The litigators

First a Derek update, then the wider story. Of course, you remember D. He’s the hapless reader who listed at the end of March (peak house), receiving multiple offers on his McMansion listed at $1.9 million. The lucky bidder upped their game from $2 million to $2.25 million and came out the winner. Wohoo. Derek was rich.

Days later, claiming RBC wouldn’t finance the deal, the bidders (one’s a real estate agent) moaned, whimpered and begged out of the deal. By now – as this pathetic blog was reporting – the market was starting to wobble. Weeks later it would crumple like a Donald Trump spokesperson. So D got a lawyer.

He sued for a million. The deadbeat buyers filed a defence claiming Derek was too tardy in re-listing the house (that happened three weeks later), and for the last few months it’s been a standoff. Only the legal guys are happy.

Well, we have news to report in a little drama which is now being played and replayed with astonishing repetition across the region.

First, D got an offer. Two, actually. One was for $1.5 million and the other $1.77 – both conditional upon financing and inspection. He accepted the higher one, the conditions came off over the weekend, with closing in early October.

“All firmed up last night,” he reports. “At that price I think we got the top of market for today.

“Previous number was an anomaly that we will never see in our lives again. Now we go after them for remaining 480, plus expenses. At least we can move on with our lives now – no more staged house and showings.”

So here’s the question for the lawyers: was a house ‘worth’ $2.25 million in April now fairly valued at 21% less? If so, our blog dog has a nipping good chance of going after $480,000 in damages, plus all operating expenses incurred after the original closing date, and costs. A contract was broken. The crash in value is consistent with the current GTA market. If it goes to court, a judgment in D’s favour is reasonable. But a settlement is much more likely.

Meanwhile, the buyers are suing the realtors who represented them in the deal. For a mill.

The allegations include negligence by encouraging the buyers to enter a bidding war, and of breaching the BRA (buyer representation agreement) by failing to analyze other comparables in the area, failing to offer good advice on what D’s house was reasonably worth, recklessly pushing them to increase their offer without data to support it, plus breaching a fiduciary duty to inform, protect and expertly advise their clients.

The outcome is unknown, but it’s a fair bet Derek gets a few hundred grand, lawyers will be enriched and the world will have at least two fewer realtors.

The bigger story is that a similar saga is currently being played out hundreds, if not thousands, of times. It’s also hit the MSM, which just discovered what the real estate board reports as “sales” might turn out to be something entirely different.

This kind of exposure, combined with rising mortgage rates and the coming all-buyer stress test, could be the kiss of death for a market already confused and descending. Recall that when Derek sold his house in April, 90% of listings were being snapped up – most in bidding wars, with 30% year/year price increases. These days over 70% of houses languish without buyers, and values have started a meaningful correction as a result.

Law offices are dealing with failures-to-close, breached contracts and buyers who refuse to consummate their deals without an 11th-hour concession from the sellers, often dropping the real price (not necessarily the reported one) by hundreds of thousands. Agents are taking serious haircuts on their commissions, and every owner who sold months ago and has yet to get the cheque, is freaking.

Devastated, of course, are people who bought a new place before they closed on their existing one – now facing a disintegrating market. And fearing the future are all those who fell for the siren song of the real estate cartel – that houses always go up.

On Sunday I received this note, from Anna:

“First time home buyer and we had a good down payment, but not qualify for funding from the big banks, the mortgage was for $900,000.00  Surprised, when a mortgage broker easily approved it, my understanding is that the mortgage brokers are regulate under federal legislation.

“Since the closing in May, the prices in Richmond Hill are going down. What is very concerning is that we put all of our saving down, no emergency fund. We are not able to save at all. Since 2006 were waiting for a correction, you know the rest. We bought the house because we thought is going to go up or at least stays the same.

“I wish the lender did not approve our mortgage that easily, we never got any red flag. Mr. Turner I know you can’t look in your Chrystal ball, but what do you think the housing is going to be in 3 years?”

Beats me, Anna. But you have no savings, one falling, illiquid asset, a $900,000 debt and nobody to blame but yourself. Well, almost.

Get a lawyer.

187 comments ↓

#1 For those about to flop... on 08.13.17 at 4:02 pm

O.k ,just to put a bow on a house I have talked about a few times and showed photos of the underwhelming open houses.

It was sold on August 6th finally after a couple of months on the market despite being one of the cheapest options in Vancouver proper on a good block of land and on a bike way.

The details…

904 e37th Ave Vancouver.

Original ask 1.3

Sell price 1.2

B.c assessment 1.45

I see the realtor had a decent week selling another house out Burnaby as well,slightly lower than ask but higher than assessed.

Also had a couple of strong sales during the Spring Fling.

This guy is hitting singles ,selling in a range that is still ticking over especially if like this case ,was an old purchase from the 80s ,while the guys on the Westside are trying to home runs and most of them are striking out at the moment…

M43BC

http://normflockhart.com/listings/sales.aspx

#2 crowdedelevatorfartz on 08.13.17 at 4:02 pm

To the slaughter the greaterfools were led…..

Might be time to invest in publicly traded Law Firms.

Prices may be softening in the Lowerbrainland but we’re STILL not seeing the rout that the greater TO area is experiencing….
Note to Moroneau:
Raise interest rates again !

#3 Commas are hard on 08.13.17 at 4:07 pm

#1 For those about to flop

Right:
The comma goes before the space, not after.

Wrong:
The comma goes before the space ,not after.

#4 For those about to flop... on 08.13.17 at 4:17 pm

pm
#1 For those about to flop

Right:
The comma goes before the space, not after.

Wrong:
The comma goes before the space ,not after.

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

Right: Trying to help people out in a city with a dearth of information on negative real estate news.

Wrong: Being a pedantic little prick…

M43BC

#5 The Truth About Realtors on 08.13.17 at 4:19 pm

https://www.youtube.com/watch?v=-Nc88_ZEfxg

#6 BoomerKid on 08.13.17 at 4:26 pm

It amazes me how good people are at timing the market. Anna had been waiting to buy a house since 2006 and somehow picks spring of 2017.

I had at least 7 friends buy detached houses in the GTA in the last year, including 5 of them in the spring, pretty much at the peak of the market. Normally financial prudent/frugal people were going bat-shit crazy with FOMO making offers on homes several times what they could realistically afford. I remember thinking “this must be close to the peak when normal people act this crazy”.
A couple of those same people who were salivating with FOMO in the spring and didn’t manage to buy are now pretty disinterested. I guess that means the bubble’s burst.

I guess I’ll know when the bottom of the market is when I have 7 friends trying to sell because “housing is a bad investment”…

#7 Neil M on 08.13.17 at 4:29 pm

I saw an older lady my family knows at the grocery store the other day, offered her a ride home and she told me all the way there how broke she was but she couldn’t sell her 1.3 million house as houses only go up. I’ve only been in BC for about 5 years but it’s like a different planet.

Spoke with my brother back in Ontario and he’s had his place up for over 2 months with 6 showings total

#8 Michael King on 08.13.17 at 4:29 pm

Here in Vancouver the prices for detached homes may be softening but the condo market remains strong. This unit sold over asking and the buyer may regret this purchase. It was built in 1974 which was during the heyday of shoddy condo construction in Vancouver. This building looks like an Andre Molnar project. He was infamous for the poor quality of his buildings. I lived in a Molnar condo which was built in 1975. It had non-existent soundproofing and countless water ingress issues. Buyers of older condos are encouraged to read the strata council minutes. https://www.theglobeandmail.com/real-estate/vancouver/kitsilano-condo-owner-renting-out-unit-decides-to-cash-out/article35964199/

#9 For those about to flop... on 08.13.17 at 4:32 pm

pm
#72 for those about to flop

Assessment values should NEVER be included in any real estate analysis – unless you are not looking for precise impirical data. Which begs the question….wtf are you trying to do or solve or establish.
Assessment values are NOT market values.
If you truly knew how assessed values are calculated you would roll your eyes and play bingo for your retirement. Assessment values are for a different purpose and represent nothing to do with current analysis or anything important.
It was designed that way.

Today, inflation is the more important issue to analyse.
No inflation – no BoC increase.

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

The reason I always include the latest assessment with my posts is because it is the only metric that the public has to use to see what has happened in the market in recent times.

That’s the way it is set up here and there doesn’t seem to be an appetite to change the current system.

Part of the reason I do what I do is because a lot of people on here complain that there is no way to find out when the market is cooling in real time and I try to fill that huge void by reporting in my spare time on 0.0001% of the market.

What I do is not perfect but it is probably better than sitting on your ass and moaning about things.

I do all the hard work, I don’t have to show you guys shit.

I choose to share my findings out of gratitude for this blog,I have no problem with anyone on here not wanting to know what is happening in Vancouver real estate scrolling past my posts.

In fact, I recommend it…

M43BC

#10 Stone on 08.13.17 at 4:41 pm

#1

So, I see house prices posted for The Vancouver area. Everything seems to be over a million with condos being the exception. What the hell? Why would anyone want to buy there or even rent at the prices being charged? I just don’t get it. Are the streets paved with gold? Toronto and the GTA is stupid too but not as outrageous (a little less outrageous, mind you, but still silly). Can’t wait to see real estate crater 75%. It would make a lot of people angry however I won’t be one of them. So happy to have no debt as well as not to have to deal with these contractual breaches and lawsuits. Buy high! Sell low! You know you want to! LOL

#11 I'm stupid on 08.13.17 at 4:43 pm

We have become a child society, one where adults are no longer responsible for their own stupidity. Why should Ann have the right to sue the mortgage broker? She took the debt and should be held accountable for her actions. Why should Derek’s buyers have the right to sue their agent? They were also agents. Why bother being brighter, working harder and being more creative than your peers if your peers stupidity gets rewarded?

A fool and his money will soon be parted. We’re just seeing it now and all the fools don’t like it!

#12 Renter's Revenge! on 08.13.17 at 4:52 pm

For those about to flop… we salute you!

#13 Howard on 08.13.17 at 4:58 pm

“Meanwhile, the buyers are suing the realtors who represented them in the deal. For a mill.”

One of the buyers is a realtor.

So, a realtor is suing another realtor.

Good, hope they both lose.

#14 Howard on 08.13.17 at 5:06 pm

@Smoking Man, still think this a blip that will be resolved this fall? I actually do sort of agree that we’re due for a dead-cat-bounce of sorts. Nothing goes down in a straight line.

As for this : “First time home buyer and we had a good down payment, but not qualify for funding from the big banks, the mortgage was for $900,000.00“. There’s no way I could possibly enjoy my life owing that kind of money, even in a rising market.

#15 young & foolish on 08.13.17 at 5:08 pm

“We have become a child society, one where adults are no longer responsible for their own stupidity.”

I couldn’t agree more! Is nobody responsible for their actions anymore?

#16 Sergi on 08.13.17 at 5:10 pm

The Derek story, while plausible, lacks sufficient details (address) or corroboration for me to believe it is anything other than fiction.

He wishes it were. — Garth

#17 paulo on 08.13.17 at 5:10 pm

Based on a small sample, it looks to me that approximately 12% of deals signed between January 1 2017 and March 31 2017 with closings scheduled upto
August 1 2017 failed to close.

possibly of greater interest of the remaining 88% that closed, 32% where subject to secondary negotiations and adjustments to the original agreements of purchase and sale prior to closing. most of the amendments involved adjustment in original sale price to bring the property’s sale price in line with the financing the purchaser was able to obtain, the next most prevalent adjustment was the seller agreeing to take a second mortgage to make up the difference between sale price and the amount the purchaser was able to get conventional mortgage commitments for.
lastly a small percentage involved adding a sellers cash rebate to the purchaser to the original agreement,to facilitate closing. the most out there one was the seller accepting the keys and title to a rv motor home in exchange for a 11th hour price reduction.
These type of situations are playing out daily,and currently on the increase. i have never seen anything like it!.

#18 crowdedelevatorfartz on 08.13.17 at 5:14 pm

DELETED

#19 Dan.t on 08.13.17 at 5:16 pm

I guess BC really is different. Hope rates rise and then we will see how many BC’er can really afford a 900k townhouse in Langley.

Then maybe people will stop talking about real estate 24/7 and stop acting like they are Donald Trump (pre president days) real estate gurus and had massive foresight in buying the only 1972 bung they could afford 19 years ago in Surrey.

But seriously, Canadians are brainwashed and Anne deserves what she gets. So does anyone who buys a 900 to 2.25 Mil house without knowing if they can afford it. Who the F++k does that?

“But the bank and the nice mortgage lady said I can afford 900k”??? You don’t know if you can afford the payments or not?

