Headwinds

This week we learned of a huge jump in Canada’s official inflation rate (and we all know it’s way higher in real life). This week the US central bank upped its rate for the first time since 2018 and said there are six more bumps coming this year. (So our guys will follow.) This week pandemic restrictions melted away and offices started reopening in earnest. And this week the war in Ukraine got uglier.

Let’s call these headwinds.

Living costs surging higher than income gains. Mortgage rates going up, and certain to swell more. WFH turning into RTO which means more overhead for the sweatpants Zoomers. Geopolitical clouds and worries about recession. And on top of that the fact average detached houses in markets like Van and the GTA now cost more than $2 million. Not only are buyers tapped out, fatigued and discouraged, but household debt is rocketing, inventories are scant and governments at all levels have failed to bring in one single, reasonable measure to mitigate our real estate crisis, despite promises.

Remember that federal election six months ago that was all about housing affordability. Well, phffft. They lied.

Okay, whazzit mean?

All these headwinds are now affecting the market, and there is much more to come. As prices, interest rates and anxiety elevate, buyer house lust is cooling fast. Just look at a big survey (by Oxford Economics) days ago from the mortgage guys across Canada. It was an eye-opener. A year ago 50% thought it was a good time to buy a house, but now that number’s collapsed to just 29%. A majority of people expect house prices to continue to rise – but qestion the wisdom of jumping in.

Says the CEO of Mortgage Professionals Canada: “This is the lowest share ever recorded in the history of our survey.”

We all know what’s been happening lately. Insanity. Boring houses in the burbs for almost two million. Yearly gains of 40% or 50% everywhere from Woodstock, Ontario to the South Shore of NS and the new builds in Squamish. Last month Canadian residential real estate values jumped 3.5%, says CREA. Yikes, that’s an annualized 42%. In February, yet, when we all should be shivering in front of the woodstove!

So is this it? The time when prices get so weird buyers throw in the towel, especially now that we know home loan rates could erupt higher? (Mortgage brokers found a quarter of people cannot handle even a small increase in their monthly overhead.)

There are indications realtors are seeing which, along with the survey mentioned above, suggest just that.

For example, fewer calls. Fewer showings. The volume of buyers lining up to see new listings has dropped, as well as the number of offers coming in. This became a little evident early last month, and the trend has grown steadily over the past four weeks.

Concurrently, sellers have become more receptive to bully offers – ones made by bidders who want to pre-empt a blind auction process. That suggests homeowners understand a reduced number of prospective purchasers will not give them an inflated sale price, so they might as well act quickly to secure a deal.

Finally, as realtor John Pasalis (who hates me) points out, there are greater numbers of homes failing to sell on the night the listing agent opens the competing bids. That’s usually because the house was priced below market value on MLS in order to generate a frenzied bidding war, and the sellers always believed they’d get more. If they don’t, and no buyer is accepted, the property is relisted for what the owners always wanted. More.

These may all be harbingers of what’s ahead. And it makes sense a ceiling would be reached. Price appreciation has not been justified by economic growth, wage increases or a drop in the cost of financing. Now, in fact, rates are rising. Incomes aren’t keeping pace with inflation. Household costs are greater with $100 oil and workplaces reopening. Disposable income is dropping and credit costs rising. On what planet can a house that already costs $2 million become $2.8 million twelve months later?

Maybe, just maybe, some common sense is returning to our nation.

Or am I dreaming?

About the picture: “A big thank you for all the lovely advice you have provided over the years,” writes Ankush. “Have followed a few , have shunned a few . The huge Indo- Canadian Diaspora always thanks you as financial is the #1 ( Numberrrrrrrr ONe advice…thinking Rusell Peters accent) advice we seek. Now that the customary sucking up is out of the way. Here is a picture of our Dalmatian (Dotty) , who turns 14.5 years in 2022.  Still young at heart but age has started to take a toll on him. Serving the NAYAR’S since 2008 and a baby to my mom still he is the pride and joy of my family back home in India.”

119 comments ↓

#1 TurnerNation on 03.18.22 at 3:36 pm

Like in Kanada. It’s a bit sad seeing demoralized Kanadians walking around with coffee filter cones strapped to their faces.
It’s Year 3 and they Trust the Science.
Ps. How about a 4th one Comrade?!

Just as well we are Almost Back to Normal (Soon).
I mean there will be NO more hijinx from the Globalist Ghouls. There is no rollout, no timelines.
Our leaders love us and just want us to be healthy! This much I know.

Nope we’ll just sit here and chew on that utterly unresolvable record national deficit & debt.
As of course BofC continues work on the digital E-currency (You cannot buy or sell without the mark).
Interest rate hikes, inflation.


— Luckily the feds signed contracts for doses going into 2024 eh?? We just need a soft sell. Everyone must get a QR code for the digital ID.

.”But the Science Table recommends the Province of Ontario be “prepared to renew vaccine certificates requiring a recent booster dose for high-risk settings if needed” and “reintroduce mask mandates if needed.”
https://www.blogto.com/city/2022/03/ontario-should-be-prepared-reintroduce-masks-and-vax-pass/



“The Bank of Canada announced Wednesday an agreement to collaborate with the Massachusetts Institute of Technology (MIT) on a 12-month research project on central bank digital currencies.” (investmentexecutive.com)

#2 Chopper on 03.18.22 at 3:44 pm

Sell now, rent and then buy again this fall. You will be richer than you think.

#3 Ian on 03.18.22 at 3:45 pm

I rent a semi in a hood where they sell for near new from $1.3 to $1.7M depending on the colour of granite counters for half the carry of a mortgage with 20% down. I have zero interest in buying ever. I know our DB pensions and high savings and already $20k for 20 months old RESP is more important. Risk on!

#4 Steven on 03.18.22 at 3:46 pm

Re Mr. Turner’s comment yesterday ” Maybe the Fed knows more about what they are doing than you do.” Regarding rate hikes.

Ummm What geniuses said Inflation was “transitory” mere months ago?

Ahhh Who is still buying mortgages by the boatload while we are in a massive bubble? Not me. The FED.

Maybe Me. Turner you should ask them if they know what they are doing instead of a mere non financial guy like me

What do you say?

#5 IHCTD9 on 03.18.22 at 3:51 pm

Canadians have somehow become absolutely stupid. A good old fashioned ass-kicking will restore some common sense.

#6 Damifino on 03.18.22 at 3:55 pm

Speaking of RTO. I have a friend who’s been WFH since the dog days of Covid. He said he’ll probably be required to return to the office, at least part time, by May.

I asked him how he felt about it. He said he’d been working out of a tiny windowless office in a corner of his basement for nearly two years. He feels like a mushroom and actually welcomes a return. He’s got a 45-minute commute to downtown Vancouver on public transit. No problem, he says. Might even be fun.

#7 Prince Polo on 03.18.22 at 3:57 pm

The federal gov’t hasn’t shown any conviction to allow housing prices to drop like a stone and the aforementioned common sense can evaporate just as quickly as our dear Photo-op Minister’s popularity…cue the multi-generational (50-yr) amortization announcement!

#8 Honest Realtor on 03.18.22 at 4:00 pm

Let’s join together and welcome 1,000,000 Ukrainians to Canada. This will have many positive effects for us all.

#9 Md on 03.18.22 at 4:01 pm

You’re for sure for sure dreaming… Sorry. Still love your blog though…

#10 YVRTechGuy on 03.18.22 at 4:03 pm

I watch the North Van market closely. The past few months every family home has been selling for usually $500k above asking (which is already $500k above assessed).

18th Feb was like a switch got flicked – since then pretty much nothing is selling – and what does is selling for usually a little less than the asking price.

