount for where prices will be next year.
If sellers don’t get close to were they think their place is worth. They will de list on mass. Drying up inventory again.

Watch and learn grasshopper.

Dr Smoking Man
PhD Herdonomics
________________________________________
The con artist with a million dollar cottage in the Mukokas?
The con artist with Millions in an offshore Caribbean account?
The con artist wit a huge job in Boston bringing in thousand per day?
The con artist who calls himself a Phd in Herdonomics?
You should be a Phd in Bullshit!
See you later grasshopper, but i do enjoy your delusional distractions, so carry on.

#136 april on 05.26.17 at 12:14 pm

#104 – Yes they have already in the Vancouver area. Get the facts but not from the real estate industry.

#137 Wrk.dover on 05.26.17 at 12:15 pm

I would like to share this with those seeking a new career. This showed up on a page of paper inserted into every post box within my postal code:

Job Opportunity
Looking for part time employment!

We are looking to train and hire people for positions as Dockside Monitors to service areas listed below. Persons who reside near these communities and who would like Part time seasonal work please apply to the address below.

Digby County and Upper Bay

Job description: Determine the weight of fish by species unloaded at dockside
Verify scale accuracy
Inspect vessel to ensure all fish have been unloaded
Verify completion of fishing documents

Term: Seasonal casual employment.

Qualifications: Mandatory
Understand fundamental mathematics
Is not an employee of an enterprise that catch, cultures or processes seafood
Has grade 12 or equivalent work related experience in fisheries
No criminal record ( RCMP check will be conducted)
Must have reliable transportation

Conditions: Must meet all mandatory requirements to obtain Federal certification
Participate in a 3 day training course
Pass a certification exam at end of course ( 75%)

Wages & Position: $12.00/hour

How to apply: Mail resume
Att. Albert Gaudet
E-Mail [email protected]
PO box 457
Yarmouth, NS
B5A1M7

—————————————-

So if you have dependable transportation, and want to live in it, good luck with this opportunity for a fresh new beginning in 2017 !

#138 Leo Trollstoy on 05.26.17 at 12:31 pm

Trump trolling the sensitive

Salty tears

Lol

#139 business cards on 05.26.17 at 12:43 pm

#131 James on 05.26.17 at 10:54 am

#193 traderJim on 05.25.17 at 3:57 pm

#189 James

That was a good moment too James, as the obvious alpha male takes his place at the front.

I get it now, Trump’s the guy who picked on you in school. That’s not fun, but time to get over it and realize some people are born alpha and some people are born beta. Not much you can do about it. Life’s not fair, sorry.
…………………………………………………………………….
Sorry my ass Trader Jim, I’m the alpha male in my family at 6’4″ played football and hockey, graduated university with two degrees, own my home, owe nobody anything and have pilled up enough cash to buy out people like you at a whim.
While Trump may act like an alpha male he is a twisted jerk with no class. That is why he is not on top of the New York social clubs, he has been shunned and he is a pariah. There is a difference between being wealthy and being a wealthy jerk. The fact is Trader Jimbo Boy your barking up the wrong tree my little dog. Oh and I just pissed on your tree.

===

Thank you for introducing yourself James.
It was very classy, insightful.

#140 lala on 05.26.17 at 12:51 pm

It’s not funny I kinda feel sorry for people who went all in. Prices will drop about %5 a year for first 3-5 years and it will crash latter as result of higher interest rates. 15 years to recover.

#141 Boots on the Ground in Ptown on 05.26.17 at 12:51 pm

Banks tightening, US:
https://fred.stlouisfed.org/graph/?g=dSfF

Opin by Fed Up author, Di Martino Booth:
https://www.bloomberg.com/view/articles/2017-05-19/the-housing-moment-investors-dread-is-here

#142 Re 131 James on 05.26.17 at 12:54 pm

Do you have any idea how foolish/childish your post was ?

#143 45north on 05.26.17 at 12:59 pm

Chaddywack: What I still don’t understand is why the run up in Vancouver is not correcting as fast as it did in Toronto.

Toronto is correcting faster because it’s bigger. The bigger market has sellers who can and will reduce their prices. Case in point: 7 Dalbeattie Avenue in Toronto, the seller dropped his price $300,000. It’s a rather rare combination to have a seller who can and will reduce his price.