And now I have no savings and mortgage to pay off until I am 70…? Or do you actually earn enough to buy a 900k house? If that is the case good for you….

oh wait, interest rates will go negative so maybe you will get paid to hold your house because…

All you need to do in Canada is buy real estate, do nothing else and earn 60-100k a year in appreciation. It’s so simple really. Why do people actually work and save money? Just go to the bank and get as much free money as possible! Why doesn’t everyone do it?

…oh, wait they all do and a huge majority of Canadians have done it multiple times. Genius.

Oh, and if for some strange reason prices don’t go up at least 20% a year (which is pretty much guaranteed to happen, at least the “shyster realtor” said they do) then just rent it out for tax free rental income…well just don’t tell CRA…Shhhh! “It’s only tax fraud, but everyone does it”.

Is what’s going on in GTA what happens when the Herd stops buying and selling to each other?

I don’t get it. If prices only ever go up, then just wait a few years and your 900k house will be worth 1.6 and you are golden. Good for you Anne.

Maybe you should have bought a 860k 2 bedroom condo in Vancouver. Well 1 bedroom, plus a computer room, but who cares. Prices and real estate never go down. It’s a constitutional right of BC residents.

Wait for all the government bailouts… coming soon.

And funny, now a few people are getting burned in GTA and outskirts, and maybe it will keep getting worse, then the public cries foul and looks to blame someone, it still has to get worse for the government to start crucifying the “shyster realtors”. But they will. Gov policies created the problem on the way up, so better to have a scape goat on the way down.

Talk about a double standard. Bet if the amateur speculator had to close on that 2.25 mil when the hype was still strong and he thought he could sell for 2.6 mil, would sell his new born to get enough money to get into that hot piece of real estate.

Oh well, it would be nice next time I visit BC to meet people without having to hear about their real estate story.

Hi, I’m X,
Hi, I own 5 houses, oh, I’m Y.

That’s my angry rant for today.

#20 crowdedelevatorfartz on 08.13.17 at 5:17 pm

@#5 The truth about Realtors
Excellent!
Required viewing for all purchasers

#21 A Reply to #4 Flopster on 08.13.17 at 5:18 pm

Hey, Flopster, I didn’t write that comment. There are now two pedants in the comments section. We’re multiplying like rabbits! Soon there’ll be four, then eight … Oh, the horror!

Have you noticed that I’ve been really nice lately? I’m trying to turn over a new leaf after you gave me that talking-to. :)

#22 im not buyin' what dey sellin' on 08.13.17 at 5:18 pm

Meanwhile, the buyers are suing the realtors who represented them in the deal. For a mill.

But if the buyer is a realtor, she should know better, she would get no sympathy from any court.

#23 young & foolish on 08.13.17 at 5:20 pm

Real growth has been low … most first world countries have been motoring on cheap credit, as wages have remained flat while asset prices have climbed to unsustainable levels. People are desperately chasing higher yields to make ends meet. Central banks are desperate to increase rates before the next inevitable recession (if they keep raising rates they may even bring it on!).

Your house is over-valued, and so are your stocks. Sorry blog dogs, you’re poorer than you think.

Global growth @ 3% is robust. Can and U.S. corporate profits are healthy. Stocks will correct, as usual, but will recover as usual. Houses, far less certain. — Garth

#24 Ole Doberman on 08.13.17 at 5:28 pm

I can’t take it anymore! Families now living in the bush due to housing unaffordability in the Okanagan:

http://globalnews.ca/news/3662240/okanagan-family-living-in-bush-due-to-lack-of-affordable-housing/?utm_source=GlobalOkanagan&utm_medium=Facebook

And there not even heroin addicts.

#25 Freedom First on 08.13.17 at 5:31 pm

#9 Flop

Good rebuttal Flop!

Keep on keeping on. I see that many of the dawgs here appreciate your research and reports. Including me.

Thanks.

Freedom First.

#26 conan on 08.13.17 at 5:33 pm

“Meanwhile, the buyers are suing the realtors who represented them in the deal. For a mill.” – Garth

That is a good thing.

The realtor is going to have errors and omission insurance. One of two things will happen quickly, the buyer is outed as a whack job, and is then easier/cheaper to sue. Or, the buyer is right, the realtor F’d up, and here comes the check.

Funny thing about full service realtors. Buyers use them because they are free. The E and O insurance is icing on the cake.

#27 young & foolish on 08.13.17 at 5:35 pm

“I guess I’ll know when the bottom of the market is when I have 7 friends trying to sell because “housing is a bad investment”…”

Housing is always a bad investment (it’s an expense), unless someone else is paying off your mortgage. The only advantage RE has over other types of carry trade is leverage.

#28 OttawaMike on 08.13.17 at 6:02 pm

I wish to speak English very best.

That was small. — Garth

#29 For those about to flop... on 08.13.17 at 6:03 pm

to #4 Flopster on 08.13.17 at 5:18 pm
Hey, Flopster, I didn’t write that comment. There are now two pedants in the comments section. We’re multiplying like rabbits! Soon there’ll be four, then eight … Oh, the horror!

Have you noticed that I’ve been really nice lately? I’m trying to turn over a new leaf after you gave me that talking-to. :)

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

Hey Pedantic Poster,yeah I see you have some competition, although I don’t even know if you get that bored to correct someone about a space and a comma.

You need to try harder,it’s a race to the bottom!

I see the other day you posted under the handle ” Gravy Train ” and then switched back.

Just keep it,before laughing at anyone else on here we should perhaps have a laugh at ourselves first in the spirit of the blog where we discuss serious topic with often hilarious side stories.

If you are going to correct people all the time then take Pedantic Poster before that other little twerp takes it but I really think you should turn the page and reinvent yourself as Gravy Train and join the discussion as an equal not looking down on people,which is how you sometimes come across.

I chose my title knowing full well I was going to be called a Flop,but at least I have established my own unique identity on here and tried to make myself approachable to swap information.

Some guys on here tried to get Boom and myself move over to Wastebook because we didn’t always stick to the topic of the day,not acknowledging that we were comfortable enough with each other to swap information and jokes on the general themes of the blog knowing the other guy would always get back to you in good time and not leave you hanging.

I am not interested in being anyone’s doormat on here,but I am interested in trying to build a network of people who combined can shed a much brighter light on a subject that causes people to have sleepless nights…over paying for real estate.

So what’s it going to be?

Gravy Train or Peanut Butter Stains…

M43BC

#30 Suede on 08.13.17 at 6:08 pm

YVR update.

SFH = dead quiet. Standoff with stingy sellers that are coming down slowly and buyers drying up. Peak is in for now.

Condos and TH = frenzy. Bidding wars with small number of bidders. Sometimes 1 bidder over asking. Soaring but fragile. Lots of millennial will be fornicated.

Bitcoin = newest bubble. Coin desk making a fortune in fees. Winklevoss twins laughing now 6 years later.

#31 Lead Paint on 08.13.17 at 6:19 pm

Why so many harping on Floppster? He seems to be a generous soul, sharing what he’s seeing. At least his content is appropriate for this blog, unlike lotsa comments.

#32 Angry Migtow on 08.13.17 at 6:34 pm

@#23….Wages have only been rising for public sector unions and corporate executives.
This is why despite record low oil prices in 2015 and 2016, the TTC hiked its cash fare from $3.00 to $3.25, about 15% inflation.

Most Torontonians work for no more than $12.50/hr, yet prices increase exponentially for basic needs.
It’s about time Canadians wake up that there are only Haves and have nots in Toronto.

A teacher earning $80,000 a year teaching SJW to destabilize your family is a have, while the rest of Canadians who work for min. wage are have nots.

#33 Don Regan on 08.13.17 at 6:36 pm

I live in the Southwest Marine Drive area (Vancouver), and lately I’ve noticed quite a few for sale signs..I’ve checked some of the listing prices and they are slowly dropping, plus the houses are sitting on the market much longer than last year…gone are the bidding wars and the frantic over-paying…could this be a sign that the party is over?

#34 asyoulikeit on 08.13.17 at 6:38 pm

Is there a way to short the GTA real estate market. I’d appreciate if anyone could guide to instruments that would let me take a leveraged short position, the opposite of a mortgage if you will. Thanks!

#35 Marc Roger on 08.13.17 at 6:58 pm

Derek > cauliflower.

#36 Cici on 08.13.17 at 7:06 pm

Hey Flop,

Don’t listen to the fools who are dissing you, and don’t waste your precious time responding to them either. Let them just scroll and troll on past you ;-)

Not your fault the sky is falling and they made bad RE decisions.

#37 Robert White on 08.13.17 at 7:07 pm

Everyone knows that housing prices always go up during the Ponzi Finance Stage according to Minsky.
That’s why we’re all enduring this great Canadian Minsky Moment, eh.

Note: Decoherence of the wave function due to speculation, speculative markets, and speculators with too much speculative Chinese hot money laundering without the requisite regulation to slow up the money froth. When the abnormally distributed markets collapse due to decoherence of the wave function it creates a negative feedback loop to collapse the next wave function too. Abnormally easy money and ultra low interest rates lead to the instability.

RW

#38 crowdedelevatorfartz on 08.13.17 at 7:16 pm

@33 Don Regan
“I’ve noticed quite a few for sale signs..I’ve checked some of the listing prices and they are slowly dropping, plus the houses are sitting on the market much longer than last year…”
+++++

I’ve noticed the same thing in the same area. Lots of For Sale signs……sitting……. Of course Fridays Province Newspaper….page 2 at the top.

http://www.google.ca/url?url=http://www.theprovince.com/news/local%2Bnews/vancouver%2Bhousing%2Bfire%2Bwith%2Bbiggest%2Bprice%2Bgains%2Bsince%2B1990/14138494/story.html&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwiBquSpq9XVAhUD4GMKHZuKDaMQFgg1MAY&usg=AFQjCNGOF11Zgi3G1iN8sNhzZl6VvZfZog

And Sundays front page of The Province is the PNE Prize Home…….with the obligatory….massive….. Real Estate pull out section….of course.

MSM Lickspittles are predictable….if nothing else.

#39 Bobby on 08.13.17 at 7:21 pm

I find it somewhat comical that a realtor, the supposed buyer, is suing her realtor for failing to fulfil her fiduciary duty. The question is why didn’t she act on her own behalf?
People forget that realtors are salesmen. I’ve attended open houses and had realtors state facts that were blatantly untrue just to facilitate a sale. They hope they won’t be held to account, but maybe they now will.
Sadly for many, this won’t end well.

#40 Entrepreneur on 08.13.17 at 7:22 pm

I ignore the shallow responses as they do not deserve a reply; I usually roll my eyes and shake my head. But I like your reply #4 For Those About To Flop. And too bad GT couldn’t ban those type of comments or is he showing us what type of idiots he deals with everyday.

It does seem that the Toronto area rose and fell quickly and Vancouver is falling but slowly AND is it because the sellers want out before the big downturn. I do have to give John Tory, Major of Toronto, the thumbs up on looking after his city unlike the majors around here on the west coast.

And they should not be renting their places out on Airbnb. Do the rules apply to majors as to the MP in Alberta?

Speaking of rules let us talk about the exhaust from planes. According to “Air travel and climate change” from David Suzuki “Emissions from international flights are not counted.”

To combat and find the solution(s) we all have to be on the same page at the same time.

#41 Van Isle Renter on 08.13.17 at 7:41 pm

I’m thinking that the disconnect in YVR between condos selling and SFH sucking slough water has to do with the lack of move up. Anyone know what % of the condo sales are new units closing vs. existing units being sold and the sellers moving up?

My uneducated guess is that the condo sales numbers are skewed heavily to new units or closings of pre-purchases. If that’s the case, then the market is well and truly screwed.

Up Island things are still selling briskly, but we’re starting to see an inordinate number of high end homes hitting the market. Smart money bailing methinks. When smart money leaves the table it takes a while for the dumb money to get cleaned out.

#42 SimplyPut7 on 08.13.17 at 7:45 pm

24 days until the next Bank of Canada interest rate announcement (September 6, 2017).

Do you think Poloz will ruin Toronto’s come back party with an interest rate hike or hint at an October rate hike?

Either way, can’t wait!

#43 Jay (not that one) on 08.13.17 at 7:46 pm

Do real estate agents have any fiduciary duty to their clients?

#44 ANON on 08.13.17 at 7:49 pm

was a house ‘worth’ $2.25 million in April now fairly valued at 21% less?’

That is the fundamental question. The answer is obvious from the math of compounding interest, it’s consequence is the almighty bubble graph of “never different, ’cause it can’t be different”, but very few look at this question in all its seriousness. Interest (or profit, math don’t care) does (and to be worth something, must) not exist. It’s the narrative of more at a later time which trumps the logic that more does not exist, and if more was printed on pieces of paper, it would be worthless.

#45 Wrk.dover on 08.13.17 at 7:50 pm

Derek closing in October.

Remains to be seen….