I wouldn’t have believed the market could change that fast, but 18th Feb something definitely turned.

#11 wallflower on 03.18.22 at 4:04 pm

The specuvestor rentals are piling up in my small city. The rental reductions (for those that reduce) range from $500 to $50. And yet they sit.
The basements are having a hard time moving, as well. Those prices are dropping, too.
I’m starting to eat a lot of popcorn.

#12 Neo on 03.18.22 at 4:10 pm

DELETED

#13 zxcvbnm on 03.18.22 at 4:12 pm

You’re dreaming.

#14 Sam on 03.18.22 at 4:18 pm

Yes. You are dreaming Doug.

#15 don't poke the bear on 03.18.22 at 4:18 pm

The best thing to do is leave markets alone. Let them do what they will do. (Except in the case of fraud, like AMC purchasing a hole in the ground and thousands of call options trade before the announcement)

Government is completely incompetent and wasteful. Reduce government involvement In the economy and eventually things get moving again. You want a bridge to nowhere? Government is good at that.

Give people a level playing field and leave them alone.

#16 Mark on 03.18.22 at 4:19 pm

Rogers is cutting THOUSANDS of warehouse jobs at their Toronto and Vaughan locations, while giving John Tory a raise.

He doesn’t work there. – Garth

#17 Rook on 03.18.22 at 4:24 pm

I hate to say it, but even though your reasoning is sound, I think you may be dreaming.

Sure, the average Canadian may be tapped out. But we live in a global society. And, I don’t know if you’ve noticed, a lot of it isn’t going super well at the moment.

What better place for the world’s millionaires and billionaires to sit out the chaos than in boring old Canada? A heavily-armed, prepper neighbour to the south, 3 moats on the other sides, protecting it from the world’s problems, ‘peace, order and good government’ (kinda-sorta), low covid, no capital gains tax for primary residence, and the realtors and regulators don’t ask too many questions about where your money to buy it comes from.

And that’s assuming the market doesn’t throw another hissy fit with a rate increase like it did the last time rates rose in 2017 or 2018. And that this Ukraine conflict doesn’t blow up into a larger regional war. And that it doesn’t cause a food shortage. And that Covid doesn’t reappear.

To paraphrase Will Riker, finding a quiet corner of North America, and staying out of the way, might not be the worst option at the moment. And, Lord knows, it’s not like the government will do anything to stop them.

#18 Faron on 03.18.22 at 4:24 pm

#160 Sail Away on 03.18.22 at 3:55 pm

So, I shouldn’t expect you to support your threadbare narrative about how the asset seizure of oligarchs will lead to national demonization of a nation’s citizens and eventual worse effects including the ultimate fade-out of the US dollar? Am I surprised you have embarked on multiple comments worth of logicish bafflegab rather than supporting your very flawed story? No. Is this the very epitome of right wing trope generation? Raise a specter then run away when it becomes shot through because it was made out of garbage? Yes. Good work.

Also not at all surprised to see you parrot, almost to the word (melania like) my defense of sometimes indefensible commenting frequency or duration. Sure bud, tidy up that echo chamber of yours. Stock up on the self pwns, tape some strings to the wall. Maybe use spraypaint. Prepare for battle. I’m sure your extremely perfect logic will be useful one day. LOL.

#19 Ronaldo on 03.18.22 at 4:25 pm

Remember 12 years ago on this blog we were all thinking that the next thing was going to be a big drop when housing prices had reached a million bucks. Who wudda thunk that it would continue to 2 million. Next stop 3 million???

https://www.youtube.com/watch?v=hqOn5XEm86A

#20 Dreamer on 03.18.22 at 4:33 pm

Suburbs/exurbs will suffer immensely from rate increases, RTO, job-killing interest rate increases. City centres will slow price growth but still have demand outweigh supply. Nothing can be built, nothing will be built, new people immigrating endlessly, return to office, and internationally-recognized investment-grade potential.

If you are hoping to catch a deal on a downtown GTA condo because rates tick up a couple of points, you have no chance. Prices will hold and you will not be able to afford the higher borrowing costs that highly capitalized investors will be happy to take on. Investors know the economy will not withstand high interest rates for long, and will be happy to take any condos off your hands if you are willing to part with them. Investors appetite is insatiable, and builders are not providing enough crack to feed the beast.

Uppa uppa

#21 Søren Angst on 03.18.22 at 4:33 pm

Dreaming.

It’s a disease. A retirement package.

Only an early 80’s prolonged job loss recession will cure it.

Far from that now.

#22 Sail Away on 03.18.22 at 4:36 pm

#160 Sail Away on 03.18.22 at 3:55 pm

So, I shouldn’t expect you to support your threadbare narrative about how the asset seizure of oligarchs will lead to national demonization of a nation’s citizens and eventual worse effects including the ultimate fade-out of the US dollar?

——–

Not my narrative. Misrepresentation.

That was too easy. Do a harder one- maybe ‘Appeal to Authority’ next? Thanks!

#23 Søren Angst on 03.18.22 at 4:58 pm

On Amazon.it it was Save the Children, donate € or product & Redcross Italia.

Amazon.ca it is Redcross.ca.

https://www.amazon.ca/b/?_encoding=UTF8&ie=UTF8&node=23764782011&pf_rd_p=a5b9165f-ef73-4041-8d86-d256e4d05d02&pd_rd_wg=WEHvS&pf_rd_r=Y15SX9DDM22ZC7PB78NN&pd_rd_w=pP1Ss&pd_rd_r=0fa568ae-badc-4022-892f-524bd748984f&ref_=pd_gw_unk

‘Atta go Amazon.

https://www.aboutamazon.com/news/community/amazons-assistance-in-ukraine

——————

I cheaped out and donated only €50. When Divs come in this month, I will donate more.

#24 Reality Check on 03.18.22 at 4:58 pm

#4 Steven
Re Mr. Turner’s comment yesterday ” Maybe the Fed knows more about what they are doing than you do.” Regarding rate hikes.

Ummm What geniuses said Inflation was “transitory” mere months ago?

Ahhh Who is still buying mortgages by the boatload while we are in a massive bubble?

Turner you should ask them if they know what they are doing.
—————————

The Fed and BOC are full of very smart and very competent economists.

But let no one fool you, they are political beasts. Nobody wants to be labeled as the guy that raised interest rates too fast and cause a recession.

So they are usually too late to the party and because of that interest rates usually end up having to be raised further than if they had acted as soon as noticeable inflation appeared.

In a perfect non-political world rate probably should have started rising 12-18 months ago.

#25 Dr V on 03.18.22 at 4:58 pm

6 Damifino

This study says the ideal commute is 16 minutes, even though there are people happier with longer.

https://www.bloomberg.com/news/articles/2014-08-06/the-ideal-commute-is-not-actually-no-commute#:~:text=The%20researchers%20found%20that%20the,ideal%20commute%20of%20zero%20commute.

#26 Al on 03.18.22 at 5:00 pm

The analogy, probably in our Real estate market would be similar to the 17th century Dutch financial collapse of “Tulip Mania”, where it all ended badly

#27 Peter Courtney on 03.18.22 at 5:05 pm

Yep, you’re dreaming.

#28 Linda on 03.18.22 at 5:07 pm

‘Dotty’ sure looks great for such an aged pup:)

House prices have been beyond insane for quite some time now. Even on the prairies the average house price is north of $500K. I guess that is the new ‘affordable’ housing! Thing is, last I looked average household income for Canadians was more like $65K. So 2 million or more for a SFH isn’t in any way affordable for your average Canadian household. Even the top earners would find that debt load hard to carry.

