Dippernomics

Despite squawks from the dippers, lefties, commies, shrub-huggers and whale strokers who read this sustainable yet Harley-riding manly blog, a few words to BC:

You’re screwed.

According to the chief economist at Alberta Treasury Board Financial, where they know lots about poochedness, our strangest province has allowed a stunning 40% of its GDP to be dependent upon residential real estate. This makes sense since (we’re told by the BC public worker’s union) virtually 100% of detached houses in Van are now ‘worth” at least $1 million, with close to half  sheltering blinky, pale mortgage-busters called ‘tenants.’

For context, about 20% of Canada’s total economy is house-dependent – and that’s a record. The most since numbers were gathered. This is beyond the 15% of California’s economy that real estate represented before the market blew up forcing the bankrupt state to issue IOUs. In short, it’s historic, unprecedented and emblematic of how speculative and delusional most BC residents have become. Now, with a bevy of eat-the-rich politicians about to swarm into the wheelhouse, the result seems predictable. Economic torpor, then a slow descent. But maybe I’m wrong. It might be fast.

The coalition of Dippers and Greens seizing power in a bloodless coup appears unified on a strategy to destroy real estate equity. First, they’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%. That will send a strong message to the world that no foreign investment is wanted in BC. Genius.

Second, the tax will be extended across the entire province, and no longer just apply to YVR. So long, Victoria.

Third, there will be a capital gains tax introduced on real estate profits for people who have lived in a house less than five years, starting at $750,000. Once in place, of course, the time can be shortened or the ceiling reduced to capture more and more gains. And what government would ever eliminate that cash cow?

Fourth, a big jump in property transfer tax. No, a b-i-g increase seriously punishing people who live in semi-nice houses worth a couple of million or more. In fact by the time the $3 million mark is achieved, the tax would be equal to 12% of assessed value. Yes, that’s $360,000. Yikes. Look for values to suffer at the top end of the market.

Fifth, punishment for people who own more than one property for investment purposes with an annual tax equal to 2% of the property’s value, or $2,500 a month on a $1.5 million unrenovated butt-ugly, 50-year-old Vancouver Special. The tax will remain in place until the owner’s income is verified.

And meanwhile tenants will be subsidized with rent controls and a cash payment, while the province foots the bill for building 114,000 ‘affordable’ houses.

Does anyone seriously believe the real estate market can withstand this? On top of the slew of federal initiatives including that mortgage stress test for moister buyers, plus the looming collapse of Home Capital, the largest non-bank lender?

At the heart of the socialist view of the market is that people have a right to real estate, not just shelter. They do not. It’s also an assault on property as an asset class, plus a way to create de facto wealth redistribution and (natch) raise the millions and billions that will be required to fund subsidies and enhanced social programs. Perhaps this is exactly what BCers want. Somehow I doubt it, since so much of the huge equity families now have in their houses (many people’s entire net worth) is supported by an epic level of debt. Governments can easily, quickly – in an ideological fog – pass laws to destroy equity, but they’ll never reduce the borrowing. So, be careful what you wish for.

Enough about BC. We all want to talk about mighty Stouffville, instead. At least Tom does, who lives in this once-hot, hot, hot bubbly burb north of the Big Smoke:

“Been watching closely and collecting sales data using free (admittedly grey-market) tools online charting sales.  In my neck of the woods I’ve charted a complete collapse in weekly sales.  In late March we had more than 20 sales/week, and as of a couple days ago, we’re down to 1-2 sales/week.  Amazing.  Attaching my sheet for your reference in case you wanted to use any of this in your blog.  Stouffville is the 2nd highest sales decline in the GTA (after Richmond Hill) and the public number is 60%, but from my numbers it’s looking more like 90%.. Prices to follow?”

You bet, Tom. Thanks for letting BC know what’s coming.

258 comments ↓

#1 pathcontrolmonk on 05.30.17 at 5:06 pm

Christy just gave her pathetic press conference being both smarmy and pouty while declaring how unfair democracy is. Apparently she is a masochist and will not resign, perhaps the faux-Libs think they can still somehow hold on?

#2 paul on 05.30.17 at 5:10 pm

3 Pete on 05.29.17 at 6:57 pm
Great post, Garth. Anyone knows what happens to that house with price dropped $300k? Offer day is today.
——————————————————————–
Did not sell last night. Raising the price to $899,900.
He had over 900k about six weeks ago and said NO.

#3 FK on 05.30.17 at 5:17 pm

My friend lives in Stouffville, he bought a 10yr old detached house for $640k 4 years ago from a guy who bought it new for $400k. Now a similar house is being sold at $1.5 mil, crazy. My friend’s not planning to sell it, because it’s perfect location for his kids, but instead dropped $150k on renovations.

#4 Smoking Man on 05.30.17 at 5:17 pm

Communism. 3.0
Ouch.

Diversity, Inclusion, LGBTQ, Cultural Appropration, Fairness, pronunes. Etc

It’s all that matters.

Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Now eat your cake.

#5 Curious to know on 05.30.17 at 5:17 pm

Thank you for today’s post.
Curious to know if this bc mumbo jumbo will give the GTA another push raises prices?

#6 When The Whip Comes Down on 05.30.17 at 5:17 pm

Come on now, do you really think they’ll accomplish ALL that? Can you provide the link to where its indicated the NDP and Green’s collective intent right now is to push ALL that through?

#7 Dave on 05.30.17 at 5:21 pm

If your investment property in under an incorporated company, will this shelter you from the 2% annual tax?

#8 Tkid on 05.30.17 at 5:21 pm

Surely to God they wouldn’t be that destructively insane? It would wipe the market out.

#9 paul on 05.30.17 at 5:27 pm

Most times it’s not what they can do but what Investors think they might do . Uncertainty can be a killer.

#10 Game Changer on 05.30.17 at 5:30 pm

#6 When The Whip Comes Down on 05.30.17 at 5:17 pm
Come on now, do you really think they’ll accomplish ALL that? Can you provide the link to where its indicated the NDP and Green’s collective intent right now is to push ALL that through?

——–

Text from the NDP-Green Agreement on Housing

“Make housing more affordable by increasing supply of affordable housing and take action to deal with the speculation and fraud that is driving up prices.”

This summarizes succinctly the two party planks – supply and foreign and domestic speculation…

#11 The Technical Analyst, CSTA, CPD on 05.30.17 at 5:33 pm

I’ve been following international financial news that I didn’t even know there was an election in BC! And BC (even Canada) hardly shows up in the Global news… that goes to show how important Canada (sadly) is in the world.

Green-NDP in BC? Wow. I guess they don’t like successful corporations, people or GDP.

I couldn’t believe Alberta voted NDP though.

Interesting times.

#12 TheSpangler on 05.30.17 at 5:34 pm

C’mon guys, destroy the housing market! #makehousingaffordableagain

#13 I'm stupid on 05.30.17 at 5:35 pm

I thought retiring was easy… but a house and wait then sell and retire. No need with the other stuff like working, saving, investing. Canadians are going to look back at all this and know exactly how stupid they were.

#14 The Technical Analyst, CSTA, CPD on 05.30.17 at 5:35 pm

Re: “According to the chief economist at Alberta Treasury Board Financial”

I know Todd quite well. A sharp financial mind and great person to hold hour long conversations with… Him and James (the VP).

If you are reading this… “Hi Todd and James! You made it in Garth’s news!”

#15 Howard on 05.30.17 at 5:36 pm

Garth – I thought you said the Chinese dudes have nothing to do with it. So why would the 30% tax create a “death spiral” for BC real estate? Anyway isn’t a housing what we all wanted?

#16 ILoveCharts on 05.30.17 at 5:36 pm

No 30% tax. Fake news

#17 Bobby on 05.30.17 at 5:37 pm

For #1 pathcontrolmonk;
You obviously were listening to a different news conference that I was, it didn’t sound like your description at all. In fact, if I may be honest, the lefties sounded like they were somewhat naïve and completely out of touch. Alternate facts?
Fortunately, they will not get the reins of power unless the Liberals lose a confidence vote and the LT Gov gives the coalition or whatever it’s called, a chance to govern.
I think common sense will reign and BC will be sent back to the polls. If anything is a given, it’s the fact the NDP couldn’t run a hot dog stand. It’s been proven time and time again.

#18 Howard on 05.30.17 at 5:37 pm

I meant….isn’t a housing CRASH what we all wanted

#19 Mike on 05.30.17 at 5:39 pm

Christie will be back sooner than you guys think, and BC real estate bonanza will continue.

No crash in BC whatsoever.

#20 Entrepreneur on 05.30.17 at 5:40 pm

But the most important point is families able to afford housing in their communities. And a very important point, for families, businesses, communities and that is what makes a province then a country.

This world has nations that have boundaries and people live in those boundaries. These people should have respect and govern how they see fit, better overall.

#21 Dave on 05.30.17 at 5:42 pm

These measures with Nuke the real estate market as each bill is passed. In turn destroy the BC economy, not even the NDP are that extreme. I believe much lighter measures will be taken.

#22 Herkunft on 05.30.17 at 5:43 pm

#6 When The Whip Comes Down on 05.30.17 at 5:17 pm
Come on now, do you really think they’ll accomplish ALL that? Can you provide the link to where its indicated the NDP and Green’s collective intent right now is to push ALL that through?

——–

https://thetyee.ca/News/2017/04/14/Easing-BC-Housing-Crunch/

#23 Surf the gravity waves on 05.30.17 at 5:44 pm

#4 Smoking Man on 05.30.17 at 5:17 pm

Communism. 3.0
Ouch.

Diversity, Inclusion, LGBTQ, Cultural Appropration, Fairness, pronunes. Etc

It’s all that matters.

Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Now eat your cake.
..

So Branson and Oprah going be your new neighbors! did they buy your book

#24 Daughter of Ponzy on 05.30.17 at 5:48 pm

Whoever (and it’s not you – peasants) put NDP and Greens in power in BC is obviously hell bent on popping this bubble. Crusty was good pumping, these guys are going to be smashing dumping. All the suckers are roped and it’s perfect time to move to the next stage of this con. Same as it ever was…Enjoy and thank the Queen.

#25 CanadianOne on 05.30.17 at 5:53 pm

More than one way to skin this cat…… and a bubble by any/all means must be….. doesn’t matter liberals/conservatives/socialists/greens. Somebody’s gotta pop it. But I suspect people with vested interests will do all sorts of things to try and cling on to idea of “worth” in an asset class (esp. residential RE); prolonging the inevitable and increasing the severity. Cutting ones’ losses short would be the meme to follow just about….. now.

M39AB

#26 pete on 05.30.17 at 5:54 pm

If I want to invest in gold or stocks, can I put 5% down and get a loan from bank for the rest 95% at 2.5% interest rates?

Let’s face it. Governments want the bubble. They did everything they can to make it happen. When the bubble burst, they will do everything they can to make sure they are NOT held responsible for it.

#27 pete on 05.30.17 at 5:54 pm

Home Capital reported another $53 million drop in deposits on May 29th. Wonder how long they can last.

#28 mouldyinYVR on 05.30.17 at 5:55 pm

https://www.knowledge.ca/program/super-rich-and-us
Remember – Getting people in debt reduces the amount of industrial action, holds down wages and helps control inflation. If you think that this is not a ‘planned policy’ watch the above program.
BC may be an unusual Canadian province (I’ll give you that Garth), but we have had enough of the provincial ‘Liberals’ and their ‘policies’. Thank goodness Christy and her gang (and it is a gang) will soon be gone.

#29 pete on 05.30.17 at 5:55 pm

#2 Paul

Thanks. very much appreciated. If they can’t sell at $699k, how could they sell at $899k? that is pathetic.

#30 Chaddywack on 05.30.17 at 6:01 pm

All those measures that you highlighted in your post is exactly why I voted NDP for the first time in my life this election.

The market is completely out of control in Vancouver and if I need a dose of socialism for 4 years to ensure that my family can afford a house…..so be it.

Kind of ridiculous that I’m married to a doctor and we can’t even afford a detached house in Vancouver.

#31 Wait There on 05.30.17 at 6:08 pm

Pop!

#32 crdt on 05.30.17 at 6:08 pm

Oh my… Looks like things a changin’ …. Who will these developers romance now? Will the foreign buyers who bought and paid 15% feel great they saved 15%, locals will get a 30% discount now.. I doubt much will sell to foreigners to scalp to locals now. Flippers and mom and pop landlords are now putting their hands out to receive their own asses…

#33 dr. talc on 05.30.17 at 6:08 pm

People, I’m here to tell you that no government, anywhere in Canada is collecting a dime from from any ‘foreigner’. The governments of BC and Ontario want you to believe that the ‘foreigner’, not governments and central banks, caused this mess. Even in the unlikely event that they opened the books, the numbers will be made up. People with 3 million in cash diving Maseratis have options, which include front men, ghost buyers, relatives, what ever

#34 Alberta Ed on 05.30.17 at 6:08 pm

Has anyone informed our studly PM with the culturally misappropriated tattoo that when the real estate SHTF he could end up spattered? (Oh, never mind… he’ll find out soon enough.)

#35 bob dog on 05.30.17 at 6:09 pm

Good!

#36 Fake News on 05.30.17 at 6:10 pm

The coalition of Dippers and Greens seizing power in a bloodless coup appears unified on a strategy to destroy real estate equity. First, they’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%. That will send a strong message to the world that no foreign investment is wanted in BC. Genius.

_________________________________________

So how does controlling the out of control housing market where 100% of new builds are “sold out immediately” to foreign buyers only mean – no foreign investment is wanted in BC exactly? Am I living under a rock? I was to understand BC created wealth from more than just real estate.

#37 Game Changer on 05.30.17 at 6:13 pm

And meanwhile tenants will be subsidized with rent controls and a cash payment, while the province foots the bill for building 114,000 ‘affordable’ houses.

——

Actually, there are no rent controls contemplated per se.

All they are looking to do is remove the abuse around the fixed term lease where landlords lock people into a year and then have them sign a new one with a higher price each and every year to skirt the current ‘rent control’ of an annual limited increase (usually set around inflation).

They will look to stop the ‘renovictions’ that have become the norm of ostensibly updating a building – kicking everyone out – then charging 50%or 100% more in rent for the same cosmetically adjusted units (if changed at all).

But they will give each rental household – not renter – $400 subsidy.

As for housing, the 114k units over 10 years – 14k a year – will not be funded just by the province. The feds have housing as a billion dollar priority so there will be significant federal funding and cost sharing, including likely with community groups and local governments.

But will it cost a lot – you judge. The current government ponied up half a billion before the election for just 3000 non-market housing units….

#38 For those about to flop... on 05.30.17 at 6:13 pm

I think I need to hire some assistants.

I can’t see the Pollen for the trees…

M42BC

#39 Wrong Hole! on 05.30.17 at 6:14 pm

If this happens BC crashes, Asian money will be coming back to GTA. Our crash may be short lived.

#40 the Dude on 05.30.17 at 6:15 pm

Hey Garth,
I was just told that it is possible to skip the foreign tax by holding any Canadian Company. Start one up for a couple grand and save alot of money.
Do you know if this is true or is it a bunch of realtor mumbo jumbo.

Cheers

#41 None on 05.30.17 at 6:16 pm

Come on Garth – they hyperbole in this post is extreme even for you. The liberals were corrupt and the pay to play politics was just gross. Many of the liberals were bought and paid for. Getting the cash out of politics is a good thing.

As for housing – I agree – affordable housing is a bit of a misnomer. People want affordable housing so that they can what? BUY IN which will then make housing …umm… less affordable. The only way to decrease house prices is paradoxically to make them more expensive and inject fear into the housing market by removing the belief that there is always only money to be gain.

Anyway, this will be interesting. The liberals brought it on themselves and frankly did much better than they deserved. As you imply – it can’t all be about social values but it can’t also only be about money. Finding the right balance is a challenge for all parties.

#42 TheDood on 05.30.17 at 6:16 pm

BC doesn’t know whether it will be NDP+Green or Liberal at this point. Nobody can say – with any certainty – what’s going to happen in the next few months. What is certain is that investment dollars ALWAYS disappear in the face of political uncertainty. Nobody with a working brain will invest a single dime until the whole political game plays out and the music stops. Anyone that buys real estate in the current uncertain political climate is dumber than a sack of hammers.