#46 ImGonnaBeSick on 08.13.17 at 7:56 pm

I’m terrible with Internet acronyms… what’s FOMO and SJW mean?

#47 bdwy on 08.13.17 at 7:58 pm

37
Use google

#48 bdwy on 08.13.17 at 7:59 pm

Now 43

#49 bdwy on 08.13.17 at 8:00 pm

Imgomnabesick if this number keeps changing
46

#50 Van Isle Renter on 08.13.17 at 8:06 pm

FOMO – Freaking Over Mom’s Objections (in running up her HELOC to lending you a down payment)

SJW – Snowflakes Just Whine (because the real world doesn’t care what their prof’s taught them)

#51 Gasbag Boomer on 08.13.17 at 8:09 pm

Realtor is suing Reator. Is that like Ape does not kill Ape?

#52 dr. talc on 08.13.17 at 8:14 pm

#39 Bobby on 08.13.17 at 7:21 pm
I find it somewhat comical that a realtor, the supposed buyer, is suing her realtor for failing to fulfil her fiduciary duty. The question is why didn’t she act on her own behalf?

agents dont sue agents
agents are representatives of brokers, who are responsible for all of the agents activities

#53 A Reply to #29 Flop on 08.13.17 at 8:14 pm

“You need to try harder, it’s a race to the bottom!”

That cracked me up! Endorphins feel good! :)

“So what’s it going to be? Gravy Train or Peanut Butter Stains…”

How about either Gravy Train or Arthur Reply for a handle? No? All right, Gravy Train, it is.

I promise to ease up on commenters; heck, just think how many I may have scared off. (That’s not good!)

How about Arthur Reply for a handle?

#54 allovertheplace on 08.13.17 at 8:17 pm

Again, for those touting the continued strength of the VAN market: The fall will come, it’s just going to take a lot longer.

Finally saw some data on the lack of mobility of the born and raised cohort in the lower mainland. These people aren’t ever going to leave (just like their parents) and thus, demand will remain strong until all the money has been drained from their boomer parents HELOCs.

“There is simply no case to be made to suggest that the increasing housing prices of the past four years are driving people away in any age group from the region to other provinces, as the data show exactly the opposite”

“2 out of every 1000 Millennials moved to other parts of the province in 2014/15, but 998 stayed here…”

Terrible article but the numbers were worth sharing.

http://www.straight.com/news/947671/vancouvers-rising-number-young-adults-sharply-eclipses-national-average-over-five-year

#55 jay#2 on 08.13.17 at 8:19 pm

How can real estate price go much lower with immigration levels so high ,can’t see it lasting. https://www.theglobeandmail.com/news/national/canada-welcomed-320000-immigrants-in-past-year-highest-number-since-1971/article32102991/ This is the most immigrants since 1910 according to this article.

#56 Bonhomme Carnaval on 08.13.17 at 8:26 pm

D’s story (et al.) is more thorny than an episode of The Walking Dead.

#57 mathman on 08.13.17 at 8:33 pm

Might not be a bad idea for the name of the realtor in D’s boondoggle to get made public somehow and maybe our MSM would pick up the story and put the final nail in said realtors career coffin.

LMFAO that they have the gull to sue their own realtor, who I would assume based on the chummy community of realtors is someone they may know well. Anything for a buck – shows the character of this professional as clear as day.

In any other line of work this “professional” would be disbarred, have their licence revoked, be banned for life from selling securities etc etc. What a joke.

Tip for Ann – if you can’t mtg from the big five, you either are way out of your price range, no currently breathing thus unable to fog a mirror and or have hideous credit. A+b+c = you should have never bought the house. Here is someone with actual cause to sue their realtor.

Math

#58 mathman on 08.13.17 at 8:40 pm

Tip for Anna (sorry on the spelling in the last comment). Mortgage Brokers are adjacent to real estate agents on the ethics continuum, which is not even on the line. They are incentivized for you to take on the most debt possible.

Sure there are good ones, but where there is $$ – they are people in it for the wrong reason or trying to jump on the gravy train. The profession has become so cluttered and people will do anything to get a deal.

True story – the people I went to Uni with who flamed out are all

1. Real Estate Agents
2. Mortgage Brokers
3. Teachers

small sample size and just my personal experience.

#59 Dharma Bum on 08.13.17 at 8:41 pm

The GTA housing market may be tanking, but BELFOUNTAIN IS BOOMING!

http://imgur.com/a/qzQMm

#60 Smoking Man on 08.13.17 at 8:47 pm

Global growth @ 3% is robust. Can and U.S. corporate profits are healthy. Stocks will correct, as usual, but will recover as usual. Houses, far less certain. — Garth
….

Agreed TFW driving wages and consulting rates down the toilet. Corps will do good on the backs of fools who don’t trade forex.

House? We Got a shit load of boomers with no portfolio, a shitty pention. All their wealth in bricks and a lawn. They all want out.

If you oun get out now. I’m calling SFH in GTA 200k in a few years.

#61 marketpundit on 08.13.17 at 8:49 pm

wow! just saw a “Power of Sale” Townhouse on MLS in Brampton. Less than 2 years old. Asking $586K. Others, the same, are listed for $650K-$670K (seating on the market for over 60 days already). In April one of these townhouses sold for $690K. There were 15 offers presented at that time. Those towns were selling as hot cakes only 5 months ago. First time I see a Power of Sale for a home such as this in the GTA.

#62 Smoking Man on 08.13.17 at 8:54 pm

Do you guys know how to bet when civil war breaks out in the USA. The last obstical to globalism. Straight white males and females with a bunch of assault wepons who Iove their kids.

I do.

But I’m not sharing.

Shlong Zumanga evil prick. He’s in my book. It’s Smokey vs Shlong.

That’s why Trump won. I made it happen.

#63 westcdn on 08.13.17 at 8:55 pm

Today’s economy is not my father’s one. Financial speculations are going wild. I think the root cause is the enormous amount of cheap debt worldwide. Call me old fashioned but I still believe in activities that make or do things to earn cash. I still have respect for hard hands.

Cryptocurrencies remind me of the Bradford plate exchange or even beanie babies. Blockchain technology is real and will become a big part of lives unless our fearless leaders think nuclear war is a good idea. Until governments accept cryptocurrencies for payment of taxes – I believe they will be an underground thing. We should all know now how government feels about the underground economy and tax fairness.

I have heard people say “count your pennies and the dollars will follow”. Myself, I say “control your dollars and let the pennies fall where they may”. I think the difference between the two philosophies is the commitment to goals/planning. People wonder why I commit to an uncertain future by saying they don’t want to be the richest person in the graveyard. Well, if we don’t commit to a better future, we only have ourselves to blame for the results – besides I am a parent and have grandkids.

I liked this music video. The spirit of an Albertan?
https://www.youtube.com/watch?v=H3VLqLLWxbQ

#64 Danny on 08.13.17 at 8:56 pm

#41
Garth..is the question Van Isle Renter raises..number of new Condos….those that really won’t be available for at least 2 years……a factor in assessment of where RE market is really heading for?
Are stats kept to show the difference..new vs resale?
Do sales for future Condos…which could be substantial in TO…affect the way todays stats are viewed?
Mortgages for units to be occupied in 2 years are future financing…so is that a factor now or then in 2 years?
If yes maybe a worth a note in your future blog?

#65 Smoking Man on 08.13.17 at 8:57 pm

59 Dharma Bum on 08.13.17 at 8:41 pm
The GTA housing market may be tanking, but BELFOUNTAIN IS BOOMING!

http://imgur.com/a/qzQMm

Nice spot. Just wondering what Dorathys face looks like when Gartho takes of the cowboy boots off in Augest.

Flip flops rule. Only real men wear them.

#66 Howard on 08.13.17 at 9:01 pm

#46 ImGonnaBeSick on 08.13.17 at 7:56 pm
I’m terrible with Internet acronyms… what’s FOMO and SJW mean?

—————————–

FOMO = Fear Of Missing Out

SJW = Social Justice Warrior, a pejorative and sarcastic term to describe leftist cultural marxists who shout down or outright forbid “offending” opinions

#67 Old Salt on 08.13.17 at 9:07 pm

When a prospective boat buyer poses the question of how much does it cost to maintain a boat of certain size on a forum, they typically are advised that ‘if you have to ask you probably can’t afford it’.

Given how many homes I’ve scanned while walking my 4 legged friend that have been neglected, I’m surprised I haven’t seen similar advice when it comes to homes.

#68 The Reno Coach on 08.13.17 at 9:44 pm

With all this negative news on Real Estate, what will happen to the Renovation Market? Does this mean HGTV will be in trouble?

#69 young & foolish on 08.13.17 at 9:46 pm

“I’m calling SFH in GTA 200k in a few years.”

Sure, and the S & P will be back at 800. If cheap credit dries up, all assets will tank.

#70 Tony on 08.13.17 at 9:48 pm

Re: #34 asyoulikeit on 08.13.17 at 6:38 pm

The easiest way would have been to go long Rona shares from May to around September or October this year. Rona doesn’t exist anymore.

#71 FOUR FINGERS WATSON on 08.13.17 at 10:05 pm

#60 Smoking Man
If you oun get out now. I’m calling SFH in GTA 200k in a few years.
……………………….
Dude, u need to get back on yer meds.

#72 InvestorsFriend on 08.13.17 at 10:05 pm

Financial Speculation is not new

#63 westcdn on 08.13.17 at 8:55 pm said:

Today’s economy is not my father’s one. Financial speculations are going wild.

***************************************
I have been hearing people complain about speculators manipulating and ruining markets since I first starting paying attention to the news over four decades ago.

I mean, look up Tulip crisis. Nothing new.

People say every bubble pops. Actually there has probably been at least 10 and maybe 100 bubbles claimed for every one that ended up truly being a bubble and popping.

#73 Smoking Man on 08.13.17 at 10:07 pm

DELETED

#74 Cat so duro on 08.13.17 at 10:08 pm

I sold house in Dec 2016 and closing was March 2017. Tried to not close because my house was worth $400,000 more . Asked buyer to pay me more or no closing. Buyer laughed at me . I hired lawyer who told me suck it up
A deal is a deal you don’t stand a chance. Now buyers get reductions and all is possible. I think all those sellers of years past should form a group to pressure government to pay us the lost growth. Funny how when houses go up all is well but when they go down buyer speculators cry fowl.

#75 paracho on 08.13.17 at 10:21 pm

Wow..it is too hard to hide now. It even made the Star ..I was just going to post this..but Garth beat me to it in the original blog.
No where to hide now.

#76 Spock on 08.13.17 at 10:24 pm

#74 Cat so duro on 08.13.17 at 10:08 pm

You could have not closed if you had a condition in the final contract of sale that if your house appreciated more than what the selling price was then it would not close on date of closing.

The fact that you tried to not close because the market had gone up really speaks volumes to the irony in your post. Since you did not want to close because you were losing out – you yourself were no different than a speculator who you are putting down.

#74 Cat so duro on 08.13.17 at 10:08 pm
I sold house in Dec 2016 and closing was March 2017. Tried to not close because my house was worth $400,000 more . Asked buyer to pay me more or no closing. Buyer laughed at me . I hired lawyer who told me suck it up
A deal is a deal you don’t stand a chance. Now buyers get reductions and all is possible. I think all those sellers of years past should form a group to pressure government to pay us the lost growth. Funny how when houses go up all is well but when they go down buyer speculators cry fowl.

#77 Raging Ranter on 08.13.17 at 10:24 pm

InvestorsFriend, name one bubble that turned out not to be one.

#78 Ontario's Left Coast on 08.13.17 at 10:33 pm

Hey Flop, I don’t comment every day but wanted to show my support for what you’re doing on here. Thanks, keep it up and don’t listen to the small-minded trolls of the world who want everyone to be as miserable as they are.

Cheers and all the best.
M49ON

#79 Smoking Man on 08.13.17 at 10:34 pm

We you make the shit list and your number 3 from the top.
Boys at cap markets called me rain man. But I will never get a gig again. DM

Cool with it. Means I get to drink more and smoke more

So under rated.

I’m the un forgiven.

https://youtu.be/sMqNFAU0tOw

https://youtu.be/sMqNFAU0tOw

#80 Smoking Man on 08.13.17 at 10:41 pm

The epic road trip
https://youtu.be/LRP8d7hhpoQ

Damn sort of finding god. It’s an old man thing.

#81 Hotdogs from Heaven on 08.13.17 at 10:53 pm

#55 jay#2 on 08.13.17 at 8:19 pm

How can real estate price go much lower with immigration levels so high ,can’t see it lasting.
https://www.theglobeandmail.com/news/national/canada-welcomed-320000-immigrants-in-past-year-highest-number-since-1971/article32102991/ This is the most immigrants since 1910 according to this article.
————————————————–
That’s only one part of the equation.