#144 traderJim on 05.26.17 at 1:43 pm

Steve Forbes

https://twitter.com/SteveForbesCEO/status/868123340267040768

And the Atlantic

https://www.theatlantic.com/international/archive/2017/05/trump-manchester-losers/527745/

Both agree that Trump’s ‘evil losers’ strategy might just work.

And at very least didn’t cost a thing, and certainly can’t hurt.

Not sure what the ‘resistance’ plans to do to stop terrorism? Any ideas? Open borders, hugs and stop criticizing a certain ideology for not being peaceful as it might make its adherents not peaceful?

#145 Mark on 05.26.17 at 1:50 pm

“AND WHEN WILL CALGARY COOL? … I’ve been waiting so long I’ll need a cane soon. Still $500,000 for the average detached. “

Someone’s been pulling you leg, prices are down considerably from the 2011 apex experienced in Calgary.

#146 For those about to flop... on 05.26.17 at 1:59 pm

Pink Pollen falling in Burnaby.

These guys forked out 1.96 in Feb 2016 and are either trying to get the competitive juices flowing or accepting the fact that they paid too much.

The 2016 assessment came up a massive amount.

Time will tell…

M42BC

5688 Sussex Avenue, Burnaby

Feb 23:$2,098,000
May 25: $1,680,000
Change: – 418000.00 – 20%

https://www.zolo.ca/burnaby-real-estate/5688-sussex-avenue

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDAzV1NKRw==

#147 More Trumpiness on 05.26.17 at 2:09 pm

Conversations with some officials who have briefed Trump and others who are aware of how he absorbs information portray a president with a short attention span….

National Security Council officials have strategically included Trump’s name in “as many paragraphs as we can because he keeps reading if he’s mentioned,” according to one source, who relayed conversations he had with NSC officials.

http://www.reuters.com/article/us-usa-trump-trip-idUSKCN18D0C7

#148 traderJim on 05.26.17 at 2:11 pm

#131 James

I dunno man, you sound more like a bully and a braggart. You have no idea who I am, but you are sure you can ‘buy me out’. That statement says all that needs to be said.

Trump is clearly an alpha male, and any guy sees that video for what it is, a man putting his hand on the arm of another guy in a crowd as he makes his way past. The Montenegro guy even smiles when he realizes and puts his hand on Trump’s back to help him pass.

Yes, I’m sure Obama or Junior would have stood politely by and waited for someone to notice them. A lot of Americans don’t want a timid leader.

Bullies generally lack confidence and don’t act alone. Trump doesn’t lack confidence, obviously.

Trump does attack people verbally who have attacked him first, like Rosie. It’s just part of his system.

But he never picks on innocents or honest people. Not sure what you call someone who bullies the bullies, but I like them.

You better check CNN, breaking news, something about Comey ‘acting’ on something he KNEW was fake, in order to preserve democracy, or some such nonsense.

The resistance is going to be jumping through more and more hoops to try and cover their butts on the whole Russia conspiracy theory. Alan Dershowitz is trying to keep the Dems from destroying themselves on this witch hunt, but I think they are past the point of no return.

I have my popcorn ready.

#149 traderJim on 05.26.17 at 2:18 pm

Just spoke to a friend in the trendy “Leslieville” area of Toronto, which might still be the car theft capital of Toronto, although I did see a couple of obvious chop shops get closed down (bought out by Millenials I guess?)

He said last 3 weeks ‘for sale’ signs were suddenly popping up on his street.

I said, ‘must be crashing’ or something to that effect.

His reply: ‘Nope, at least one of those places already sold for $300k over asking.’

I’m still sitting on the fence. Smoking Man is probably right, again.

#150 westcdn on 05.26.17 at 2:23 pm

I went to the annual meeting of Black Diamond Income Fund a few years back. The after meeting was a party and the women were hot. I have never seen some many blondes and shiny teeth at one place at the same time. I decided the company the company had taken its eye off business and was then self-actualizing. I bailed shortly after and it was not a mistake.

#151 Blacksheep on 05.26.17 at 2:26 pm

Rates, rates…always about the rates, lets look at US rates, longer term:

“Interest Rate in the United States averaged 5.80 percent from 1971 until 2017, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008.”

https://tradingeconomics.com/united-states/interest-rate

So over the past 46 years, the average US Fed rate has been 5.80%. Why is the Fed at 1.0 % almost 10 years, after the GFC ?