My bet: By the end of summer, listing will swell into the 1000’s, buyers completely disappear, and prices will start to tumble significantly…………
………..and the vulching can begin!

Release the hounds Smithers!

#43 Pepito on 05.30.17 at 6:17 pm

At the heart of the socialist view of the market is that people have a right to real estate, not just shelter. – Garth
______________

Nonsense. You made that up. It’s about affordable housing. And yes the valuations will crash. Would you prefer keeping the zombie alive?

#44 Frank on 05.30.17 at 6:17 pm

First, they’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%. That will send a strong message to the world that no foreign investment is wanted in BC. Genius.

Second, the tax will be extended across the entire province, and no longer just apply to YVR. So long, Victoria.

What? I thought you said that Victoria was <5% and Vancouver wasn't much more. Foreign buyers weren't a factor and now it's economic suicide? Stay in one lane dude.

No, a b-i-g increase seriously punishing people who live in semi-nice houses worth a couple of million or more. In fact by the time the $3 million mark is achieved, the tax would be equal to 12% of assessed value. Yes, that’s $360,000. Yikes. Look for values to suffer at the top end of the market.

So a tax on millionaires that shouldn’t matter because that equity is going to disappear soon right?

Does anyone seriously believe the real estate market can withstand this?

No, that’s the point. It’s meddling with the market that inflated this gas bag (free downpayments, 40 year mortgages, PTT credits for moisters) so it’s meddling that needs to be undone.

At the heart of the socialist view of the market is that people have a right to real estate,

No, that’s the Liberals philosophy which is why they give free down payments to first-time buyers because every 20-something has a right to a 500 sq ft condo. The heart of the NDP policy is that investors and speculators are driving up the cost of shelter beyond the means of residents.

So, be careful what you wish for.

We wished for a change from the status quo. Housing is the number one issue in BC and the Liberals weren’t improving it. Despite your dogmatic defense of the 1% of income earners this is what the majority of British Columbians voted for: not the Liberals.

Thanks for letting BC know what’s coming.

Sure, sure. You predicted this last year and for Alberta the year before. Calgary home prices are a few points off and Vancouver isn’t much further down. Toronto’s crash is unique.

#45 Smartalox on 05.30.17 at 6:17 pm

So let’s get this straight:

– The very same people who are over-leveraged in BC real estate, and whose greed drove real estate prices to levels of public crisis, will now (potentially) be managed by political parties that have vowed to tax that golden goose to its eventual death, (and this is the best part) by imposing taxes based on percentages of the value of the property?

Isn’t that declining returns, or something?

Meanwhile, the leader of the party that repeatedly, publicly stated that she ‘didn’t want to do anything rash (to the housing industry) that would damage the equity that people have in their homes’, is pilloried by that same over-leveraged, real-estate greedy electorate.

Well, good luck with those rising mortgage rates, and declining home values. As somebody else said: the suckers are roped and this is the perfect stage of this con.

Fortunately, very few of the taxes apply to me, and I have the means to stay out until the market hits bottom. I give this thing 18 months or less, depending on the rate of the real estate crash.

It’s not the developers and the one percenters who are going to be punished here – they pocketed their profits as soon as those units were built.

But anyone with a mortgage? The amateur specuvestors, and ‘investment clubs’ that took money out of their helocs to buy spec houses to flip? The teachers, the ferry workers, the government workers who bet it all on their escape from the middle class?

You’re so screwed. And your parents are screwed too, if they haven’t sold yet. And the best part is that you brought it all on yourselves!

#46 Waiverless on 05.30.17 at 6:24 pm

#15 Howard on 05.30.17 at 5:36 pm
Garth – I thought you said the Chinese dudes have nothing to do with it. So why would the 30% tax create a “death spiral” for BC real estate? Anyway isn’t a housing what we all wanted?
————————————————————-

I think Garth is saying that the 30% shows BC is not open to international business. Slapping on prohibitive taxes at a whim shows a lack of stability – so investment from external sources dwindles. Should never have been a foreign buyers tax. A speculation tax for short term holding of property would have been more appropriate if anything.

#47 Doug t on 05.30.17 at 6:24 pm

Sing with me

CA-NA-DA
We love thee
CA-NA-DA
Proud and free
CA-NA-DA
You robbed me
CA-NA-DA
People may decide to flee

RATM

#48 TortyPapa on 05.30.17 at 6:27 pm

People are still buying out here in Vancouver and lower mainland. Detach not so much but condos and townhouses in places like Langley are going fast. Lenders are still lending but how long can this go on for?

#49 JSS on 05.30.17 at 6:29 pm

Do what happened to Nelson from yesterday? Is he still married? Did he run off with some dude named Chad from the IT department?

#50 Pete on 05.30.17 at 6:33 pm

Home Capital has lost 25% of deposits in less than 2 months. How long should the Fed wait before seizing it?

#51 Pete on 05.30.17 at 6:34 pm

Assessing blames-what caused Canada’s unprecedented housing bubble

50% low interest rates
20% encouragement and stimulation by all levels of governments from all parties
20% lack of regulation, liar mortgage, fraud, CMHC
10% foreign buyers, mostly from China

#52 BC_Doc on 05.30.17 at 6:36 pm

No twinning of the Kinder Morgan pipeline.
No Site C dam on the Peace River.
Double win for beautiful B.C.

#53 Lulu on 05.30.17 at 6:37 pm

Crusty got crushed and baked…. BUT she try to hang on and act tough, she will be gone in no time and when the Dippers and Green in power, shack will lose it’s value back to the 2008-09 value or even more.

Meanwhile in Ontario, our Black Swan may be the raise of the minimum wage, our cauliflower may be once again in the headlines news…haha, when you trying to buy votes, you can bury your conscience and blindfold the public. She needs to go asap,sooner than later.

#54 AK on 05.30.17 at 6:44 pm

“Our strangest province has allowed a stunning 40% of its GDP to be dependent upon residential real estate.”
——————————————————————–
Is Ontario any different ?

#55 S.Bby on 05.30.17 at 6:44 pm

Nobu executives say they’re unconcerned about a Toronto real estate bubble:

http://www.cbc.ca/news/canada/toronto/nobu-toronto-restaurant-1.4138447

“They’re not concerned about a real estate bubble in the city.”
Whew, that good to hear.

#56 AK on 05.30.17 at 6:46 pm

“They’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%.”
——————————————————————-
If Chinese sales amount to < 5%, does it really matter. ?

#57 Happy Housing Crash Everyone! on 05.30.17 at 6:51 pm

Wrong Hole! on 05.30.17 at 6:14 pm
If this happens BC crashes, Asian money will be coming back to GTA. Our crash may be short lived.

Nope just the opposite. Vancover had 15% first then Ontario followed. Vancouver will raise it to 30% and Asians will say screw that not going to fall for it second time. Happy Housing Crash Everyone! :-) you shyster realtors a
re FINISHED in the GTA

#58 InvestorsFriend on 05.30.17 at 6:51 pm

27 pete on 05.30.17 at 5:54 pm said:

Home Capital reported another $53 million drop in deposits on May 29th. Wonder how long they can last.

*********************************
Indeed, they are in a forced run-off / wind down of their lending. But can last a long while if they issue very few new mortgages. Perhaps they will be sold off for something not too far under book value?

#59 Damifino on 05.30.17 at 6:53 pm

Take tolls on the Port Mann bridge, for example.

Christy Clark’s Liberals said they would cap the amount a typical commuter to Vancouver would pay at $500 max per year. (They pay much more now).

John Horgan’s NPD promised to remove those tolls altogether.

Andrew Weaver and his (two other) Green’s feel that because fossil fuels and the automobile are evil, the tolls should be even higher.

I sense some cracks in the coalition are coming.

#60 InvestorsFriend on 05.30.17 at 6:57 pm

Foreign Buyers Tax…

Can be perceived as racist. Legalised theft.

Years ago I read that a government can effectively expropriate real estate by raising property taxes and imposing rent controls. Seems true but they have added a few more arrows to the quiver. (Vacant property tax, foreign buyers tax, special higher tax rates on million dollar homes).

Did I not read somewhere that democracy was fine until the masses figured out they could simply vote to expropriate the wealth of the rich? In some countries a constitution prevents it. Not in Canada.

#61 crowdedelevatorfartz on 05.30.17 at 6:58 pm

Glad I rent.

As for Christy Clark and the BC Liberals….the sooner that corrupt bunch of old political hacks are punted down the road the better for the Province
New election in 18 months.
Boot the NDP/ Green coalition….reset to a new bunch of Libs.
Either way we will be spared that smirking , shit eating grinning, photo op buffoon Clark .
Easy peasy Lake Louisey

#62 vacancy on 05.30.17 at 6:58 pm

Hey Garth,

It’s a vacancy tax. Noones trying to tax people who own multiple homes, they’re trying to tax speccers. Your alternative fact for that point puts into question the rest of your arguments. But just FYI, it’s a 2% tax on people who buy homes and then leave them empty, as in, not even renting them out, so that they can increase in value. That’s what the rich owners in Venezuela did for the past decade and look where it got that country.

#63 Van market is luke warm on 05.30.17 at 6:59 pm

re #48

The reason why the condos and TH segment is still selling is because of Christy’s down payment scam up to 750k.

Everything above that bar is crickets.

Government distorting the market. Same as it ever was.

#64 Joseph R. on 05.30.17 at 7:00 pm

#45 Smartalox on 05.30.17 at 6:17 pm
So let’s get this straight:

– The very same people who are over-leveraged in BC real estate, and whose greed drove real estate prices to levels of public crisis, will now (potentially) be managed by political parties that have vowed to tax that golden goose to its eventual death, (and this is the best part) by imposing taxes based on percentages of the value of the property?

Isn’t that declining returns, or something?

————————————————————-

Bingo! They want cheaper houses yet not don’t want to lose equity on their OWN house …

It’s like there are two sides to every transaction.

#65 Timmy on 05.30.17 at 7:01 pm

Why are you blaming the NDP when the corrrupt and incompetent Liberals allowed money laundering and encouraged foreign speculation and allowed the real estate industry to get out of control on their watch?

#66 Timmy on 05.30.17 at 7:03 pm

No foreign investment in real estate in BC-genius? Sure, let’s accelerate foreign investment even more so that no locals will be able to afford to live there. Let’s encourage more to the highest bidder. How smart is that Garth?

#67 Happy Housing Crash Everyone! on 05.30.17 at 7:03 pm

Shyster realtors are going crazy in the GTA. People wanting out of sales, empty open houses , calls from terrified sellers on the brink of bankruptcy screaming for their useless realtors to do something. Lets face it shysters you are useless liars. Which is why you really offer zero value.

#68 Blacksheep on 05.30.17 at 7:09 pm

Torty # 48,

“People are still buying out here in Vancouver and lower mainland. Detach not so much but condos and townhouses in places like Langley are going fast. Lenders are still lending but how long can this go on for?”
—————————————–
Tight market…

Take a drive out past Langley and you will see few RE signs, on detached, condos or otherwise and of what is for sale, 90% already has a sold sticker on it.

A house in my hood that has a hillside view lot, with out the view, sold in under a week for what I consider pretty strong $, even in this inflated market.

The Valley is dirt cheap compared to anywhere north of the Fraser. Most of the stuff listed is peoples homes and not specker flips or new builds. Unless people are leaving the lower mainland, why would they want to sell?

So they can find out how much fun it is to rent? I did that for 5 years, had a great sich and it still sucked compared to being an owner for many years previous.

#69 Vote NDP!!! on 05.30.17 at 7:12 pm

$50M Children’s Hospital donation largest in Sask. history.
Hospital will be renamed Jim Pattison Children’s Hospital

http://www.cbc.ca/beta/news/canada/saskatoon/childrens-hospital-saskatchewan-50-million-donation-1.4137724

#70 Jonathan on 05.30.17 at 7:13 pm

From my rudimentary reading of the pact/agreement (http://www.cbc.ca/news/canada/british-columbia/ndp-green-alliance-to-focus-on-electoral-reform-stopping-kinder-morgan-and-banning-big-money-1.4138290) didn’t see any specific mention on the RE-cooling measures called out here.

Perhaps they didn’t want to show all their hands right now, or perhaps they didn’t want to kill that golden cash cow? Who knows at this point…

Interesting times indeed here in BC

#71 Chelsea on 05.30.17 at 7:14 pm

Recently noticed BC RE listings is slowing down, homes still listed high prices, nothing being sold, maybe a handful …. glad the NDP are in, as BC needs a shaking up, as long as they preach what they say …. there will be HUGE changes …. hopefully, in some areas for the better. We rent, and have for 16 years, now, we are looking forward to buy a home + acreage for retirement. No need for a mortgage, we saved for this time….

#72 Randy Randerson on 05.30.17 at 7:15 pm

Been a while to comment. I hope this will make BC shit its pants when RE crashes, then I’ll be eagerly looking for deals.

As for Fed Libs screwing CCPC, I doubt they can do much without screwing up integration. Unless the Libtards decide that there are more than 1 class of Canadian citizens.

#73 What a mess it will be shortly... on 05.30.17 at 7:19 pm

I agree Garth, it will be a stampede to the sell now to the turnstiles in YVR RE and after 60-90 days, at any price [FLOP, keep us informed about this, it ought to be epic].

If what is going to happen in BC is not enough (from @Steve Saretsky w/Article Links), the latest:

“CMHC said total insured volumes fell 41 per cent in the first quarter of 2017, including a 23-per-cent drop in homeowner insurance volumes…”

“Buyers of Vancouver detached homes spent 49% less this April than they did in April, 2016. That’s nearly $611 million dollars less.”

“The Vancouver condo market only saw it’s total dollar volume fall by 3% year over year, or rather just over $17 million dollars. Meanwhile, the sales/actives ratio is barely off it’s highs of last year, also down 3%.”

“TD Bank reports domestic residential mortgage balances down 0.4% vs. prior quarter, first drop in 2 years.”

Most YVR and 416 pre-sale condo’s are bought from offshore.

_________________________________

Economic activity in RE is beginning to plunge in Canada, even in the so-called “surging YVR Condo market”.

By September as almost all current listings expire, people will want out at any price (416), sooner in YVR before the NDP/Green’s get into power and enact legislation.

I hope the above does not trigger a recession as some 416 condo industry advocates like Lamb claim will happen from just a foreign tax on pre-sale condos.

Goodbye +GDP, with that, job losses inevitably will follow.

Hope it is mild.

#74 Alberta Retiree on 05.30.17 at 7:29 pm

Just retired in Alberta, and now poking around for a place on Vancouver Island to settle down. Chatting with the locals in Sooke (south island), is interesting. The disconnect from fundamentals is stunning. I quote,(from a number of locals):
“Lots of people want to retire here, so between that, the people that have been displaced from the Victoria market, and the lifestyle here, the relatively moderate prices, (compared to Victoria and Vancouver), prices will remain firm and there will be no substantial correction.”
When asked why there’s a lack of reasonable rentals, most comment that, “You can blame AirBnB for that. Why would someone want a month to month rental tenant when they can get $4,500 per month from short term AirBnB people. Most people with rentals in this area are booked a year or two in advance with AirBnB. Tourists will always keep coming and so will retirees, so we’re all good here.”

Thoughts?

#75 SeeB on 05.30.17 at 7:30 pm

“At the heart of the socialist view of the market is that people have a right to real estate, not just shelter.”

This is not an exclusively ‘socialist’ view, unless that happens to be a glib substitute for the word ‘Canadian’.

#76 Joe2.0 on 05.30.17 at 7:35 pm

Who cares really.
Unfortunately a few people will lose equity in their homes but the majority who have bought are going to see huge profit.
There’s going to be a substantial amount of money made vs lost.
And nothing’s lost unless you sell.

#77 tkid on 05.30.17 at 7:36 pm

Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Smokey, some of us don’t have enough to run. If you had to stay in Ontariowe, what would you do?