How many Canadians left permanently for other countries.
How many immigrants from previous years went back home or left for a third country.
The NET number is closer to 200,000 for this record year and that`s spread out throughout the whole country.

Info from Canada’s 2016 Census:

“The population of the actual city of Toronto was 2,731,571, up from from 2,615,060 in 2011.”

So in 5 years Toronto’s population increased by 116,000. Hardly enough to drive the growth in these prices.

#82 Smoking Man on 08.13.17 at 10:55 pm

To those that never met me in person .
https://youtu.be/XFkzRNyygfk

#83 T-Rev on 08.13.17 at 10:57 pm

Like a bankruptcy lawyer??? Cause Anna’s pooched. I feel bad for for people like her caught in this- when housing is commoditized, and turned into tulip bulbs, some people are always going to get caught. Yep, it’s her fault- no one signed the papers but her. But look at it from her point of view as well- for “three years” she watched from the sideline and essentially saw prices double while hoping for a fall. FOMO sets in, and she does what she does because it’s worked for everyone who bought a year or two or twenty ago. Then the music stops. It just as easily could have kept going another three years- after all, as this blog proves, not even the most informed, educated, wise, masculine, and pathetic amongst us can time the market with any accuracy. If she took the plunge three years ago, she makes out like a bandit. Could’ve still happened. We were all young and dumb once. But this is the problem with a housing market that goes through this kind of volatility- innocent people get skewered while trying to establish financial security and put down roots. So we can call Anna a greater fool all you like, she got caught with bad timing. The lesson here is the one you’ve been preaching for a decade: live within your means, don’t take on more debt than you can comfortably afford, and don’t equate happiness with owning real estate in a coveted geography.

Good news is this is Canada, and last time I checked we don’t have debtors prisons, healthcare is free, and no one here has starved to death in many a decade. Bankruptcy probably sucks and sucks bad, but you’ll still find a way to put a roof over your head, food in your family’s belly, and still have enough left over to pay for Netflix and you cell phone. If that happens, learn to appreciate the important things in life, because money doesn’t buy any of them.

#84 Perspective on 08.13.17 at 11:03 pm

Wife and I did a swing through Coquitlam open houses today. The high end stuff greater than $2 million is all slow right now and most have been reduced. Better activity at the $1.5 million range, but the open houses were still mostly empty. The realtor at a $1.3 million dollar build commented that houses like the one he was showing would have sold easily in the spring and are now much slower. I saw about 10 couples at the various open houses in total. The mix of the folks I saw was mostly white or Canadians of Chinese decent. Judging by the cars and how the folks dressed the HAM money has left the building. If the HAM money does not come back soon there are going to be some smoking deals on the high end stock as many of them have dropped their prices 3 and 4 times by $100,000 a shot. The party it seams could be ending.

#85 Smoking Man on 08.13.17 at 11:04 pm

The moment you realize free speech is everything.

https://youtu.be/vx2u5uUu3DE

#86 Sold out in Vancouver on 08.13.17 at 11:12 pm

Hey Flop,

Keep it coming !!!

Looks like some folks had a lot of time on their hands at open houses today… more realtor games

#87 Smoking Man on 08.13.17 at 11:14 pm

When God answers me.

https://youtu.be/2X_2IdybTV0

#88 For those about to flop... on 08.13.17 at 11:16 pm

08.13.17 at 10:33 pm
Hey Flop, I don’t comment every day but wanted to show my support for what you’re doing on here. Thanks, keep it up and don’t listen to the small-minded trolls of the world who want everyone to be as miserable as they are.

Cheers and all the best.
M49ON

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

Hey OLC,long time ,no type!

How’s life in Goderich?

I get my share of positive feedback it’s not all doom and gloom, I also have my critics who I try to listen to and refine my approach if I think they have a valid point.

A lot of people on here want transparency in the real estate market,we can try to lobby for it or try to circumnavigate some of the hurdles that are placed in the way.

I went through my folder on Friday night and only one of my cases sold and it was a condo.I put it up and gave the realtors on here to show that the turned a profit. No one wanted to help me report, possibly even a win for the seller and so they had their chance to show some real time transparency but now I will just wait and show the results in a few months.

That’s why I respect the realtor I put up at post number one because he reports his sales win, lose or draw a couple of days after the sale to show people what happened in real time ,no sold over asking shell game crap after dumping the price.

I am grateful for all the support I get on here,it puts a little bit of fuel back on the fire each time.

I aim to help inform people what is going on and if I post in clusters that is because I just completed a session and wish to annoy no one on here…

M43BC

#89 Smoking Man on 08.13.17 at 11:26 pm

Me vs globalism

https://youtu.be/9muzyOd4Lh8

#90 Bob Dog on 08.13.17 at 11:59 pm

Am I just getting old and senile or has the definition of fraud changed recently?

If we don’t see the criminal real estate cartel facing thousands of fraud cases, its time to start questioning the legitimacy of our legal system.

Money laundering is already ignored is bc. Whats legal what isn’t?

#91 willworkforpickles on 08.14.17 at 12:03 am

Dereck just found himself one of the greatest fools of all time for that October closing.
There are more of the same out there still.

#92 Karma on 08.14.17 at 12:04 am

#54 allovertheplace on 08.13.17 at 8:17 pm
“Again, for those touting the continued strength of the VAN market: The fall will come, it’s just going to take a lot longer.

Finally saw some data on the lack of mobility of the born and raised cohort in the lower mainland. These people aren’t ever going to leave (just like their parents) and thus, demand will remain strong until all the money has been drained from their boomer parents HELOCs.

“There is simply no case to be made to suggest that the increasing housing prices of the past four years are driving people away in any age group from the region to other provinces, as the data show exactly the opposite”

“2 out of every 1000 Millennials moved to other parts of the province in 2014/15, but 998 stayed here…”

Terrible article but the numbers were worth sharing.”

The problem isn’t absolute numbers, but rather the quality of human capital of millennials leaving. Vancouver’s losing great millennials to other cities with better opportunities and receiving immigrants from other countries who come here for learning to speak English and attending school in general. These people are great at consuming goods and services, which is good for a certain part of the economy, but they aren’t helping to fill high paying jobs that generate taxes.

#93 maka on 08.14.17 at 12:09 am

This one is from Brampton.

$589,900
MLS® Number: W3898229
Sold As Is Where Is, No Warranties, Priced To Sell Asap, Needs Flooring & Paint, Built In 2008, Approx 1700 Sqft, 4 Bedroom, Close To Schools, Transit, Across From Fortinos Plaza, Close To Go Station. No Survey, No Sign. Buyer And/Or Buyer Agent To Verify Taxes & Lot Depth. **** EXTRAS **** Fridge, Stove, Built-In Dishwasher, Over-The-Range Microwave, Washer, Dryer, All Elfs, All Window Coverings, Central Air Conditioner (All In As-Is Condition). Seller And Agent Do Not Warrant Retrofit Status Of The Basement.

#94 Vanrentor on 08.14.17 at 12:31 am

We went through 10 open houses here in Tsawwassen today. A fair amount of activity but I think mostly snoopy people like us. Only a handful of sales over $2M this year after craziness in 2016. No more HAM here. 90% of the listings seem over priced to me. I think September is going to see a surge of listings and I don’t think there is a ton of cash buyers around, just move up buyers who need to sell first. Should be an interesting fall season. Thanks for your postings Flop. I skip SM and read all of yours.

#95 april on 08.14.17 at 12:32 am

#88- Keep it up Flop. We love your posts.

#96 Paddler on 08.14.17 at 12:45 am

#24 I can’t take it anymore! Families now living in the bush due to housing unaffordability in the Okanagan.
————————————————
This is hard to believe. How many other families have to live like this?

Makes me wonder why we bring in all these refugees and accept the migrants crossing the border illegally from the US. We can’t even take care of our own people!!
There is something wrong with this picture. What am I missing here?

#97 juno on 08.14.17 at 1:10 am

Housing is being traded like stock,

At the time the buyer bid 2.25 million that was the price.
Just because the price went down the next day or whatever, (because there were no conditions for financing place on the bid) , it was the price which was agreed on at the time of sales. Note. Derek could of had a lower offer at 2.249.

#98 mousy on 08.14.17 at 1:45 am

Floppy – keep the pink snow posts coming. The information is interesting. The dry wit is also appreciated. Let the critics drink warm flat beer on a hot day.

#99 Cloudy on 08.14.17 at 2:38 am

#16 Sergi on 08.13.17 at 5:10 pm
The Derek story, while plausible, lacks sufficient details (address) or corroboration for me to believe it is anything other than fiction.

————————-

Doesn’t seem far fetched to me.

http://www.ctvnews.ca/mobile/canada/non-buyer-s-remorse-toronto-sellers-frustrated-as-home-buyers-tack-on-demands-1.3541706

http://www.cbc.ca/beta/news/canada/british-columbia/buyer-who-walked-away-from-real-estate-deal-ordered-to-pay-360k-1.4232844

#100 Dolce Vita on 08.14.17 at 2:57 am

YVR RE Cult people, please give it a rest. The ONLY thread you have to hang your hat on, and a frayed one at that, is that condos are selling.

YVR Zolo today:

Avg. sold = $1.1 MM (Median – $835 K), Monthly change = -18.5%, Quarterly change = -20.8% and Yearly change = -3.3%.

Condo All:

Avg. sold price = $847 K, +15% vs. a year ago. was $840 K 3 months ago
New listings = 644, -11%
Sold listings = 487, +6%
Active listings = 937, -6%
Days on market = 16, +7%
Sales to list = 101.15%

Everyone’s eyes have been glued to 416 RE news whilst YVR RE is correcting nearly as fast and quietly – I credit the RE Cult there for a job well done; however, anyone with a logical mind will tell you the above Condo stats are NOT even when using your wildest imagination a:

“frenzy”

NOR are they selling over list by any significant amount. Of course, the YVR RE Cult will find some small shred of encouraging news to further their narrative when in fact, their RE market is shredding.

To further add insult, My Realty Check today on list price changes:

Up = 206
Down = 548
Average change = -1.9% (for the day, August thus far)
ALL monthly list price changes have been negative since Oct. 2016, per this web site (i.e., as far back as it chronicles the YVR RE data).

#101 AB Boxster on 08.14.17 at 3:15 am

#83 T-Rev on 08.13.17 at 10:57 pm

Healthcare is free

———————–
Your kidding right?
You believe that the health services that you get are free?

How about your eyeglasses or drugs or teeth care.
They cost nothing, nada too?

#102 nubbers on 08.14.17 at 3:31 am

For those about to flop… @4

pm
#1 For those about to flop
Right:
The comma goes before the space, not after.
Wrong:
The comma goes before the space ,not after.
/////////////////////
Right: Trying to help people out in a city with a dearth of information on negative real estate news.
Wrong: Being a pedantic little prick…
M43BC

The Grammar Nazi has a point. Consider yourself chastised.
While we are on the subject, am I the only one around here who likes to use a double space after a full stop?

#103 nubbers on 08.14.17 at 3:37 am

Not sure if my link made it through intact. Try this:
https://www.youtube.com/watch?v=N4vf8N6GpdM

#104 Wrk.dover on 08.14.17 at 6:14 am

When Derek’s deal #2 fails, Defence lawyers in deal#1 will have traction! And so on.

The last thing I will ever understand about high stakes RE is going to be closing dates in the far away time slot. As in why not say, “here is my money, give me the house. Stat.”

When the price hits the stratosphere, do contents really matter? Call the dumpster crew and or go mini storage, monthly. Scoot! Run! A few months in the Hampton Inn is not going to break the bank.

(Lectures the guy in the same house for 36 years and counting on 14 more years, at the very least.)

#105 maxx on 08.14.17 at 6:44 am

People in this country have completely lost it.
That 900K millstone, at say, 2.7% translates into almost 1.8MM over 25 years and over 2MM for 30 years.
IF rates don’t go up – over 6 renewal cycles.
And who keeps a job for 30-40 years today, especially going forward…….
Even though people are generally really dumb when it comes to re, the BOC and FIRE have one hell of a lot to answer for.

#106 Gravy Train on 08.14.17 at 6:46 am

#103 nubbers on 08.14.17 at 3:37 am

Ah, the dangling participle did him in. Hilarious!

#107 BlogDog123 on 08.14.17 at 7:13 am

Ever notice that the Toronto Star has a habit of putting on the front page a “pouty-faced” person for their cover stories? Typical Star story of “we’ve been wronged somehow”. The usual bad-guy for their stories is “The Police”, some government agent or some poor shluck’s own bad choices. The Star’s photographer can’t leave the scene without getting that sad face on the front page.