#29 Housing on 03.18.22 at 5:09 pm

#Honest Realtor

It will be great for realtors. All the people moving from Ukraine have to either rent or buy. They have to live somewhere. More rental demand will lead to increase in rents. More demand for buying homes will lead to increase in home prices. Even if they rent now, they may buy in a few years leading to more bidding wars.

A million Ukrainian refugees are not coming. Give your head a shake. – Garth

#30 Faron on 03.18.22 at 5:11 pm

#22 Sail Away on 03.18.22 at 4:36 pm

Not my narrative.

You were parroting someone else’s? That was the nearest essence of your comment without verbatim quoting.

Your tactic is to say something outlandish and indefensible, silently set impossible rules around debating said garbage claim, then titter when I make a winning argument but fail to say the secret password. You once were infuriating, but it’s now clear you are merely pathetic.

If that hurts, here’s your chance to feel better. Tell us how well your TSLA shares did this week dear heart. (Yes, I’m milking you for a SAGI). LOL

#31 Søren Angst on 03.18.22 at 5:15 pm

PS:

If you were wondering what products Save the Children want donated for Ukraine, here is the Amazon.it page showing what they want:

https://www.amazon.it/hz/wishlist/ls/2YOH6IT9G9R9Y

After seeing this on Twitter just now:

https://twitter.com/radiosvoboda/status/1504812169803837444

I broke down a few seconds ago and bought Save the Children:

Winter gloves
Blanket
Colgate 4 pack
Neutro soap
Huggies 68 pack

——————–

Come on all you rich on paper Cdn RE land owners, BUCK UP.

You to Garth, My overly well healed Liege.

#32 ResidentPsych(o) on 03.18.22 at 5:18 pm

@Faron and SailAway,

Face it. You are addicted to each other.

It is in SailAway’s sociopathic nature to toy with the much more empathetic Faron. And Faron is trying to fix something with his unending, futile attempts to convince SailAway how morally bankrupt he is.

SailAway can’t change, but Faron can. However, first Faron needs to figure out what he’s really trying to fix, then maybe he’ll lose the urge to fix SailAway, and GT’s blog will no longer be host for their conjoined dopamine rush.

#33 Samyou on 03.18.22 at 5:20 pm

Garth: you never cover one element. immigration. that is whats driving this market. you keep forgetting. ask any realter you will hear the same argument. seems like dont have any counter argument for this.

Because it is not the driving influence. Immigration was seriously curtailed for two years and home prices went nuts. We are doing this, not newcomers. Realtors love scaring you into action. Typical. – Garth

#34 Sail Away on 03.18.22 at 5:31 pm

So, the latest round of SA dip-buying, which in this case was 4 buys throughout Jan/Feb/March, averaged out with Nasdaq ETF XQQ at 108.9. Lowest buy at 101.

+3.5% or so at market close today. If it dips again? Well, I’ll be a-buying…

TSLA since last buy at 854: +6%

Miners since August: +29% ish

Weathering the market blip quite suitably.

#35 AM in MN on 03.18.22 at 5:32 pm

I have compared the coming decade to the ’70’s before, but if it happens it’s going to take several years to get there.

Usually recessions happen when inventories pile up and demand is reduced, forcing production cuts and job losses. I’m not sure of a time in history when a recession was caused by shortages of everything, and a huge labour shortage.

The inflation won’t be curtailed until rates get above the inflation rate. That means never, given the kool-aid all of the Central Bankers (Planners) have drunk over the past 30 years.

Big demographic changes coming as well, sure to bring social strife. Be a good time to get closer to your family.

When boomers can cash out for $2M and pay no tax, but get “free” health care for the next 25-30 years, paid for by wage slaves, that isn’t a recipe for harmony going forward. Once money gets tight, society gets less loving!

#36 yorkville renter on 03.18.22 at 5:38 pm

definitely seeing homes re-listing in Etobicoke that failed to sell on offer night… it’s sad, actually, to see these already overpriced places ask for even MORE money than before.

#37 Reality is stark on 03.18.22 at 5:52 pm

Biden can call the CCCP all he wants. You can’t do a deal with the devil.
They’ll buy from the Russians through the back door at large discounts. They’ll continue to ignore intellectual property rights and they have their sights set on Taiwan.
One thing they won’t be happy about is a democracy in Russia.
That is the only time they will talk honestly with you. That’s when you tell them to start honouring intellectual property rights or your tariffs double.
It will be a protracted standoff in the Ukraine. A million female refugees here in Canada sounds about right.
We no longer have any demographic issues.
The CPP and OAS are safe for years to come.

#38 cuke and tomato picker on 03.18.22 at 6:02 pm

According to a person’s twitter I follow Subway has 446
locations in Russia and they are business as usual so they
suggest that we do not go to Subway here because they
have all the business they need in Russia.

#39 Bezengy on 03.18.22 at 6:04 pm

Higher interest rates.

An entire generation of boomers who will want, or need to downsize.

Governments that need to cut spending at all levels, including layoffs and forced retirement.

Inflation that continues to rise with no end in sight.

Government intervention increasing housing costs for investors, and implementing new rules for transparency exposing money laundering.

Municipal taxes rising.

New building continues at record pace, 250k this year alone.

I’m saying 25 percent reduction in a year, Moodys say housing is 90 percent overvalued, maybe it’s somewhere in the middle. One thing is for sure, anyone with a calculator can easily see the numbers don’t add up.

#40 Shirl Clarts on 03.18.22 at 6:04 pm

Robin Williams on the fragile meaning of life:

“…you’re only given a little spark of madness. And if you lose that, you’re nothing.”

“I went to rehab in wine country, just to keep my options open.”

“I don’t know how much value I have in this universe, but I do know I’ve made a few people happier than they would have been without me. And as long as I know that, I’m as rich as I ever need to be.” – Mork

“My father gave me this advice when I said I wanted to be an actor, he said have a backup profession like Welding.”

Full clip: https://youtu.be/FnrVk2InT3Y

#41 Søren Angst on 03.18.22 at 6:06 pm

#23 Sail Away

XQQ

Wow. 0.24% annual div yield paid semi-annually. YTD = -11.51%.

If you want to buy a loser Nasdaq 100 ETF (like I just dumped) at least buy one that gives you an annual div yield of

11.8% paid monthly

YTD = -6.46%

——————

And for all you Nickel fans:

https://finance.yahoo.com/news/lme-nickel-traders-awake-fresh-081514283.html#:~:text=The%20LME%20widened%20the%20limit,discover%20the%20true%20market%20price.%E2%80%9D

LME has limited daily drops on Nickel index to 12% from 8%. And ya, it dropped by those exact amounts past few days. Closed trading after limit loss.

#42 Yukon Elvis on 03.18.22 at 6:07 pm

#18 Faron on 03.18.22 at 4:24 pm
#160 Sail Away on 03.18.22 at 3:55 pm

So, I shouldn’t expect you to support your threadbare narrative about how the asset seizure of oligarchs will lead to national demonization of a nation’s citizens and eventual worse effects including the ultimate fade-out of the US dollar? Am I surprised you have embarked on multiple comments worth of logicish bafflegab rather than supporting your very flawed story? No. Is this the very epitome of right wing trope generation? Raise a specter then run away when it becomes shot through because it was made out of garbage? Yes. Good work.

Also not at all surprised to see you parrot, almost to the word (melania like) my defense of sometimes indefensible commenting frequency or duration. Sure bud, tidy up that echo chamber of yours. Stock up on the self pwns, tape some strings to the wall. Maybe use spraypaint. Prepare for battle. I’m sure your extremely perfect logic will be useful one day. LOL.
+++++++++++++
Paxil. Zoloft. Prozac. Think about it.