#78 Nonplused on 05.30.17 at 7:37 pm

A 2% annual property tax on investment properties? Does this include rentals? If so, the rent has to go up to cover it. And if it works out to $2500 per month I don’t think the tenants can afford it. These people are crazy. They are just dreaming money out of the air with all these tax increases but seem to be patently unaware that the people don’t have any money to pay these taxes.

Capital gains taxes never really made any sense because for the most part it is the same as calling inflation income and then taxing the inflation. Oh sure you have the odd company come along like Microsoft and it goes from being worth peanuts to being worth billions, but they paid income tax all the way along and then the owners paid income tax on the dividends. Yet the government needs a third tax on the change in stock price and a forth tax by way of the GST on all sales and now a fifth tax on Carbon for keeping the computers running. It’s not just getting crazy out there folks, it bat-shit crazy now.

And capital gains taxes for people who live in a house less than a year? What if they need the proceeds to buy another house because they have to move for work? It happens. Where are they going to dream up this money? I don’t think I’ve ever owned a house more than about five years, although I’m getting close on this one. So if I bought a house in Vancouver 4 years ago for $1mil, but now I need to move so I have to sell it for $1.5mil and then buy another house closer to my new job for $1.5mil, I have to pay land transfer taxes and capital gains taxes probably eating up over $200,000. Where do I get that money? More debt? How can you have a system where people have to borrow money to pay taxes? The solution is of course you can’t move for 5 years. You are staying put by government dictate. It’s batshit crazy.

But at least BC is more left than Alberta again, so that part of the world has returned to normal.

Something is very wrong with the world when it seems that in order to be elected you have to be unable to do simple math and believe in free money. You can’t tax people more than a certain amount before they are unable to conduct their daily business. You can call it a “carbon tax” if you like and claim to be saving the world but you may as well tax bread and butter, it’s the same thing. We know what unreasonable taxes and price controls looks like. It’s called Venezuela. You’d think it couldn’t happen here but it can and it seems we are working on it as fast as we can.

#79 conan on 05.30.17 at 7:41 pm

“Should never have been a foreign buyers tax.”

FINTRAC has a problem, they can make all sorts of professions disclose shady financial transactions, except for…..get this ……lawyers.

There is no extradition treaty with China so, Canada is really popular with some folks, weighed down with bags of Chinese corruption money.

China waved some angry hands in Ottawa, and demanded that Ottawa do something about this money laundering, or they are not buying Alberta oil.

Alberta’s economic future depends on an open Chinese market, and access to it. Lots of people trying to fix the problem, but some people will never be happy.

https://youtu.be/3tUBE7cZFUw?t=29

#80 Robert on 05.30.17 at 7:43 pm

Time to get the speculators out of the housing market and put them back into equities where they belong. The Ponzi has been running full tilt for too many years, allowing it to continue was irresponsible. Overseas capital and loose lending has been severely distorting the cost of renting or buying here in BC.

#81 jay on 05.30.17 at 7:47 pm

The fundamentals Garth, the fundamentals ,are you telling us that the real estate experts are wrong.

#82 Suede on 05.30.17 at 7:53 pm

2001 – 2017
BC= Bring Cash

2017 -??
BC= Big Crash

#83 AGuyInVancouver on 05.30.17 at 7:57 pm

“That will send a strong message to the world that no foreign investment is wanted in BC. Genius.”

Garth, surely you and I are old enough to remember right-wing Socred Premier Bill Bennett famously declaring “BC is not for sale!” Sadly the Socred’s free enterprise successor led by Christy Clark couldn’t wait to dress BC up in a short skirt and stilettoes and push her onto a street corner!

The days of pimping out our homes, spots in our educational system, and our farmland to the highest offshore bidder are thankfully drawing to a close.

#84 Freedom First on 05.30.17 at 8:01 pm

#38 Flop

Perhaps soon to be can’t see the trees for the pollen.

Still appreciating your posts Flop.

#85 robert james on 05.30.17 at 8:04 pm

#46 Waverless…… International business or international investment in BC is known as “money laundering” ,,plain and simple.. The best thing for Christy Clarke is to leave as soon as possible and keep her mouth shut and hope everyone forgets her butt kissing of the “off shore investors” .. Maybe the “Condo King” Bob Renny will give her some free advice..

#86 Mark on 05.30.17 at 8:09 pm

“Home Capital reported another $53 million drop in deposits on May 29th. Wonder how long they can last.”

How quickly is the asset side of the balance sheet running off?

#87 Mark on 05.30.17 at 8:11 pm

“Foreign Buyers Tax…”

The problem with a foreign buyers tax is that most foreign buyers in Canada are actually US citizens. So if Canada enacts foreign buyers taxes, the US is likely to do the same. Canadians will end up as net losers in the whole arrangement, and governments aren’t likely to collect much of anything from the few foreigners who are still left buying.

So lots of political theatre. But with declining RE prices now after many years of stagnation in the post-2013 era, foreign participation would be quite welcome.

#88 Sitting on the toilet thinking on 05.30.17 at 8:12 pm

The bank of Canada should really step up to the plate and raise rates. They are letting provincial groverments destroy the economy. If they raise rates the bubble pops and no need for stupid laws which will end up destroying foreign investment (the actual kind that creates jobs) in b.c and Ontario

#89 Working stiff on 05.30.17 at 8:13 pm

I fail to see the downside of any of this. Let the redistribution begin.

Good thing you don’t live in B.C. Garth, I believe you would be first against the wall.

#90 In Markham on 05.30.17 at 8:13 pm

Maybe prices are finally coming down in Markham.. Just maybe ;)

78 Ralph Chalmers Avenue, Markham

April 5: $999,000
April 20: $1,050,000
May 29: $888,000

#91 Mark on 05.30.17 at 8:13 pm

“Home Capital has lost 25% of deposits in less than 2 months. How long should the Fed wait before seizing it?”

But how much have they lost in assets? As long as they’re not bleeding funding faster than they’re bleeding assets, then all is well. At the financing rates they’re paying, however, the implication is that a significant chunk of their mortgage portfolio is in fact underwater. Hence, its only a matter of time before the regulators will need to use their resolution authority before the train wreck gets worse.

#92 toronto1 on 05.30.17 at 8:16 pm

Is that a chart of HCG decline? Never mind its just middle of nowhere GTA.

speaking of charts– the drop off in sales and rise in listings across the board in GTA is starting to look very similar to Oct 08-Feb 09. Thats how far back i had to go to see similarities………..

#93 Van Isle Renter on 05.30.17 at 8:17 pm

When RE prices rise, even marginal purchasers get lifted up and can trade up to new digs and that fuels more sales. Dropping RE prices have an insidious side to them.

When prices drop, marginal homeowners quickly drop into negative equity and are frozen in place. That means no trading up, or down. And that’s a death knell for the RE system that needs to churn to live.

#94 Joey Malone on 05.30.17 at 8:17 pm

BC just became the most Canadian province we’ve got. Fairness for all and work on the issues that will help societies “weakest links” we will all grow stronger for it. All Canadians!

#95 april on 05.30.17 at 8:18 pm

#48 – Condo boom is all propaganda by the real estate gang and some fools are buying in to it but soon will regret………

#96 Mark on 05.30.17 at 8:19 pm

“The bank of Canada should really step up to the plate and raise rates.”

Raise rates? In response to Canada’s comatose economy, and now, falling RE prices? Inflation well beneath the 2% BoC target? That would make no sense whatsoever.

If anything, the Bank of Canada needs to cut rates to revive the economy and get things moving again. Canada is suffering from a classic liquidity trap situation, where excessive amounts of wealth is tied up in fixed income and fixed income proxies. Even ZIRP might not be enough to shake money out of the over-invested fixed income complex and back into the real economy.

Calgary home prices are a few points off and Vancouver isn’t much further down.

Real, individual identical housing unit prices in Calgary are down ~20-25% from the 2011 peak.

If I want to invest in gold or stocks, can I put 5% down and get a loan from bank for the rest 95% at 2.5% interest rates?

You can, by way of futures contracts. But you’ll get a margin call if there’s any fluctuations. Whereas typically with bank loans on real estate, they aren’t too overly obsessed with daily fluctuations in valuation.

Having said that, the relative difficulty of obtaining credit against those assets means that they’re far cheaper than they otherwise would be.

#97 the other side of the Rubicon on 05.30.17 at 8:22 pm

#87 Sitting on the toilet thinking on 05.30.17 at 8:12 pm
The bank of Canada should really step up to the plate and raise rates.

only for you

#98 The Wet Coast on 05.30.17 at 8:24 pm

Looks like a NDP-Conservative government in Nova Scotia.

#99 Fiendish Thingy on 05.30.17 at 8:40 pm

Thrilled here in Maple Ridge-

Crash it down! Maybe it’ll get so bad, Justin will have to eliminate CHMC and make the lenders take all the risk…

#100 Johm on 05.30.17 at 8:44 pm

Stouffville? Thats really the name of a place? It sounds like a name out if Cat-in-the-Hat, something made up like ” unobtanium”, which i guess spplies to most of the houses in Stuffville.

#101 I thinks I know something on 05.30.17 at 8:46 pm

“First, they’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%.” – Garth

————————————————————-

All that will result from that is …… well … nothing. Any smart foreign investor knows a multitude of ways around such a tax.

#102 Myra Andrews on 05.30.17 at 8:52 pm

Stats for Vancouver May 30

New 281
Price Change 40
Sold 131
TI:8816

http://www.clivestevepaul.com

#103 I thinks I know something on 05.30.17 at 8:53 pm

Some people don’t like taxes of any kind. Transfer taxes are bad. Capital gains taxes are bad. Etc. Blah, blah. Who says they’re bad? The fact is that taxes are necessary. And if you’re paying taxes, it usually means that you have the means to pay taxes. If people really don’t like paying taxes, they should go live in the woods.

#104 the Jaguar on 05.30.17 at 8:56 pm

#74 Alberta retiree..
My advice would be to seriously examine the weather and costs before you leave Alberta. Yes, I did say weather.
While BC offers a ‘milder climate’ historically they never talk about the endless rain and grey skies that show up mid October and don’t really depart until mid April. This goes for the BC interior as well. An colleague made me laugh the other day when he mentioned he had a friend who lived in the Okanagan area, but ‘wintered’ in Alberta. Must be sun deprived. It’s not an ‘ouch’ contest. Every area offers something. But some Albertans make the move and find the climate rather depressing. Don’t underestimate the value of sunshine and chinooks. If you plan to go south to warmer climates it might not be a significant issue.

#105 Smoking Man on 05.30.17 at 9:00 pm

#77 tkid on 05.30.17 at 7:36 pm
Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Smokey, some of us don’t have enough to run. If you had to stay in Ontariowe, what would you do?

…..

Buy a Man Romper outfit. Learn to talk like a girl and become a green crusader. Line up for a govt hand outs on a green project who’s business plan aims to fill my wallet with all the loot and deliver zero.

#106 Built to Spec on 05.30.17 at 9:02 pm

appropriate article: “The Zombification of Canada”

https://seekingalpha.com/article/4077160-zombification-canada

#107 Oakville Sucks on 05.30.17 at 9:02 pm

In the unlikely case they do materialize I applaud these changes.

#108 For those about to flop... on 05.30.17 at 9:03 pm

It will be interesting to see if the media suddenly becomes interested in reporting on the housing correction that has been shallow but stubborn with the possible change in government.

Here’s what i know…

* A small percentage of transactions have been losing money on detached houses since early this year,with some speculators caught on the Westside of Vancouver in limbo in the 5/6 million price range possibly paying 20k a month mortgages waiting for a miracle.

* A tiny amount of condo owners were already taking losses even though the that segment of the market was the strongest by far.

*A lot of my cases have sold around 5/7% more than what they purchased them for a year ago, so basically even after expenses but some had extensive renovations and so the realtors and the neighbours were perhaps the big winners.

* A lot of people seemed happy to pay approximately 20% above assessment early in the buying season of spring with the premise that when you got your assessment later in the year you would be back in control and it became a self fulfilling prophecy for close to 2 decades.

*A lot of condo pre-sales had the price appreciation priced in so even with a old correction the development was safe and the buyers were most vulnerable.
1 year away from completion 10-15% 2 years 20-25% and so on.

* Despite an overwhelming majority of my cases being bought in 2016 there are still a lot of people that got too far ahead of the market in 2015 and are having trouble getting their money back despite the huge run-up in early 2016
( Just posted one this morning on the previous thread that has been fighting for 7 months to get their money back)

*On that note,I have a lot of cases that for one reason or another are trying to get the magic 5/7% more than what the paid for as they can’t seem to handle the indignation of taking a small loss and then moving on with their lives.
( Perhaps more would if the media and realtors were telling the truth as to what was going on and they then wouldn’t feel so isolated in their struggle to get their money back, that and as I indicated above has been going on for over 6 months for a lot of couples)

* As discussed on here that type of stress can have long term effects on any sound relationship /marriage

* I am more interested in documenting what is going on than who is to blame,although a lot of people on here seem to think that the NDP and Greens will wear the correction,I did not know who was going to win the election when I started documenting this correction but it is on record in these archives that people were taking losses or in limbo well before the election.

I was due to go back to work this week but had a set back.
In between medical appointments and doing my rehab I spend 15/20 minutes finding 4 photos for the boss of this blog to choose from.
I then spend an hour or two poking and prodding around developments and listings looking for Pink Pollen to show the softer side of the market that we never here about from the media.

It is my way of giving back as I am grateful for this blog and the online friendships it has afforded me…

M42BC
M64WI

#109 meslippery on 05.30.17 at 9:07 pm

#100
It’s Whitchurch–Stouffville if that’s any better.

https://en.wikipedia.org/wiki/Whitchurch-Stouffville

#110 Smoking Man on 05.30.17 at 9:12 pm

#23 Surf the gravity waves on 05.30.17 at 5:44 pm
#4 Smoking Man on 05.30.17 at 5:17 pm

Communism. 3.0
Ouch.

Diversity, Inclusion, LGBTQ, Cultural Appropration, Fairness, pronunes. Etc

It’s all that matters.

Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Now eat your cake.
..

So Branson and Oprah going be your new neighbors! did they buy your book.
……….
They life there. Disappointed.

Thier heads would explode if they read it. Lefty brains are not wired to handle the truth even if it’s camouflaged in fiction. Perhaps I should send them a free copy.

But then again it would only reinforce their narsasistic supiriorty.

I’m no celeberty worshipper.

They pay double and they don’t have enough money for an autographed copy..

#111 Property transfer tax of 12%? on 05.30.17 at 9:22 pm

That had to be a mistake ?

Geez , BC housing market fun is over

I love the capital gains tax for principal residence less 5 years of living . Buy buy speculation

Little late BC?

#112 Waiverless on 05.30.17 at 9:29 pm

#85 robert james on 05.30.17 at 8:04 pm
#46 Waverless…… International business or international investment in BC is known as “money laundering” ,,plain and simple.. The best thing for Christy Clarke is to leave as soon as possible and keep her mouth shut and hope everyone forgets her butt kissing of the “off shore investors” .. Maybe the “Condo King” Bob Renny will give her some free advice..
————————————————–

Fair enough. They need to enforce the regulations and look into beneficial ownership. I despise the Duchess of Dunbar as much as the next sane voter. Domestic speculators are a huge problem though – as much as the perception or actual effect of foreign buyers. Target both through a speculation tax rather than nebulous foreign buyer tax which is easily avoided.

Also I voted NDP because of pay for access, real estate and LNG lies…

Christy’s Machiavellian. She’s lost yet she’s going to stay opposition leader? When does that ever happen. I’ll tell ya… When you lose during an oncoming real estate downturn that will decimate the over leveraged…who will then look for someone to blame.. unfortunately that will be the NDP/Green govt.. .she’ll bide her time in opposition for 4 years and swoop back in with the refrain ‘I brought jobs during my reign… I brought prosperity!” And back to a corrupt liberal majority for us in 4 years (or less)… she owns that party with her hand picked cronies.. if she didn’t.. she would’ve been knifed in the back already and out like Gordon Campbell…

#113 InvestorsFriend on 05.30.17 at 9:30 pm

Home Capital

#50 Pete on 05.30.17 at 6:33 pm said/asked:

Home Capital has lost 25% of deposits in less than 2 months. How long should the Fed wait before seizing it?

