I looked at a new detached listing in my hood a couple of weeks ago on a rainy weekend. It's still unsold at close to $2mil despite the steady stream of lookie-loos and pent-up demand for a SFD close to downtown and amenities; perhaps because the list price is 31% above the total current (July 2015) BC Assessed value and because it's very old construction requiring even more money, time and effort to bring it up to modern standards. The structure is only valued at 18% of the BC assessor's total value. Flippers are few and far between. Perhaps fundamentals really do matter.
Meanwhile as the photos above indicate, vendors are repricing lower, and buyers are bidding below assessment. The only flipping that buyers are doing now is in their point of view. Hat tip to FIVRE604
It sounds to me like the Caliphate has reached North America under a different Bannon... err... I mean banner.
Here is the Hare Psychopathy Checklist. "Each of the twenty items is given a score of 0, 1, or 2 based on how well it applies to the subject being tested. A prototypical psychopath would receive a maximum score of 40, while someone with absolutely no psychopathic traits or tendencies would receive a score of zero. A score of 30 or above qualifies a person for a diagnosis of psychopathy. People with no criminal backgrounds normally score around 5. Many non-psychopathic criminal offenders score around 22."
01. glib and superficial charm
Does anything sound familiar?
And here is Umberto Eco's definition of Facism from Wikipedia:
In his 1995 essay "Eternal Fascism", Umberto Eco lists fourteen general properties of fascist ideology. [UR-Fascism] He argues that it is not possible to organise these into a coherent system, but that "it is enough that one of them be present to allow fascism to coagulate around it". He uses the term "Ur-fascism" as a generic description of different historical forms of fascism. Eleven of the fourteen properties are as follows:
Does anything sound familiar?
Stephen K. Bannon
While we wait for the October data from the real estate boards; I caught an interview on BNN yesterday with Mark Cashin, a Toronto mortgage broker who was being interviewed on the subject of "shadow lending" in Canada, ie: the non government insured mortgage lenders who have to actually assess risk when lending.
After the 1.30 minute mark in the interview, Mr Cashin remarked that a conventional 1st mortgage rate in the private market would be set at 6%.
RateHub quotes fixed 5 year term rates at 2.12 to 2.19% in Toronto and 10 year fixed rates at 3.59 to 4.69%.
If we had a primary banking industry that had to actually do their job of assessing risk and lend money out at market rates, the interest charged to offset that risk would probably be twice today's government "too big to fail" ZIRP and NIRP model.
Canadians are being kept in a subsidized credit market bubble apparently immune from the shadows of reality of the risk of over leverage. It's all good of course if the borrowers with weak hands can hang on to their cash flow and service their debt.
I suggest that if one is still willing to leverage up to buy real estate at this time in Canada, one should match their mortgage amortization with their employment contract amortization. I doubt if many employers have a 25 year horizon when looking at the labour pool.
Canada’s Housing Bubble Makes America’s Look Tiny
History, Charts & Curated Readings
Balance Of Trade
Rent Or Buy