Bleeding out

Why are house prices falling fast where they climbed with gay abandon?

Dominoes.

Buyers are unable to complete contracts because their appraisals came in light and they lack the cash to make up the difference. Or they clearly understand they were greater fools and paid too much. Or they’re scared. Or naïve. In any case, a deal that doesn’t close is probably on a house the sellers of which made a purchase elsewhere and require the funds to complete their own contract. So, when one party fails to meet their obligation, many others and millions of dollars in various property deals can be affected. Instantly. The same day. Dominoes.

The lawyers are busy now with breaches, whereas four months ago they were struggling with a torrent of closings. It’s the inevitable backwash of a market that lost its mind. Blind bidding, competing offers, over-ask prices and sheer emotion trapped many. People who in February thought if they did not buy they’d never be able to afford a house are now consumed with buyer’s remorse. Many are carrying hundreds of thousands in extra, needless debt – all to renew at higher rates – because they bought while listening to their pants, and not their brains (or this blog)

Okay, remorse. Dominoes. Breaches. Now what does this mean for people caught in the collapse?

First, every buyer needs to know an accepted offer is not just a real estate thingy you can walk away from. It’s a contract. Legally binding. You break it, you pay a price. Potentially a really big one.

In short, a buyer in breach is responsible for paying all of the costs incurred by a jilted seller, which might mean legals, mortgage payments until it’s sold again, property taxes, etc. – the works. Plus when the property sells a second time (presumably for far less) the difference between the original offer price and the selling price forms part of the damages. Naturally, the deposit is lost in this process. It may go to pay part of the damages. It might be claimed by the real estate broker in lieu of commission. But, she’s gone.

In no instance should a buyer expect to get that deposit back. In fact the brokerage holding it cannot move the money (legally) from its trust account until both buyer and seller sign a mutual release form. And that’s not gonna happen.

By the way, damages can be a lot more if the seller already bought another home and has incurred moving expenses or bridge financing costs. The final bill could be huge, and there is no escape – except moving to Chile at midnight or declaring bankruptcy, which can destroy not only a credit rating but also a career (or marriage).

Now, thousands of these failed deals are in the pipeline at the moment. What can be done to mitigate some of the damage to both parties?

If you’re the betrayed seller, the property should be listed immediately, and at a realistic market price. This will show that you took steps to find another buyer before the market crumbled further, thereby reducing potential financial fallout.

Obviously you can renegotiate the terms of the original deal. It’s likely cheaper, and a helluva lot quicker, to shave the price down in order to obtain a closing, than it is to fight. Water in the wine. You probably sold at a stupid price anyway. Grow up.

Alternatively, if your buyer isn’t closing because the bank didn’t cough up enough in mortgage funds, consider offering financing relief. A vendor take-back mortgage means less cash for the seller on closing day, but it results in a financial asset paying 7-8%, secured by real estate. Not so bad. For the buyer it can spell huge relief.

Another option is to extend closing. Spell out to the buyer the immense potential cost of not closing, and give them a little time (a few days, a week) to go crawling to Mom or a credit union or sleazy subprime mortgage dude for more money. Naturally, you should have a nasty solicitor, adroit in scaring the crap out of unsuspecting ingenues. They love doing that.

Finally, it’s in the best interests of both buyers and sellers to find a way to close. Buyers need to grasp the enormity of not doing so. Sellers must accept it’s a better outcome to get less or compromise on cash flow than to litigate. The more people there are standing between buyer and seller – agents, brokers, lawyers – the lower the odds of escaping bad consequnces.

I’ve never bought a property without opening up a personal relationship with the seller. I’ve never sold to someone without getting to know them. Realtors usually hate that. Which tells you something.

About the picture: “This is Nio our 8 month old lab/mastiff,” writes Matt from Ontario. “I named her after my fav china EV play after a quick triple but tell people I’m a matrix fan to get less weird looks.”

80 comments ↓

#1 Ben on 07.08.22 at 3:37 pm

Please God let me be 1st

#2 Sovavia on 07.08.22 at 3:43 pm

Aversion to Loss plus Leverage equals Trouble.

#3 I’m stupid on 07.08.22 at 3:47 pm

Am I the only crazy one to think that a buyer agent should get full commission if their buyer walks? The way I see it… if the buyer has a 100k deposit the agent should get 2.5% of 100k. If the agent wants full commission they should sue their client separately.

#4 Søren Angst on 07.08.22 at 3:51 pm

Garth, you’re a good Mom to the feckless Cdn RE infected masses many of whom now are finding themselves in Law Office/Court ICU.

THE 2022 Pandemic, Made in 🍁 eh?

—————–

Off Topic – Elon again.

“Twitter is ready for a legal battle to force Elon Musk to buy the company.”
https://www.nytimes.com/2022/07/08/business/musk-twitter-deal.html#commentsContainer

The best read are the Comments like the trash talkin’ New Yorkers.

BabeRuth NYNY observes:
“kill fee…I’d love to see him pay it (if there is one) and go back to what he does best–making wildly overpriced cars for the midlife crisis set.”

[take heed SailAway]

Greg Troy NY:
“Anyone else starting to think that he only got involved with SpaceX so he could flee to Mars to escape child support payments? Just imagine; the world’s first interplanetary deadbeat.”

and for some US West Coast talent.

John Portland, Oregon
“Given that the two protagonists are Elon Musk and Twitter, I’m hoping there’s a way both sides could lose.”

…and on, and on.

#5 dave on 07.08.22 at 3:56 pm

When are you locked in and on the hook as a buyer?

Final price on MLS document is agreed upon with the real estate agents involved or after the lawyers have stamped the documents and taken the deposit?

#6 Don Guillermo on 07.08.22 at 4:01 pm

#114 Shawn on 07.08.22 at 10:56 am
The Azores?