*************************************
They should seize only if and when deposits are at risk of not being returned. At the moment assets apparently significantly exceed deposits (based on book value). Equity investors and debt investors rightly provide a cushion that protects the depositors. The government in theory should be unconcerned about debt and equity investors losing their investments but in practice will be somewhat concerned especially if debt investors might face a loss of book value. In a fire sale equity investors will lose value compared to the peak and probably compared to book value but that’s fine with regulators and the government.

#114 Space Dust on 05.30.17 at 9:30 pm

#105 Smoking Man on 05.30.17 at 9:00 pm

#77 tkid on 05.30.17 at 7:36 pm
Going to be fun watching it all unfold from Antigua.
Told bastards to run….

Smokey, some of us don’t have enough to run. If you had to stay in Ontariowe, what would you do?

…..

Buy a Man Romper outfit. Learn to talk like a girl and become a green crusader. Line up for a govt hand outs on a green project who’s business plan aims to fill my wallet with all the loot and deliver zero.

Jeez I had to look up what was a Man Romper!!.. Thought it was an alien spacesuit of some sort.

Well bloody hell…… there is no hope..

then again.. I had a male millennial on an airplane next to me who spent the whole cross country flight knitting.. yes knitting.. I repeat a male millennial knitting on a plane

I thought they confiscated knitting needles from grannies on planes.. but clearly they knew he was no threat to anything other than sanity

#115 Boombust on 05.30.17 at 9:34 pm

#11…

Duh. You must live in the US.

#116 Smoking Man on 05.30.17 at 9:35 pm

Any one catch Kathy Lee Griffens dripping Trump Head photo shoot today.

Again: Libralism is clearly a mental disorder.
Taxation is theft.

#117 Stouffville Dude on 05.30.17 at 9:41 pm

Ooh cool, Garth used my email :) Thanks to the grey market websites that publish sales data for making it possible!

#100 It’s pronounced Stow-ville, or as many living here call it, Slow-ville.

#118 Pete from St. Cesaire on 05.30.17 at 9:42 pm

How can you have a system where people have to borrow money to pay taxes?
——————————————————–
That’s how the monetary system works. Money starts its life as a debt to the central bank that created it. Your taxes are repayment of the interest on the money creation. You have to get your hands on more money in order to pay the interest (taxes); and remember, the money you use to pay your taxes is debt-based money too. That’s why we are at the end of the money cycle. This form of monetary system can only last for about 100 years, after that the money is all debt and no principal. That’s why today’s money is worthless, exemplified by the fact that you can borrow it for next to nothing.

#119 Spectacle on 05.30.17 at 9:45 pm

Responding to::
#74 Alberta Retiree on 05.30.17 at 7:29 pm
Just retired in Alberta, and now poking around for a place on Vancouver Island to settle down. Chatting with the locals in Sooke (south island), is interesting. The disconnect from fundamentals is stunning. I quote,(from a number of locals):
……..“You can blame AirBnB for that. ….. Most people with rentals in this area are booked a year or two in advance with AirBnB. Tourists will always keep coming and so will retirees, so we’re all good here.”

Thoughts?
—————-

Thoughts are, so you retired, won the lottery is one way of looking at it. Enjoy your next chapter.
– But why buy now, like going into the back yard and burning your money at this point . Uncertainty in the real estate market is blazing high.

AirBNB , well nobody rents in the rainy season on the island. It’s tourists. Don’t fall for that rampant all story.
Next, rent. Rent in those alluring areas that you find attractive, pick a few with lifestyle choices that you are now going to enjoy, including the locals. You will need community and new friends. So hospitals, restaurants, and social activities will be gold in your golden years.

Contribute to animal welfare , ( dogs are good) and Blogs like boiling frogs post etc that educate what’s really going on in our world.

Peace out, M

#120 VICTORIA TEA PARTY on 05.30.17 at 9:45 pm

DANGER LURKS WITHIN FOR BC

Good on you St. Garth of Make No Deal Before It’s time.

The “deal” made between the BC NDP and Greenies, is fraught with BS, lies and just plain bloody-mindedness by those who cooked up that awful thing.

Just read Garth’s offering of this date and figure it out after that.

The only REAL base conclusion I can figure is that the American Environmental Industrial Complex wants BC set aside for a peopless wildlife reserve for “environmentally concerned Americans who only have your best interests at heart.”

How so?

Ask Andrew Weaver, BC’s saint-like leader of the Greens where he got some of his campaign funds from.

Ask him if any of it came from various American .orgs who give money out to various leftie activist groups around the world and to any number of SJWs (social justice warriors).

A recent article published in the Globe and Mail spells it out. Look it up.

As for the NDP it received nearly 700k from the American-based steel workers union in Pittsburgh last year. Some of that money paid for three workers employed by the NDP in the recent election campaign.

The Libs, they make no bones about their sources, corporate and otherwise, but they are Canadian-sourced generally. Most voters seemed to accept that.

BTW the NDP and Greens also promise to ban corporate and union donations. But no mention is made of donations from others including American environmentally-sympathetic groups.

So, are these two guys sincere in their aims and objectives, or just patsies? We may find out one day.

What of the future, as in the next few weeks?

Today’s newspapers were saying for certain that Christy Clark was going to throw in the towel and step aside for her possible successors, who were all ginned up and ready to roll. Either that or recall the legislature, introduce a budget and go down in embarrassing flames.

Clark said defeat is probable and if so she will sit as Opposition leader. She’s going with the media’s “second” choice. It’s her Constitutional duty to do so, actually.

Meanwhile study this “new deal” and wonder what’s going through their minds, the NDP’s Horgan and Green’s Weaver.

If they do form government then this “minority” arrangement, as they call it and not a “coalition” which they deny it would become, should have a very short shelf life.

Unless, of course, the people approve a referendum on preferential voting promised for 2018.

In that case, a main outcome would be perpetual minority governments and an impoverished BC economy going out God-knows how many years after that, as yet more businesses would be scared away.

Millennials and ageing Boomers, two of our main voting cohorts who lost their minds in this election and still have no clue.

Look at what they’ve wrought.

#121 Boombust on 05.30.17 at 9:47 pm

Garth,

The Metro Van market began rolling over last August…same as TO is now doing. Any perceived “uptick” is a dead cat bounce’ the real downturn will be this Fall when people finally realize there is no upside left in the market and they start to throw in the towel…

So, I don’t think it would be fair to blame the NDP/Greens…although when ALL IS SAID AND DONE, that’s where the the Opposition will point their fingers.

#122 JustMe on 05.30.17 at 9:49 pm

#78 Nonplused
A 2% annual property tax on investment properties? Does this include rentals?

———————————————————————–

According to the NDP election platform website, it is for empty homes.

“Closing loopholes that let speculators dodge taxes and hide their identities, and charging a yearly 2% absentee speculators’ tax to crack down on empty homes.”

https://www.bcndp.ca/affordability

#123 Freedom First on 05.30.17 at 9:49 pm

#103 I thinks I know something

No. I think you should pay my taxes.

You sound foolish enough to.

Freedom first
Master of Freedomonics

#124 45north on 05.30.17 at 9:55 pm

Frank: Calgary home prices are a few points off and Vancouver isn’t much further down. Toronto’s crash is unique.

Toronto is unique in that it’s the biggest real estate market in the country. So prices fall the fastest. For every seller in Vancouver there are six in the Greater Toronto Area. Of the six, there is one who has no mortgage, he wants out. So he gets out. In Vancouver there is no comparable seller. The seller in Vancouver has a mortgage and cannot drop his price. So he doesn’t.

Tom’s chart of Stouffville’s sales: the 7 day moving average looks damn close to zero.

Pepito: It’s about affordable housing. And yes the valuations will crash.

if housing valuations in BC drop enough the middle class in BC will be wiped out. And they are going to know they’ve been wiped out. Let’s revisit Tom’s chart: sales can go to zero. And I tried to explain bigger markets react faster than smaller markets.

Utopia: I met a gal and her husband yesterday who just arrived in Saskatoon from the United States. They have come to Saskatchewan to work in construction and were attracted here by news of our continuing housing boom.

I asked her casually if things were really as bad in the States as we see in the news. “Worse” she said in a thick Southern drawl “you really have no idea”.

And then she looked at me with the dead certainty and shell-shocked conviction of a person who had just witnessed a head-on collision and deadpanned “if it’s true, you had better have some money saved. That was our biggest mistake. We had no money when it all fell apart. Nobody had cash in the bank.”

http://www.greaterfool.ca/2011/03/31/grow-a-set/#comment-93218

#125 Fish on 05.30.17 at 9:56 pm

I chuckle at this,
And the word of the day Is” SHYSTER”

#126 pete on 05.30.17 at 9:56 pm

Some wise guy kept talking about Home Capital’s asset vs liabilities. I bet he does not know any banking at all. No bank goes out of business because they have negative assets. It is liquidity problem. Home capital now has $1.09 billion in total liquidity, yet it is losing about $200 million in deposits a week. so it is just a matter of weeks before they run dry of cash.

#127 kaballah on 05.30.17 at 9:57 pm

Prices too high, counter measures too big.

Harper was this, T2 is that, Christie is this horrible, new PC leader leader is that alt-con deplorable, Greens and NDP are thief of democracy. Everybody runs the economy to the ground.

Can’t even don’t bet against the US anymore.

What would be your prayer to the Creator to make it good?

#128 Shawn on 05.30.17 at 9:57 pm

Government intervention is an excellent indicator for the top of a market.

The US government attempted to break up tech giants at the top of the dot.com bubble, the Alberta government increased oil royalties at the top of the oil bubble and now governments are seemingly destined to crash Canada’s real estate market through excessive draconian tax policy changes.

They always shoot the plane as it’s going down. They’re putting more bullets in the real estate plane than in any other in recent history.

#129 JustMe on 05.30.17 at 9:59 pm

BC Greens Housing Strategy

http://www.bcgreens.ca/housing

#130 pete on 05.30.17 at 10:02 pm

Obviously, Home Capital, with only $1.09 billion in cash and losing $200 million in deposits in a week, it is only a matter of a few weeks before they go bust.

#131 Hiding On the Backstreets on 05.30.17 at 10:11 pm

As long as the R.E. crash doesn’t affect my beloved Olde Stoney Creek. It’s different here. I just know it. I might be ready to sell later this spring, early summer. I deserve top dollar, ridiculous offers from desperate house-horny brainwashed canuckleheads. Why should everyone who already sold this year do better than me? This is Canada. That would be unequal.

As for BC, back in 2009, Libs thought Harper was scary. You ain’t seen nothing yet. Blogs like this are preaching to the converted. The masses are misinformed by the MSM. That won’t change.

#132 45north on 05.30.17 at 10:12 pm

Shawn: Government intervention is an excellent indicator for the top of a market.

pretty funny

#133 Jazz on 05.30.17 at 10:27 pm

GTA Turnover rate last 28 days. Turnover is the percentage of homes sold over listings added in the last 28 days.

City Turnover
#1 Halton Hills 65.10%
#2 Orangeville 55.90%
#3 New Tecumseth 46.60%
#4 Uxbridge 46.20%
#5 Pickering 43.10%
#6 Toronto 42.70%
#7 Caledon 39.20%
#8 Mississauga 38.40%
#9 Ajax 38.00%
#10 Brampton 34.60%
#11 Mono 32.60%
#12 Aurora 30.90%
#13 King 29.40%
#14 Vaughan 28.50%
#15 Markham 27.90%
#16 Georgina 27.20%
#17 Milton 24.90%
#18 East Gwillimbury 24.60%
#19 Whitchurch-Stouffville 22.70%
#20 Bradford West Gwillimbury 22.50%
#21 Newmarket 22.30%
#22 Richmond Hill 19.50%
#23 Oakville 17.80%

Source: http://www.zolo.ca

#134 CL on 05.30.17 at 10:27 pm

Look, again, the politicians are not the problem. Canadian citizens are the problem. We……let this continue to happen. “We”….continue to elect incompetence at every single level of government so the incompetent line up at the trough for easy money.

And of course, like in Alberta, when they’re elected even if they were working at Starbucks the day before or as a yoga instructor, only they have all the answers. They drink their own Kool aid X 100

Canadians, of which I am one, are morons. We do nothing about it and sit back and wait for a savior….well, a savior ain’t comin…..only the people hold the power. politicians know Canadians are passive and simply complain on a comment section of a blog or on Twitter and that’s where it ends.

We deserve everything we are getting everywhere. Sorry, but Jim Prentice (God rest his soul) was right we need to look in the mirror.

#135 viorelli on 05.30.17 at 10:32 pm

The days of pimping out our homes, spots in our educational system, and our farmland to the highest offshore bidder are thankfully drawing to a close.

Hopefully you are right, I bought a good quality house with a basement unit in mid 90’s in good area of Vancouver for just under $200.000. Now the garbage that they are building is selling for, $2.500.000 – $ 3.000.000. Wages had increased minimally, I am close to retirement within a year or two and simply took risks and got lucky. One house across from me just got sold for under 3, it has been empty since, there is no garbage being picked up, grass is tall as no one cutting it, no more block parties, or kids playing on the street with other kids. Just investments that had pushed many families out of the area. I have two older homes in the neighbourhood, but if the value drops I will not kill myself, I want my children and grandchildren nearby, this is how life should be lived. It is not all about investments and greed.

#136 jas on 05.30.17 at 10:32 pm

Garth, great post!
An eye opener for those who like me, live in BC.

Oh! the ‘Effing and myopic dippers in BC (or wherever else they are in power in the country, kick ’em out! OUT! OUT!!).
I have to start thinking where to relocate to.
Folks, seriously, give some advice.

#137 Hiding On the Backstreets on 05.30.17 at 10:35 pm

By the way, why doesn’t B.C. have a Conservative party?

#138 Saint Herb on 05.30.17 at 10:37 pm

“Been watching closely and collecting sales data using free (admittedly grey-market) tools online charting sales.”

I’d love to know how to see sales data without having to ask a Realestate Agent. Can anyone tell me what “grey-market” tools Tom is referring to?

#139 JustMe on 05.30.17 at 10:42 pm

“People who buy property in BC but don’t live or work here and leave their property empty will be charged a two per cent tax on speculation, with optional municipality participation.”

https://action.bcndp.ca/page/-/bcndp/docs/BC-NDP-Platform-2017.pdf

#140 pete on 05.30.17 at 10:55 pm

#113 InvestorsFriend on 05.30.17 at 9:30 pm

Come July when Home reports on the 2nd quarter, numbers will look very ugly. They paid $100 million on commitment fee and many more millions on interest for that $1.65 billion loan. Plus, they stopped issuing new mortgages in the quarter. The loss in the quarter could amount to $200 million. They have about $1.6 billion in equity and their liquidity will run dry in a month. After that liquidity is dry, what will they do? Sell mortgages for cash? But at what discount? Now that the bubble is bust in Toronto, they would be lucky if someone would pay them 70 cents on the dollar for that mortgage. So if they sell $2 billion in mortgage, they will lose $600 million right away. How bankrupt is that?

#141 pete on 05.30.17 at 10:58 pm

#128 Shawn on 05.30.17 at 9:57 pm

Shawn is exactly right. Governments always intervene in a bubble when it is blown to the fullest and is about to burst anyway. They would not act sooner. They will wait until they are attacked from all sides and they just could not sit on their hands any more. Then they intervene and the bubble is burst.

#142 InvestorsFriend on 05.30.17 at 11:11 pm

Home capital – Non Sequitor

#126 pete on 05.30.17 at 9:56 pm said:

Some wise guy kept talking about Home Capital’s asset vs liabilities. I bet he does not know any banking at all. No bank goes out of business because they have negative assets. It is liquidity problem. Home capital now has $1.09 billion in total liquidity, yet it is losing about $200 million in deposits a week. so it is just a matter of weeks before they run dry of cash.

**************************************
True a bank with negative net worth could keep operating except that regulators tend to seize at that point to protect depositors.