#43 Søren Angst on 03.18.22 at 6:08 pm

Because it is not the driving influence. Immigration was seriously curtailed for two years and home prices went nuts. We are doing this, not newcomers. Realtors love scaring you into action. Typical. – Garth

ABSOLUTELY.

Canada. Look in mirror.

#44 Doug t on 03.18.22 at 6:11 pm

Haha it’s ALL a dream – or is it a nightmare

#45 Ponzius Pilatus on 03.18.22 at 6:12 pm

#29 Housing on 03.18.22 at 5:09 pm
#Honest Realtor

It will be great for realtors. All the people moving from Ukraine have to either rent or buy. They have to live somewhere. More rental demand will lead to increase in rents. More demand for buying homes will lead to increase in home prices. Even if they rent now, they may buy in a few years leading to more bidding wars.

A million Ukrainian refugees are not coming. Give your head a shake. – Garth
———–
Of course not,
Merkel took in a Million Syrian refugees.
Canada took 25 K.

#46 ResidentPsych(o) on 03.18.22 at 6:30 pm

#42 Yukon Elvis on 03.18.22 at 6:07 pm
#18 Faron on 03.18.22 at 4:24 pm
#160 Sail Away on 03.18.22 at 3:55 pm

So, I shouldn’t expect you to support your threadbare narrative about how the asset seizure of oligarchs will lead to national demonization of a nation’s citizens and eventual worse effects including the ultimate fade-out of the US dollar? Am I surprised you have embarked on multiple comments worth of logicish bafflegab rather than supporting your very flawed story? No. Is this the very epitome of right wing trope generation? Raise a specter then run away when it becomes shot through because it was made out of garbage? Yes. Good work.

Also not at all surprised to see you parrot, almost to the word (melania like) my defense of sometimes indefensible commenting frequency or duration. Sure bud, tidy up that echo chamber of yours. Stock up on the self pwns, tape some strings to the wall. Maybe use spraypaint. Prepare for battle. I’m sure your extremely perfect logic will be useful one day. LOL.
+++++++++++++
Paxil. Zoloft. Prozac. Think about it.

=================
No. We need to stop medicalizing attackees of the empathetically challenged.

#47 Sail Away on 03.18.22 at 6:35 pm

#41 Søren Angst on 03.18.22 at 6:06 pm
#23 Sail Away

If you want to buy a loser Nasdaq 100 ETF (like I just dumped) at least buy one that gives you an annual div yield of 11.8%

——–

????

Why ever would you sell in the middle of a correction?

#48 VladTor on 03.18.22 at 6:37 pm

Garth….Remember that federal election six months ago that was all about housing affordability. Well, phffft. They lied.

***********

Garth,
reasonable people (like me – I want to praise myself!) we NEVER believed in their promises. How can you believe a party whose election promises were set out in a 150-page document? How could you believe the idiots who promised to build 1,000,000 houses in 5 years, and this is when the approval of the project of one house before the start of construction takes 4-5 years? And so on…

The main thing in modern Canadian elections is a lot, a lot of promises made in the form of a smart presentation. Who will check their performance before the next election, if all parties are basically the same?

#49 NOSTRADAMUS on 03.18.22 at 6:38 pm

FORMIDABLE OPPONENTS.
It’s about time we break our minds out of the realtor-media ” framing of houses only go up.”
The other side of the coin speaks a different lingo. Low prices on good quality houses are GOOD, not bad. They mean lower costs of living, a benefit for the majority of Canadians. They mean homebuilding is more economically efficient and less wasteful. Smaller mortgages (as a share of income) means lower financial leverage, less risk for individuals, and less cost to society since fewer people will be forced to declare bankruptcy in a job loss, injury, illness, or other health issues, and lets not forget marital issues.
The only people thinking houses should be ever-more -expensive are the ones trying to sell them, and the self serving ones hoping to trap you into a millstone of debt. Their reason, so you can pay them interest for the rest of your life.
Often overlooked, high home prices are a tax on the economy because people don’t have enough money left over to spend on other things. Having a life comes to mind.
The winners are finance and insurance, Real Estate agents, Provincial and municipal taxing authorities. And of course, the click bait media. The losers are all the wee little people in the rigged Real estate game. When you factor in the heavy hitting winners, the prospect of lower prices are truly facing formidable opponents.
Occasionally, one of my themes becomes an echo in the commenters section, I live for these moments. I am on my throne and I will not step down.

#50 Nonplused on 03.18.22 at 6:48 pm

“Maybe, just maybe, some common sense is returning to our nation.

Or am I dreaming?”

I’m going to go with dreaming. This isn’t common sense, it’s the wall. Even a tree doesn’t grow to the sky.

People would be paying $2.8 million in one year if they could, but they can’t. At some point you can’t even amortize a zero interest loan.

#51 Sail Away on 03.18.22 at 6:51 pm

#30 Faron on 03.18.22 at 5:11 pm

You once were infuriating, but it’s now clear you are merely pathetic.

——–

Name-calling.

Please locate your level on the attached debate pyramid:

https://debatepyramid.ca/

#52 crowdedelevatorfartz on 03.18.22 at 6:54 pm

@#45 Ponzies Population problems
“Merkel took in a Million Syrian refugees.
Canada took 25 K”
++++

Don’t forget
…..and 1 Austrian…

#53 Hass say yhoo on 03.18.22 at 7:01 pm

This has been happening all over this country. Does Canada end with the Nova Scotia shore or is there a province beyond its shores? Newfoundland and Labrador is Britain’s oldest colony and Canada’s youngest Province .. that is correct right?

#54 Dr V on 03.18.22 at 7:29 pm

38 Cuke

Twitter? Really?

Interesting read here. I would think that many business arrangements in Russia are similar.

https://ca.finance.yahoo.com/news/why-burger-king-locations-are-still-open-in-russia-165602968.html

Alicja Siekierska is a Senior Reporter for Yahoo Finance Canada. She previously worked as a reporter at the Financial Post, Toronto Star and Globe and Mail.

#55 Quintilian on 03.18.22 at 7:33 pm

“Mortgage brokers found a quarter of people cannot handle even a small increase in their monthly overhead”

This is a point is worthy of some attention because the “honest realtors” on this blog will say that existing homeowners qualified past the stress test so a rise in rates won’t be an issue.

Of course, their world has changed since they qualified. The cost of living has surged ahead way past any wage increases, and most of them have racked up additional debt.

I envision signs of the start of the unwinding will be the second SUV’s up for sale, or “just take over the lease”.
But hey, the upside is they will have lots of time to read on the train commutes.

Tick Tock, Tick Tock

#56 PeterfromCalgary on 03.18.22 at 7:39 pm

As long as interest rates are below the inflation rate borrowing money is still free.

I don’t think Jerome Powell will have to take as drastic an action as Paul Volcker did when he raised the Federal Funds rate to 20 percent in June of 1981. However, I do believe Powell will have to take the “drastic action” of raising interest rates to about the inflation rate.