#95 Jane24 on 07.08.22 at 4:01 am
____________________________

May I suggest the Azores islands, a 4 hour flight southeast from Toronto.
Owned by Portugal but populated by Ontario.
Everyone speaks English.
*******************************
For us too far from our adult kids and other family but yes, very worth considering.
@@@@@@@@

We started looking for a retirement destination 10 years early. We lived and worked for a few years on two different Caribbean islands (Trinidad &Tobago and Jamaica) and were positive a tropical island would be our pick. My wife loved Tobago. Europe was out because winter temperatures just weren’t warm enough (even Azores temps can average 14 deg in the winter) and as Shawn mentioned being far away from family can be an issue. Similar time zones become important for communicating. We started to take extended vacations to our shortlist destinations and soon learned that living and vacationing are two very different things. (for you Ponzie) No matter how beautiful a destination is after a while most do not go to the beach every day. You need more. Concerts, culture, sports, the arts, variety of restaurants etc. The Caribbean islands dropped off of the list and we focused on the usual north south suspects such as Mexico, Panama, Ecuador, Costa Rica, Belize etc. Many we know picked USA destinations but the 6 month restriction (you literally have to count your days) didn’t work for us, expensive health care was an issue and in most cases winter temperatures still weren’t good enough. We picked Mexico because of access, weather, diversity and affordable health care. After this decision we spent years searching the many options around the country. We eventually picked Mazatlan and have no regrets. We have some friends that did no research, walked off a cruise ship one day and said “this is nice”. They’ve spent 7 months a year there for 13 years now and love it. Kind a funny like the old Travago commercial. Just to tie it back to the blog did I mention housing and cost of living is very inexpensive, quality of life is great and everyone speaking English is not important. Learning language is fun.

#7 Paddy on 07.08.22 at 4:02 pm

“I’ve never bought a property without opening up a personal relationship with the seller. I’ve never sold to someone without getting to know them. Realtors usually hate that. Which tells you something.”

Good point Gartho.

When we bought our first home in 2010, I was driving past it one day after it closed and I noticed the owner was doing yard work. I approached the kind, old man and said “Hi, I bought your house”. His face lit up and immediately invited me in to meet his wife and have a beer. He proceeded to tell me all sorts of stuff about the house and the neighbourhood. It was pretty special if you ask me. We actually became good friends. They moved into a condo not far from the house, where I would occasionally drop off mail and say hello. His wife passed a few years later. I then ran into him at the grocery store and he said “they took my drivers licence away cause I failed the vision test”. A few years later he passed too.

My In-laws sold their house in a few years back and moved up to the cottage in the Saugeen shores area. They had a bunch of offers but settled on the family of 5 who offered in the middle price range of all of them. They did this because they wanted the house to go to someone who needed it and not a specuvester. I believe they see them from time to time as well, because the new owner ocassionaly calls my FIL with questions regarding the house.

#8 Søren Angst on 07.08.22 at 4:10 pm

Never have I read in years StatCan bend over backwards to try and explain the unexplainable and end up blaming the innocent.

People Ask

WTF happened with the Labour Force Survey in June?

For starters:

1. Employment fell by 43,000 (-0.2%).
2. The unemployment rate fell 0.2 percentage points to a new record low of 4.9%.

When in doubt, blame the Paleo’s in Training (PiTs):

“The employment loss was almost entirely due to a decrease among workers aged 55 and older.”

Ipso facto, it’s the PiTs fault.

A good thing, well not when compared to inflation, average hourly wages rose 5.2% (+$1.54 to $31.24) on a year-over-year basis in June, up from 3.9% in May and 3.3% in April (not seasonally adjusted).

🔼 always better than 🔽.

——————–

The Labour Force shrunk by 97.5K. Employment shrunk by 43.2K. Unemployment shrunk by 54.3K.

A LOT of Shrinkage…Accountants Rejoice. Clearly, StatCan has many bean counters.

Mile long diatribe:
https://www150.statcan.gc.ca/n1/daily-quotidien/220708/dq220708a-eng.htm?HPA=1

#9 Søren Angst on 07.08.22 at 4:16 pm

#6 Don Guillermo

I’ve been meaning to ask, recovery going well?

If you don’t feel like it to respond, it’s OK.

Still, all the best.

#10 Leftover on 07.08.22 at 4:23 pm

Was trying to sell our house in Alberta eons ago – no bites, our agent wasn’t working too hard.

Then one day we had a showing booked and our agent didn’t show up (we normally met her before the showings then went for a walk). A very nice young couple from Toronto knocked on the door and we decided, what the heck.

We walked the house and I pointed out all the quirks, but overall the place was very charming and a great location. We agreed to leave the numbers to the agents and, lo and behold, accepted an offer at the ask with reasonable conditions that night.

Our agent was appalled. Just proved that Torontonians aren’t so bad after all.

#11 Jane24 on 07.08.22 at 4:31 pm

So back to the Azores. Did I mention that health care is free and the Portuguese have the second best rated health care system in the world. Health care there puts both the British NHS and Canada’s system to shame.

All the Canadian owned houses (which is most of them) there fly maple leaves and no one wears an orange t-shirt because this means you are supporting the Netherlands and not Portugal in the current European Football Cup!

#12 Joseph R. on 07.08.22 at 4:34 pm

#101 Senator Bluto on 07.08.22 at 9:35 am
#91 Joseph R. on 07.07.22 at 11:44 pm
#83 TruthHerz on 07.07.22 at 10:03 pm
The Republican party was started by Abraham Lincoln and other abolitionists in order to end slavery. The Democratic party was founded by slave-owner Andrew Jackson.

It was the Democrat George Wallace who stood in front of a school to prevent black children from getting an education alongside white children in the civil rights era.

#themoreyouknow

——————————————

Who was POTUS in 1963?

++++++++++++++++++++++++++++

At the 09:00 POTUS press conference this morning Joe Biden said that when he was leader of Seal Team Six in 1963 he was slightly wounded in a napalm attack in Dealey Plaza on November 22, 1963. During the attack, Biden said he tried to save some Kennedy guy but was stopped by Donald Trump.

Biden also stated that he was awarded the Nobel Prize for Bravery by the Pope.

The White House press office then called a lid at 9:05 am this morning.

————————————————-

Are you under the care of a physician?