Home Capital’s liquidity was INCREASED yesterday despite a large drop in deposits. Presumably because it collected maturing mortgages and did little or no new lending. I thought it was Pete who pointed this out last week? They are basically in forced run off, collecting maturing mortgages (which are likely transferred to other lenders) and collecting mortgage payments and making little or no new loans. This can continue for a long time despite declining deposits.

http://www.homecapital.com/press_releases.asp#

But go ahead, make your day and short the stock.

#143 The hills r calling on 05.30.17 at 11:12 pm

That was so encouraging, I’m Off to buy bags of rice flour potatoes & whiskey! Last one out turn out the lights!

#144 DON on 05.30.17 at 11:14 pm

#59 Damifino on 05.30.17 at 6:53 pm

Take tolls on the Port Mann bridge, for example.

Christy Clark’s Liberals said they would cap the amount a typical commuter to Vancouver would pay at $500 max per year. (They pay much more now).

John Horgan’s NPD promised to remove those tolls altogether.

Andrew Weaver and his (two other) Green’s feel that because fossil fuels and the automobile are evil, the tolls should be even higher.

I sense some cracks in the coalition are coming.
*****

I believe they agreed to vote independently on all other issues other than the one’s specifically mentioned in the agreement, budget or confidence bills. People should read the full agreement.

They can go their own way on a range of issues and Tolls are one of them.

#145 DON on 05.30.17 at 11:16 pm

#137 Hiding On the Backstreets on 05.30.17 at 10:35 pm

By the way, why doesn’t B.C. have a Conservative party?
***************

BC does, but they have no leadership at this present time. good time to take over.

#146 Ponzius Pilatus on 05.30.17 at 11:22 pm

#30 Chaddywack on 05.30.17 at 6:01 pm
All those measures that you highlighted in your post is exactly why I voted NDP for the first time in my life this election.

The market is completely out of control in Vancouver and if I need a dose of socialism for 4 years to ensure that my family can afford a house…..so be it.

Kind of ridiculous that I’m married to a doctor and we can’t even afford a detached house in Vancouver.
—————
Of course it is ridiculous.
Advice: Dump the Doc and and marry a Re Flipper.

#147 DON on 05.30.17 at 11:23 pm

#121 Boombust on 05.30.17 at 9:47 pm

Garth,

The Metro Van market began rolling over last August…same as TO is now doing. Any perceived “uptick” is a dead cat bounce’ the real downturn will be this Fall when people finally realize there is no upside left in the market and they start to throw in the towel…

So, I don’t think it would be fair to blame the NDP/Greens…although when ALL IS SAID AND DONE, that’s where the the Opposition will point their fingers.
************
Keep the ‘Wicked Witch of the West’ as Premier over the summer (maybe longer) and let her ride the coming listings wave, then call a non-confidence vote and take over. BC is in debt, BC hydro in debt, only thing driving our local economies is real estate and speculation. Who doesn’t own 2-5 properties in BC.

#148 Smoking Man on 05.30.17 at 11:29 pm

DM your toast.

Not because you broomed a buddy. You’re just stupid. Artificial intelligence. Your staff new cheap staff,

I’m sorting Rbc huge.

#149 Bobby13 on 05.30.17 at 11:30 pm

No need to worry in the works minimum wage increases to 150$ per hour to keep the housing afloat we will help support the small businesses to make a smooth transition.

#150 mauro on 05.30.17 at 11:31 pm

here is another commie, Bill Gates

http://www.businessinsider.com/bill-gates-robots-pay-taxes-2017-2

#151 Ponzius Pilatus on 05.30.17 at 11:32 pm

#69 Vote NDP!!! on 05.30.17 at 7:12 pm
$50M Children’s Hospital donation largest in Sask. history.
Hospital will be renamed Jim Pattison Children’s Hospital

http://www.cbc.ca/beta/news/canada/saskatoon/childrens-hospital-saskatchewan-50-million-donation-1.4137724
———————-
This guy is worth 8 billion.
50 mill is just pocket change.
Tax write off and ego booster. Cheap trick.

#152 Yummy Mummy on 05.30.17 at 11:45 pm

“And meanwhile tenants will be subsidized with rent controls and a cash payment, while the province foots the bill for building 114,000 ‘affordable’ houses.”

I always wanted to move to Beautiful British Columbia. I think now I will by taking advantage of affordable housing – where do I apply? :-)

#153 About to leave Victoria on 05.30.17 at 11:47 pm

A housing crash in BC gives everyone exactly what they deserve, which is why I was convinced it would never happen. But now with the NDP/Green combo there is hope again. Their response to housing is so over the top and their disdain for the useful/functional parts of the BC economy so intense.

I only hope this province doesn’t totally resemble a scorched Earth when I can finally afford a decent place to live. I’m tired of moving …

#154 Ponzius Pilatus on 05.30.17 at 11:49 pm

Canada is moving to the left.
No surprise there. The working man can take only so much abuse.
You can only hit a dog so much, before he bites back.
The working man is th backbone of a country .
Don’t you ever forget that ?

#155 AisA on 05.30.17 at 11:54 pm

First for everything, did I read 40% dependent on real estate? 98% off sales coming to your home town. Had to stop reading right there. The equivalent of literary whiplash took place.

#156 DON on 05.31.17 at 12:01 am

#120 VICTORIA TEA PARTY on 05.30.17 at 9:45 pm

The Libs, they make no bones about their sources, corporate and otherwise, but they are Canadian-sourced generally. Most voters seemed to accept that.

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

You must write for the Vancouver Sun or Province as the spin is truly amazing and YIKES!. Most voters seemed to care, and the BC Liberals donation do include foreign donations if you care to look. I love minority governments though, keeps the corruptable in check.

#157 Money money money on 05.31.17 at 12:01 am

Real estate is so lucrative, this dentist became a real estate agent.

http://vancouversun.com/news/local-news/west-van-woman-seeks-millions-from-mother-and-brother-engaged-in-abuse-of-process-judge

#158 Vanrentor on 05.31.17 at 12:29 am

#102 Myra Andrews on 05.30.17 at 8:52 pm
Stats for Vancouver May 30

New 281
Price Change 40
Sold 131
TI:8816

http://www.clivestevepaul.com

Thanks for the stats but why the Realturd link?

#159 Karma on 05.31.17 at 12:30 am

#74 Alberta Retiree on 05.30.17 at 7:29 pm
“Just retired in Alberta, and now poking around for a place on Vancouver Island to settle down. Chatting with the locals in Sooke (south island), is interesting. The disconnect from fundamentals is stunning. I quote,(from a number of locals):
“Lots of people want to retire here, so between that, the people that have been displaced from the Victoria market, and the lifestyle here, the relatively moderate prices, (compared to Victoria and Vancouver), prices will remain firm and there will be no substantial correction.”
When asked why there’s a lack of reasonable rentals, most comment that, “You can blame AirBnB for that. Why would someone want a month to month rental tenant when they can get $4,500 per month from short term AirBnB people. Most people with rentals in this area are booked a year or two in advance with AirBnB. Tourists will always keep coming and so will retirees, so we’re all good here.”

Thoughts?”

————————-

Check out Royal Bay in Colwood. New lots are being developed. It’s quite cheap to buy a lot, but need to get someone to build the house for you.

#160 Bob Loblaw on 05.31.17 at 12:45 am

Condos and townhomes are the worst RE investment. Even the horniest of RE snorflers should think twice before settling for one of these if they can.

What exactly are you buying? You don’t own the land. The exterior walls, deck, outside stairs, driveway, the little patch of grass out front are all common property. Interior renos require strata board approval. Window fans and A/C units are prohibited. Christmas and Halloween decorations must meet board specs and can only be displayed within a specific timeframe.

My wife and I bought a higher end, newer TH in Calgary years ago. Figured it would be an ideal starter home.

A week after moving in, I thought I’d wash the car in the driveway. It was a sunny summer day after all and I had a faucet in the garage. Received a warning letter from the strata the following Monday informing me that washing vehicles in the driveways was prohibited. So every time I want to wash the car, I have to head to the car wash and shell out $12.

A few months later, I had to store some furniture in the garage for a family member, so I parked both vehicles in the driveway. This unit had a two car garage, so the driveway had room for 2 cars. Received another warning letter. Parking 2 vehicles on the driveway is prohibited due to the potential that one of the vehicles could drive over the shale at the edge of the driveway while backing out, therby puncturing the weed barrier beneath.

Ok…I’ll move a few things inside so at least my wife can park her car in the garage and I’ll park in the driveway. But I need to park on one side so she can still get out.

Strata letter time! This time it’s a sanction for $250 for “improper use of a driveway” Vehicles must be parked central on the driveway. So every time my wife needs to get her car out, I have to move my car down the street. Can’t park it in the visitor parking, because that’s prohibited, nor can I leave it in the lane for a few minutes because that’s a fire zone.

Never buy one of these places.

#161 guru on 05.31.17 at 12:54 am

i said this before, the outer suburbs will get destroyed first and worst than anywhere else (IE: Stoufville, Brampton, Oshawa, Hamilton, Milton, Guelph, Barrie etc). take a look at what happened in the US crash and educate yourselves (IE: Queen Creek AZ is still recovering). If you want to get out, take whatever profit you can and get out now before prices drop 50-60%. Think about it, a semi a few months ago in Brampton would fetch $850k….. to any educated purchaser, it’s worth no more than an expected valuation of $450k based on various factors. Prices have already dropped 10-15% from a month ago based on data of sold homes but there’s been some ‘greater fools’ that have paid full pricing which has been rare.

#162 Dan.t on 05.31.17 at 1:03 am

So delusional in Canada about housing.

I am all for any and every measure to stop the stupidity. If you want to turn housing into a commodity then do so but don’t give tax breaks, make insane gov policies like 40year/0% down, allow 95% to 100% leverage and give banks incentives to loan out free money to anyone with a heart beat to speculate on it.

Another poster said it right, if I want to speculate on Gold, Silver, Oil, can I go to the government, get a tax credit, run to the bank, take out 95% leverage at 2.99% and go all in?

What is the difference? Housing has been turned into a commodity. So treat it like a commodity.

It’s time to make a home a place to live and build a family or a place to rent (at a reasonable price) if that better meets your circumstances. Not to buy and hold, then flip for 100’s of thousands in tax free profits curtesy of government policies and super lax banking and credit policies.

This has turned into a ponzi scheme where any unit new unit gets gobbled up fast by speculators with a wad of free money from the bank with no skin in the game (they don’t care), at 95% leverage, restricting supply so these speculators can flip to new house horny Canadians, who then flip to newer house horny Canadians… the only economy in town, Canadians selling houses to Canadians.

That is why Vancouver condo prices are rising. Christy Clark is giving out FREE 37k for a downpayment. And the public loves it. Even more free money to speculate in the Commodities Market. That sounds safe and sound policy, kick the can down the road, as long as the housing Gasbag doesn’t blow up on her watch!

I also said it would happen. BAILOUT coming for those who bought the last years. So you prudent (fools it seems) people who didn’t drink the coolaid, saved like a good beaver, lived within your means, will get screwed again somehow. As those with Bank of Mom downpayment, no money, and mortgaged to the balls will get help.

What a wonderful world, next time I a crappy FOMO driven investment, I wonder if I can run to the movement and cry and wine and get a bailout too?

Maybe the liberals are super smart. The biggest bubble in Canadian history would have popped eventually, but now in BC, they can blame someone else.

This still has a ways to go. Canadians are so in love with real estate that even in the face of an unsustainable bubble, they still want it, and hope it goes down a bit so they can Vultch. The horniest house nation in the world. Funny thing is, most don’t know what could live in a mansion outside of Canada for what you pay for a Burnaby condo. So delusional, or Canadians are really super rich.

Man, it’s just an apartment or it’s just a house, and particle board and for the most part crappy construction.

#163 calgaryPhantom on 05.31.17 at 1:16 am

Meanwhile in Calgary.

House came up for sale in desirable Varsity area.
Asking price: $529,900
15 offers, bidding, and sold for $576,000. UNCONDITIONAL.

That is 46k over asking and without any inspection or financing conditions.

Go figure.

#164 paulo on 05.31.17 at 1:47 am

So Wynn is a closet Dipper: have to wounder about the significant impact the Minimum Wage Increase in Ontario will have on the core rate of inflation, the costs of this will be passed on to the consumer. fact is that most of the souls laboring for the minimum toil in the service industries, fast food, retail , grocery industries.
all of which survive on a very narrow profit margin usually 5-8 % of gross sales.
a initial labor cost increase of about 35% starting in January 2018 is going to blow the BOC inflation target out of the water and send it to the moon. result: extreme pressure to raise rates,in addition to the us feds moves and of course the effective termination of NAFTA to be seen later this year Outcome: mortgage rates in the 7 to 8 % range by Q4 2019

#165 RentYVR on 05.31.17 at 1:48 am

I really want to believe that this abomination of a coalition will attempt to burst the bubble, but real estate didn’t even make it into the 11 point agreement released today so it’s clearly not a priority:

http://www.bcgreens.ca/b_c_new_democrat_and_b_c_green_caucuses_ratify_historic_agreement

#166 willworkforpickles on 05.31.17 at 2:00 am

The time we are in now will go down in history as the time we reached the peak in real estate prices.
These prices…..ahhh….hmm… – won’t – be seen again before Canada and the US cease to exist as sovereign nations.
…..or thereafter.

#167 Jessica on 05.31.17 at 2:00 am

At the heart of the socialist view of the market is that people have a right to real estate, not just shelter.

Nope, it’s not. It’s the right to a HOME, real estate, rental, or co-op. And if it’s a rental then without the fixed lease loophole that stresses families out year after year with unknown rent increases. With a 0% vacancy rate in some cities and some families living in tents for lack of an available rental, any party who promised to fix that loophole would have had my vote. Everything else you listed here is just the icing on the top.

You say 40% of our GDP is real estate; well that wasn’t the NDP’s doing. Liberals here aren’t good for business, just big business, their party, and lining their pockets.

#168 dosouth on 05.31.17 at 2:03 am

Well here we go with the Con-Libs being sent to the back of the class. NDP and Greens rushing to the front with the fake photo ops and hand wringing glee.

Regardless of who is in power for the next, let’s say, 12 months, will not be good for about 51% of BC. None of this will end well…..

#169 Smartalox on 05.31.17 at 2:30 am

Clark’s defeat is about the best possible way to be defeated: she’s going to offer up a lavish throne speech, and offer to break the bank on the budget, but with a couple of ‘poison pills’ like plans Trans Mountain and Site C, and then get defeated on a confidence motion.

She’s then going to spend the next 18 months shovelling sh!t sandwiches to the ‘government’, telling them they’re ‘doing it wrong’, costing BC jobs, investment, tax dollars, etc. Because she’s still trusted by more than 50% of the province.

With the NDGreens providing a speaker, expect every vote to be whipped. Nobody misses a session, not for a dentist appointment, a funeral (even theirs) or to go to Starbucks, lest a vote be called in their absence.

It’s going to be politics at the redline until someone keels over, and there’s a by-election. Any by-election will be an evaluation of the performance of the parties, and can tip the balance, and might roll the whole ship over.

Then it’ll be back to the polls, and on to the third act in this saga.

#170 Longterm on 05.31.17 at 2:58 am

#137 Hiding On the Backstreets on 05.30.17 at 10:35 pm

Ideologically the BC Liberals are the Conservatives and not to be confused with the federal Liberals with which they share little. While a Conservative Party exists in BC it never wins any seats because those votes go to the Liberals.

#171 David on 05.31.17 at 3:16 am

“At the heart of the socialist view of the market is that people have a right to real estate, not just shelter. They do not.” -Garth

This is taken way out of context. It’s easy for a person from one generation to say “suck it up” and “go back to school and get a better job” to earn the option to afford a home. I’ve done years of post secondary and have way above a bachelor degree and have a good job, along with countless other people in my generation. The fact is, people doing the same job from previous generations were far less productive, did far less training and education, were financially rewarded far more when factoring in inflation, and had far less housing costs. And next will be the strain on healthcare and pensions, will the cash strapped millennials be on the hook to support the top heavy demand?

