- the source for market opinions


January 20, 2017 | Squished

A best-selling Canadian author of 14 books on economic trends, real estate, the financial crisis, personal finance strategies, taxation and politics. Nationally-known speaker and lecturer on macroeconomics, the housing market and investment techniques. He is a licensed Investment Advisor with a fee-based, no-commission Toronto-based practice serving clients across Canada.

If you ever doubted that this pathetic site stirs the loins of the people, you should read the warm notes I receive. Like this one, from a dude named Richard who runs a little hosting/web design company in Ladysmith BC:

Time for your elitist Govt Blog to get SQUISHED….this is going to be an exciting year watching you and your ilk get squashed.

God Bless President Trump……

Thank you, Richard. Among the (other) first reactions to the goofy billionaire leader of the free world: stocks were ambivalent, moving in the same close range they have for a couple of weeks now. After Janet Yellen’s speech yesterday the US dollar and bond yields went up. The Mexican peso gained a little and the loonie lost a bit – with speculation it will likely move down to 73 US cents before long.

The Trumpster’s fist-waving ‘America first – Buy American, Hire American’ speech, combined with his policy on free trade with Canada and Mexico, is causing panic in Ottawa. Says the White House web site: “President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA.” Kiss. Of. Death. Remember that 75% of our exported stuff flows across that border. It’s our blood.

Anyway, there are many deplorables among us who love the dude for the simple reason they think he pokes old, white rich people in the eye, overlooking the fact he’s also an OWRG. Economist Robert Shiller (the man who called the US housing bust, plus the 2008 stock market crash) says Trump will usher in an epic financial disaster. That’s extreme. But so is believing economic growth and millions of new jobs can come from rhetoric. The money needs to originate from somewhere. Let’s hope it’s not out of our sorry Canadian hides.

BTW, if you see this blog lying squished and bleeding on the side of the highway, you know where to call with congrats.

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Speaking of winners, how about the genius who beat out ten other bidders to walk away this week with the keys to 244 Bain Avenue, in Toronto? That took guts. Plus bags of money.

As mentioned, the open house last Sunday was jammed with people trying to squeeze into the Lilliputian foyer, past the scant living room and into the tired kitchen with its old, tarted-up, painted cupboards overlooking the grassless backyard and its refuse-strewn laneway parking spots. This narrow, ugly structure on an artless street of semis, rowhouses and endless cars was the object of intense interest only because there’s no competition. With a scant 20-odd days of inventory in the entire region, pent-up buyer demand explodes when anything livable crops up, even if the closets are full of cracked plaster and duct tape was a primary reno material.

Well, 244 Bain went on the market at $1.399 million, which seemed a stretch (although that dour, squat semi next door fetched $1.1 million a few months ago). But after the offers were tabled at 7 pm one night earlier this week, the ‘winner’ emerged having spent $1.727 million. With double land transfer tax and closing costs, that comes out to $1.8 million.

Here is the reason, expressed by a highly experienced Toronto realtor: “Riverdale is a highly desirable neighbourhood for both families and professional couples. It was a detached house in an area with many semis and row houses, had 2 car parking and was livable the way it is. It did go higher than it should have by about $125K which, I believe can be attributed to pent up demand due to a lack of listings over the xmas/new year break.”

All valid points. But still a crap house. And some of us remember when almost two million dollars bought a decent place, or still does in other hoods – like this.

The moral: if you’re going to buy a house in a hot market full of hormonal young families with way more access to credit than wisdom, never do it after a holiday. So long as there is a listings drought, prices will continue to escalate. Each insane sale, like this one, sets a new floor for the ones that follow, making every owner on the street feel fully endowed. This will keep happening until it stops. Then the winners won’t be the buyers.

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January 20th, 2017

Posted In: The Greater Fool

One Comment

  • Holly Hallston says:

    Hey Turner, what’s your take on that little “status quo” parasite T2 taking his Christmas vacation in the Bahamas with Aga Khan. You know, the Muslim version of a mega multi millionaire televangelist. Oh, and by the way, a registered agent to lobby for foreign, in this case Muslim, governments. Now ain’t that just out of the Book of Clinton, and here the guy is the working PM of Canukistan, selling you all out for whatever chump change he can graft.

    What? No outrage? Silly me, I forgot that’s what “status quo” hacks do. Remember brainwashed Maple Leafs, the OWRP educated in their, oh so sheik, “liberal” (which is code for when we want your opinion, we’ll give it to you) universities sell you the wonders of socialism, it is just that; SOCIALISM FOR YOU, not them. While you continue to concern yourself with non-existent global warming (conveniently repackaged as “climate change”) and the equally disturbing mania of legitimizing mental illness with the pc LGBT degeneracy, the Good Old US of A is now taking the “No Thank You fork” in the road. As a card carrying deplorable, the only thing I have to say about that is; Thank God, it’s about time.

    Nine trillion dollars has disappeared through the Federal Reserve and no one there seems to know where it’s gone. Well if you bother to follow the money, you’ll come to the realization that it’s been funneled to the European versions of T2 to prop up that idiotic failed experiment in totalitarian rule from Brussels. But guys like Garth would rather point the finger at someone who hasn’t even started his office, even though the catastrophe to come has been constructed totally by the self-flattering “status quo” morons that he has such a fondness for. Soros would be proud of you Turner.

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