Does he/she knows about your posts?

#13 Mean Gene on 07.08.22 at 4:46 pm

The house of cards has fallen.

#14 RandomInYVR on 07.08.22 at 4:49 pm

Related question.. when – what date – are capital gains (presuming not a PR) due on a property? When the sales contract is signed or on closing? (and in these cases never consummated)

#15 Andrewski on 07.08.22 at 4:50 pm

Hey Ben, that’s what she said.

#16 Linda on 07.08.22 at 4:52 pm

‘Nio’ looks like a very robust pup:) Has anyone else noticed how many of the dog photos on this blog have a beach backdrop? Lucky dogs!

Was reading the labor force headlines today as well. Thinking about how some have suggested trying to retain older workers approaching retirement. Problem is, most of those workers are counting the days. They may well want to continue to work, but at something they like for far fewer hours per week. Most of all they want control of what time they have left. Not having to schedule one’s life around work is addictive. Just saying.

#17 TurnerNation on 07.08.22 at 5:05 pm

Begin writing real estate contracts with a Liqidated Damages clause therein?

#18 Regjeg on 07.08.22 at 5:10 pm

“…..because they bought while listening to their pants…..”. Or in some cases, their parents.

#19 Søren Angst on 07.08.22 at 5:16 pm

#11 Jane24

The last health system rankings were done by WHO in 2000, in order:

France 1, Italy 2, San Marino 3, Andorra 4, Singapore 6, Spain 7, Oman 8, Austria 9 and Japan 10. Portugal was 12th.

Link to report:
https://reliefweb.int/report/world/world-health-report-2000-health-systems-improving-performance?gclid=CjwKCAjwq5-WBhB7EiwAl-HEkvYiEByY7fEAsxgl5X4Fh3AUespl69W1nw1MtMnG1t-nDudynMSjQxoCbbEQAvD_BwE

During the pandemic and after Brescia, Italia received Covid patients from overwhelmed France, Austria, Switzerland and Germany.

Of course, not reported by the Worlds MSM.

This is because Italia added a whack of hospital and ICU beds after the 7 day bad press about Brescia from the UK #18 and USA #37 (and Canada #30).

Well, you saw how well those 3 fared during Covid, not well at all.

Having been in the health system in Italia (traffic accident), it is more capable than Canada’s, for certain.

Portugal during the pandemic was as overwhelmed by Covid as was Spain – read their dailies Correio da Manhã & EL PAÍS all through out 2020 and up until now.

—————–

There are a lot of rubbish articles/rankings you can find on Google about this, I followed most Europa countries during the Pandemic, I would say France, Italy still hold fast.

Portugal is a small country people wise, 10.3M, and ranks #48 in GDP. They did well to place 12th.

Read the above report and you will find it is very thorough as compared to clickbait health system “rankings” Google feeds you.

#20 God on 07.08.22 at 5:19 pm

#1 Ben on 07.08.22 at 3:37 pm
Please God let me be 1st

———

You owe me, biggly!

#21 NOSTRADAMUS on 07.08.22 at 5:20 pm

WANT TO KNOW A SECRET???
A little known secret, the majority of newly licensed realtors are in fact farm team players with far less experience with less rounded skill sets than the true professionals. The upshot is a much lower level of service and accountability, along with the horror stories Garth highlights.
In my opinion the finger of blame for this sequence of
life altering events lies with the broker owner’s total neglect in providing proper training and mentoring. If you need help, look for lip service from the broker owner. And you wonder why so many agents end up ruining so many lives in their quest for fame and fortune.
Do you want a rewarding career as a real estate agent? Pass the Ontario real estate course, fog a mirror and voila you’re hired and on your own. The reality is the new baby realtor is on his or her own from day one, sink or swim, Glug, Glug. unfortunately too many wee little people go down with them.
Broker owners can see the cracks in the foundation, but recognize there is no monetary advantage in repairing them so they are left to widen. The bottom line from a brokers perspective, 95% of all new real estate agents will be long gone within 5 years. Their office cubicle will be assigned to one of the overflow of new agents entering the game. I kid you not.
With the real estate correction now unfolding, we are at the end stage where the partnership between the real estate agent and their client has irretrievably broken down. They are rarely on the same page. For the past 12 years it was one of the prettiest love stories in real estate history, but it is now 2022 and the love is gone.
For 12 long years the real estate industry has become a home for a collection of individuals whose only purpose is getting listings and sales, and whose principal device is to search out individuals who pant and pine for something they can’t get and promise to give it to them. If you are a seller, the highest price, if you are a buyer the lowest price. Nine out of ten times that promise is worth nothing. The tenth time if it is made good it will be in the best interest of the agent.
Disclaimer, not all real estate agents are so self serving, there are true professionals out there who go about their business day in day out, year in year out providing a level of service second to none. If you are one of these agents please accept my sincere apology. I am quite sure these true professionals are less than thrilled with their broker owners and some of the characters calling themselves realtors. Steady lads, hold the line.

#22 Reality Check on 07.08.22 at 5:24 pm

I’m stupid on 07.08.22 at 3:47 pm
Am I the only crazy one to think that a buyer agent should get full commission if their buyer walks?
—————-

Don’t know for sure and it would vary between provinces but I expect the RE agents have it all secured in the small print of the contact you sign when you buy.

And it’s not like you have a choice. Try making changes to the small print of the contract and see how that is received.

The anticompetitive RE monopoly has such incredible and unfair power over both buyer and seller. It begs for more effective regulation by government. But good luck with that, the RE monopoly also carefully cultivates political influence.

#23 Don Guillermo on 07.08.22 at 5:27 pm

#9 Søren Angst on 07.08.22 at 4:16 pm
#6 Don Guillermo

I’ve been meaning to ask, recovery going well?

If you don’t feel like it to respond, it’s OK.

Still, all the best.
######
All good so far. I appreciate your concern.
Mille Gracie!

#24 God on 07.08.22 at 5:29 pm

#1 Ben on 07.08.22 at 3:37 pm

Please God let me be 1st

——–

Granted.