I thought the economy in the US is on fire?

Oh, the Corps (stock buybacks) and some are doing well but sorry, they just don’t need the labor force in the numbers they once did, so those out of work can get a part time minimum wage job and we’ll consider you gainfully employed.

We’ve screwed ourselves in the West by outsourcing our manufacturing, along with some automation and tech shift added to the mix. This blend has reduced demand for labor, drastically slowing wage inflation.

Does anyone think its a coincidence that the cheap labour / manufacturing countries, ex: China, India, & Mexico, have rates similar to that of the US (back when the US used to manufacture more) in the past at an average of 5.75 % ?

Countries that are consumers of goods (debt based) from the cheap labour / manufacturing countries, ex: USA, Can, Aus, GB & Europe are at an average CB rate of 0.65 %.

http://www.global-rates.com/interest-rates/central-banks/central-banks.aspx

So the frustrated drone from the dogs on this blog pleads: ‘when will they significantly raise rates’?

I honestly don’t see them moving much with out an, Internet 2.0 or a Cold Fusion type driver coming online, exploding demand for labor in the West.

And yes of course, bonds….where has the pressure on bonds been in the past 10 years? Besides sovereign auctions are over subscribed to the point that failures are very rare, if ever. Remember, sovereign’s in control don’t need to sell bonds, it’s for the ledgers / perception sake.

http://www.businessinsider.com/when-will-bond-auctions-actually-begin-to-fail-2010-6

With out getting into why, we seem to find ourselves stuck in the mud in a low return on $’s invested environment. Those expecting significant rate increases in the west, are just not seeing the big picture.

#152 Paul on 05.26.17 at 2:27 pm

#143 45north

7 Dalbeattie Avenue
Offers Will Be Reviewed Monday, May 29th @ 6:30Pm – Please Register By 5:00Pm.
We will see !!

#153 For those about to flop... on 05.26.17 at 2:28 pm

Pink Pollen falling in Vancouver.

I’m not sure even any of the realtors on here will have the audacity to state that these guys made a wise decision to fork out 5.15m for this 90 y.o house in April of last year.

Oh ,the value is in the land?

Well , that only comes in a little over 4 and the whole assessment comes in at 4.24 ,bloated as it is.

They need a miracle or a long timeline to break even as sales in this price range have collapsed.

Of all the Crealievers I have seen, these guys might be at the front of the line and went back for seconds…

M42BC

4049 W 13th Avenue, Vancouver

Mar 1:$5,880,000
May 25: $4,680,000
Change: – 1200000.00 -20%

https://www.zolo.ca/index.php?sarea=4049%20W%2013th%20Avenue,%20Vancouver&filter=1

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

#154 James on 05.26.17 at 2:35 pm

#139 business cards on 05.26.17 at 12:43 pm

#131 James on 05.26.17 at 10:54 am

#193 traderJim on 05.25.17 at 3:57 pm

#189 James

That was a good moment too James, as the obvious alpha male takes his place at the front.

I get it now, Trump’s the guy who picked on you in school. That’s not fun, but time to get over it and realize some people are born alpha and some people are born beta. Not much you can do about it. Life’s not fair, sorry.
…………………………………………………………………….
Sorry my ass Trader Jim, I’m the alpha male in my family at 6’4″ played football and hockey, graduated university with two degrees, own my home, owe nobody anything and have pilled up enough cash to buy out people like you at a whim.
While Trump may act like an alpha male he is a twisted jerk with no class. That is why he is not on top of the New York social clubs, he has been shunned and he is a pariah. There is a difference between being wealthy and being a wealthy jerk. The fact is Trader Jimbo Boy your barking up the wrong tree my little dog. Oh and I just pissed on your tree.

===

Thank you for introducing yourself James.
It was very classy, insightful.
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Thank you, very classy no, insightful perhaps. I think I have to take a shower now after that petite diatribe I unleashed. I feel that you have to call a spade a spade with Trump. You can not pussyfoot around with what Trumps real agenda is. I have never listened to a Trump speech where he gets above a fourth grade orators level. Trader Jim is hooked on the Trumpster Kool-aid and ignores what he really is. God Dam Trader Jim sounds like he is Smoking Mans brother. I think they must drink together at the same bar.