Elections are not isolated to specific issues, and most people do not have an option to vote for policies such as whether we want our nation’s land sold to foreign investors, among other issues that have led to this situation of unaffordable housing. We want a stable and fair economy that rewards its citizens for contributing value primarily through productivity, not rewards those who have enough cash to buy existing real estate assets and do nothing but jack up costs at absurd rates for those who desire a decent shelter whether renting or purchasing. We see proof economic assumptions are flawed when they measure GDP as a bottom line number and not factoring in the spread between the citizens caused by certain policies or lack thereof, although it’s hard to see the proof from the top down through champagne glasses.

#172 NoName on 05.31.17 at 3:53 am

#105 Smoking Man on 05.30.17 at 9:00 pm

Buy a Man Romper outfit. Learn to talk like a girl and become a green crusader. Line up for a govt hand outs on a green project who’s business plan aims to fill my wallet with all the loot and deliver zero.

you should add under armor too the list to. So the pressing question is how many Un.. Ar.. shirts is in your closet?

https://goo.gl/8Lxwy8

just so copy & paste police dont sent me to gulag
Narrative and Numbers:
The Value of Stories in Business
(Columbia Business School Publishing)
Aswath Damodaran

#173 NoName on 05.31.17 at 4:15 am

Line dancing

https://www.youtube.com/watch?v=qenzkdzZPH4

#174 Pulp Faction on 05.31.17 at 6:10 am

Fast forward to the future…..

People are not allowed to drive anymore.
You hail an automatic electric car using your smartphone. You communicate with the arrived vehicle using your smart phone… pay by debit, credit, or electronic account. You pay for only what you use, no need to own a vehicle. The vehicles are owned and operated by companies like Uber. The car will arrive clean and locked, and the door will open when accessed by smart phone with a code based on your booking. You have already told it where you are going, via your booking and paid for the ride as well.
Huge savings to auto insurance companies and law enforcement.
Huge reduction in deaths and injuries.
Have drinks and ride home.

#175 NoName on 05.31.17 at 6:24 am

interesting read

http://www.marketwatch.com/story/the-dirty-secret-wall-street-tries-to-hide-as-it-keeps-raising-stock-price-targets-2017-05-31

#176 Cottingham than a bargain on 05.31.17 at 6:44 am

#71 Chelsea on 05.30.17 at 7:14 pm
Recently noticed BC RE listings is slowing down, homes still listed high prices, nothing being sold, maybe a handful …. glad the NDP are in, as BC needs a shaking up, as long as they preach what they say …. there will be HUGE changes …. hopefully, in some areas for the better. We rent, and have for 16 years, now, we are looking forward to buy a home + acreage for retirement. No need for a mortgage, we saved for this time….
——–

Posts like this one above , there are many like it , just prove how many “brick licking , house horny , roof rubbing garage gang banging” real estate obsessed people are on the sidelines just waiting to buy.

Hence the reason why any decline in prices will be very short and shallow .

Buy now before the surge starts again

#177 Grantmi on 05.31.17 at 6:47 am

#1 pathcontrolmonk on 05.30.17 at 5:06 pm
Christy just gave her pathetic press conference being both smarmy and pouty while declaring how unfair democracy is. Apparently she is a masochist and will not resign, perhaps the faux-Libs think they can still somehow hold on?

She’s a single Mom … she needs the work! You think CKNW would take her back???

#178 Wrk.dover on 05.31.17 at 6:52 am

Garth, your latest post reinforces that you are the greatest raconteur of our time.

The photo of the Red Baron is pretty fine too.

#179 pBrasseur on 05.31.17 at 7:04 am

Winter is coming as they say in Game of Throne!

Can take a while though….

#180 Grantmi on 05.31.17 at 7:04 am

#137 Hiding On the Backstreets on 05.30.17 at 10:35 pm
By the way, why doesn’t B.C. have a Conservative party?

We did.. it was called the Social Credits.. but got wiped out when Billy VanderScam.. went off his med’s. it never recovered. He tainted the name so bad they couldn’t go back to it.

The BC Liberals have been a wolf in Conservative clothing ever since.

#181 Victor V on 05.31.17 at 7:05 am

That night, six hours after Julian had called me at work, we submitted a bid of $480,000 without conditions. To our surprise, the owners refused it outright, evidently realizing they’d under-quoted us. We pushed our offer to our limit of $560,000, and they accepted. I was thrilled. Then the adrenalin wore off, and the gravity of what we’d done sank in. We had just spent more than a half a million dollars on a house I had never seen…

http://torontolife.com/real-estate/parkdale-reno-hell/

#182 Truenorth on 05.31.17 at 7:08 am

I do not understand “affordable housing” what does it mean? Show me the house that no one lives in because it was not affordable. Does it intend to carve up high end sections of cities for those whom not could otherwise live in that area? Does it presume that everyone aught to live in the city of their choice regardless of their income? I think not. Live were you can afford to live Like the rest of the world.

#183 I'm stupid on 05.31.17 at 7:09 am

Is this the denial stage?

https://www.google.ca/amp/www.cbc.ca/amp/1.4138447

#184 Smoking Man on 05.31.17 at 7:18 am

#covfefe

Trump un hinges the lonny left with this made up word.

My interpretation. CNN sucks.

#185 Smoking Man on 05.31.17 at 7:43 am

My buddy on 60 minutes. So lucky he never mentioned Long Branch. Our little secret.

https://youtu.be/Ais69g3ZbY0

#186 NoName on 05.31.17 at 7:50 am

off topic

Definitly he will get impeached and i will tell you exactly when, next official visit of president of cro to WH. It will make last oval oficce “mishap”, look like nonevent…

http://bit.ly/2sdOUdZ

#Covfefe

#187 maxx on 05.31.17 at 8:20 am

#8 Tkid on 05.30.17 at 5:21 pm

“Surely to God they wouldn’t be that destructively insane? It would wipe the market out.”

If the fool on the hill raised rates, they wouldn’t have to do all of this. Simple, gradual and it would work – .1% per quarter – that would light a fire under many borrower’s butts to get debt paid off and smelly balance sheets wouldn’t aspire to re they can’t afford.
But here in Canaduh, we like to do things reaaal complicated, especially in Ontariowe, with lots ‘n lots of twirly widgets to play with.
“Hey Steve, we’ve got far too much debt in this country.”
“OK, let’s drop rates, that oughta do it.”

Gawd we’re dumb.

#188 Covfefe on 05.31.17 at 8:44 am

#184 Smoking Man on 05.31.17 at 7:18 am
#covfefe
Trump un hinges the lonny left with this made up word.
My interpretation. CNN sucks.
……………………………………………………………………..
“Covfefe” The first word you learn at Trump University!
The second word you learn is “loonie” oops sorry little Smokie you failed, try again. Please make sure to sign your cheque on the way out and pay for your fake education.

#189 Covfefe on 05.31.17 at 8:51 am

#185 Smoking Man on 05.31.17 at 7:43 am

My buddy on 60 minutes. So lucky he never mentioned Long Branch. Our little secret.

https://youtu.be/Ais69g3ZbY0
…………………………………………………………….
He said Covfefe you idiot! its the code word for get out of Longbranch now! Fire up the Plasma flyer or should I say PF Flyers. We are re-locating you and your pack to a new location. You will now be working out of Sarnia!

#190 Andrew t on 05.31.17 at 9:01 am

“One reason for cautious concern in the numbers is that, while Canada’s mortgage delinquency rate is still very low, at just 0.32 per cent, the agency did note a slight uptick in Alberta and Saskatchewan in the number of people falling more than 90 days behind on their mortgage payments.”

http://www.cbc.ca/beta/news/business/cmhc-mortgage-housing-1.4137986

#191 Daisy Mae on 05.31.17 at 9:08 am

“….plus a way to create de facto wealth redistribution and (natch) raise the millions and billions that will be required to fund subsidies and enhanced social programs. Perhaps this is exactly what BCers want….”

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

Nope. But, as usual, the NDP will have only one term to screw things up and then the Liberals or Socreds, who may be making a comeback, will clean up the ensuing mess, as always.

#192 Victor V on 05.31.17 at 9:10 am

Another multinational employer is fleeing Ontario and the Wynne government doesn’t seem to care

http://business.financialpost.com/fp-comment/another-multinational-employer-is-fleeing-ontario-and-the-wynne-government-doesnt-seem-to-care

My hometown of Brockville, Ont. was hit with a devastating blow last week with the announcement that multinational consumer-products maker Procter and Gamble is closing its local plant, taking with it 500 jobs.

P&G is Brockville’s largest private-sector employer — only the school board and the hospital employ more. The company has been a model corporate citizen for 40 years, donating millions of dollars to local causes and generally making Brockville a better place.

And I think it is fair to say Brockville made P&G a better company. The local plant has a well-educated, resourceful, diligent workforce. Although the plant made such household cleaning products as Tide and Bounce over the years, it is most famous as the site that pioneered the Swiffer sweeper.

But that’s all history now as P&G joins a growing list of companies leaving Ontario for more hospitable locales, in this case, a new mega-plant in West Virginia.

#193 Pete on 05.31.17 at 9:14 am

Subprime borrowers forced to pay 7% to 19% interest rates on mortgage after Home Capital collapse

http://www.msn.com/en-ca/money/topstories/canadas-private-lenders-feast-on-home-capital-scraps/ar-BBBIh2f?li=AA54rW&ocid=ientp

#194 Pete on 05.31.17 at 9:16 am

7% to 19%? that is an average of 13%. Who is going to take out a 13% mortgage when the housing bubble is bursting? I would be very interested to see how things end for these people.

#195 Ponzius Pilatus on 05.31.17 at 9:18 am

#137 Hiding On the Backstreets on 05.30.17 at 10:35 pm
By the way, why doesn’t B.C. have a Conservative party?
———————-
It has.
The Liberal Party.

#196 SWL1976 on 05.31.17 at 9:33 am

Well at least we don’t have a $15/hr minimum wage. At least not yet

Our current economic system is cooked to the point of being laughable if reality just wasn’t such a bitch

Idiocracy is happening. Time to reap what we have sown.

There’s no where left to run

#197 CJBob on 05.31.17 at 9:50 am

Ok, who wants to take a bet on how many of Garth’s 5 points will be implemented?

I’ll set the over/under at 2.5 as the first couple are certainly very possible. The rest is just fear mongering.

Remember how many taxes were suppose to go up in the last Federal election according to Garth?

I did not make this up. These policy points are from the NDP and Green platforms. Go belittle them. — Garth

#198 True cost of risk on 05.31.17 at 9:53 am

Pete on 05.31.17 at 9:14 am
Subprime borrowers forced to pay 7% to 19% interest rates on mortgage after Home Capital collapse

http://www.msn.com/en-ca/money/topstories/canadas-private-lenders-feast-on-home-capital-scraps/ar-BBBIh2f?li=AA54rW&ocid=ientp

Goes to show you CMHC is grossly under pricing the true cost of risk. CMHC needs to be halted and the banks should take all the risk. Then we will see the true cost of risk.

#199 Fish on 05.31.17 at 9:58 am

RE:139 JustMe on 05.30.17 at 10:42 pm
“People who buy property in BC but don’t live or work here and leave their property empty will be charged a two per cent tax on speculation, with optional municipality participation.”

…………..

They also buying in Ontario, like my
Once next door neighbour

#200 Willy H on 05.31.17 at 10:04 am

The coalition of Dippers and Greens seizing power in a bloodless coup appears unified on a strategy to destroy real estate equity. First, they’ll double the Chinese Dudes tax, from a merely punishing 15% to a death-spiral 30%. That will send a strong message to the world that no foreign investment is wanted in BC. Genius.
__ __ __ __

We don’t want (or need) foreign investment in residential real estate at this time. We want foreign investment in working capital generating revenue, jobs and taxes.

Realtors, appraisers, bankers and government tax collectors do not have jobs? — Garth

#201 jess on 05.31.17 at 10:55 am

Announcement of Treasury Sanctions on Entities Within the Financial Services and Energy Sectors of Russia, Against Arms or Related Materiel Entities, and those Undermining Ukraine’s Sovereignty

7/16/2014
Actions Implement Executive Order 13662 against
Two Russian Financial Institutions and Two Energy Firms.
Actions also Target Eight Defense Technology Entities, Three Separatists, One Entity Complicit in the Misappropriation of Ukrainian State Assets, and Four Russian Government Officials

WASHINGTON – In response to Russia’s continued attempts to destabilize eastern Ukraine and its ongoing occupation of Crimea, the U.S. Department of the Treasury today imposed a broad-based package of sanctions on entities in the financial services, energy, and arms or related materiel sectors of Russia, and on those undermining Ukraine’s sovereignty or misappropriating Ukrainian property.

https://www.treasury.gov/press-center/press-releases/Pages/jl2572.aspx

========
We have not blocked the property or interests in property of these banks, nor have we prohibited transactions with them beyond these specific restrictions. However, the scope of the prohibited transaction types and the number of financial institutions may be expanded under E.O. 13662 if we decide to do so.”
=====================
prohibited “new financing” to VEB but was silent on what banks should do with the hundreds of millions of dollars of VEB securities already in their portfolios.

http://wallstreetonparade.com/

#202 TurnerNation on 05.31.17 at 10:55 am

ECN capital stock crashed today…another lending company I think. What leaked out?

#203 paulo on 05.31.17 at 10:58 am

Nice bad ass dog pic today. well after talking to a number of friends in the restaurant biz,along with a couple of real estate sales dudes and a drop dead gorgeous dudett whom have seriously changed there outlook on the Barrie Ontario real estate picture,amazing how the tide changes so quickly, add to that the consternation of my burger and breakfast flipping friends, our collective take on events, min wage hikes, loopy stuff out west, serious trade hassles with our american cuze’s on the horizon missing was a smoking dude to add some spice,it is our considered opinion that we are collectively in deep do do. as for the real estate side listings rapidly climbing, previous done deals seeing a significant failure to complete rate increase,bid wars in the history books,regional prices down by a estimated 6% already, buyers missing in action and crickets at open houses. as for the burger and breakfast gang,food price inflation and soon labor cost inflation is expected to be the end of about 30% of the restaurants up here according to the bunch that knows best. general consensus: the mother of all recessions is just around the corner. plan accordingly

#204 Pete on 05.31.17 at 10:59 am

Assessing 30% foreign buyer tax is not saying “we don’t want foreign residential investment”, it is saying:

Hey, as foreigners, you don’t have a right to purchase a house in Canada, that is a privilege we are offering to you. We also know that a lot of the money buying Canadian housing are probably dirty money from an authoritarian country like China where people try all means to move money out of the country. For that privilege we offer you and the level of your desperation, you have to pay 30% additional tax. Very fair and square.

What a condescending, morally-superior and utterly jingoistic attitude. — Garth

#205 Simplyput7 on 05.31.17 at 11:11 am

#198 True cost of risk on 05.31.17 at 9:53 am

As bad as this is, I think the government is achieving their goal, as stated in the article:

“Unlike Home Capital, which is regulated by Canada’s main financial watchdog and has nearly half of its loans covered by government insurance schemes, MICs have no government backstop and are only overseen by their provincial regulator.”

It’s just a case of buyer beware. No tax payers will be on the hook for these mortgages. If Stephen Poloz and Bill Morneau take a hard stance like they have with Home Capital, then they are just going to let these companies fall.

This will help people to learn on their own that taking on this much risk has serious consequences, and no one will be there to pick you up if you fall. And frankly, even with a bailout, this is the same lesson they would learn because bailouts only help lenders not borrowers, as millions of homeowners in the US learned the hard way.

I’m happy CMHC is only backing $502 Billion mortgages now, down 10% from a year ago and less than the $600 billion cap. I want it to continue to decrease.
http://www.cbc.ca/news/business/cmhc-mortgage-housing-1.4137986

While I do feel bad that there are a lot of financially illiterate people lending money, borrowing or speculating in the housing market with no understanding of how debt or mortgages rates work, and which financial instruments are regulated heavily and backed by various levels of government insurance and which are not; many people understood the risk they were taking, hoping to be bailed out if things go bad.

I say let them rot.

#206 Ronaldo on 05.31.17 at 11:29 am

#182 Truenorth

Live were you can afford to live Like the rest of the world.
——————————————————————
You mean like Ft. St. James?

#207 For those about to flop... on 05.31.17 at 11:46 am

Hey NoName, how come we have to use google for the documentation of the Vancouver correction?