Excerpt from our contract agreement: ‘Upon successful wish granting, all terms and conditions (see Appendix 1) of the Almighty contract become fully binding and enforceable for the mortal lifetime of the supplicant.’

#25 Søren Angst on 07.08.22 at 5:29 pm

Fur about to fly.

Elon Musk notifies Twitter he is terminating deal

https://www.cnbc.com/2022/07/08/elon-musk-notifies-twitter-he-is-terminating-deal.html?__source=iosappshare%7Ccom.apple.UIKit.activity.PostToTwitter

Well, better take the Capital Loss on TWTR and be done with it.

TWTR $36.81 -4.98% -1.93 Today

After Hours: $34.95 (-5.05%) -1.86

Closed: Jul 8, 5:27:17 PM UTC-4 · USD · NYSE

—————–

Rock. Drop.

#26 Shawn on 07.08.22 at 5:40 pm

Grocery Inflation Data

I mentioned the other day that StatsCan released some grocery item price data. I asked them why they did not include a handy year-over-year percent column.

They said: (And I am not making this up)

“Average prices do not necessarily compare the same product from month to month and should not be used for time series comparison. Therefore, year-over-year and month-over-month percentage changes are not calculated for this table.”

“Average prices are not estimates of pure price change as they are not comparable over time due to factors including product rotation, quality and quantity changes, and shifting consumer preferences which all contribute to differences in prices from one month to another. Average prices are estimates of the average price paid by the consumer and can be used for comparing price levels of different items in the same month.”

Nevertheless I calculated the price increase since last May for each item. In all or almost all cases the quantity size was the same so not sure what they are talking about in terms of different quality or quantity. I call this price change “inflation”.

Anyhow the average of the 75 items was 13%. The range was minus 5% to plus 59% (that was for vegetable oil) A typical one was Grapes, per kilogram, up 13%.

So yes, Virginia, inflation in the grocery store is higher than the overall average CPI that includes a ton of things besides groceries.

I think StatsCan calculates CPI honestly of course.

The grocery data is here.

https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1810024501

#27 Lefty on 07.08.22 at 5:41 pm

I rode NIO from $7 to $50!

#28 Facts Matter on 07.08.22 at 5:56 pm

Do you know why older folks have ofen been renters for most of their lives?

They have seen the ups and downs and headaches and trouble people get themselves in when they buy – so instead they continue to rent and never have to pay for much other than just their montjly rent.
They leave the bills for things like interest, strata fees, property taxes,special levies, repairs to plumbing or appliances, buying new carpets or flooring, never have to hire electricians, replace windows, paint or power wash etc. like the owners have to worry about. Every senior or retiree should be renting in Canada to stretch their funds as far as possible. Let the dumbos be the homemoaners while they retire in style loaded to the gills in cash

#29 A Real Estate Broker on 07.08.22 at 5:58 pm

In fact the brokerage holding it cannot move the money (legally) from its trust account until both buyer and seller sign a mutual release form. And that’s not gonna happen.
———————————————————–
A few more details. If a mutual release is not signed off by both buyer and seller than a judge may order the brokerage to release the deposit stipulating where it is to go….usually the seller. Should neither the buyer or seller take the case to a judge then after 2 years the trust money must be sent to RECO. Where the deal did not close and the buyer was in fundamental breach of contract commissions are not paid out since they must be paid out from a commission trust account and not from the real estate trust account. However, the buyer may be on he hook to the listing agent if a Buyer Representation Agreement was signed stating conditions where such a breach by the buyer would obligate payment to the agent.

#30 Dr V on 07.08.22 at 6:00 pm

6 Don G – thanks for the perspective. I need someplace my bicycle wont get stolen and they wont kill me for it.

3 quit calling yourself stupid – court case in bc a few weeks back noted the clause in the standard sales agreement. Realtor got paid after suing homeowner.
Obligation to have an enforceable sales contract was met. Sorry cant find link anymore…..wait….got it. Had to use google rather than search cbc.ca

https://www.cbc.ca/news/canada/british-columbia/bc-commission-real-estate-lawsuit-decision-1.6433370

#31 Sail Away on 07.08.22 at 6:14 pm

When we were house shopping, we saw an older place for sale on the biggest, most overgrown lot in the neighbourhood. Stopped and talked with the older owner and he said it was too much for them and the place really needed new, young and energetic owners.

True enough. 16 years later, we have it whipped into shape and greatly enjoy our private treed oasis with the world’s biggest dance party deck overlooking Departure Bay.

#32 Doing my Part on 07.08.22 at 6:22 pm

Elon Musk walks from the Twitter purchase, kind of fits with todays topic.

#33 jess on 07.08.22 at 6:45 pm

Ottawa protester organizer Tamara Lich has been denied bail, will remain in custody until trial.
==========
https://pressprogress.ca/right-wing-charity-offers-tax-breaks-to-donors-paying-convoy-leaders-legal-bills-in-criminal-case/
Charity Offers Tax Breaks to Donors Paying Convoy Leader’s Legal Bills in Criminal Case

Experts question Justice Centre for Constitutional Freedom’s use of special tax benefits to bankroll defence of convoy leader Tamara Lich
by Mitchell Thompson, Ontario Reporter
July 8, 2022

#34 baloney Sandwitch on 07.08.22 at 6:45 pm

Hope Elon is reading this blog. Twitter is gonna sue him. Apart from the breakup fee there is a specific performance clause, I hear.

#35 jess on 07.08.22 at 6:53 pm

India has been getting tough with Chinese companies since border tensions escalated between the world’s most populous countries two years ago. In 2020, India banned more than 200 apps — many of which were Chinese, including the wildly popular video platform TikTok.
India’s Enforcement Directorate — the country’s main financial investigation agency — raided major Chinese smartphone company Vivo over allegations of money-laundering earlier this week.
Also accuse the smartphone maker Xiaomi of violating foreign exchange laws …”These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” it said.