#108 Happy Housing Crash Everyone! on 08.14.17 at 8:13 am

Bobby on 08.13.17 at 7:21 pm
I find it somewhat comical that a realtor, the supposed buyer, is suing her realtor for failing to fulfil her fiduciary duty. The question is why didn’t she act on her own behalf?
People forget that realtors are salesmen. I’ve attended open houses and had realtors state facts that were blatantly untrue just to facilitate a sale. They hope they won’t be held to account, but maybe they now will.
Sadly for many, this won’t end well.
———-

I LOVE it. Shyster suing the Shyster. That’s a brilliant move. Shyster realtors know for a fact that realtors are liars and will do anything for a sale no matter how illegal . The shyster realtor is threatening to expose the industry. I bet the RE board will pay out to keep it quite as to not expose the RE industry as criminal shysters who lie for sales for their benefit and not their clients. You dirty shysters are lying scum.

#109 Happy Housing Crash Everyone! on 08.14.17 at 8:21 am

Buyers are looking to get out of deals. THIS house https://m.realtor.ca/PropertyDetails.aspx?PropertyId=18495469

Was bought 3 months ago for $2,118,000 and instead of moving in they trying to sell for a loss. My take is buyer went through deal and is now trying to sell after taking possession. Should be interesting how much they lose. Hey Shysters want to keep us in the loop? I know you don’t report negative facts dirty Shyster scun.

#110 The Technical Analyst, CSTA, CPD on 08.14.17 at 8:25 am

DELETED

#111 Arne on 08.14.17 at 8:28 am

This is confusing:
http://www.cbc.ca/news/canada/london/london-real-estate-cooling-hot-1.4213244
Could London, Ontario really be bucking the trend or is it just more propaganda?

#112 maxx on 08.14.17 at 8:35 am

#37 Robert White on 08.13.17 at 7:07 pm

“…..When the abnormally distributed markets collapse due to decoherence of the wave function it creates a negative feedback loop to collapse the next wave function too.”

And on the tail of that loop swiftly comes whack-a-mole-style attempts at solutions which stakeholders from the BOC and gubbmint to realtards and GF’s will invoke to attempt to resolve/stabilize this mess.

#113 M on 08.14.17 at 8:50 am

LLLLLLLOOOOOOOOOOOOLLLLLLLLLLL
““I wish the lender did not approve our mortgage that easily, we never got any red flag. Mr. Turner I know you can’t look in your Chrystal ball, but what do you think the housing is going to be in 3 years?”

..reminds me of my X.
Always OTHER people fault.
..when comes to “housing”…
https://www.youtube.com/watch?v=wse_hgca220

Imagine the arguing going on between Anna and Hubby :)

C

#114 Dan.t on 08.14.17 at 9:00 am

#105 maxx on 08.14.17 at 6:44 am
People in this country have completely lost it.
That 900K millstone, at say, 2.7% translates into almost 1.8MM over 25 years and over 2MM for 30 years.
IF rates don’t go up – over 6 renewal cycles.
And who keeps a job for 30-40 years today, especially going forward…….
Even though people are generally really dumb when it comes to re, the BOC and FIRE have one hell of a lot to answer for.

—————–
Oh man, you really just don’t get it do you…let me explain.

In Canada debt doesn’t matter *sigh*, because all you need to do is get as much free money from the bank as possible (that amount is whatever the mortgage lady and bank lady will give you), then buy the house and you are rich.

Simple. If you ask bank of mom to give you a couple hundred K, you can probably get way more than you ever dreamed of…it’s so awesome! Plus, as a bonus, you are no longer a loser to your friends and to random strangers you meet because you own a house!

Also, don’t do math. But if you do, just assume “emergency rates” will be in place for the next 25 years, so calculate your cost based on 1.99% mortgage rate. Don’t plan for any other emergency, because if worse happens, just sell that 900k house for 1.8 million in a couple of years or rent out all the spare bedrooms to strangers.

Finally, based on average wages (which have barely moved in 30 years) and average household incomes, 900k is only like a 11:1 ratio. That is nothing, in YVR average people need all their gross income and then 30% more just to carry the monthly payments on the average house.

$900,000 really isn’t a lot of money to Canadians.

#115 Dolce Vita on 08.14.17 at 9:13 am

Hey Garth, you are concentrating on 416 Land RE, and, rightly so.

Whilst everyone concerned at the large drops, YVR RE has outdone 416 RE in monthly drops.

Toronto Detached Last Quarter, May to July per Listing.ca:

-13.4%, -2.6 and -10.7%

Vancouver Detached Last Quarter, per Zolo.ca:

-20.7% and

Last month change = -18.6%.

Yes, you beat YVR by a measly -6% on the Quarter but YVR ANNIHILATED 416 on the largest monthly drop.

If OFSI applies it +2% stress test to everyone seeking a mortgage, man oh man, 416 and YVR will be in bigger trouble with likely fewer qualified buyers.

This is incredulous but there are the numbers by realtor sites themselves.

Expect Buyers Remorse Litigation in YVR land as well.

So much for the “sticky” price drop believers in YVR RE.

#116 paulo on 08.14.17 at 9:33 am

#113 M;

Think about 50 cents on the dollar from current values.

#117 IHCTD9 on 08.14.17 at 9:33 am

The big houses I’m watching out in the hinterland are still for sale, no price drop (because they don’t need to sell and are just fishing for a GTA’er who won the RE lotto this spring).

Nothing moving, I expect if there are no offers for at or more than asking by Oct 1, they’ll be taken off the market – probably never to see those kinds of list prices again. That’s if the GTA stays dead.

This was likely the last kick at the can for floating these kinds of numbers. Still boatloads of listings sitting on the MLS.

#118 Arne on 08.14.17 at 9:34 am

Not worry everyone, this down-turn is expected to be short-lived: http://www.ctvnews.ca/business/toronto-s-housing-market-downturn-to-be-short-lived-cmhc-1.3519848

Article a month old, negated by most recent data. — Garth

#119 Dolce Vita on 08.14.17 at 9:39 am

#108 Happy Housing Crash Everyone!
#109 Happy Housing Crash Everyone!

You need to be more forthright with your feelings about Realtors.

Your posts make me laugh out loud, keep posting HHCE (and it goes without saying, Flop as well).

You make the Comment section a worthwhile read.

And Flop, ignore the grammar mavens. They are in general, people that cannot see the forest for the trees; rather, preferring to dwell on irrelevant minutiae at a Blog site that is relevant to anyone with money to invest (in my view, the Best in Canada easily – thank you Garth for who you are and what you do).

#120 jess on 08.14.17 at 9:43 am

read canada summary:
While FIs (financial institutions) generally appear adequately aware of their ML/TF risks,(money laundering/tax fraud) the same does not apply
in some DNFBP (Designated Non-Financial Business or Profession (DNFBP) A business or profession, who is not an Authorised Person or an Auditor, and is carrying on the below business or profession in or from the DIFC is a Designated Non-Financial Business or Profession (DNFBP); sectors, in particular the real estate sector.

AML/CFT requirements are inoperative towards legal counsels, legal firms and Quebec notaries.These requirements were found to breach the constitutional right to attorney-client privilege by the Supreme Court of Canada on 13 February 2015. In light of these professionals’ key gatekeeper role, in particular in high-risk sectors and activities such as real-estate transactions and the formation of corporations and trusts, this constitutes a serious impediment to Canada’s efforts to fight ML.

Most DNFBPs are not sufficiently aware of their AML/CFT obligations. This is in particular the case of real estate agents. Extensive work has been conducted by FINTRAC with relevant DPMS trade associations, to increase the DNFBPs’ awareness, which is leading to some improvement in compliance. REs have gradually increased the number of STRs and other threshold -based reports filed with FINTRAC but reporting remains very low. The fact that no STRs have been filed by accountants and BC notaries, and the low number of STRs received from the real estate sector raise concern.

15.
The authorities have a generally good level of understanding of Canada’s main ML/TF risks. The public version of the 2015 NRA is of good quality. It is based on dependable evidence and sound judgment, and supported by a convincing rationale. In many respects, the NRA confirmed the authorities’ overall understanding of the sectors, activities, services and products exposed to ML/TF risk. While the NRA’s findings did not contain major unexpected revelations, the process was useful in clarifying the magnitude of the threat, in particular the threat affecting the real estate sector and emanating from third-party money launderers. The authorities nevertheless may be underestimating the magnitude of some key risks, such as the risk emanating from tax crimes and foreign corruption.
16.
All high-risk areas are covered by the AML/CFT regime, with the notable exception of the legal professions other than British Columbia (BC) notaries, which is a significant loophole in Canada’s AML/CFT framework, and online casinos, open loop prepaid cards, and white label ATMs.
http://www.fatf-gafi.org/media/fatf/documents/reports/mer4/MER-Canada-2016-Executive-Summary.pdf

#121 IHCTD9 on 08.14.17 at 9:43 am

#111 Arne on 08.14.17 at 8:28 am
This is confusing:
http://www.cbc.ca/news/canada/london/london-real-estate-cooling-hot-1.4213244
Could London, Ontario really be bucking the trend or is it just more propaganda?
____________________________________

I believe roughly Zero of what the Canadian MSM says about Canadian RE. Way too many competing interests, way too much money on the line.

Give it a couple weeks and it’ll fall out of the headlines – to be replaced by the next dead end town where RE is “going crazy” and “breaking records”.

#122 jess on 08.14.17 at 9:45 am

australia report … banning cash transactions for e.g. jewelry, houses gambling

the Paris-based Financial Action Task Force (FATF) in 2015.FATF, which is an independent inter-governmental body that sets the standards for global anti-money laundering and anti-terrorism financing, concluded in a 200-page report that AUSTRAC had been ineffective in enforcing compliance by reporting entities.

Read more: http://www.afr.com/brand/chanticleer/cba-case-shows-all-thats-wrong-with-fighting-money-laundering-20170803-gxoxyi#ixzz4pjZMylpc
e.g. Tabcorp $45 million, which worked out at about $416,666 for each contravention.

Cyber-crime ‘undermining’ financial system warns Black Economy boss
Read more: http://www.afr.com/business/banking-and-finance/get-tougher-on-tax-advisers-says-black-economy-taskforce-chief-20170707-gx6wq5#ixzz4pjcMEo6m
“Frankly, we can’t see any reason why people should be carrying around bags of cash, and if there is a $10,000 limit on cash transactions that seems fundamentally acceptable,” said Glenn Byers, the council’s chief of policy and housing.”In an age of electronic transfers, there is no commercial reason other than tax avoidance for carrying around tens of thousands of dollars.
Read more: http://www.afr.com/personal-finance/cybercrime-undermining-financial-system-warns-black-economy-boss-20170727-gxkf3x#ixzz4pjar9Sfe

#123 Yuri on 08.14.17 at 9:46 am

Just finished reading “The wealthy renter” a must read!

#124 crowdedelevatorfartz on 08.14.17 at 9:48 am

@#24 Ole Dobie

Sorry but I have zero sympathy for 61 year old “granma” and her “30 something son”, wife and FIVE kids! OIh, and don’t forget the menagerie of pets.
Read between the lines. They have no money and the landlord evicted them because ” he was moving back in”.
Sounds to me like they were nightmare’s as tenants and Mr Landlord wanted them out.
Either way, stupid is stupid. I’m sure the landlord gave them ample notice.
Unemployed, underemployed? Drywaller son, unemployed grandma and the unemployed wife with 5 kids to deals with…plus pets!
And gee whiz. They cant find a place to rent. So they literally “set up camp” 5 miles up a logging road.
“Hello?” Social services? There are children living in bear country…..”
These people shouldnt be allowed to breed let alone have pets. But I’m sure they all smoke $10/pack cigarettes.
Not to worry. Their child support payments and welfare cheques will be held at the local post office til they pick them up.
Cue outraged politically correct SJW’s

#125 jess on 08.14.17 at 9:51 am

http://business.financialpost.com/legal-post/lawyers-secure-exemption-constitutional-exemption-from-fintrac-reporting-rules/wcm/d7419822-7e2f-4dac-a815-7d0d1ff90f17

http://www.canadianlawyermag.com/5486/Recognizing-lawyers-unique-role.html

#126 Lee on 08.14.17 at 10:12 am

#108 Happy Housing Crash,

I find it hard to believe buyer’s agent will be liable as long as he checked comparables and told buyer he was paying way above what similar properties sell for in area, and as long as he did not make up competing bids. These types of lawsuits have been tried before. Courts tent to go by the adage that a property is worth what the last greater fool agrees to pay for it (absence fraud). Also, a strategic overbid to scare off all potential bids is a reasonable strategy to use in business. Also, why do you have such a hate on for agents? Missed out on buying cheap in 2009-2010 and tripling your money in seven years????

#127 rainclouds on 08.14.17 at 10:20 am

Lack of Housing Supply is the problem?