How come we can’t use this grey-market stuff?

Sounds more mysterious….

M42BC

#208 Smoking Man on 05.31.17 at 11:59 am

#188 Covfefe on 05.31.17 at 8:44 am
#184 Smoking Man on 05.31.17 at 7:18 am
#covfefe
Trump un hinges the lonny left with this made up word.
My interpretation. CNN sucks.
……………………………………………………………………..
“Covfefe” The first word you learn at Trump University!
The second word you learn is “loonie” oops sorry little Smokie you failed, try again. Please make sure to sign your cheque on the way out and pay for your fake education..
…….

My education is second to none as ive demonstrate over the years on Greater Fool. Now let’s look at this. You spelled Loony like this “loonie.” You’re only correct by herd concensis. I like the way my Loony sounds more than the way your loonie sounds.

I’ll spell it any damn way I want to. I’m my oun master. Don’t give a flying fiddle on what anyone else thinks.

How’s that for some schooling you Loony

#209 Lorne on 05.31.17 at 12:06 pm

#74 Alberta Retiree on 05.30.17 at 7:29 pm
“Just retired in Alberta, and now poking around for a place on Vancouver Island to settle down. Chatting with the locals in Sooke (south island), is interesting. The disconnect from fundamentals is stunning. I quote,(from a number of locals):
“Lots of people want to retire here, so between that, the people that have been displaced from the Victoria market, and the lifestyle here, the relatively moderate prices, (compared to Victoria and Vancouver), prices will remain firm and there will be no substantial correction.”
When asked why there’s a lack of reasonable rentals, most comment that, “You can blame AirBnB for that. Why would someone want a month to month rental tenant when they can get $4,500 per month from short term AirBnB people. Most people with rentals in this area are booked a year or two in advance with AirBnB. Tourists will always keep coming and so will retirees, so we’re all good here.”

Thoughts?”

————————-

Check out Royal Bay in Colwood. New lots are being developed. It’s quite cheap to buy a lot, but need to get someone to build the house for you.

…………

Yeh, and then you can participate in the “Colwood Crawl” every weekday morning and evening…Victoria’s rush hour.
You might want to look further up Island…Parksville, Qualicum or the Comox Valley (Comox, Courtenay, Cumberland and some smaller communities) …all have a lot going for them.

#210 Josh in Calgary on 05.31.17 at 12:07 pm

It’s interesting how housing has become such a political football. How people are divided into right and left on the issue, and usually it’s people who have a house vs. people who don’t.

1) Foreign Buyer Tax. It really comes down to how you view the global economy. For better or worse the global economy has become more and more integrated. Allowing for money to flow across boarders. This has come with significant gains to many economies which translates to more jobs and more taxes for governments to put towards social programs. Of course many people feel they have not benefitted one bit from this so burning it all down seems like a reasonable thing to do. After all it will only hurt the rich guys. I doubt this simple narrative of theirs. Economic upheaval usually falls hardest on those least able to afford it.

2) Capital gains on primary residence. I’ll accept this one as long as it comes with the ability to right off all carrying costs such as property taxes, maintenance, renovations, realty fees, etc. So basically now we’re all forced to run our home like a business and save all receipts etc. Seems like an utter waste of time just to capture taxes from a housing bubble that will likely not repeat for awhile. And if you’re going to collect capital gains tax does that mean people get a write off for losses?

3) Property transfer tax getting bigger. The basic idea is to provide another barrier to speculation. But it will also serve to economically trap people in their houses thus reducing labor mobility. Someone buys a house thinking they’ll live there awhile. Maybe the want to take a different job. Maybe they lose their job. Maybe they get divorced. Basically they make an unplanned selling of your house a potential ruinous affair. Smart people will be more likely to avoid buying for this reason. Many others won’t. This doesn’t make home ownership more attainable, it just means the government gets to skim more off the top.

4) 2% tax on investment property. So now for all of those people who can’t afford to buy or choose not to buy, they have to rent. But you’re effectively driving people out of the land lord business with this tax. Or forcing them to add the tax to the rent.

What it boils down to is freedom to own property. People voted for this in part because they hope it will help them become owners. But if the government makes it so onerous to own property through all of these levels of taxation … do you even own it? Or are you now just renting it from the state?

#211 Smoking Man on 05.31.17 at 12:07 pm

What a condescending, morally-superior and utterly jingoistic attitude. — Garth

Jingoistic

A new word added to my vocabulary. At the first read, my imagination conjured up an image of a dancing gigolo with a speach impedament.

https://www.google.ca/search?q=jingoistic&client=ms-android-samsung&sourceid=chrome-mobile&ie=UTF-8&ctxr&ctxsl_trans=1&tlitetl=en&tlitetxt=jingoistic

#212 Bert on 05.31.17 at 12:11 pm

Just being a pedantic nitpicker here, but the word ‘decimate’ is bandied about a lot in connection with RE investors and (potential) homeowners.

‘Decimate’ originates from a Roman military disciplinary action whereby every 10th man would be executed.

A 10% correction would be equivalent to decimation.
That would be nothing but a flesh wound.

#213 Tony on 05.31.17 at 12:21 pm

Re: #197 CJBob on 05.31.17 at 9:50 am

Have to see what happens or doesn’t happen with Trump’s tax cuts. The capital gains tax rate in Canada is already one of the very highest in the world. If Canada raises the capital gains rate a lot of wealthy people will leave the country or do business outside of Canada.

#214 What's up doc on 05.31.17 at 12:28 pm

#208 Smoking Man on 05.31.17 at 11:59 am

#188 Covfefe on 05.31.17 at 8:44 am
#184 Smoking Man on 05.31.17 at 7:18 am
#covfefe
Trump un hinges the lonny left with this made up word.
My interpretation. CNN sucks.
……………………………………………………………………..
“Covfefe” The first word you learn at Trump University!
The second word you learn is “loonie” oops sorry little Smokie you failed, try again. Please make sure to sign your cheque on the way out and pay for your fake education..
…….

My education is second to none as ive demonstrate over the years on Greater Fool. Now let’s look at this. You spelled Loony like this “loonie.” You’re only correct by herd concensis. I like the way my Loony sounds more than the way your loonie sounds.

I’ll spell it any damn way I want to. I’m my oun master. Don’t give a flying fiddle on what anyone else thinks.

How’s that for some schooling you Loony
..
yer both full of it..it’s Looney…

#215 Steve on 05.31.17 at 12:29 pm

Garth it’s incorrect and untruthful to portray the NDP-Green minority government as a seizing power or a bloodless coup. By perpetuating the ‘coup’ rhetoric you are sounding like Harper and his cronies back in 2008-2009.

You should know better than anyone that it is legitimate under the Westminster style of governance, having participated as a member of the House of Commons.

It is only legitimate if they defeat the party with the most seats in the legislature and are asked by the Lt-Gov to form a new government. — Garth

#216 Jessica on 05.31.17 at 12:32 pm

From Globe and Mail today:

“On monetary policy, the IMF said the Bank of Canada’s cautious approach is “justifiable” given the considerable uncertainty in the economic outlook. On the fiscal side, the IMF also approved of Ottawa’s deficit spending and welcomed the pledge to set federal debt-to-GDP on a declining path.

On the issue of the Infrastructure Bank, which is currently a matter of heated debate in the House of Commons as the government moves to pass enacting legislation, the IMF praised the overall concept as an “effective” instrument.”

Looks like the Liberal’s approach to the economy just got the thumbs up from the IMF. And BC NDP is ideologically their equivalent in BC. At last a brighter day is dawning…

#217 jess on 05.31.17 at 12:32 pm

#206 Smoking Man on 05.31.17 at 12:07 pm

Heck you could always teach the blog dogs ” Macdermott’s War Song ” …by jingo!

#218 sam on 05.31.17 at 12:35 pm

Toronto housing experience on CNBC

http://www.cnbc.com/2017/05/31/couple-ended-up-100000-in-debt-from-renovating-a-crack-house.html

#219 Tulips on 05.31.17 at 12:47 pm

#212 Bert on 05.31.17 at 12:11 pm

>> Just being a pedantic nitpicker here
—————————–
Well played Bert! I think you brought in a whole new level of irresolution to the never advancing debate here.

#220 Michelle on 05.31.17 at 12:53 pm

Garth, I’m curious where the information about changes to BC real estate taxation comes from. You have presented it as fact but the NDP hasn’t even become the official ruling party yet and I don’t see anything about these changes in local news (it’s all focussed on Site C and Kinder Morgan).

This would certainly be big if true, but how do you know it’s true? And if you don’t know it’s true, why don’t you present it as speculation instead of as fact?

Fact: this is the official policy of the Dippers and Greens. Did you not know that before you voted? — Garth

#221 NoName on 05.31.17 at 12:59 pm

Of topic again… last one today

Nice writeup about Daphne Oram.

http://www.bbc.com/culture/story/20170522-daphne-oram-pioneered-electronic-music.

Some of her work, I wonder where she got an inspiration and idea, space​ shop…

https://youtu.be/S4tEJz6n4nc

#222 Paul on 05.31.17 at 1:01 pm

Yes just a flesh wound, lol

https://www.youtube.com/watch?v=zKhEw7nD9C4

#223 Paul on 05.31.17 at 1:03 pm

The American’s are not in good shape.

Ryan Kilpatrick
Apr 10, 2017
America’s credit card debt has reached more than $1 trillion—the highest level since the country’s last recession in 2008, according to new data from the Federal Reserve.
The higher level of consumer borrowing means people are spending more on big-ticket purchases such as cars, and is considered a positive sign for the economy, according to the Wall Street Journal.
Consumers in the U.S. now owe a total of $1.0004 trillion on credit cards. This is 6.2% more than a year ago and up 0.3% from January this year.
Revising previously reported credit-card debt figures, the Federal Reserve revealed that December was the first month to enter into trillion-dollar territory. Both auto and student loans have already reached the mark ahead of credit card lending.

#224 Game Changer on 05.31.17 at 1:04 pm

#165 RentYVR on 05.31.17 at 1:48 am
I really want to believe that this abomination of a coalition will attempt to burst the bubble, but real estate didn’t even make it into the 11 point agreement released today so it’s clearly not a priority:

http://www.bcgreens.ca/b_c_new_democrat_and_b_c_green_caucuses_ratify_historic_agreement

——-

Clearly you did not read the document. As I already pointed out:

Text from the NDP-Green Agreement that references housing:

“Make housing more affordable by increasing supply of affordable housing and take action to deal with the speculation and fraud that is driving up prices.”

This summarizes succinctly the two party planks – supply and foreign and domestic speculation…

#225 Paul on 05.31.17 at 1:09 pm

194 Pete on 05.31.17 at 9:16 am

7% to 19%? that is an average of 13%. Who is going to take out a 13% mortgage when the housing bubble is bursting? I would be very interested to see how things end for these people.
——————————————————————–Some people have 10 to 13 % second mortgages now!

#226 CJBob on 05.31.17 at 1:10 pm

#74 Alberta Retiree on 05.30.17 at 7:29 pm
Chatting with the locals in Sooke (south island), is interesting. The disconnect from fundamentals is stunning. I quote,(from a number of locals):
“Lots of people want to retire here, so between that, the people that have been displaced from the Victoria market, and the lifestyle here, the relatively moderate prices, (compared to Victoria and Vancouver), prices will remain firm and there will be no substantial correction.”
When asked why there’s a lack of reasonable rentals, most comment that, “You can blame AirBnB for that. Why would someone want a month to month rental tenant when they can get $4,500 per month from short term AirBnB people. Most people with rentals in this area are booked a year or two in advance with AirBnB. Tourists will always keep coming and so will retirees, so we’re all good here.”

Thoughts?
__________________
So, which fundamentals do you think this is disconnected from? I visited Sooke for the first time earlier in the month and it’s really beautiful. What you describe is that they is more demand than there is current supply so prices are in no danger of dropping in the near term. It doesn’t get more ‘fundamental’ than that.
BTW I rented a beautiful penthouse condo in Victoria for the week I was there at $265/night with an amazing view of the mountains and inner harbour. The drive to Sooke and Port Renfrew was spectacular.

#227 HDJ on 05.31.17 at 1:42 pm

137 Hiding On the Backstreets on 05.30.17 at 10:35 pm

By the way, why doesn’t B.C. have a Conservative party?
……………………………………………………….
It does. Its called the Liberal Party.

#228 Asterix1 on 05.31.17 at 1:52 pm

Regarding #204. “What a condescending, morally-superior and utterly jingoistic attitude. — Garth”

Garth, with all due respect, you could use this quote when China completely opens up their real estate market to foreigners. Until then, Pete has a point!

Amazing what real estate has done to YVRers. This hatred diminishes you. — Garth

#229 pBrasseur on 05.31.17 at 2:13 pm

IMF warns about Canada’s RE

https://www.theglobeandmail.com/report-on-business/economy/imf-praises-infrastructure-bank-plan-flags-housing-market-concerns/article35160977/

The thing is with IMF they are pretty slow to figure things out, when they warn things are usually already happening!

#230 joe2.0 on 05.31.17 at 2:19 pm

Covfefe means rabbit hole or diversionary tactic.
Its a psyop maneuver that msm is gobbling up.

#231 Pepito on 05.31.17 at 2:20 pm

#182 Truenorth on 05.31.17 at 7:08 am
I do not understand “affordable housing” what does it mean?
____________________________

Germany is a good example of what “affordable housing means. It’s one of the places in the world where policy makers at both federal and municipal levels got it right: A stable housing market and affordable, high quality housing. Lots on the net about it if you want to research for yourself. For example https://www.macrobusiness.com.au/2011/06/how-germany-achieved-stable-affordable-housing/

#232 Pete on 05.31.17 at 2:21 pm

#228 Asterix1 on 05.31.17 at 1:52 pm

Canada had a whopping $163 billion trade deficit with China from 2013 to 2016. Last year alone, the deficit was $45 billion. While Chinese companies can buy Canadian companies, Canadian companies are not allowed to buy Chinese companies. Canada’s import tax on Chinese goods is 1% while China’s import tax on Canadian goods is 35%. How is that anything even close to fair?

#233 For those about to flop... on 05.31.17 at 2:25 pm

Pink Pollen falling in Burnaby.

These guys drifted into Pink Pollen territory with their latest reduction.

Perhaps most interesting is they only waited a handful of days to make a change ,perhaps feeling the winds of change.

They are on the hook for 1.51 and the assessment is in between the buy and the ask after coming up a massive half a million dollars in the latest assessment.

Here’s Johnny…

M42BC

5656 Carson Street, Burnaby

May 25:$1,649,000
May 30: $1,599,000
Change: – 50000.00 -3%

https://www.zolo.ca/index.php?sarea=5656%20Carson%20Street,%20Burnaby&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzV0ZCRA==

#234 Pete on 05.31.17 at 2:38 pm

The so-called Canada-China free trade agreement is a joke. I am not against free trade, I am against free-ride trade. Free-ride trade is where one country tries to get a free-ride out of trade by closing their own market while demanding free access to other country’s markets. Last year, Canada exported $20 billion to China while imported $65 billion from China. That is neither free trade or fair trade, that is free-ride trade.

#235 Rifles on 05.31.17 at 2:43 pm

If we agree that foreign buyers are not a factor in creating BC exorbitant house prices then why all the fuss about doubling to 30%? Is it a confidence thing as people who believe in foreign money buyers worry they will have no one to sell to so they panic and list? Nt sure it sends the closed door message suggested given the presence of foreign buying controls in other jurisdictions (Australia, Singapore). In fact it may just end up being one of those tools that pleases a domestic audience that wants action while not really accomplishing anything. Win-win for politicians.

#236 Xbox Economist on 05.31.17 at 2:47 pm

#225 Paul on 05.31.17 at 1:09 pm
194 Pete on 05.31.17 at 9:16 am

7% to 19%? that is an average of 13%. Who is going to take out a 13% mortgage when the housing bubble is bursting? I would be very interested to see how things end for these people.
——————————————————————–Some people have 10 to 13 % second mortgages now!
____________________________________________

Don’t forget the people who can’t actually afford their mortgages but have been refinancing on each renewal based solely on their growing equity. Now, suddenly, they’re finding that sub-prime lenders are unwilling to renew and their equity is not growing the way it used to. The shadow mortgage market is going to eat them alive before it collapses under it’s own weight. Welcome to the beginning of Canada’s sub-prime credit crisis.