#36 ElGatoNeroYVR on 07.08.22 at 6:54 pm

#121 Dragonfly58 on 07.08.22 at 12:36 pm
We all work or worked hard.
Canada for the last 40 years has been a boulevard of broken dreams for most of us.
=============
Very Green Day poetic.
One saying from my native country went like this:
If you work you don’t have time to make money.
There are really only 2 legal options:
1) Open a business , grow it big enough so you don’t have to work.
2) Get a people manager job ,climb into the senior mangement ranks ,ensure at the very least 120k total compensation
Again ,in both options above avoid actual working hard at all costs,be smart and get others to do the work.
Spend modest and invest wise.Pick a financially compatible partner and stay married.
In 25-30 years starting from scratch one can achieve the coveted 10-20% status.

#37 Reality is stark on 07.08.22 at 6:57 pm

Real estate is such a shameless occupation.
These people have little financial education and during the pandemic encouraged people to make one of the worst financial decisions of their life and to make matters worse hyped people up to buy first and sell later to get an accepted offer.
Buy high and sell low.
The government is complicit as they make out like bandits with extraordinary payments through real estate transactions. As the market goes negative no worries they just boost property taxes and suck whatever equity is left over. The houses don’t go anywhere so they are easy targets for taxation.
But the real tragedy is that people are so reluctant to take a loss they forego more lucrative job opportunities which require relocation.
A lot of folks get really upset when you tell them it is easy to value their home, take the peak price and multiply by .5.
As a new buyer this should be your offer price. Hold firm you will be able to buy at this price relatively soon.
Real estate agents are just shills, nothing more, nothing less. Not sure how they sleep at night.
It’s reassuring to know that when you are unable to get your buyer to close there is a very good possibility that one of those shills may have a claim on the deposit.

#38 Søren Angst on 07.08.22 at 7:08 pm

#22 Don Guillermo

Prego, caro amico.

#39 Ponzius Pilatus on 07.08.22 at 7:14 pm

#4 Dolce Vita
During the pandemic and after Brescia, Italia received Covid patients from overwhelmed France, Austria, Switzerland and Germany.
————
Funny,
All I can remember is, that Germany airlifted 5 very sick COVID patients from the hot spot in North Italia to Berlin.
(don’t have the link anymore)
Talking about overwhelmed:
Check the stats, Italia had many more deaths than Germany.

#40 Satan on 07.08.22 at 7:16 pm

@#1 Ben
“Please God let me be first”
+++

God’s busy.
He handed it over to me.
Wish granted.
I’ll call you later.

#41 Sail Away on 07.08.22 at 7:20 pm

#24 Søren Angst on 07.08.22 at 5:29 pm

Fur about to fly.

Elon Musk notifies Twitter he is terminating deal

Well, better take the Capital Loss on TWTR and be done with it.

——-

Really? Not I.

This will be great entertainment worth every penny. Even in the worst case and full divorce, there will be a settlement where Twitter ends up with significantly more cash than before.

#42 Ponzius Pilatus on 07.08.22 at 7:21 pm

#31 Doing my Part on 07.08.22 at 6:22 pm
Elon Musk walks from the Twitter purchase, kind of fits with todays topic
————__
No surprise.
You should walk away, too.
If you own Tesla stock.
Before he cashes all in, to pay for alimonies.

#43 yvr_lurker on 07.08.22 at 7:24 pm

#25
Anyhow the average of the 75 items was 13%. The range was minus 5% to plus 59% (that was for vegetable oil) A typical one was Grapes, per kilogram, up 13%.

So yes, Virginia, inflation in the grocery store is higher than the overall average CPI that includes a ton of things besides groceries.
———–

Good job Sherlock for your detailed study. As a recall, a few months ago you had not been noticing the run-up in prices. There has been no doubt in my mind that the groceries that I have been buying are up over 10% (at least) more over the past 4–5 months. I don’t have the time to do detailed forensics as you have done, but I basically have most prices in memory as I am the one that does the grocery shopping in our house.

Had an interesting experience at MEC on Monday. Thought it was wise to purchase a new 45L carry-on “backpack” for my kid who was going to Greece, connecting through Toronto, due to all the crazy stories of luggage being misplaced by Air Canada owing to flight delays etc. Wouldn’t be wise in sending him off with my 65L back-pack that he’d have to check and then pray that Air Canada would be able to deliver it in Athens even with his connecting flight. If the airlines were functioning in a normal way I would never have bothered to buy the largest carry on possible. Turns out that his flight to Toronto was 1.5 hours late and he had to run to catch his connecting flight to Athens. If he checked the bag it never would have made it. Why we continually bail out Air Canada and West Jet when they run into trouble is beyond me, but that is a different story.

Selected a suitable 46L bag for 219.00 at MEC (before tax) with my kid, and as we were leaving the store he said to me why is the tax so high (as the bill was over 280). Turns out that the new price was 244.00 on the scanner (but not yet visible on the sticker), and I had not noticed on the tap. Stood in in the MEC return line for 15 minutes to get the 219.00 price as advertised, and frankly was a bit pissed. 25.00 increase from one day to the next?
Is this gouging?

Surely this type of scenario is going on across the economy. Does the fancy BMO dude in the youtube not understand that we going to be heading into a recession when consumers are tapped out? Are the public service and other unions going to accept a 1–2% raise when their contracts are up? There is going to be significant strife coming in the next 6 months.

#44 Byron on 07.08.22 at 7:41 pm

This looks like that BMO forecast of 24,000 TSX by the end of the year is about a 26% increase from current 19,022 TSX level. It might be right, it might be wrong, people have to decide what they want to believe. My wife and I were never into stocks, mutual funds etc. as we are very conservative people, retired accountants for big condos management company.

We did recently need some additional reliable income for our retirement to bridge the gap before we get our early CPP in 2 years and after that so we did take some of our non-registered money, 30% of that is $250,000 and got all CDIC split to be insured into a 10 year 4.65% GIC at BMO paying monthly interest into our account, $968.75. We know each month this will help pay our property taxes, utilities, groceries.

We do have a small LIRA getting $1,500 a month and large savings, annuities that are compounding now and backs us up for future cost of living.