Perhaps that argument is a construct of the people who want this party to continue at your expense………..

https://www.bloomberg.com/news/articles/2017-08-14/toronto-has-more-housing-than-you-thought-canada-eco-watch

#128 Correction in YVR on 08.14.17 at 10:28 am

First time poster here and have been a lurker for the last month. Thanks Garth for the great site and all the great contributors to the board.

We sold in April and just couldn’t get ourselves to buy another place due to the craziness of bidding wars and not being able to find our ideal place. We’re sitting on the sidelines hoping for a correction. During the time, we had bid on a place which there were multiple offers. We all came in at the same price of 2 had no conditions so the two of us were asked to bid again. Well we decided to drop out but the other group raised their bid another 75,000. Essentially, they were bidding against themselves. If a realtor has an obligation to tell you that there are multiple bids, does the realtor not have some obligation to tell you that you are the only bidder left? RE boards have lost their site on ethical behavior and continue to let the general public down. We would have reported the realtor in question for the questionable behavior but my wife is closely tied to the finance and could not have it get out that she reported someone that she may eventually work with.

In our local paper the this week there is a feature called ask the expert. Well this week the expert was a trustee and the question was the person couldn’t service the mortgage and should they declare bankruptcy. I may be hopeful but typically these segments are for current subjects. I also spoke to a credit counselor and this person also mentioned that many more people are seeking advice for the same problem. If the rates go up in October as many mentioned, along with the data coming out for YVR, hopefully, the stage should be set for an even more dramatic decrease in prices.

#129 Victor V on 08.14.17 at 10:38 am

http://business.financialpost.com/news/economy/the-economy-is-never-as-settled-as-it-seems-for-policymakers-only-certainty-is-uncertainty/wcm/244b9266-1208-4979-a249-db31ae2720c2

Moderate growth in the domestic economy — if it continues — could also have an effect on the direction of Canadian monetary policy, said Alexander, at the Conference Board.

“The low-rate environment has contributed to the real estate boom, it’s created over-evaluations in certain parts of the country. The same low-rate environment has contributed to the imbalances in household debt,” Alexander said.

“It’s healthy that the Bank of Canada can get interest rates up off their recent lows. And by providing fiscal stimulus, the federal government is actually giving the Bank of Canada the scope to take interest rates up a little bit. At the end of the day, that’s positive.”

#130 Victor V on 08.14.17 at 10:49 am

#128 Correction in YVR on 08.14.17 at 10:28 am

In our local paper the this week there is a feature called ask the expert. Well this week the expert was a trustee and the question was the person couldn’t service the mortgage and should they declare bankruptcy. I may be hopeful but typically these segments are for current subjects. I also spoke to a credit counselor and this person also mentioned that many more people are seeking advice for the same problem. If the rates go up in October as many mentioned, along with the data coming out for YVR, hopefully, the stage should be set for an even more dramatic decrease in prices.

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

Truth lies in the trends:

https://trends.google.com/trends/explore?date=all&geo=CA&q=bankruptcy

https://trends.google.com/trends/explore?date=all&geo=CA&q=consumer%20proposal

#131 Victor V on 08.14.17 at 10:51 am

Toronto home prices could drop up to 10% over next few months: Economist

http://www.bnn.ca/toronto-home-prices-could-drop-up-to-10-over-next-few-months-economist-1.829541

“In our forecast, we think that the GTA home price index could drop by seven to 10 per cent over the next few months – a reflection of the new policies put in place, but also higher mortgage that rates we’ve seen rising in the past few weeks,” Stefane Marion, chief economist and strategist at National Bank of Canada, told BNN in an interview Monday.

#132 LS in Arbutus on 08.14.17 at 10:58 am

FLOP

Good luck not losing money on this one. At 10% discount to assessed, sales price would be $3.610. $75k in property transfer tax paid and $100k in realtor fees. Thus they would net approx $3.430 and they paid $4.100. For a projected loss of $665k. ‘Nice’ 1.5 year return. I wonder if CRA will start allowing people to claim these were investments (and thus allow a capital loss?)

3236 W 35TH AVE

Bought Sep 2015 $3.460
Bought Mar 2016 $4.100
Now asking $4.398
Assessed $4.020
https://tinyurl.com/yavak6fj

#133 n1tro on 08.14.17 at 11:08 am

#93 maka on 08.14.17 at 12:09 am
This one is from Brampton.

$589,900
MLS® Number: W3898229

LoL. That townhouse is worth $250K max. I do like the nice white BMW parked in the driveway, gives Brampton a bit of classiness!

#134 Porsche Purist on 08.14.17 at 11:18 am

#113 M on 08.14.17 at 8:50 am
LLLLLLLOOOOOOOOOOOOLLLLLLLLLLL
““I wish the lender did not approve our mortgage that easily, we never got any red flag. Mr. Turner I know you can’t look in your Chrystal ball, but what do you think the housing is going to be in 3 years?”

..reminds me of my X.
Always OTHER people fault.
))))))))))))))))))))))))))))))))))))))))

I’m thinking of suing Porsche because I got caught going 40 in a 30 zone. My new 911 GT3 RS goes 300+, so I don’t see how I can possibly be responsible. I mean, they’re responsible for the top speed on the car, not me.

Why would they give me that ability if I wasn’t supposed to use it. Right??? Not my fault.

#135 IHCTD9 on 08.14.17 at 11:47 am

#107 BlogDog123 on 08.14.17 at 7:13 am
Ever notice that the Toronto Star has a habit of putting on the front page a “pouty-faced” person for their cover stories? Typical Star story of “we’ve been wronged somehow”. The usual bad-guy for their stories is “The Police”, some government agent or some poor shluck’s own bad choices. The Star’s photographer can’t leave the scene without getting that sad face on the front page.
________________________________

I get that same pouty face when I see that the Star hasn’t gone bankrupt yet, and are still printing off the same tripe they always have (extends lower lip).

#136 SimplyPut7 on 08.14.17 at 12:01 pm

#109 Happy Housing Crash Everyone! on 08.14.17 at 8:21 am

I think the deal fell through, and the sellers are relisting, with hopes to sue for the difference (I’m guessing, I don’t know for sure).

A 1 minute walk from that home, 118 Faywood Blvd sold for $1.86 million a month ago.
https://www.zolo.ca/toronto-real-estate/118-faywood-boulevard

It is more up-to-date and in better condition than the home you mentioned. Also, prices and sales have fallen more since then, the seller may be in trouble if they don’t sell by September when listings go back up and talks of more interest rate hikes resumes.

See TREB! This is why people need the sold data. It takes less than 5 minutes to see, this house is overpriced compared to other homes that have sold recently in that area. I saved future home buyers hundreds of thousands of dollars in housing costs, that can be used for other financial goals.

#137 anc0dia on 08.14.17 at 12:04 pm

#93 maka on 08.14.17 at 12:09 am
This one is from Brampton.

$589,900
MLS® Number: W3898229

LoL. That townhouse is worth $250K max. I do like the nice white BMW parked in the driveway, gives Brampton a bit of classiness!

A white BMW is anything but classy. Tyically means lower middle class and trying way too hard

#138 Sign of the Times on 08.14.17 at 12:16 pm

You can tell all of your friends you’ve made it when you buy this baby…who didn’t grow up wishing they had a view of the world famous Port Mann?

http://www.thelocalliving.com/listings/view/145706/coquitlam/central-coquitlam/217-finnigan-street

#139 n1tro on 08.14.17 at 12:33 pm

#134 Porsche Purist on 08.14.17 at 11:18 am

Is that the correct analogy for this situation?

Doesn’t the government make sports car dealers put speed limiters in the cars before being sold in Canada? So if you bought one without it, and killed yourself, I could see how your family would want to blame someone else for your own stupidity.

For Anne, don’t ask what the housing market will be in 3 years. Ask yourself if you can you make your payments, taxes, expenses, etc while not having anything happening requiring emergency funds for the next 3 years?

If not, then sell your place now and walk away with a smaller loss than when you are forced to sell.

#140 Rent to Own Ratio on 08.14.17 at 12:35 pm

Check this one out. Only SFD in all of Vancouver that is under $1mill:
https://www.zolo.ca/vancouver-real-estate/1518-e-33rd-avenue

Currently rented for: $3400
Estimated Mortgage: $3486
Taxes: $3458 / year
Home Insurance: ~$1000/year
Garbage+Water / Municipal Bills: ~$1000/year
Repairs: $600/year
Total monthly cost of ownership: ~$4000

So you only lose like $600 a month renting it out! LOL

How would a bank even finance a plan like this?

Seems like a pretty sound investment no?

#141 IHCTD9 on 08.14.17 at 12:38 pm

#137 anc0dia on 08.14.17 at 12:04 pm

A white BMW is anything but classy. Tyically means lower middle class and trying way too hard
_____

Fake it until you make it LOL!

#142 Wrk.dover on 08.14.17 at 12:46 pm

I thought someone would have mentioned by now, RE is probably the #1 advertising revenue cow for the news papers. You get what you pay for, so does RE.

Not sure where the RE CBC connect is though. Maybe the CBC sunshiners think all is well, as it is for themselves.

#143 IHCTD9 on 08.14.17 at 12:47 pm

#138 Sign of the Times on 08.14.17 at 12:16 pm
You can tell all of your friends you’ve made it when you buy this baby…who didn’t grow up wishing they had a view of the world famous Port Mann?

http://www.thelocalliving.com/listings/view/145706/coquitlam/central-coquitlam/217-finnigan-street
____

That’s good. Real Estate agents hire hot babes to star in Real Estate “Movie” pretending to own Bentley and live in listed fancy house!

From what I know of RE prices in BC, this place looks like a smoking deal LOL!

#144 n1tro on 08.14.17 at 12:57 pm

#137 anc0dia on 08.14.17 at 12:04 pm

A white BMW is anything but classy. Tyically means lower middle class and trying way too hard

Agreed, if the same BMW were parked in any other neighborhood. Let’s look at what I am seeing…

Front and back lawn unkept, original carpeting, dining room furniture that looks like it is a part of a patio set, builder’s original fixtures and paint, non certified basement reno, the 2 satellite dishes probably once used for stealing Dish Net signals, and given that this is Brampton, I doubt the owners are anywhere near “middle class” so the BMW does add some class ;)

Maybe the property is in distress? Somebody keep track of the this for when it sells. Would be interesting to see what the owners settle at.

#145 Happy Housing Crash Everyone! on 08.14.17 at 1:04 pm

#136 SimplyPut7

That house I mentioned sold 100% so it is
Not relisting. Seller was a lawyer and I’m guessing buyer didnt want to go up against a lawyer. This housing crash is spinning out of control but the dirty lying shysters dont want the masses to know the truth or have access to info since they would not be able to lie like dirty SHYSTERS. Happy Housing Crash Everyone! :-)

#146 Rexx Rock on 08.14.17 at 1:09 pm

Stay strong,real estate always comes back just like Victoria,Vancouver and Kelowna.So you have to wait it out a few years to break even or make a little profit.Its like the stock market,all about timing.You got high immigration,a strong economy,wage and job growth on your side.Also the big banks have got your back and will keep interest rates very low forever!

#147 IHCTD9 on 08.14.17 at 1:10 pm

#105 maxx on 08.14.17 at 6:44 am
People in this country have completely lost it.
That 900K millstone, at say, 2.7% translates into almost 1.8MM over 25 years and over 2MM for 30 years.
IF rates don’t go up – over 6 renewal cycles.
And who keeps a job for 30-40 years today, especially going forward…….
Even though people are generally really dumb when it comes to re, the BOC and FIRE have one hell of a lot to answer for.
_________________________________

Somewhere along the line, Canadians got stupid. Can’t live without a house, no price is too high, keep bidding. Can’t vote, no debt is too high. To hell with the economy, jobs, and wages – we need to deal with all these “injustices”. I miss Canada as it was 20+ years ago, wish I knew what happened.

To think this is only the tip of the knife is sobering – but don’t kid yourself. Many have piled it on a mile thick, and so has our collective “leadership”. Rates are rising, so are our deficits.

The limited number of Canadians who are not dumb as a stump are considering the future and preparing for it. Expect reductions in services, increased taxation on everything, especially the things that are exceedingly difficult to avoid.

It will be a long time yet, but watch the current trends in public spending and future obligations, also watch attitudes towards business and taxation. Eventually, we’ll have to pull in the reins or get napalmed. Keep an eye on debt service costs in relationship to big bills like education and health care. NL’ers are already getting a little taste of what is heading our way.

Getting revenues up naturally through business and the expenditure of wealth won’t work with declining rates of both.