#155 TurnerNation on 05.26.17 at 2:41 pm

#137 Wrkdover min wage? In charge of inspections?
Sounds ripes for bribing.
All the fresh fish you want dropped off at home.

#156 For those about to flop... on 05.26.17 at 2:48 pm

Pink Pollen falling in Coquitlam.

These guys should have an easier time getting their money back being in the lower price range ,but we’ll put it up on the board and see how it shakes out.

Paid 1.3m for a 59 build ,where a bear might bite you on the bum when you are putting the garbage can out for collection.

Just tell the bear you paid too much for your house and they should leave you alone…

M42BC

1607 Balmoral Avenue, Coquitlam

Mar 29:$1,468,000
May 25: $1,398,000
Change 70000.00 -5%

https://www.zolo.ca/index.php?sarea=1607%20Balmoral%20Avenue,%20Coquitlam&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzWE5XRA==

#157 For those about to flop... on 05.26.17 at 3:07 pm

Pink Pollen falling in Richmond.

Let’s do a post on a city where I believe has the most rotten tomatoes in Greater Vancouver,Richmond.

These guys ,just like the guys in Burnaby appear to want to get a bidding war happening so they can get their money back as they are on the hook for 1.15m that they splashed out last summer.

Should work out o.k for these guys ,but the sun does some funny things to people…

M42BC

4468 Blair Drive, Richmond

Apr 23:$1,478,000
May 25: $998,000
Change: – 480000.00 -32%

https://www.zolo.ca/index.php?sarea=4468%20Blair%20Drive,%20Richmond&filter=1

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDA1WDhBNQ==

#158 NoName on 05.26.17 at 3:22 pm

james and jim, two “alfa” kids seaking and validating, and giving it them self…
that was funny guys, afirmations are one tricky thing.

Now I wonder who is better at missspeling me or smoking man…

#159 Game on in Van RE on 05.26.17 at 3:23 pm

Wow, prices surge 26-33% in the communities surrounding Vancouver. Does this look like a collapse to anyone?

Interestingly, its supposed to be the communities surrounding the costly metro centres that witness the prices collapses first…at least based on all RE theories and experiences in the US.

Hmmmm…looks like game on for more years in Vancouver.

http://vancitycondoguide.com/house-lust-hits-burbs/

#160 april on 05.26.17 at 3:39 pm

#136 to #104 – Correction. The facts. Go to CREA’S website to see how much houses have dropped in Vancouver. The media has not reported the truth as usual…not yet.

#161 adam on 05.26.17 at 3:43 pm

For those about to flop:

11231 64a Ave Delta ….paid 1.24…asking 1.29
-Listing Terminated
5746 Lancaster St. Van …paid 2.21…asking 2.09
-Just sold $2.37 million
3208 e 53rd Ave Van…paid 1.59 …asking 1.69
-Listing is “cancel protected”
3855 Brandon St Burnaby….paid 1.46 asking ….1.49
-Just Sold $1.7 million
1237 e 64th Ave Van…paid 1.45 …asking 1.34
-Just sold $1.435 million
808 e 28th Ave Van …paid 2.0 ….asking 2.08
-sold $2.05 million
3471 Rosamond Ave Richmond paid 1.65 asking 1.68
-sold $1.75 million
9267 154 st. Surrey…paid 850 …asking 898
-? wrong address
9247 138 st. Surrey…paid 803… asking 799
-sold $926K
5833 Cove Link Rd. Delta paid…1.39 ….asking 1.49
-listing terminated
1346 Crestlawn Dr. Burnaby..paid 1.56 asking 1.48
-listing terminated
13523 79 Ave Surrey..paid 900 asking 999
-sold $980K
8933 149 st. Surrey…paid 800 ….asking 869
-sold $860K
4798 Killarney St. Van paid 985 asking 999
-sold $1.17 million
3140 Springfield Dr. Richmond paid 1.85 asking 1.99
-relisted $2.238 million (they weren’t asking enough)
10680 Housman st. Richmond…1.6 asking 1.72
-sold $1.72 million
10619 137a st. Surrey…paid 672….,asking 690
-listing expired
21-6878 Southpoint Dr. Burnaby paid 645 …asking 580
-sold $605K
1805 Eighth Ave New Westminster paid 1.12 …asking 1.18
-sold $1.180million

Solds on MLS just means all conditions have been removed. There is still a chance a sale can collapse though this is rare as it looks like most people in YVR are still making money.