#45 Joseph R. on 07.08.22 at 7:48 pm

#23 God on 07.08.22 at 5:29 pm
#1 Ben on 07.08.22 at 3:37 pm

Please God let me be 1st

——–

Granted.

Excerpt from our contract agreement: ‘Upon successful wish granting, all terms and conditions (see Appendix 1) of the Almighty contract become fully binding and enforceable for the mortal lifetime of the supplicant.’

——————————————-

Contract law is woke cancel culture. Elon Musk Twitter saga proves it.

Ask the experts.

#46 Chameleon on 07.08.22 at 7:53 pm

Happy Feline Friday!

Felix has Rogers, so in fact, he won’t be telling us any cat facts today.

Saw a turtle laying eggs few days back, thought what a shock it would be for a turtle to grace the blog.

There are other animals you know, ones who don’t need humans to own them and feed them. Should we hold that against them?

#47 Omen Sulk on 07.08.22 at 8:05 pm

This whole real estate deal falling apart sounds just like Elon and Twitter.

Elon and Twitter
Sitting in a tree
T W I T I N G
First came offer
Then came SPAM
Ain’t nobody gonna get some

#48 Ohm on 07.08.22 at 8:07 pm

#4 Søren Angst

You are definitely showing your true side. Elon is a genius; he knows exactly what he is doing; Twitter needed a kick in the butt; you gambled and lost; get over it. Seriously???

When has the guy never paid child support??????????

You are starting to sound like the CBC!!!

Drink some more wine and come back with useful info jackass~~~

#49 Flop… on 07.08.22 at 8:12 pm

Flop Drops.

O.k so I just went back at looked at the tape, to see where the linebackers came in from the side and throttled innocent bystanders not paying attention to Vancouver real estate tremors happening earlier this year.

Middle of May I started doing Flop Drop posts, mainly focusing on the bottom of the detached market in Vancouver proper.

At that time he bottom rung was 1.5 million.

This week it has dropped to 1.35.

So in 8 weeks the bottom of the market has dropped 150k, so close enough to 20k a week, of fat is being shaved off the kebab according to my Dolce Math calculator that has a flat battery.

At this rate Vancouver real estate will become affordable for most folk sometime around 2067….

M48BC

#50 Free Jollies on 07.08.22 at 8:13 pm

#23 Don Guillermo on 07.08.22 at 5:27 pm
#9 Søren Angst on 07.08.22 at 4:16 pm

Gracie

———

Grazie

Prego, papa pinto

#51 Old Boot on 07.08.22 at 8:14 pm

Well, there’s a first time for everyone. Elon finally decided to pull out.

Rumor has it, he still wants the bird app and just needs to drive the price down first.

#52 Bezengy on 07.08.22 at 8:22 pm

I’ve held several mortgages for places I sold. Personally I would only hold the first mortgage, never a second, third, or whatever. It’s always worked out, although I had to wait a few extra days this week for one payment. Folks couldn’t come up with the cash on time. I guess $190 bucks per month can be a challenge for those living on the edge.

#53 Sail Away on 07.08.22 at 8:25 pm

#46 Chameleon on 07.08.22 at 7:53 pm

Saw a turtle laying eggs few days back, thought what a shock it would be for a turtle to grace the blog.

There are other animals you know, ones who don’t need humans to own them and feed them. Should we hold that against them?

———

Nope! They’re all delicious. Snapping turtle is a downright delicacy.

#54 Ponzius Pilatus on 07.08.22 at 8:31 pm

#43 yvr_lurker on 07.08.22 at 7:24 pm
——————
Good luck to your son going to Europe.
Good thing that young people are still backpacking, Like we did in the 60’s and seventies.
Just a caveat for a carry on.
In flights witin Europe the allowable size for carry ons is smaller.
I leaned the hard way, last time I flew from Vienna to Frankfurt.

#55 dosouth on 07.08.22 at 8:35 pm

So yes you are so right. Newly in love – 50 + somethings – her’s sold and his sold so they bought. His fell through, her’s fell through. Panic. He relisted, she relisted. He finally sold for 85k less then previous sale but still made out like a bandit. Trying to tell him more than once about greed and by delaying he is losing the market.

He made up his mind…..good on him. She has now accepted a less offer subject to the buyer selling in a bunny patch town up island. Crickets on his place and her’s is dropping $$ each day, she is still sure she is right. They don’t have enough to close unless she sells. Theirs closes in mid August. …….and I thought all your stories didn’t come true. I am humbled…..and they are in trouble.

#56 yvr_lurker on 07.08.22 at 8:51 pm

#54 Pilate
Good luck to your son going to Europe.
Good thing that young people are still backpacking, Like we did in the 60’s and seventies.
Just a caveat for a carry on.
In flights witin Europe the allowable size for carry ons is smaller.
I leaned the hard way, last time I flew from Vienna to Frankfurt.
——-

Thanks! He is staying with the family of his good friend from YVR who have a summer home on Karystos, and then a pack of 5 of them will venture off to Parros and Naxos. Back at the end of July. No inter-european trips. Just needed to get to Greece with his stuff; a tall order these days…

#57 Yukon Elvis on 07.08.22 at 9:16 pm

#43 yvr_lurker on 07.08.22 at 7:24 pm

Had an interesting experience at MEC on Monday. Thought it was wise to purchase a new 45L carry-on “backpack” for my kid who was going to Greece, connecting through Toronto, due to all the crazy stories of luggage being misplaced by Air Canada owing to flight delays etc. Wouldn’t be wise in sending him off with my 65L back-pack that he’d have to check and then pray that Air Canada would be able to deliver it in Athens even with his connecting flight. If the airlines were functioning in a normal way I would never have bothered to buy the largest carry on possible. Turns out that his flight to Toronto was 1.5 hours late and he had to run to catch his connecting flight to Athens. If he checked the bag it never would have made it. Why we continually bail out Air Canada and West Jet when they run into trouble is beyond me, but that is a different story.