I put “drastic action” in quotes because historically interest rates above the inflation rate has not been unusual. See the chart below.

https://www.longtermtrends.net/real-interest-rate/

#57 Philco on 03.18.22 at 7:40 pm

#163 willworkforpickles on 03.18.22 at 5:03 pm
#135 Philco & #144 I don’t know

You two are just too far out in left field with your obvious reading comprehension deficit disorders for me to go on responding to your nonsensical comments.
You Philco especially have taken what i have actually said well out of context with your reading comprehension mish-mashs. And you, I don’t know, with that selective reading problem of yours.
=====================================
LOL
You can go on and on about nothing.
I spent 20 years talking to Money managers that don’t talk to you unless you cranking a million dollar cheque. Some great some shitty. Ive watched most go over a cliff in the many meltdowns accept ONE manager that was in cash in a few of the crashes.
You are the one that continues to EDUCATE on where we are going?
Believe me you that you don’t know.
You or I can’t call it. But when we get close to the next poof Ill likely be out. Just like 2020 Feb I was 100% cash.
Don’t you have better things to do? How much are you getting paid?
Peace out. KNOW ONE KNOWS ANYTHING FOR SURE.
Put it on the fridge.

#58 Philco on 03.18.22 at 7:44 pm

#163 willworkforpickles on 03.18.22 at 5:03 pm
=======
Idiot I am…….U work for pickles! I got a huge jar.

#59 Jack on 03.18.22 at 7:44 pm

Bank of Canada, inflation hits 1991 high maybe higher near 6% and GIC, government bond rates in the 3% to 3.5% not 11% to 13% like back in 1991. You can fool some people some of the times but you can’t fool all people all the time.

#60 Airfix on 03.18.22 at 7:54 pm

#38 cuke and tomato picker on 03.18.22 at 6:02 pm

Maybe go back to your usual Hallmark drivel, at least it is less damaging than your latest post.

Your local Subway is a franchise, likely owned by an entrepreneur in your community, why penalise them after their challenges of the last 2 years?
Nothing to do with Russia.

#61 When Will They Raise Rates? on 03.18.22 at 7:55 pm

#33 Samyou on 03.18.22 at 5:20 pm

Garth: you never cover one element. immigration. that is whats driving this market. you keep forgetting. ask any realter you will hear the same argument. seems like dont have any counter argument for this.

Because it is not the driving influence. Immigration was seriously curtailed for two years and home prices went nuts. We are doing this, not newcomers. Realtors love scaring you into action. Typical. – Garth

——————–

The average newcomer arrives with less than a down payment. It takes them years to enter the housing market, so the curtailment of immigration wouldn’t have had a significant effect on the market over the past 2 years… The effect will be on future demand… To conclude that immigration isn’t a driving influence based on the last 2 years is a fallacy.

There is zero statistical evidence to show new immigrants drive the Canadian real estate market. Total myth believed by lazy minds and xenophobes who can’t face the truth. – Garth

#62 ResidentPsych(o) on 03.18.22 at 7:56 pm

#51 Sail Away on 03.18.22 at 6:51 pm
#30 Faron on 03.18.22 at 5:11 pm

You once were infuriating, but it’s now clear you are merely pathetic.

——–

Name-calling.

Please locate your level on the attached debate pyramid:

https://debatepyramid.ca/

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

More projecting. Fascinating how the sociopathic mind works.

#63 Flop… on 03.18.22 at 7:59 pm

How are we going to negotiate a peace deal to make all this carnage and misery end?

Not talking about Ukraine and Russia, talking about Faron and Sail Away…

M47BC

#64 Midnight’s on 03.18.22 at 8:00 pm

DELETED

#65 I don’t know on 03.18.22 at 8:03 pm

Rising interest rates are going to make affordability worse, not better.

Some buyers may be throwing in the towel, but only because they can’t afford anything that they want (which is almost always a SFD in an urban area).

What will happen is only buyers who can afford higher rates and higher prices will win bids for homes, of which there aren’t enough on the market.

Result: continued rising prices and worse affordability for SFD in urban areas. Condos and SFD in far flung areas may stagnate.

As always, you buy real estate the moment you can afford to (and a b and d portfolio is absolutely crucial). Sitting in cash hoping for a stock/real estate crash? Bad idea. Worse idea moving forward.

IDK

#66 Observer on 03.18.22 at 8:12 pm

Russian President Vladimir Putin used a rally before a packed soccer stadium on Friday to justify the invasion of Ukraine, promising tens of thousands of people waving Russian flags that all the Kremlin’s aims would be achieved.

“We know what we need to do, how to do it and at what cost. And we will absolutely accomplish all of our plans,” Putin told a rally at Moscow’s Luzhniki Stadium.

^^^^^^^^^^^^^^^
What a patriot! We need more of this attitude in the USA and Canada. Hopefully 2024 will get us on the ‘right’ foot. /s

https://www.cbc.ca/news/world/putin-ukraine-russia-moscow-1.6389517

#67 willworkforpickles on 03.18.22 at 8:16 pm

Garth … NO you are not dreaming.
We haven’t agreed on much lately, but I agree with everything you said today except for your last line.
… By what I have researched (economy related) and now know is coming , you indeed are not dreaming. No question mark needed. Just two letters in place of it will suffice…N O.

#68 Faron on 03.18.22 at 8:21 pm

#32 ResidentPsych(o) on 03.18.22 at 5:18 pm

Sounds about right. Me, I struggle with perfectionsism and asking for too much perfection from others. Or even a cogent debate in this case.

#69 Shawn on 03.18.22 at 8:22 pm

Should you pay income tax on the gains made from PREVIOUSLY TAXED income?

Of course you should.

What other kind of income except previously taxed income would you have? Black market cash income maybe?

Consider that in an RRSP or Pension plan that money was invested with pre-tax (not yet taxed) dollars.

So, you pay full tax on the income taken out of RRSPS and received from pension plans.

Not only do you pay full tax on the portion of your RRSP withdrawal that came from capital gains and dividends but you pay full tax (just like employment income) on the portion that represents your original contributions.

Why? Because all that money was never previously taxes. I have no complaint about it.

In contrast in a taxable investment account funded with after-tax (previously taxed) dollars you get to withdraw your own contributions of course tax free. (Fair but unlike in the case of pensions and RRSP where those are taxed.) AND you get capital gains taxed at HALF the normal rate and dividends taxes favorably. WHAT A DEAL. And yet some suggest that this should not be taxed at all since it is gains from previously taxed dollars. That’s wishful and wrong-headed thinking.

The TFSA is an even better deal of course. Completely tax free because???

Point is, we investors are getting a heck of a deal. Better not complain too much.

#70 Moses71 on 03.18.22 at 8:23 pm

Still saying Alberta is a wild card and beating to its own drum as it’s still years behind in appreciation and even a 5% 5-yr fixed is affordable. Don’t think Alberta can be rolled into the rest of the Canadian real estate premonitions

#71 Felix on 03.18.22 at 8:23 pm

A big headwind against human success is the fetish some have for dogawful canines.

Did you know:

A house cat’s genome is 95.6 percent tiger, and they share many behaviors with their jungle ancestors, says Layla Morgan Wilde, a cat behavior expert and the founder of Cat Wisdom 101. These behaviors include scent marking by scratching, prey play, prey stalking, pouncing, chinning, and urine marking.

It turns out that Abraham Lincoln was a crazy cat president! He had four cats that lived in the White House with him.

Happy Feline Friday!

#72 willworkforpickles on 03.18.22 at 8:35 pm

#57 Philco

Why don’t you slow down when you read?
Read again until you comprehend what was actually said instead of going off on a tangent before having grasped the actual content.
Some of you remind me of the character of Rosanne Rosanna Dana from Saturday night live from the late 1970’s as her skit was going off on a tirade over what she thought she heard instead of what was actually said.

But carry on with this reading comprehension problem of yours if there’s no intent there to fix your little problem… but if nothing more than for the comedy effect of it all.
I have to say though, Gilda Radner (GRHS) who did the Rosanne character was far funnier.

#73 Philco on 03.18.22 at 8:45 pm

DELETED

#74 Sail Away on 03.18.22 at 8:54 pm

#32 ResidentPsych(o) on 03.18.22 at 5:18 pm
@Faron and SailAway,

Face it. You are addicted to each other.