In the US, this information is essentially public as it is on Zillow. It should be public in Canada as well.

#162 Johnny Boy on 05.26.17 at 3:57 pm

#142 Re 131 James on 05.26.17 at 12:54 pm

Do you have any idea how foolish/childish your post was ?
___________________________________________
Alpha Males Rule, arrf, arrf, arrf awooooooo………….
Now I have pissed on all of your trees. My territory.

#163 Howard on 05.26.17 at 4:01 pm

#140 lala on 05.26.17 at 12:51 pm
It’s not funny I kinda feel sorry for people who went all in. Prices will drop about %5 a year for first 3-5 years and it will crash latter as result of higher interest rates. 15 years to recover.

———————————

15 years? The last time a housing bubble popped in Toronto, in 1989, it took seven years for prices to bottom out, in 1996.

Using that as a guide, and assuming (hoping) that we’re in the early stages of the downturn, 2023/2024 should be good targets to get in.

#164 Tony on 05.26.17 at 4:08 pm

Re: #140 lala on 05.26.17 at 12:51 pm

There are very few positives for housing long term. Worldwide falling birthrate and rising taxes worldwide. My guess is most countries’ housing market will eventually end up like the housing market in both Japan and Germany.

#165 Trump's Moral Holiday on 05.26.17 at 4:11 pm

“In the annals of the Trump era, May 25, 2017, will deserve a special mark. Four remarkable things happened on Thursday, each of which marks a way that this presidency is changing the nation….

“These four events each represent one of the great themes of the Trump era:
— The anti-alliance pro-Russia tilt of administration policy
— Collusion with hostile foreign nations for domestic political advantage
— Use of political power for personal financial advantage
— The breakdown of inhibitions and the weakening of sanctions against political violence.”

https://www.theatlantic.com/politics/archive/2017/05/trumps-moral-holiday/528327/

#166 People are Strange on 05.26.17 at 4:15 pm

Like fleas jumping off a dying dog!!

#167 Smoking Man on 05.26.17 at 4:26 pm

Quick books sucks.

I’m giving my system away for free. Got 100k online advertising budget.

The goal. For them to buy me out. The longer they take the more it’s going to cost them.

#168 Trump's Conflicts of Interest on 05.26.17 at 4:33 pm

A semi-comprehensive list of the business concerns that may influence the president during his time in office.

https://www.theatlantic.com/business/archive/2017/05/donald-trump-conflicts-of-interests/508382/

#169 jess on 05.26.17 at 4:40 pm

Bruce Hopkins, who owned The Remodelers and starred in his own home renovation TV show for several years.

http://calgaryherald.com/news/crime/tv-renovation-contractor-pleads-guilty-to-22-charges-faces-jail-time

#170 Calgary Rip Off on 05.26.17 at 4:41 pm

AND WHEN WILL CALGARY COOL?

How about NEVER?

Calgary housing is whacked. That includes rentals. Its all a ridiculous rip off.

I find it hilarious that people still dont understand: Old Calgary(pre 2005): Housing was reasonable.
New Calgary: Housing is a rip off.

Wait all you want, unless something outrageous happens, prices are stagnant. I bought the mortgage in 2011. The prices in NW have gone up a little since I got the mortgage, and i have paid a lot on the principal.

What is the solution? Get out of Calgary. The only reason I have to stay in Calgary is my job. Everything is a total rip off.

All this would be tolerable if housing was $180-200K, NOT $500K. And thats for a 2300 sq foot shack.

Its still laughable that my co workers are always complaining about money and their mortgages are paid. Disgusting greed.