#237 For those about to flop... on 05.31.17 at 2:58 pm

Possible Pinkies.

Well,I did a couple of these yesterday and no one chirped me ,and so I will put these two cases up and see how they unfold in the coming months and perhaps even years for the second one.

The first guys are still going for a double digit gain after paying out 1.8m for this 1955 build that Ross Kay and I wouldn’t be caught dead playing poker in on a Tuesday night.

As you can see they have been at it for over 7 months like a lot of my case which listed in the fall when not enough grease was being applied to the wheels anymore.

It is assessed at 1.64 and so anyone who pays this price at this point in time should receive a free straight jacket upon the ink drying on the documents…

4558 Portland Street, Burnaby

Oct 15:$2,488,888
May 30: $1,995,000
Change: – 493888.00 -20%

https://www.zolo.ca/index.php?sarea=4558%20Portland%20Street,%20Burnaby&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzV0VRWg==

As I stated up top this one could take a while to play out.

They are into it an astonishing 3.3 million which was 600k above the assessment for that year and as I talked about last night got too far ahead of the market as it was purchased in March 2015.

The assessment came up a mind blowing ,best part of a million dollars to miraculously cover their buy number but the market is a different beast now and so they will have to do a massive reduction or decide to live there for a long time

For the guys out east,Richmond is a much derided part of town and for the same money as they are asking you could buy a house in the most coveted part of town

Perhaps like a lot of people in Vancouver waited one year too long to sell but stranger things have happened and so into the Possible Pinkies folder it will go and we will revisit it down the line…

M42BC
6100 Maple Road, Richmond

Nov 7:$5,580,000
May 30: $4,680,000
Change: – 900000.00 -16%

https://www.zolo.ca/index.php?sarea=6100%20Maple%20Road,%20Richmond&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1V1k5Uw==

#238 Ace Goodheart on 05.31.17 at 3:31 pm

So you can once again get into a detached house, two minutes’ walking distance from a brand new, under construction subway station, UP express station and massive transit hub, for under 500K:

https://www.realtor.ca/Residential/Single-Family/18226808/43-LAMBTON-Avenue-Toronto-Ontario-M6N2S3-Rockcliffe-Smythe

https://www.realtor.ca/Residential/Single-Family/18229235/235-LAMBTON-Avenue-Toronto-Ontario-M6N2T5-Rockcliffe-Smythe

i don’t know if people realize how amazing a deal these types of properties actually are.

As commuter houses, this is the story: UP Express: will stop at the future Mount Dennis Station (you can walk there in under two minutes from Lambton). From Mount Dennis right now (train passes right through, does not stop), to Union, there is one intervening station, Bloor Station. The ride takes about 9 minutes.

So what this is, is a three bedroom house, which as of 2021 will be a $5.00 one stop nine minute commute by train from down town Toronto Union Station.

This is the stuff dreams are made of folks. This is real estate speculation made easy for dummies. I have been buying up land in this crappy neighbourhood since 2012. It may well end up having the shortest, most convenient commute downtown that exists for detached home owners.

People are paying more than 500K for houses in Barrie and driving down the 400 every day (2-3 hour daily commute in horrible traffic).

At any rate, was reading this:

http://torontolife.com/real-estate/parkdale-reno-hell/

So these folks apparently hired some neighbourhood dude to dig down their basement. So he goes out and borrows a bobcat from another construction site, knocks down their front porch, makes a bobcat sized hole in the foundation, and down he goes. Ends up collapsing a large section of the foundation and the house becomes structurally unsound. They managed to find a real contractor to fix it all, luckily.

Friend of mine did a home reno recently. Opted for the “smart house” package, which as near as I can figure it, is some form of complicated computer system that can turn lights on and off by itself and control the heating and cooling systems remotely.

So he shows me this masterpiece, which apparently cost 60K. It is housed in a closet in his basement. What it ends up being, is this massive nest of wires, all colours in the rainbow, spilling out of all sides of this tiny little room, and hooked up willy nilly to various ports and bus bars, with everything feeding into a rather old looking computer, that is clicking and whirring constantly. It looked very tired.

So he’s all proud of this “smart house” thing. I’m thinking, this is a mess. This isn’t going to end well. They have an electrical storm and the power goes out for about 40 minutes. When it comes back on, nothing in the house works. No heat, no AC. Even the fridge and stove won’t come on.

Turns out the computer did not have a back up capacity, and any power cut more than 20 minutes, it loses its programming and has to be re-jigged by the folks who installed it.

Took a week to get them in to fix things, and it was not cheap. They had to reprogram the entire system. They told him he should purchase a stand by generator.

There should be a course that people are required to take before they buy houses. Like a driver’s license.

#239 Smoking Mans Realestate Broker on 05.31.17 at 4:04 pm

Antigua and Barbuda (Spanish for “Ancient” and “Bearded”) is an island nation that is between the eastern Caribbean and the Atlantic Ocean. Those are the two main islands, but the territory incorporates several smaller islands. The islands have a population of about 82,000. The ethnic make-up includes West African, British and Portuguese descents. The official language is English, and the capital and largest city is Saint John’s. The government is within a framework of a federal parliamentary representative democracy; the Head of State is officially a monarch. It has a tiny army, and its main source of economic activity is tourism. Most of the inhabitants are Christians. The culture of the islands is largely British and American influenced. The islands have a high literacy level of 90%.
Smoking Man average cost of a two bedroom home is $375 K USD. Rental average for same around $1500 USD per month. You pick, better brush up on your literacy.

#240 Bilderberg Conference Today on 05.31.17 at 4:06 pm

The Builderberg Group is meeting starting today. Bill Morneau is there and it’s been published on Bilderberg’s official list.

If you want to know what will be happening in our economy in the next 12 months, investigate the Bilderberg policies to best signed this weekend!

#241 Dan on 05.31.17 at 4:12 pm

Well, I am rooting for Canada because it is such a reinventing country. Soon we’ll have marijuana legalized, our real estate is working well like a well oiled money laundering machine. Prostitution, sodomy and other amorous activities will soon go on payroll with benefits…It is easy to feel free and resourceful when a head of state is not at home, no? And oil prices will be back sooner or later so our high tech approach to raping the Planet will continue, we will repeat that we all respect Paris accord and so on, that we are good and The Donald is bad and we all hope that Germany will be bombed soon so we can give them credits for rebuilding and reap nice interests. They are proven costumer….

#242 Dan on 05.31.17 at 4:27 pm

And please, stop to mention the word LAND in yours postings. Land or lot is not your property. It is property of The Queen of England. Your property is a shack built of pressed dust and glue. Tulip mania, Canucks, tulip mania all over. And of course a lot of criminality, too….

#243 Dan.t on 05.31.17 at 4:35 pm

I have been outside Canada to long. What is wrong with people there? Stories of…sorry, but morons buying houses for 500k without seeing the house? Buying tear downs for a ton of money and sinking more into them?

Seriously, people spend more time choosing a 6-pack of beer than they do spending half a million on house speculation.

I see brick houses here, 200 hundred years old and still standing for cheaper than some plywood, 30 year old tear down on the outskirts of butt f**K no where for a quarter of the price.

Get over yourselves Canadians. The whole world does not want to buy your crappy tear down. Other Canadians…well, that is a different story it seems.

#244 waiting on the westcoast on 05.31.17 at 4:37 pm

All this shows is that government/political interference is what exacerbates the normal cycle which causes far more hardship. It is not party specific. They all try to compensate for market fundamentals to achieve some “noble” goal (more home ownership or now affordability). Then there are unforeseen consequences and reactions to fix which create other challenges. The best solution is to leave the market alone and let people make rational seconds on the value…

#245 Tim on 05.31.17 at 4:39 pm

The Futurist has a lot of good data and charts.

http://www.singularity2050.com/

#246 Russ on 05.31.17 at 5:09 pm

Smoking Man on 05.31.17 at 12:07 pm
What a condescending, morally-superior and utterly jingoistic attitude. — Garth

Jingoistic

A new word added to my vocabulary. At the first read, my imagination conjured up an image of a dancing gigolo with a speach impedament.

https://www.google.ca/search?q=jingoistic&client=ms-android-samsung&sourceid=chrome-mobile&ie=UTF-8&ctxr&ctxsl_trans=1&tlitetl=en&tlitetxt=jingoistic
=====================
Hey Smokie,

This one too is ripe for you to abuse .

How about “Jungoistic”.

You know, synonymous with the North Korean guy who has the girls’ name.

Cheers

#247 Ace Goodheart on 05.31.17 at 5:36 pm

Was supposed to pay out the mortgage on one of my properties today. Set it up a month ago with one of the big banks (blue one). So 5pm comes along, I check, mortgage not paid out. Money still sitting in my account.

Called them up. What I get from them: “it takes time to pay down a mortgage. We have auto renewed it into an open mortgage at a higher rate of interest, as we told you we would if you did not either renew it or pay it down, although your request to pay down the mortgage was made a month ago, we only dated it today, as today is the actual renewal date of the mortgage. We will try to process it as quickly as possible, but usually it takes 10-15 days before we can pay down a mortgage. If your request is approved, then we will accept your payment and the mortgage will be paid down”.

So as of now, I have a high interest rate, open mortgage, that I did not renew and actually paid off, only they will not accept the money due to their administrative system.

If people think that banks are your friends, really you have to give your heads a shake. These people are animals. Most of us will never have to deal with the crap you go through when you try to get out from under them. I am handing them the entire remaining principal and accumulated interest, in cash, and they are refusing to accept it, and “auto renewing” my mortgage, at a higher interest rate, without my consent. They can do this because it is all in the long contract that everyone signs (and never reads) when the mortgage is first put on the property.

Hopefully in 15 days or so this will be worked out or I guess I am headed to court to try to pay down a mortgage that was renewed without my permission.

Banks are not human…….

#248 45north on 05.31.17 at 5:44 pm

Victor V: from your link: Robert started the next day. The first step was to underpin the basement, which required digging it out from the inside.

what a horror story!

#249 Triplenet on 05.31.17 at 5:47 pm

#30 Chaddywack
Perhaps a course on financial responsibility is your answer. Or the doc has to find a financial advisor.
Or……

#250 AGuyInVancouver on 05.31.17 at 8:09 pm

#237 For those about to flop…
LOL, $5 million for a house in Richmond?! How do you say “There’s one born every minute” in Mandarin?

#251 AGuyInVancouver on 05.31.17 at 8:24 pm

It is only legitimate if they defeat the party with the most seats in the legislature and are asked by the Lt-Gov to form a new government. — Garth
___________________
I understand Weaver and Horgan visited Government House today. Announcing their agreement publicly before this was a way to telegraph to the LG they will bring down the BC Liberals on the first confidence vote and stand ready to govern. All well within Westminster tradition.

#252 Ace Goodheart on 05.31.17 at 9:49 pm

#248 45north:

“Victor V: from your link: Robert started the next day. The first step was to underpin the basement, which required digging it out from the inside.

what a horror story!”

This is a load of crap BTW. You do not “underpin” a basement by breaking down a foundation wall and introducing a bobcat.

The idea is you dig under marked portions of the foundation wall, usually in three portion increments, and introduce concrete underpinning. You eventually end up with a full wall, portioned into sections. It is incredibly dangerous to do, and many Toronto houses have collapsed during the process.

What he seems to have done is just break down a wall, drive a bobcat into the basement and start digging under the foundations. They are actually very lucky that a portion of the foundation gave way when it did, as if they had just done what they apparently wanted to do, and dug a large hole under the house, likely the entire structure would have collapsed.

#253 Gotta Get Out of Calgary on 05.31.17 at 11:12 pm

Don’t try to make sense out of Calgary’s RE market. There is none.

Sure, house prices have come down a bit since the sky-high doubling and tripling that occurred beginning around 2006-07. How can a 500 sq. ft. bungalow built in the 1940’s change in value from $200,000 to $500,000 overnight — when nothing changed physically to it? (Rental prices followed the same path.)

But housing is still vastly overpriced. Single-family detached may be selling at asking price but the condo market is floundering. Lots on the market but the only units selling are new builds in or close to downtown. Condo complexes recently built outside downtown are scrambling for sales. My mailbox is stuffed each week with flyers promising this and that add-on if you buy one of the units. (The same flyer from a complex built in the far southeast keeps showing up every four weeks — same desperate offers but now with ” a free restaurant gift card”.) (And developers are still building new condos.)

Older condo complexes and conversions from previous apartment rental buildings are stagnant. Three apartment condo units in my converted very basic building went on the market in January. All three still remain unsold despite reductions in price and have been joined by units for sale in the buildings across the street.

All three were rental “investments” whose owners are now desperately trying to sell since the tenants left.

Condo #1: 2-bedroom originally listed at $240,000, reduced to $235,000, again to $230,000, now listing at $225,000. Ran into the realtor — open house had no one show up except for a few gawkers that lived in the same building and wanted to snoop. No tenant since December but mortgage and condo fees still due.

Condo #2: 1-bedroom originally listed at $219,888 (really, someone is still trying to use that obvious tactic?). Price reduced to $212,000, now listing at $210,000. Existing tenants moved out this month. Unit is now showing up in online rental listings while remaining up for sale. (Because of course, new tenants will move in on the understanding they may have to move out in a month or two when it sells – yes, this is sarcasm.)

Condo #3: 1 bedroom listed at $160,000. Price unchanged but after sitting empty since the tenant left in January, it too is now showing up for rent while remaining up for sale. (Though the rental price has been lowered a bit from the first posting.)

#160 Bob Loblaw — I sympathize for your pain. I always thought condos were the “time shares” of residential real estate and would never buy one. What does one really own – the paint on the inside walls of your unit? Even if the mortgage is paid, you’re still paying condo fees and special reserve costs which continue to go up. I’ve seen and heard the bad experiences from friends and co-workers who bought condos and are now struggling with financial costs and living restrictions they didn’t expect.

#254 SheCallsMeDaddy on 06.01.17 at 1:57 am

#78 Nonplused on 05.30.17 at 7:37 pm

You can call it a “carbon tax” if you like and claim to be saving the world but you may as well tax bread and butter, it’s the same thing.

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

Canada being one of the highest per capita polluters in the world needs a carbon tax to keep fools like you in check from running amuck and collectively running this place into the ground. Burning dinosaurs should be reserved for important future energy needs not jet setting and doing donuts in your Ford Raptor.

#255 John of Grant on 06.01.17 at 8:14 am

#211 Smoking Man on 05.31.17 at 12:07 pm
What a condescending, morally-superior and utterly jingoistic attitude. — Garth

Jingoistic

A new word added to my vocabulary. At the first read, my imagination conjured up an image of a dancing gigolo with a speach impedament.

—————————

HST used the word all the time.

#256 Dennis Creighton on 06.01.17 at 9:26 am

Stop real estate speculation? Isn’t speculation what drives the stock market- maybe we should apply caps to stock market profits. Or maybe the federal and provincial governments could force oil companies to ONLY increase gas prices annually and at the percentages set for the rental market. In my opinion, governments should keep the noses out of business. I believe most Canadians would agree that government cannot be trust to handle their own affairs let alone trying to handle the private sector.

#257 Farsyd on 06.01.17 at 11:36 am

I have not seen the ATB report nor am I an economist but that 40% referred to must mean 40% of GDP growth not 40% of GDP. Either way, BC and the rest of the country is pooched as Garth says. If only voters did not love tax and spend politicians.

#258 Prince Polo on 06.03.17 at 10:59 am

#229 pBrasseur on 05.31.17 at 2:13 pm
IMF warns about Canada’s RE

https://www.theglobeandmail.com/report-on-business/economy/imf-praises-infrastructure-bank-plan-flags-housing-market-concerns/article35160977/

The thing is with IMF they are pretty slow to figure things out, when they warn things are usually already happening!

=============================
Tom Cruise’s Impossible Mission Force (the IMF) should stop thinking that they are economists!