It is in SailAway’s sociopathic nature to toy with the much more empathetic Faron. And Faron is trying to fix something with his unending, futile attempts to convince SailAway how morally bankrupt he is.

SailAway can’t change, but Faron can. However, first Faron needs to figure out what he’s really trying to fix, then maybe he’ll lose the urge to fix SailAway, and GT’s blog will no longer be host for their conjoined dopamine rush.

———

For the sake of argument, let’s assume your assessment is accurate. Wouldn’t it be sort of ironically amusing if I and my corporation(s) were providing far, far more to charities, the Canadian economy, and support of humanitarian initiatives than F is capable of?

I find this funny. Do you see the humour? My favourite dog training writer, Bill Tarrant, says: ‘Mr. Moneybags makes it all happen. Respect.’

Ah. It’s been a good day. Ever since 4 am. Off for a dog run.

#75 dragonfly58 on 03.18.22 at 9:03 pm

# 45 Ponzius, … Garth, I am not saying that for sure a million Ukraine people will come to Canada. But I can see no reason why that will not ultimately come to pass.
The Russians in war are a slow motion steam roller, just look at previous examples over the last 40 years.
Millions upon millions of Ukrainians may eventually be driven out of their country. I would say a million coming to Canada, while somewhat unlikely, remains a definite possibility.

#76 willworkforpickles on 03.18.22 at 9:06 pm

What would we do without the message board soap opera leading characters Faron and Sail Away .?
Like any good soap, most would miss it without them.

#77 Rt0022 on 03.18.22 at 9:20 pm

“John Pasalis (who hates me)….lol, gets me every time!

#78 Well travelled on 03.18.22 at 9:31 pm

Just wait for 30, or even 35, year mortgage periods to be back on the table.

#79 crowdedelevatorfartz on 03.18.22 at 9:38 pm

Ahhh yes.
Beautiful British Columbia if you’re one of the 390,000 unionized govt employees who’s contract expires March 31st.

The year of the strike?
BC GEU, teachers, etc etc etc.

A 5% increase in salary spread out over 3 years ( The unions want 5% THIS year) will cost another $10 BILLION dollars.

Say bye bye to forest fire money, flood money, highways, bridges etc etc etc…

Oh, speaking of roads.
The strange and terrible saga of a main commuter route continues.

The 4 lane Deas tunnel, built with great fanfare…in 1959…. (which is a major, twice daily bottleneck, every commuter south of the Fraser River loathes)….has once again been dragged out to dangle in front of gullible voters in an announcement.

Yes, the former govt of Christy Clark promised us ” a new 10 lane bridge” a year before the election they lost…..

So the NDP cancelled the Liberal bridge idea and have now announced the 4 lane tunnel will be replaced in 2030 by an 8 lane tunnel ( of which two lanes will be dedicated bus lanes)…

6 traffic lanes + 2 bus lanes to replace the 4 inadequate lanes that are now clogged twice daily to serve Richmond, Delta, South Surrey, BC Ferries terminal, the Fraser container ship docks and, much more importantly, the US border crossing at Blaine.

So, 30 or 40 years after a new or much wider south Fraser crossing was desperately needed…..we get an 8 year promise of an expensive, inadequate, undersized tunnel that may, or may not, actually get built and will be jammed with traffic from the day it opens ….in….2030?.

#80 Barb on 03.18.22 at 9:53 pm

Dotty looks very well indeed for a 14.5 year old buddy.
Bright eyes and alert, he’s a beauty.

One reason for the sales / listing decline is that people who qualified for mortgages a year ago and could afford a house have now bought. Those who remain might not have qualified even at lower prices/lower interest rates, and should never have been looking to buy in the first place.

#81 Ponzius Pilatus on 03.18.22 at 10:04 pm

When I watch the refugees (2.5 millions so far) streaming into NATO countries, nary a mask in sight.
Coming from one the lowest vax countries in Europe,
With Germany having 250,000 infections a day.
What can go wrong.
Guten Tag, Herr Zelensky.
Leader of the Free World!

Why did you not get your country man vaccinated?

#82 Peter in Toronto on 03.18.22 at 10:27 pm

DELETED

#83 Outrage on 03.18.22 at 10:33 pm

I see real estate and renting in Canada is so unaffordable which is all government planned. Why not make 1,000,000 immigrants allowed in Canada to make it worse. Canada doesn’t need any immigrants ,its all designed to make life miserable for its citizens. We should have immigration like Switzerland or Japan ! Life in Canada would be much better under these policies.

#84 Flop… on 03.18.22 at 10:37 pm

Mapped: Global Happiness Levels in 2022.

No prizes for guessing that Ukraine is the least happiest country in Europe.

Finland number one again.

Canada rates as 7.0 on the blisster-scale.

Australia comes in at 7.2, surely that extra 0.2 is weather related.

I’ll split the difference, next time someone asks how I am , I’ll tell them I’m a peachy 7.1…

M47BC

https://www.visualcapitalist.com/mapped-global-happiness-levels-in-2022/

#85 When Will They Raise Rates? on 03.18.22 at 10:40 pm

There is zero statistical evidence to show new immigrants drive the Canadian real estate market. Total myth believed by lazy minds and xenophobes who can’t face the truth. – Garth

———————

The fact that new immigrants generally represent future demand is self evident.

What statistical evidence do you have that immigrants don’t work hard and eventually save enough to enter the housing market like every other Canadian? Of course they do, just not right after they arrive. (They have on average $20,000 after relocation costs when they get off the plane)

And what does xenophobia have to do with this? Geeze.

#86 Barb on 03.18.22 at 10:48 pm

#79 crowded…

“The year of the strike?
BC GEU, teachers, etc etc etc.”
——————————-
Teachers? You can’t be serious!
They’re hardly at work in B.C. anyway.

A couple of weeks ago, they worked TWO days the week of Family Day (coz Thurs and Fri were “vacation” days).
And professional “development” days on and on…

Now it’s TWO WEEKS spring break.
For comparison, WA state spring break is ONE week.

Maybe we can all receive tax credits to hire tutors for our kids and grandkids.

#87 Shawn on 03.18.22 at 11:01 pm

Yes, It’s Good to Be Alberta Bound!

#70 Moses71 on 03.18.22 at 8:23 pm

Still saying Alberta is a wild card and beating to its own drum as it’s still years behind in appreciation and even a 5% 5-yr fixed is affordable. Don’t think Alberta can be rolled into the rest of the Canadian real estate premonitions

***************************
True, if you can’t afford a house in your province, slide on over to Alberta. Make that horizontal move.

#88 Great Bear on 03.18.22 at 11:02 pm

I wrote three posts over the past several months, one very recently, about Trudeaus ‘Absent Arctic Strategy’, and how the U.K. had stepped in to patrol when Trudeau wouldn’t. I got Poo- Poo Censored for every effort, and now it’s mainstream. It’s a fact , Trudeau has next to zero presence in the Canadian Arctic to the extent that NATO members are concerned and having to step in to do what Trudeau can’t bring himself to do. He’s a big spender elsewhere, but no North Strategy and not a single new hospital on his watch!!!!

https://nationalpost.com/news/politics/russias-invasion-has-ottawa-looking-to-protect-our-arctic-sovereignty

Hey, just because I’m ahead of you on this file doesn’t mean Canada isn’t in Russian and Chinese sights as a weak easy takeover because of weak easy leadership.

#89 THE DANDADA on 03.18.22 at 11:05 pm

Or am I dreaming? …… YUP

I know plenty of whipper-snappers trying to get me to “invest” in a property with them..as of yesterday.