#171 More of Trump's Trumpery on 05.26.17 at 4:54 pm

“Six to One Against Trump on Climate in ‘Honest’ Exchange at G-7”

https://www.bloomberg.com/politics/articles/2017-05-26/merkel-says-it-was-six-to-one-against-trump-on-climate-change

#172 For those about to flop... on 05.26.17 at 5:28 pm

#161 adam on 05.26.17 at 3:43 pm
For those about to flop:

11231 64a Ave Delta ….paid 1.24…asking 1.29
-Listing Terminated
5746 Lancaster St. Van …paid 2.21…asking 2.09
-Just sold $2.37 million
3208 e 53rd Ave Van…paid 1.59 …asking 1.69
-Listing is “cancel protected”
3855 Brandon St Burnaby….paid 1.46 asking ….1.49
-Just Sold $1.7 million
1237 e 64th Ave Van…paid 1.45 …asking 1.34
-Just sold $1.435 million
808 e 28th Ave Van …paid 2.0 ….asking 2.08
-sold $2.05 million
3471 Rosamond Ave Richmond paid 1.65 asking 1.68
-sold $1.75 million
9267 154 st. Surrey…paid 850 …asking 898
-? wrong address
9247 138 st. Surrey…paid 803… asking 799
-sold $926K
5833 Cove Link Rd. Delta paid…1.39 ….asking 1.49
-listing terminated
1346 Crestlawn Dr. Burnaby..paid 1.56 asking 1.48
-listing terminated
13523 79 Ave Surrey..paid 900 asking 999
-sold $980K
8933 149 st. Surrey…paid 800 ….asking 869
-sold $860K
4798 Killarney St. Van paid 985 asking 999
-sold $1.17 million
3140 Springfield Dr. Richmond paid 1.85 asking 1.99
-relisted $2.238 million (they weren’t asking enough)
10680 Housman st. Richmond…1.6 asking 1.72
-sold $1.72 million
10619 137a st. Surrey…paid 672….,asking 690
-listing expired
21-6878 Southpoint Dr. Burnaby paid 645 …asking 580
-sold $605K
1805 Eighth Ave New Westminster paid 1.12 …asking 1.18
-sold $1.180million

Solds on MLS just means all conditions have been removed. There is still a chance a sale can collapse though this is rare as it looks like most people in YVR are still making money.

In the US, this information is essentially public as it is on Zillow. It should be public in Canada as well.

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

Thanks for your help Adam ,I appreciate the effort.

As you can tell I am o.k with showing the wins as well as I am trying to show whats going on with relatively new information on the market.

Most of these guys bought in 2016 and played the game , it worked out great for some ,others not so much.

I see a few losses and will do some CONFIRMED PINK SNOW posts when the system gets updated.

A lot of my cases get delisted as the market is not as robust as last year even though certain segments are doing decent.

I posted some doozies today lets see what happens with them…

M42BC

#173 traderJim on 05.26.17 at 5:45 pm

If MSM ever prints a story about Trump that doesn’t start off with the disclaimer ‘anonymous sources said’ or “unnamed people who know what someone is thinking said” then maybe I’ll actually read one.

Until then I’ll just read the stuff that’s real, like Comey trying to cover up the Wasserman-Schulz obstruction of justice with Lynch and Billy colluding (all 4 might go to jail, before this is over) and Hillary’s rigging of the primary (clear proof of that is in wikileaks docs yet no investigation, strange).

Meanwhile, Hillary gives a commencement speech and lies about Nixon being impeached, claims Trump will be impeached (there’s no investigation of Trump, and no claim of any crime broken by Trump or any of his associates), and then doesn’t mention that her own husband is the only one that actually was impeached.

Holy George Orwell, batman.

Alan Dershowitz, eminent Harvard Law scholar and Hillary supporter, now compares the Dems tactics to Stalin’s secret police.

In case you missed it, Republican Gianforte body-slammed a lefty journalist 2 days before the election and then went on to win handily.

He replaces ex-Navy Seal Commander Ryan Zinke who Trump made Secretary of the Interior.

Talk about alpha males.

The battle’s heatin’ up.

This kind of post has no place on this blog. Stop it. — Garth

#174 Daughter of Ponzy on 05.26.17 at 6:00 pm

It is now obvious that Trump is a buffoon and nothing good for normal people will come out of this. He is a total joke and so easy to discredit.

#175 Ace Goodheart on 05.26.17 at 6:02 pm

RE: “they grown disenchanted with old houses (“the deck was rotten… the roof was iffy.. the backyard was a swamp…”) but they had dollar signs in their eyes.”