That leaves just one option…

#148 Livin Large on 08.14.17 at 1:19 pm

On the positive side and maybe not very positive, suing the realtor gets an insurance company involved and maybe, just maybe they’ll be parsimonious enough to avoid a trial knowing the rules of civil proceedure will give them some protection should a reasonable settlement be declined.

No matter what happens Derek is still going to be paying his lawyer regularly for the education. Maybe he’ll win, maybe not. Certainly seems like he should but judges can be difficult if they take a disliking to a plaintiff.

#149 Happy Housing Crash Everyone! on 08.14.17 at 1:22 pm

#136 SimplyPut7

I think you right it didn’t sell. I have a pic on my phone with the realtor showing off his sold listing with the housing selling in 5 days for 2,118,000(those post cards they mail out) . This guy http://davidsoberano.homeseek.com/listings sold the place but I can’t seem to find it. If only realtor info was avaliable to everyone.

#150 maka on 08.14.17 at 1:28 pm

Meanwhile….

“In our forecast, we think that the GTA home price index could drop by seven to 10 per cent over the next few months – a reflection of the new policies put in place, but also higher mortgage that rates we’ve seen rising in the past few weeks,” Stefane Marion, chief economist and strategist at National Bank of Canada, told BNN in an interview Monday.

#151 Honest Realtor on 08.14.17 at 1:38 pm

I see the housing crash psychopath is back spewing his vitriolic hate again.

Did you just fly in from Virginia?

#152 InvestorsFriend on 08.14.17 at 1:39 pm

Name That False Bubble

#77 Raging Ranter on 08.13.17 at 10:24 pm

InvestorsFriend, name one bubble that turned out not to be one.

*****************************************
Well I suppose it its only a verified bubble after it bursts.

Vancouver house prices were said to be in a bubble at least ten years ago. Were they? Same for Toronto were house prices in Toronto a bubble ten years ago? They were said to be.

At any given point in time except maybe at major lows there is a ton of people calling the stock market a bubble.

This blog was full of people predicting stocks and houses in the U.S. would continue to fall even as they bottomed (stocks bottomed 2009). The bubble had popped and deflated and yet many people thought it would deflate much further. The big U.S. banks were said to be technically broke.

In the 1970’s a large ranch style house was built by my uncle for a cost well under $30,000. The fully serviced lot on a new street was bought from the town for $1,500. This was around 1974. They sold their previous house for around $11,000.

Virtually continuously since then, house prices have been described as unaffordable and the same for rents. To a lot of people prices of almost anything have looked like a bubble at all times except maybe after a major crash.

In 1992 I was having trouble finding a tenant in Edmonton for a basement apartment at $275 utilities included. In the news at that time: Complaints that rents were unaffordable!

Perhaps you are young and have not experienced how people have ALWAYS complained that prices of almost everything is outrageous and due for a fall.

#153 InvestorsFriend on 08.14.17 at 1:42 pm

Boomers who won the house price lottery

Those houses might have been bought at 3 times income or less. But interest rates were high. In many cases the buyers thought they were taking a big risk paying what at the time seemed like outrageously high prices for houses.

#154 Robert White on 08.14.17 at 2:00 pm

Maxx #112 ” And on the tail of that loop swiftly comes whack-a-mole-style attempts at solutions which stakeholders from the BofC and gubbiment to realtards and GF’s will invoke to attempt to resolve/stabilize this mess.”

Given the overall Mandelbrot Set of insolvency since Lehman 08, and the resulting trillions in QE Infinity that has manifested since, it would appear to be reasonable to conclude that the whack-a-mole-style strategic planning of the central bank Oligopoly has unequivocally failed to stem the tide/wave of decoherence/collapse thus far. The probability that they will now understand the decoherence of the wave function, and how to resolve it mathematically, is closer to nil than not. Geithner & Bernanke doubled down in September of 08 and shored up the central banking model with larger Bank Holding Companies.
The Ponzi Finance Stage took the Too-BIG-to-Fail, Nail, Jail, or Bail, investment banks into the no man’s land of zero resolve other than complete bankruptcy and Chapter 11 closure if one gets the concept that Geithner increased risk systemically in order to buy time. In brief, in my informed opinion, stock markets, along with currencies, have a tendency to fail outright over time. The average lifecycle of currencies is not much more than one century based on the historiography. I’m long on the BIG crash given the lack of resolve with respect to the BofC raising interest rates over the last decade of the Bank For International Settlements advisory to raise interest rates since 08. If North American banks cannot understand that the BIS tack is the only way to proceed vis-à-vis Interest Rates, we are certain to see a system wide crash. Ergo, ‘resolve’ is not in the cards based on probability that it will fail.

RW

#155 mouldyinYVR on 08.14.17 at 3:22 pm

https://www.theguardian.com/commentisfree/2017/aug/14/1939-second-world-war-fascist-thundering-approach-hitler
………………..’speaking of death’

#156 SimplyPut7 on 08.14.17 at 3:24 pm

#151 Honest Realtor on 08.14.17 at 1:38 pm

Happy Housing Crash Everyone! just saved buyers thousands of dollars.

And didn’t even ask for a commission.

#157 crowdedelevatorfartz on 08.14.17 at 3:31 pm

@#153 Investors Friend.

True.
Have a friend who was born and raised in Vancouver.
He purchased his house in 1970 for $17,000.00
His mortgage payments were about $100/month and he scraped the bottom of the barrel at that. A wife and 3 kids plus a mortgage worth 25% of his monthly income. Poor as a church mouse.
The seller was an American who had moved back to Seattle. He insisted that the mortgage payment be paid in Canadian funds as the Canuck buck was worth $1.04 US.
Raised the bungalow to a small 2 story for the extra bedrooms as the kids got older.
He sold in the early 2000’s for about $400,000.00 and bought a condo for about $100k and invested the rest.

#158 SimplyPut7 on 08.14.17 at 3:35 pm

#149 Happy Housing Crash Everyone! on 08.14.17 at 1:22 pm

I found this MLS# C3746005, the input date is March 29, 2017, but it doesn’t have a sold date.

Realtors need to learn to brag about homes sold over asking until after the closing date.

I hope the competition tribunal makes their final decision about the TREB sold data soon, buyers shouldn’t be in the dark about this kind of information.

#159 Damifino on 08.14.17 at 3:50 pm

#138 Sign of the Times

It’s hard to understand the appeal of such a house even if one did have an extra $2.7M kicking around.

It’s beyond antiseptic. It could be a clean room in a silicon chip foundry. The World Health Organization might study deadly viruses there.

Stark, shocking and clinically clean. If there’s an opposite of cozy, that must be it.

#160 Howard on 08.14.17 at 3:52 pm

#153 InvestorsFriend on 08.14.17 at 1:42 pm
Boomers who won the house price lottery

Those houses might have been bought at 3 times income or less. But interest rates were high. In many cases the buyers thought they were taking a big risk paying what at the time seemed like outrageously high prices for houses.

——————————–

Gawd. If I had a dime for every time a financially-illiterate Boomer trotted out the “high interest rates” canard.

Here’s what they don’t tell you:
– they also received that same high interest on their SAVINGS (remember those?)
– they received raises every year
– they paid next to nothing for their education
– they paid next to nothing for their homes
– they received gold-plated indexed pensions
– inflation took care of the rest

“but but but….”, the idiots sputter, “its wuz 87-bajillion % intreds in ninety-eighty-toooooo!”

Baby Boomers – the only generation that never had to grow up.

#161 bdwy sktrn on 08.14.17 at 4:04 pm

#100 Dolce Vita on 08.14.17 at 2:57 am
YVR RE Cult people, please give it a rest. The ONLY thread you have to hang your hat on, and a frayed one at that, is that condos are selling….

Everyone’s eyes have been glued to 416 RE news whilst ***YVR RE is correcting nearly as fast*** and quietly

———————–
*** = bull droppings – at least in my hood

just sold , over ask , 7 days on mkt, 2m+ for an old house (but not a teardown) on a std lot in east van is RECORD HIGH pricing. ever. all-time.

1742 NAPIER STREET ask $1,980,000 sell $2,106,000

real time market info here.

———-
also a duplex here on 1st (busy loud traffic)ave that held the local record for most dom just sold for the ask they had all along ~1m

so we have gone from white hot to glowing orange hot in this hood.

the last 2 teardowns went for 1.63 and 1.55.

oh well.

#162 oopswediditagain on 08.14.17 at 4:06 pm

#146 Rexx Rock on 08.14.17 at 1:09 pm
Stay strong,real estate always comes back just like Victoria,Vancouver and Kelowna.So you have to wait it out a few years to break even or make a little profit.<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

Take this one to the bank, Rexx. OSFI legislation coming in the fall is going to crash, not correct, every major market in Canada.

This legislation is being introduced to provide the utmost protection to the banks and financial system. It's not a market cooling measure, it is a "we know what's going to happen" measure.

Toronto is highlighting the need for this legislation and the very legislation itself is going to finish this "bubble" off.

Not only is OSFI ensuring that the banks are well positioned to deal with the recourse options of this crash, they are trying to distance themselves from the Credit Unions which are not within their purview.

They are already in the process of ensuring that Credit Unions don’t use the term “bank” so they are not associated with the possible bankruptcies that will occur with some Credit Unions. If they can’t legislate the Credit Unions then they are going to make sure that their “worldwide reputation” is not impacted during the upcoming crash.

Restrictions on the use of the words “bank”, “banker” and “banking”

http://www.osfi-bsif.gc.ca/Eng/fi-if/app/rla-prl/Pages/adv-2017-01.aspx

#163 Flop Fan on 08.14.17 at 4:13 pm

Hey Flop!

You’re the only reason I click over to the comments (and risk accidentally reading a Smoking Man post!). I love your work – don’t let the haters get to you.

I try to follow a set of loosely representative Lower Mainland homes on Zolo too, but I just don’t have the stomach for talking to realtors to find out final sale prices. Thank you for doing the hard work!

F37BC

#164 bdwy sktrn on 08.14.17 at 4:16 pm

#105 maxx on 08.14.17 at 6:44 am

And who keeps a job for 30-40 years today, especially ***going forward***…….

———————————
not to single you out, but i’m going full grammar nazi on this one.

Who the [email protected] has a time machine?

it’s a buzzword that, to me , screams out a need to conform and a lack of reason/real ideas.

what other direction does time go?
yeah, just forward.

example:
so, going forward i will try to stop being a dick but i can’t promise anything.

so i will try to stop being a dick but i can’t promise anything.

///see, same meaning.

#165 Howard on 08.14.17 at 4:26 pm

#164 bdwy sktrn on 08.14.17 at 4:16 pm
#105 maxx on 08.14.17 at 6:44 am

And who keeps a job for 30-40 years today, especially ***going forward***…….

———————————
not to single you out, but i’m going full grammar nazi on this one.

Who the [email protected] has a time machine?

it’s a buzzword that, to me , screams out a need to conform and a lack of reason/real ideas.

what other direction does time go?
yeah, just forward.

example:
so, going forward i will try to stop being a dick but i can’t promise anything.

so i will try to stop being a dick but i can’t promise anything.

///see, same meaning.

———————————

Grammar nazi? “Going forward” is an expression, has nothing to do with poor grammar. I share your dislike for the expression though.

The worst corporate-speak, imo, is the use of “reaching out” to mean “contact someone”.

I cringe every time I hear it.

#166 InvestorsFriend on 08.14.17 at 4:29 pm

Who’s Financially Illerate

#160 Howard on 08.14.17 at 3:52 pm responded to me:
#153 InvestorsFriend on 08.14.17 at 1:42 pm
Boomers who won the house price lottery

Those houses might have been bought at 3 times income or less. But interest rates were high. In many cases the buyers thought they were taking a big risk paying what at the time seemed like outrageously high prices for houses.

——————————–

Gawd. If I had a dime for every time a financially-illiterate Boomer trotted out the “high interest rates” canard.
Here’s what they don’t tell you:
– they also received that same high interest on their SAVINGS (remember those?)
– they received raises every year
– they paid next to nothing for their education
– they paid next to nothing for their homes
– they received gold-plated indexed pensions
– inflation took care of the rest

“but but but….”, the idiots sputter, “its wuz 87-bajillion % intreds in ninety-eighty-toooooo!”

Baby Boomers – the only generation that never had to grow up.
**************************************

Boomer, I am. Financially illiterate. Not exactly given that like Garth’s associates I have more letters after my name than in it and most of those related to finance.

I was simply pointing out that houses have ALWAYS been seen as too expensive, at least in my 40 plus years of reading the financial newspapers.

This house lottery thing is fairly recent. Much of the gains are since the year 2000.

The 70’s were no picnic with inflation running rampant in the middle of a recession. It was called Stagflation. Unemployment, at least as officially measured was a LOT higher in the late 70’s early 80’s than today. The tail end of the boomers graduated college in recession.