Selected a suitable 46L bag for 219.00 at MEC (before tax) with my kid, and as we were leaving the store he said to me why is the tax so high (as the bill was over 280). Turns out that the new price was 244.00 on the scanner (but not yet visible on the sticker), and I had not noticed on the tap. Stood in in the MEC return line for 15 minutes to get the 219.00 price as advertised, and frankly was a bit pissed. 25.00 increase from one day to the next?
Is this gouging?
+++++++++++++++++++++

Luggage is a pain in the butt. You don’t need it. I have a small belly/fanny pack for my passport/tickets,iphone, a few wallets with foreign currencies and debit/credit cards, and my meds. I carry my ipad. When i reach my destination and check into a hotel i then take a cab to the nearest mall and buy whatever i need. I give the stuff away or just leave it behind when i am done. So much easier to travel that way. I have given away a few refrigerators and televisions but no big deal. The recipients were happy to get them.

#58 Ted on 07.08.22 at 9:17 pm

Dang it. My work from home employees can’t login to fix the problem.

#59 Warren-the-lagging_indicator on 07.08.22 at 9:32 pm

I love that you didn’t abandon gay, Garth.

It used to be a perfectly good word. Like ‘they’. – Garth

#60 Pricedoutmillenial on 07.08.22 at 9:36 pm

Are subprime mortgages allowed in Canada. I thought it’s only an US thing which resulted in housing market collapse. If the size of subprime mortgage is big, it’s likely not good news in times of a recession. House of cards..

#61 Wrk.dover on 07.08.22 at 9:37 pm

Dragonfly 58; If you can’t have what you want, you should want what you do have right now.

As for the Lola, cash it out. I have a cafe racer/sports car that was a 15 year, one full time month & $1000/year scratch build, pre internet. I hate to drive it to the extreme like a rental, so what was the point of that effort? I have all manor of other vehicles insured and plated to enjoy, but rarely leave the homestead. Where else do I need to be?

There, I saved you time and money! Enjoy all your stuff.

M68.9NS

#62 Flop… on 07.08.22 at 9:45 pm

Didn’t even know Shinzo Abe was no longer the Prime Minister of Japan.

Saw the word assassination, I thought if he was no longer in charge why were they not using the word murder.

I always assumed you had to be in a position of power to be assassinated .

Seeking clarification, I asked Siri what’s the difference between assassination and murder.

Siri suggested if I was thinking of that, it’s probably best I stay in for the night…

M48BC

http://www.differencebetween.info/difference-between-murder-and-assassination

#63 Wrk.dover on 07.08.22 at 9:48 pm

The last several winter flights we did pre-covid, they were throwing some carry-ons to the ground crew to make room above.

So, I put a smaller bag inside my carry-on to slide out and jam under the seat, if that happened to mine.

#64 CJohnC on 07.08.22 at 10:00 pm

#57 Yukon Elvis on 07.08.22 at 9:16 pm

Never seen anyone wearing a refrigerator before. Must be cool. Nor a television actually, but as Old Boot said about Elon pulling out, there’s always a first time for everything.

#65 Philco on 07.08.22 at 10:05 pm

Yup I said right here before the melt, peeps lost their marbles on prices being paid for stocks and housing. I own little of either thank god.
Just my home and 2 Oceanview penthouse condos and that the VERY small part of my RE holdings. Bought them dirt cheap..
All this tom foolery affects me zero.
Don’t follow the herd cause ya cant see the cliff coming up till your over it.
Some good lessons for the Greater fools.
also….Man, some here should get a life. Good lord.

Soren A is at the top of the list. Get a life man there is some real people out there.

Thanks for the update Garth.

#66 Chart looks Bad! on 07.08.22 at 10:10 pm

https://mobile.twitter.com/SBarlow_ROB/status/1545060569476018182/photo/1

This chart says it all about the pain coming to housing!

#67 Ponzius Pilatus on 07.08.22 at 10:18 pm

#63 Wrk.dover on 07.08.22 at 9:48 pm
The last several winter flights we did pre-covid, they were throwing some carry-ons to the ground crew to make room above.

So, I put a smaller bag inside my carry-on to slide out and jam under the seat, if that happened to mine.
———————
I think the flight crew knows which passengers paid the least.
And then they are having some fun with them.
Would never happen in first class.

#68 Yukon Elvis on 07.08.22 at 10:23 pm

#64 CJohnC on 07.08.22 at 10:00 pm
#57 Yukon Elvis on 07.08.22 at 9:16 pm

Never seen anyone wearing a refrigerator before. Must be cool. Nor a television actually, but as Old Boot said about Elon pulling out, there’s always a first time for everything.
+++++++++

You have to get out more. I have lost track of the clothes, cell phones, laptops, tablets, ipads, and dvd players that i have gifted over the years. Just too much to carry. Best to travel light.
Ps. I don’t think Elon ever pulled out. He has nine kids.

#69 Ponzius Pilatus on 07.08.22 at 10:34 pm

#64 CJohnC on 07.08.22 at 10:00 pm
#57 Yukon Elvis on 07.08.22 at 9:16 pm

Never seen anyone wearing a refrigerator before. Must be cool. Nor a television actually, but as Old Boot said about Elon pulling out, there’s always a first time for everything.
—————-
I think Yukon Beatle is just to cheap to tip the hotel porter.

#70 Sail Away on 07.08.22 at 10:59 pm

#57 Yukon Elvis on 07.08.22 at 9:16 pm

When you do check your luggage, the lady at the checkin probably acts like she never saw a refrigerator before.

#71 Chameleon on 07.08.22 at 11:00 pm

#53 Sail Away on 07.08.22 at 8:25 pm
#46 Chameleon on 07.08.22 at 7:53 pm

Saw a turtle laying eggs few days back, thought what a shock it would be for a turtle to grace the blog.

There are other animals you know, ones who don’t need humans to own them and feed them. Should we hold that against them?

———

Nope! They’re all delicious. Snapping turtle is a downright delicacy.

———

Don’t! Just don’t Sail Away.

How can you be out there at sea, being all eco friendly sailing and not burning petrol, and killing turtles?