They’d better hope that if the purchasers do want to get out of the deal, they don’t find this blog and figure out who “Brad and Jill” (hopefully not their real names) are. The rotten deck and sketchy roof maybe things they could recover from, but a water logged backyard is usually a grading issue that is most times very difficult to fix. Unless they sold “as is” they would have been expected to disclose all of that, and not doing so is a sure fire way for the purchasers to get out of the contract (“they didn’t tell us the back yard floods in the spring!”)

#176 A Reply to #154 James on 05.26.17 at 6:06 pm

“I have never listened to a Trump speech where he gets above a fourth grade orators level. Trader Jim is hooked on the Trumpster Kool-aid and ignores what he really is.”

Stephen Hawking once said, “Trump is a demagogue who seems to appeal to the lowest common denominator.” Well, you can’t get much lower than Jimbo.

“God Dam Trader Jim sounds like he is Smoking Mans brother. I think they must drink together at the same bar.”

No, I don’t think the two are related. Smoking Man’s IQ is at least 50 points higher than Jimbo’s.

#177 Daughter of Ponzy on 05.26.17 at 6:07 pm

#173 traderJim on 05.26.17 at 5:45 pm

Do you have any idea how irrelevant and tiresome are your daily ramblings! Just find another hobby, please…

And you too Smokey!

#178 waiting on the westcoast on 05.26.17 at 6:21 pm

When the insurers start giving you advice to keep paying your mortgage… You know the fat lady is singing….

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/10-ways-your-home-can-make-money-for-you-without-having-to-move-out&pubdate=2017-05-26

#179 For those about to flop... on 05.26.17 at 6:23 pm

Adam, I just looked in my Pink Snow folder to double check that one that you asked me if it was a wrong address and you are correct.

It should be 9627 not 9267 ,which is why I try to spend as much time on my iPad so I have bigger buttons to press with my sausage fingers.

Would you be interested in helping me out once a month in the future?

If not, I respect your decision and will soldier on until as you stated the system is overhauled.

Peace, Flop…

M42BC

#180 pruno on 05.26.17 at 6:32 pm

Sorry my ass Trader Jim, I’m the alpha male in my family at 6’4″ played football and hockey, graduated university with two degrees, own my home, owe nobody anything and have pilled up enough cash to buy out people like you at a whim.
While Trump may act like an alpha male he is a twisted jerk with no class. That is why he is not on top of the New York social clubs, he has been shunned and he is a pariah. There is a difference between being wealthy and being a wealthy jerk. The fact is Trader Jimbo Boy your barking up the wrong tree my little dog. Oh and I just pissed on your tree.

You forgot to include the circumference of your nut sack, you mongoloid

#181 traderJim on 05.26.17 at 6:34 pm

“God Dam Trader Jim sounds like he is Smoking Mans brother. I think they must drink together at the same bar.”

That would be cool. I hear that Smokey is up in Muskoka sometimes maybe we can meet for drinks. Don’t think he’s a Lake Joe club type though. Maybe catch him at the Kee when Blue Rodeo is there, all the boomers go to see BR at the Kee.

There are some good pubs around that have local talent, really good live music. I think Smokey would like my local watering hole. You get all types in there, from farmers in overalls to hockey players and daughters of Hollywood celebs.

#182 Its' getting political on 05.26.17 at 8:15 pm

Interesting observations here…
Why the hate on for Trump and the fascination by many pompous Canucks with US Dems/Rep politics when we have our hands full with an incompetent and corrupt Lib gov led by the man-child himself?
Our highly regarded PM yells “wave” to the rest of the world leaders at a photo opp, shows of hs colourful socks at every opportunity and stages fake photo bombs wearing sexy short shorts – wake up and fight the battle in our own backyard!

#183 what are they smoking on 05.27.17 at 12:20 am

#153

This is what I always imagined million $ homes to look look like. Vancouver is sad.

https://www.zillow.com/homes/for_sale/CA/25586179_zpid/9_rid/4500000-5100000_price/16615-18830_mp/globalrelevanceex_sort/44.41024,-108.962403,29.697596,-129.638672_rect/5_zm/

vs

https://www.zolo.ca/index.php?sarea=4049%20W%2013th%20Avenue,%20Vancouver&filter=1

#184 Prince Polo on 05.28.17 at 10:00 am

#80 teknohippie on 05.25.17 at 10:43 pm
@#37 Nonplused
“Best photo ever….”
******
I really want to see the “ten years later” photo.

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

I think the pig will be a plate of bacon!