Anyhow it is nonsense to talk about boomers as if they were all the same. Loads of them did NOT get jobs with pensions. There are boomers who never made much more than minimum wage.

Do you consider your response to be worthy of the title “grown-up”?

Look up the newspapers of 40 years ago and see if you can find any stories about houses being a bargain. That only seems (or is proven) to be the case in retrospect.

#167 Alistair McLaughlin on 08.14.17 at 4:29 pm

I wish the lender did not approve our mortgage that easily…

Soon your lender will feel the same way. :)

#168 Herestoyou on 08.14.17 at 4:32 pm

#160 Howard

Yes – we the boomers did pay high interest on our mortgages but our parents were the ones that cashed in on the high interest rates with their savings. A lot of us were raising families and had no savings. So our parents did benefit from us and now that we have savings we’re being paid practically nothing in interest which is one of the reasons you’ve been able to benefit from us. I will feel very bad for our children if they ever have to pay a mortgage were the lion’s share will go to interest. On the flip side a higher interest rate will pay us more on our savings which will in turn enable us to leave more to our children when we pass on. P.S Would love to have had a raise every year and a gold plated pension but no such luck. We just worked really really hard / loved our children and gave them everything we could – I don’t know what kind of a home you came from but you sound very bitter.

#169 Raging Ranter on 08.14.17 at 4:54 pm

Investors friend, people griping about prices is not the same as a bubble. Bubbles are denied a lot more than they are acknowledged. And yes, I do think Vancouver was in a bubble ten years ago. In fact, since 2004. Canada’s housing bubble started in the early 2000s just like it did in the US. We just managed to stretch ours out another decade. For some reason, it has made (some of) us smug. That smugness, like the bubble that feeds it, is temporary. A 15 year bubble is still a bubble. The Japanese asset bubble lasted even longer than that.

I’m in my late forties by the way. Old enough to remember gold (1980), biotech (late 80s) Japan (1989-90), dot.com (2001), and on it goes. In each case, there were many denying the existence of a bubble, while others were pointing out the obvious.

#170 Entrepreneur on 08.14.17 at 5:05 pm

That was harsh #124 crowdedelevatorfartz…but that is one way of reading between the lines, could be. But look at them closer and you can see that they are a middle-income family, living and lifestyle as a family.

The grandmother is hanging the washed clothes, by hand. Trailer has the necessary utilities. The teenagers are working on assignments of sorts. They have animals especially dogs who are loved.

As for the assortment of clutter: What do you expect after moving out and into a smaller living arrangements.

And keeping the family together.

I have signed many petitions for Christy Clark to cool the RE market but she ignored B.C. people especially the middle class and this is the results you get when ignored.

#142 Wrk.dover…CBC gets a little hand out from the government.

#171 bdwy sktrn on 08.14.17 at 5:08 pm

#136 SimplyPut7 on 08.14.17 at 12:01 pm
#109 Happy Housing Crash Everyone! on 08.14.17 at 8:21 am

A 1 minute walk from that home, 118 Faywood Blvd sold for $1.86 million a month ago.
https://www.zolo.ca/toronto-real-estate/118-faywood-boulevard

It is more up-to-date and in better condition than the home you mentioned.
—————————–
and it’s sitting on 1/2 of a lot.

double the land and 2.4 seems right.

land is not free.

#172 bdwy sktrn on 08.14.17 at 5:13 pm

#165 Howard on 08.14.17 at 4:26 pm
The worst corporate-speak, imo, is the use of “reaching out” to mean “contact someone”.

I cringe every time I hear it.
—————–
my wife is in HR , this is the norm – ugh.

“reach out …and grab my @ss.” is what i hear. :)

now you can smile when you hear it!

#173 Dolce Vita on 08.14.17 at 5:19 pm

#161 bdwy sktrn

Your 3 observations are not large enough to be statistically significant, at least 35 or more needed.

Still, good to read that not all of GVRD is correcting, Burnaby an old hood of mine.

Here are the Burnaby stats (270 sales total, monthly/quarterly negative, yearly still up 20%, avg. = $844 K, median = $630 K):

https://www.zolo.ca/burnaby-real-estate/trends

Most of the other neighborhoods are doing worse than Burnaby with monthly/quarterly negative and some still + yearly.

The monthly/quarterly trend is clearly negative in all of the major GVRD cities, a correction is in its early throws or worsening.

My Realty Check shows an overall erosion of list prices since Oct. 2015, even in Burnaby.

Hopefully, September will provide an uptick in sales. If it does not, well…who knows what the end result will be. No good can come of this for single asset RE investors.

#174 WenonaLake on 08.14.17 at 5:30 pm

This is just so ridiculous! I’m a 52 year old, who bought in 1998 and we were absolutely shi$ting when we signed the bottom line on our house in Thornhill with a mortgage of… wait for it…. $150K. We were youngish and scared out of our minds (we had a 1 year old at the time and massive daycare costs ahead of us – we ultimately had two kids).

How on earth can people sleep at night with these debts? $900K??? These debts make ME want to throw up and they’re not even mine.

#175 Happy Housing Crash Everyone! on 08.14.17 at 5:36 pm

#158 SimplyPut7

I hope the competition tribunal makes their final decision about the TREB sold data soon, buyers shouldn’t be in the dark about this kind of information

I Hope they make a decision soon. These shysters offer zero value and would fail in an environment were they can no longer lie. I can’t understand why the government hasn’t smashed these shysters into a thousand pieces

#176 Happy Housing Crash Everyone! on 08.14.17 at 5:40 pm

171 bdwy sktrn

You are a shyster and we are exposing you shills. Deals are falling through in great numbers. You shills ruin lives one lie at a time.

#177 bdwy sktrn on 08.14.17 at 5:41 pm

How on earth can people sleep at night with these debts? $900K??? These debts make ME want to throw up and they’re not even mine.
—————————-
say, one income 235k, second income 165k , say 265 after tax- yearly spend (less housing) 80k , leaves 15,000/month extra.

900k mtge is 4500/mo.

just got to make the scratch.

#178 Howard on 08.14.17 at 5:47 pm

#166 InvestorsFriend on 08.14.17 at 4:29 pm

Boomer, I am. Financially illiterate. Not exactly given that like Garth’s associates I have more letters after my name than in it and most of those related to finance.

I was simply pointing out that houses have ALWAYS been seen as too expensive, at least in my 40 plus years of reading the financial newspapers.

This house lottery thing is fairly recent. Much of the gains are since the year 2000.

The 70’s were no picnic with inflation running rampant in the middle of a recession. It was called Stagflation. Unemployment, at least as officially measured was a LOT higher in the late 70’s early 80’s than today. The tail end of the boomers graduated college in recession.

Anyhow it is nonsense to talk about boomers as if they were all the same. Loads of them did NOT get jobs with pensions. There are boomers who never made much more than minimum wage.

Do you consider your response to be worthy of the title “grown-up”?

Look up the newspapers of 40 years ago and see if you can find any stories about houses being a bargain. That only seems (or is proven) to be the case in retrospect.

———————————

The financial illiteracy comes from the fact that you, like almost every other obnoxious Boomer out there, actually seem to believe that a period of high interest rates is *exactly the same* as the crazy housing prices, wages stuck in the dark age (no real wage gains since the 90s), increased education costs, and credential inflation forcing young people to spend more of their best earning years in a classroom because BOOMER BOSSES will not hire them otherwise. And did I mention that the same Boomer bosses have gutted corporate training programs so that young workers now need to self-fund virtually all of their skills development, the same training that Boomers themselves got, like almost everything else, for free?

70s recession? Stagflation? For the most part, it was your parents who had to deal with that, not you. And no 70s/80s recession can compare to the depth of the 2008 crisis, which left Boomers comparatively unscathed while extending the trend of hollowing out junior positions for young workers that began around 2000.

#179 AGuyInVancouver on 08.14.17 at 5:54 pm

Sorry but we’re still in crazy territory when McMansions in Toronto go for $1.7 million, look what that gets you almost anywhere else in the western world. And $900k mortgages for first time buyers aren’t normal either!

#180 Howard on 08.14.17 at 5:56 pm

#168 Herestoyou on 08.14.17 at 4:32 pm
#160 Howard

Yes – we the boomers did pay high interest on our mortgages but our parents were the ones that cashed in on the high interest rates with their savings. A lot of us were raising families and had no savings. So our parents did benefit from us and now that we have savings we’re being paid practically nothing in interest which is one of the reasons you’ve been able to benefit from us. I will feel very bad for our children if they ever have to pay a mortgage were the lion’s share will go to interest. On the flip side a higher interest rate will pay us more on our savings which will in turn enable us to leave more to our children when we pass on. P.S Would love to have had a raise every year and a gold plated pension but no such luck. We just worked really really hard / loved our children and gave them everything we could – I don’t know what kind of a home you came from but you sound very bitter.

———————————

It is not personal bitterness to simply point out a few, shall we say, bitter realities.

Not every single Boomer had it easy but most did. And the fact is that they have contributed far less to the system than they will take from it. For Millennials it will be the opposite.

#181 Dolce Vita on 08.14.17 at 6:03 pm

Since the YVR RE Cult is looking for block by block verification of their up, up and up narrative, well take a look at the actual selling price data below.

Save a few cities (today, Zolo.ca) – the trend is negative monthly AND quarterly in the major cities.

City | Monthly Sale Price Change, % | Quarterly Sale Price Change, % | Yearly Sale Price Change, %

Vancouver, -18.6, -20.7, -2.5
North Van, -7.9, -13.2, +8.3
Burnaby, -1.3, -7, +19.9
Delta, -2.8, +3.4, +13
West Van, -1.7, -18.2, -3.3
New West, -14.1, -16.1, +3.1
Surrey, -16.2, -17.3, -1.3
Coquitlam, -11.9, -10.9, +6.4
White Rock, +7.5, -10.3, -13.5
Langley, -2.9, -3.1, +9%
Maple Ridge, -2.7, +5, +8.9

There is a correction in the GVRD happening.

At the above monthly/quarterly selling price drops, it will not be long until yearly price increases start to go negative in all of the major GVRD cities.

September should see an uptick in sales and typically prices. If not, my oh my.

#182 bdwy sktrn on 08.14.17 at 6:08 pm

#176 Happy Housing Crash Everyone! on 08.14.17 at 5:40 pm

You are a shyster and we are exposing you shills. Deals are falling through in great numbers. You shills ruin lives one lie at a time.
———————–
love u too, man.

i was called the same right here when houses were 50% , even 35% of todays prices.

i know you’ll be long gone when east van shacks hit 3m.

last night, before dawn, i was awoken more than once as my dog (Bord collie/sheltie mix) went barking at what appeared to be orcas swimming by and tooting their horns. can’t sell re if you are on the ocean all day!

#183 bdwy sktrn on 08.14.17 at 6:10 pm

penny i hope your fur buddy is fully recovered.

you can borrow mine anytime if you need another.

#184 Gravy Train on 08.14.17 at 6:12 pm

#105 maxx on 08.14.17 at 6:44 am
#164 bdwy sktrn on 08.14.17 at 4:16 pm
#165 Howard on 08.14.17 at 4:26 pm

Relax, gentlemen. To go forward just means to continue doing something : to proceed (as in, “I don’t want to go forward without a contract”). It can also mean to proceed with a lawsuit or a matter in a lawsuit.

“Who the [expletive] has a time machine?…. [W]hat other direction does time go? [Y]eah, just forward.”

Granted, one cannot go backward in time, but time dilation is a proven fact.
https://en.m.wikipedia.org/wiki/Time_dilation

The world is more amazing than you may realize.

#185 Dolce Vita on 08.14.17 at 6:25 pm

Forgot Richmond in my prior post, monthly, quarterly and yearly selling price, %:

-6.5, -10.3, +21.1

There, that’s pretty well all the major GVRD cities.

No soft landing here. No sticky prices either. A correction, plain and simple in the last quarter.

416 Realtors not the only one’s praying for a Sept. miracle.

#186 maxx on 08.14.17 at 6:31 pm

#114 Dan.t on 08.14.17 at 9:00 am

“…..900,000 really isn’t a lot of money to Canadians.”

;-)

It would certainly appear so – however, it depends upon which side of the ledger that sum or anything near it is situated: Debt or Savings.

Canadians who borrow to that extent see it as nothing more than piffling game board money. Just a hurdle to getting what they believe they want, and that, usually in the moment.

Place the same sum into their bank accounts and perception of the value of money turns 180 degrees. For example, anyone who sold and made a pile. The last thing most (GF’s notwithstanding) would ever do is throw it away again on another overpriced pile.

Now that’s throwing money away.

#187 Coco Lopez on 08.15.17 at 7:50 am

If you can’t spell crystal, you probably shouldn’t qualify for a $900k mortgage. Just sayin’. #NotRacist