#90 Shawn on 03.18.22 at 11:05 pm

Crowded Elevator Fartz said:

6 traffic lanes + 2 bus lanes to replace the 4 inadequate lanes that are now clogged twice daily to serve Richmond, Delta, South Surrey, BC Ferries terminal, the Fraser container ship docks and, much more importantly, the US border crossing at Blaine.

*************************************
$3.00 gasoline might solve the problem. If not they could try $4.00 plus obviously a toll to use the existing tunnel.

Road tolls are user pay. No free marketer can argue with that?

#91 When Will They Raise Rates? on 03.18.22 at 11:07 pm

#81 Ponzius Pilatus on 03.18.22 at 10:04 pm

When I watch the refugees (2.5 millions so far) streaming into NATO countries, nary a mask in sight.
Coming from one the lowest vax countries in Europe,
With Germany having 250,000 infections a day.
What can go wrong.
Guten Tag, Herr Zelensky.
Leader of the Free World!

Why did you not get your country man vaccinated?

————————-

The fact that they’re letting millions of unvaxxed refugees into their countries shows you how much they care about omicron…

It’s over, even here… Tam sealed the deal today:

“Canada’s top doctor says the Omicron variant is a ‘game-changer’ that has forced a rethink of vaccine mandates”

https://www.cbc.ca/news/politics/tam-federal-vaccine-mandates-under-review-1.6389844

^ read the comments, the anti-vaxxers are having a field day

#92 Peter in Toronto on 03.18.22 at 11:10 pm

DELETED (Anti-vaccine)

#93 PeterfromCalgary on 03.18.22 at 11:47 pm

DELETED (Racist)

#94 tkid on 03.18.22 at 11:58 pm

Saw a house this week with mold in the ceilings of the bedrooms and ceilings. Massive water damage in the basement. Kitchen and bathroom needed gutting. Tiny front and back yard.

Realtor reported they had 9 offers come in already, expected more, and in an area where $200,000 was the norm two years ago, they expected over $550,000 for the sale price.

The insanity in the real estate market ain’t over yet.

#95 Ponzius Pilatus on 03.19.22 at 1:38 am

More news coming out about Zelensky.
From teacher to President.
Sounds familiar, does it not CEF.

#96 SoggyShorts on 03.19.22 at 1:41 am

(Mortgage brokers found a quarter of people cannot handle even a small increase in their monthly overhead.) -GARTH
******
1/4 of people, or 1/4 of people with a mortgage? If it’s the later, why the hell are they getting approval?

#97 Sail Away on 03.19.22 at 5:44 am

#68 Faron on 03.18.22 at 8:21 pm

Me, I struggle with perfectionsism

———

‘perfectionism’

#98 crowdedelevatorfartz on 03.19.22 at 7:42 am

@#90 Shawn of the brain Dead
“Road tolls are user pay. No free marketer can argue with that?”
+++

Well, considering that the bridges, tunnels, etc were built with tax money already collected from the sheeple…. whatever.
Careful what you wish for.
Do you think a toll will stop at one tunnel?
Lots on municipalities said they would never allow Casinos until they saw the revenue gambling brought in.
I hope you also enjoy expensive fresh fruit and salad from California in winter.
Because those high gas prices , and trucking tolls will be passed right back to….you.

:)

#99 crowdedelevatorfartz on 03.19.22 at 7:48 am

@#86 Barb
“Maybe we can all receive tax credits to hire tutors for our kids and grandkids.”

+++

I don’t think its any secret that more and more families are paying extra money to pull their kids out of politically correct toxic minefield of the public school system to allow their kids to focus on ‘Reading, writing and arithmetic”… rather than gender neutral pronouns.

There’s still a few teachers left in the public system leaning into the Woke wind….. with or without the Union’s blessing

https://vancouver.citynews.ca/2022/02/15/vancouver-teachers-lgbtq-poster/

#100 Stone on 03.19.22 at 7:51 am

A pretty good week for my wonderful balanced and diversified portfolio.

– Year to date high: 1.24% (January 17th, 2022)
– Year to date low: -4.10% (March 8th, 2022)
– Current YTD return: -0.63% (March 18, 2022)

I wonder if it’ll be back in a positive position next week?

I had some cash from dividends sitting in the non-registered account and decided to buy some ZPR January 18th, 2022 at $11.06. By end of day, ZPR was at $11.18 and my overall allocation of ZPR sits at 25.36% of my B&D portfolio.

No matter what goes on in the world, internationally or more close to home, a disciplined approach to investing, not gambling, always works.

I love having a B&D portfolio.

#101 crowdedelevatorfartz on 03.19.22 at 7:52 am

Me, I struggle with perfectionsism

———

‘perfectionism’

++++

Classic.
That ought to get the perfectionist tea kettle to boil over…

#102 crowdedelevatorfartz on 03.19.22 at 7:58 am

@#95 Ponzies’ potential Presidential

“More news coming out about Zelensky.
From teacher to President.
Sounds familiar, does it not CEF.”

+++

Yes.
Amazing.
He was so underemployed as a teacher he became an actor and comedian….then President..
But try as I might.
I cant think of one accountant with the charisma required to reach the executive office….anywhere….ever…

#103 Stone on 03.19.22 at 8:02 am

#96 SoggyShorts on 03.19.22 at 1:41 am
(Mortgage brokers found a quarter of people cannot handle even a small increase in their monthly overhead.) -GARTH
******
1/4 of people, or 1/4 of people with a mortgage? If it’s the later, why the hell are they getting approval?

———

Yeah, I thought the same thing. Just total insanity. Do you really want to know the answer?

Understand that anyone calling themselves a mortgage specialist is commission based.

Real estate agents are also commissioned based.

Do real estate agents have their customer’s best interest at heart or their own?

What does that say about mortgage specialists?

Was that a mic drop moment?

#104 Philco on 03.19.22 at 8:39 am

#29 Housing on 03.18.22 at 5:09 pm
#Honest Realtor

It will be great for realtors. All the people moving from Ukraine have to either rent or buy. They have to live somewhere. More rental demand will lead to increase in rents. More demand for buying homes will lead to increase in home prices. Even if they rent now, they may buy in a few years leading to more bidding wars.

A million Ukrainian refugees are not coming. Give your head a shake. – Garth
====================
HAHAHA AMEN Garth.
AIR head comes to mind, also my assessment from your prior posts. People actually use you?
Some many things come to mind to little time to write.

#105 Philco on 03.19.22 at 8:50 am

#72 willworkforpickles on 03.18.22 at 8:35 pm
======================
Firstly who has time to read all your content?
You must be very bored.
Anyone that professes to predict the future of the economy is a false profit.
Its not doable and you keep trying to do so.
That’s why the majority need a B&D.
Also their people that talk and people that do. Maybe your the prior?

#106 Prince Polo on 03.19.22 at 9:32 am

#5 IHCTD9 on 03.18.22 at 3:51 pm
Canadians have somehow become absolutely stupid. A good old fashioned ass-kicking will restore some common sense.

Unfortunately, old-fashioned won’t do. Alas, we will need biblical proportions now to get Canadians back to “normal” common sense.

#107 Ponzius Pilatus on 03.19.22 at 9:41 am

#94 tkid on 03.18.22 at 11:58 pm
Saw a house this week with mold in the ceilings of the bedrooms and ceilings. Massive water damage in the basement. Kitchen and bathroom needed gutting. Tiny front and back yard.

Realtor reported they had 9 offers come in already, expected more, and in an area where $200,000 was the norm two years ago, they expected over $550,000 for the sale price.