Don’t we humans already do enough damage to turtles with the plastics?

Can you at least eat only the turtles filled with human plastic waste please?

#72 TurnerNation on 07.09.22 at 12:20 am

Never ending CHAOS in the airlines in all the Former First World Countries.
Today we have nationwide CHAOS in the Internet and cell phone and POS (payment system) — Rogers.
Some suggest that this will be ongoing, the goal being Government takeover of these important industries. Kanadian Kommunism.

What do the history books say? Oh only in 2nd world countries you exclaim?
I’m telling ya, March 2020 was a test run. No normal forthcoming now.

—This global control is permanent, not designed to end.

.Cyprus And Qatar Reinstate Mask Mandate And Thailand Could Be Next (traveloffpath.com)

.Bali Closes Door To All Travelers That Do Not Have A Booster (traveloffpath.com)

.LA County on pace for new COVID indoor mask mandate by end of July (abc7.com)

.CBSA: Due to the current Rogers network outage, travellers may not be able to complete their ArriveCAN submission (twitter.com)

#73 Alberta Boy on 07.09.22 at 1:01 am

Just went through this 2 weeks ago. 4 houses were involved in a chain reaction that saw deals falling through after the buyer at the bottom got cold feet. Long story short, we had to line up an emergency $750k in financing to close on our new purchase knowing our own sale would likely fall through. Fortunately all of the lawyers involved scared the living crap out of the nervous buyer and the deals all ended up going through. It was a stressful 2 weeks………moved into the new place today, the proud owner of just 1 house with a small mortgage. Strange times

#74 C. on 07.09.22 at 4:31 am

“the deposit is lost in this process. (….) But, she’s gone.”

Since when does a deposit have gender?
And, anyway, what is it with all the shes in your posts where they don’t necessarily belong, Garth? I wish I knew what you’re trying to demonstrate with this.

#75 under the radar on 07.09.22 at 6:05 am

Interesting – Most of my purchases and sales were done after I met the other side. You need to size them up before you ink it. Integrity = often in short supply .

#76 Don on 07.09.22 at 6:24 am

Selling my house last year and renting without chasing higher prices, I feel relieved. Lot more to go.

#77 jess on 07.09.22 at 8:15 am

https://www.justice.gov/opa/pr/ceo-dozens-companies-and-entities-charged-scheme-traffic-estimated-1-billion-fraudulent-and
Friday, July 8, 2022
CEO of Dozens of Companies and Entities Charged in Scheme to Traffic an Estimated $1 Billion in Fraudulent and Counterfeit Cisco Networking Equipment

A federal grand jury in the District of New Jersey returned an indictment yesterday charging a resident of Florida with running a massive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment with an estimated retail value of over $1 billion.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit http://www.justice.gov/largecases or https://edit.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

amazon ,ebay storefronts see here for the list of companies
The Pro Network Entities include at least the following:

#78 Sail Away on 07.09.22 at 8:39 am

#71 Chameleon on 07.08.22 at 11:00 pm

Don’t! Just don’t Sail Away.

How can you be out there at sea, being all eco friendly sailing and not burning petrol, and killing turtles?

———–

Gloom not. Conservation works. No sea turtles for dinner but in the tropics there’s always a 10″ red hootchie squid tied to the stern rail for tuna and mahi. Like Kon-Tiki, if you want fish for dinner, pop it overboard and pull in a fish 10 min later.

https://www.biologicaldiversity.org/news/press_releases/2019/marine-mammals-and-sea-turtles-01-16-2019.php

#79 jess on 07.09.22 at 8:40 am

“The international nature of these crimes can only be addressed successfully by law enforcement working together beyond borders, which is why INTERPOL is critical to providing police the world over with a coordinated tactical response,” added Mr Corcoran.

“The transnational and digital nature of different types of telecom and social engineering fraud continues to present grave challenges for local police authorities, because perpetrators operate from a different country or even continent than their victims and keep updating their fraud schemes,” said Duan Daqi, Head of the INTERPOL National Central Bureau in Beijing.
“INTERPOL provides a unique platform for police cooperation to address this challenge. Though Operation Firstlight 2022 is concluded, our collective law enforcement efforts will continue as the crimes persist,” added Mr Duan.

To identify the criminal assets that would require interception during tactical operations, countries shared intelligence via INTERPOL’s secure global police communications network I-24/7 ahead of time, feeding INTERPOL’s Financial Crimes Analysis File with data on suspects, suspicious bank accounts, unlawful transactions and communications means such as telephone numbers, email addresses, fraudulent websites and IP addresses.

An annual operation launched in 2014, First Light 2022 was carried out with the financial support of China’s Ministry of Public Security.

Whilst initial First Light operations took place across Southeast Asia, this 2022 edition marks the second time law enforcement has coordinated First Light on a global scale, with tactical operations taking place on every continent.

Although results are still coming in, preliminary figures reached so far include:

1,770 locations raided worldwide
Some 3,000 suspects identified
Some 2,000 operators, fraudsters and money launderers arrested
Some 4,000 bank accounts frozen
Some USD 50 million worth of illicit funds intercepted

A global joint law enforcement effort recently resulted in the arrest of 2,000 suspects allegedly behind various scams, including call center fraud and other schemes

Interpol today announced(Opens in a new window) the results of Operation First Light 2022, a worldwide crackdown that involved law enforcement agencies from 76 countries.

The operation, which occurred from March to May, targeted individuals and organized groups behind social engineering crimes, which often involve duping victims into transferring cash. “Police in participating countries raided national call centers suspected of telecommunications or scamming fraud, particularly telephone deception, romance scams, e-mail deception, and connected financial crime,” Interpol added.

#80 Richard on 07.09.22 at 8:41 am

Facts Matter, this is what we have done the last 40 years now we are retired at 60. We raised 2 kids and it was fine renting 3 different places in that 40 years. It worked for us and is still working as our net worth is $1.5 million and spins off $70,000 a year. We have no debt, no reverse mortgage to deal with, no problem and high cost of real estate commissions, closing fees, GST/HST, many other expenses to move.