The insanity in the real estate market ain’t over yet.
———————-
They used to be called “grow-op” specials.
Every landlord’s nightmare.

#108 Linda on 03.19.22 at 9:42 am

#35 ‘AM’ – what is it with the boomer bashing? First, not all boomers own homes & even the ones who do are not all of them likely to ‘cash out’ for $2 million+. In fact, seems like your fellow boomer bashers are grumpy because those geezers aren’t dropping dead sooner so their housing is freed up for the use of others. As Garth has noted in not a few posts, the issue is getting those older folks to sell in the first place.

Second, the boomers have paid taxes all their working lives & continue to do so even in retirement. Even CPP/OAS is taxable income. Sure, the amount paid is less, but so is the income. Retirees generally do not earn the same income in retirement that they had while working. The lower tax bracket ‘enjoyed’ by many retirees is due to their lower income.

As for health care, who do you think funded the health care system all these years? Could the millions of Boomers who paid taxes, built the hospitals in the first place & staffed them too have anything to do with it? Who do you think did fund/pay tax/build/work in said institutions prior to this? Aliens? As for ‘free’ health care, most retirees I know pay for additional health care coverage because the ‘free’ health care coverage for seniors doesn’t really cover much in the way of services. Friend of mine who is retired is paying $305 per month for additional coverage; many pay more depending on their medical needs. You may wish to examine the actual coverage provider as you yourself age; you may find that what you get isn’t going to provide the level of care you may need. Alternatively stay healthy. Good luck!

#109 Ponzius Pilatus on 03.19.22 at 9:53 am

#98 crowdedelevatorfartz on 03.19.22 at 7:42 am
@#90 Shawn of the brain Dead
“Road tolls are user pay. No free marketer can argue with that?”
+++

Well, considering that the bridges, tunnels, etc were built with tax money already collected from the sheeple…. whatever.
Careful what you wish for.
Do you think a toll will stop at one tunnel?
Lots on municipalities said they would never allow Casinos until they saw the revenue gambling brought in.
I hope you also enjoy expensive fresh fruit and salad from California in winter.
Because those high gas prices , and trucking tolls will be passed right back to….you.

:)
———————-
The Golden Ears and the new Port Mann bridges were P3s.
If memory serves, Golden Ears was a French contractor and Port Mann was German.
Courtesy of Christy Clark, and Horgan removed the tolls to get the Fraser Valley and Surrey vote.

#110 The joy of steerage on 03.19.22 at 10:13 am

#97 Sail Away on 03.19.22 at 5:44 am
#68 Faron on 03.18.22 at 8:21 pm

Me, I struggle with perfectionsism

———

‘perfectionism’
….

Ok, sailor boi wins…… now would the two of you children just go bugger off….

#111 Philco on 03.19.22 at 10:47 am

#106 Prince Polo on 03.19.22 at 9:32 am
#5 IHCTD9 on 03.18.22 at 3:51 pm
Canadians have somehow become absolutely stupid. A good old fashioned ass-kicking will restore some common sense.

Unfortunately, old-fashioned won’t do. Alas, we will need biblical proportions now to get Canadians back to “normal” common sense.
=======================
As mentioned before, shut down the internet. Problem solved. You don’t even need to get a DUMB phone and FB dies along with the other flash in the pan trash.

#112 Don on 03.19.22 at 10:58 am

Linda if we (funded)healthcare we would not be running a deficit.

#113 Sail Away on 03.19.22 at 11:02 am

#110 The joy of steerage on 03.19.22 at 10:13 am
#97 Sail Away on 03.19.22 at 5:44 am
#68 Faron on 03.18.22 at 8:21 pm

Me, I struggle with perfectionsism

———

‘perfectionism’

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Ok, sailor boi wins…… now would the two of you children just go bugger off….

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Mostly self defense from me… with, admittedly, that final nondefensive killing blow.

I’ve tried turning the other cheek, but it doesn’t work.

Judicious use of force is sometimes required to neutralize an attacker. I’ll accept 12% of the liability.

#114 willworkforpickles on 03.19.22 at 11:36 am

#105 Philco
“Anyone that professes to predict the future of the economy is a false profit.”
……………………………………………………………………………………………………….

As I have said a number of times on this site , I don’t make predictions. Predictions are mostly guesses maybe even premonitions backed up by mostly nothing of contentual significance.

I spend the time doing the research to come to the conclusions to make the projections i can and have.

I’m still battin a thousand as they continue to unfold.

When my projections stop coming to pass by any significant degree , I’ll quit.

I have the confidence through doing the extensive research i do that my coming projections will keep coming to pass … or i would have never started making them to begin with.

Those who don’t do the research don’t see it because they don’t do the research.

Without knowing how to, where or what to research , cutting edge developments remain obscured until they reach the mainstream. Often what i post here isn’t common mainstream knowledge as of yet, contrary to what some just think they already know.

No one has to believe the projections i make as they come to pass if they chose not to. Not in the deluded worlds of those who can’t see past their ass anyway.

#115 Dharma Bum on 03.19.22 at 11:48 am

#38 Cuke picker

According to a person’s twitter I follow Subway has 446
locations in Russia and they are business as usual so they
suggest that we do not go to Subway here because they
have all the business they need in Russia.
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There is a very serious reason that you should not go to Subway, and it has nothing to do with Russia.

If you value your physical health in any way, you should avoid eating at Subway. (Or all “fast food” and “junk food” for that matter.)

https://news.yahoo.com/breaking-subway-just-unhealthy-mcdonald-185710202.html

https://www.cbc.ca/news/business/marketplace-chicken-fast-food-1.3993967

Poison.

#116 Satori on 03.19.22 at 12:38 pm

#79 crowdedelevatorfartz on 03.18.22 at 9:38 pm
Ahhh yes.
Beautiful British Columbia…
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Ahhh yes. And let us not forget, we are still paying for the 2010 Olympics and the THREE Fast Cats that cost taxpayers $450 Million EACH and then were sold for 500,000 dollars to the United Arab Emirates….because they couldn’t handle BC waters.
Beautiful.

#117 dragonfly58 on 03.19.22 at 1:20 pm

Actually Satori, I think it was not so much that the Fast Cat’s couldn’t handle B.C. waters as they couldn’t handle B.C. politics.

#118 Satori on 03.19.22 at 2:53 pm

#117 dragonfly58
True, unfortunately, very true!

#119 William on 03.19.22 at 4:57 pm

Jack, this is why I retired early and my wife never took a paying job out of the household. She helped me save a lot of money from groceries and taking care of the household, kids etc. This was her job. My job was to work 32 years as an accountant/financial consultant.

We worked very well together and still do. The final result, to well adjusted, grown, successful sons that have now their own family. We retired earlier in 2019. We planned very well, my RRSP, spousal RRSPs, my TFSAs, her TFSAs, RESPs for the kids, they used them all up paid for all of their education. Now, I am 57 and she is 56, we both have a not to big house, worth $700,000, no debt of any type, 1 fully paid car, 4 years old and RRSPs, TFSAs, non-registered GICs all bringing in $55,000 a year interest this year but builds up by $1,500 more a year, $62,500 by 2027. Most of this interest income is 75% is tax deferred, tax free so our income taxes are low. We only need 35% of this for living expenses, taxes etc. We have an emergency fund, yearly laddered GICs until 2025, $65,000 which is roughly 36 months of yearly expenses, taxes etc.

I am glad I retired at 54 and now for 3 years we are living a decent retirement. In 3 years for me I will get my $10,000 a year early CPP retirement payments which will help us live much better. Good thing we planned ahead for many decades as I would hate to work another 10 years for nothing.