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Every Other Day After This, The Price Is Going To Keep Going Lower And Lower And Lower

A report from Bloomberg on Canada. “Active listings of condos in downtown Toronto hit a record at the end of September and were 215 per cent higher than a year earlier, according to Urbanation data. ‘Demand is just not keeping up with new supply right now,’ said Urbanation President Shaun Hildebrand. The decline in rents has been more dramatic, with the cost of leasing unfurnished units in the Greater Toronto Area down 11 per cent from a year earlier in September, according to Urbanation. That’s the biggest year-over-year decline on record.”

“According to real estate professionals, the weakness is concentrated in the downtown core. A glut of units began to form after the pandemic halted immigration and people left the city center in search of more living space to work from home. At the same time, a flurry of new condo completions and a raft of Airbnb operators shifting to longer-term rentals has added to the inventory. In the core, average rents were down 14.5 per cent in the third quarter on average from the same period last year, Urbanation data show.”

“Right now, some investors are dumping their units below market value just to sell immediately. Owners are dropping their prices by as much as $20,000 relative to comparable units to lure buyers, according to John Pasalis, founder of Realosophy, a Toronto brokerage. ‘People are pricing units below what they would have gotten even two months ago,’ he said.”

From Simcoe. “Downtown Toronto condos are now renting within about $50 of other parts of the GTA, which could play into the potential of double-digit sales price declines in the core in the first quarter of next year, says Shaun Hildebrand, president of Urbanation.”

“‘Even if the price continued to remain at its September level right through into the first quarter of next year, when you looked at what the price level was compared to March 2020, you would be seeing an 11 per cent year over year decline,’ said Hildebrand, who cited a large number of condo completions in the next six months, as well as a spike in listings.”

The Globe and Mail. “Real estate agent Riley Boyko is witnessing the diverging fortunes in the Toronto condo market first-hand. Listings are rising and rents are falling, which means many condos are sitting on the market, Mr. Boyko says. ‘If you’re an investor, you could pick up a condo for less than you would have paid in March, no question,’ he says. ‘But you will also rent it for less.'”

“Mr. Boyko recently listed a two-bedroom unit for sale at 125 Peter St. in the entertainment district. A similar unit sold for $900,000 in March but Mr. Boyko recommended that his clients set an asking price of $839,900. The owner was competing with approximately 200 neighbouring sellers. ‘This is the situation now,’ he tells sellers. ‘You need to get ahead of where people’s heads were in March.'”

“Davelle Morrison, a real estate agent with Bosley Real Estate Ltd., is urging sellers in the condo market to be realistic. ‘I’ve got clients asking, ‘why do you want to price my condo so low?'”

“Ms. Morrison responds matter-of-factly that condo sales have slowed, and owners who want to attract attention have to set an asking price below what their competitors in the building are aiming for. Ms. Morrison recently had that conversation with the owners of a two-bedroom-plus-den unit with 1,300 square feet of living space on Simcoe Street, across from Roy Thomson Hall.”

“A similar unit sold in the building for $857,000 in February. Her strategy was to set an asking price of $848,000 and accept offers any time. With five or six units in the building just sitting, she wanted to attract eyeballs with the price but not deter skittish buyers with the pressure of an offer deadline. The tactic worked because two offers came in the first day, she says, but that success only prompted the sellers to get cold feet. They worried that they underpriced the unit and should have held off for a bidding war. They hesitated to accept an offer of $888,000.”

“Ms. Morrison advised them to seize the cash immediately because sellers typically obtain the best price the first day they arrive on the market. After that, buyers begin to use the number of days on market as ammunition. ‘Every other day after this, the price is going to keep going lower and lower and lower,’ she told them. ‘You’re just never going to get this again.'”

“Ten days later she saw the sellers again as they prepared to make an offer on their next property. By that time, they were relieved they had taken the money: none of the other units in the building had sold.”

From Global News. “Finding a place to rent in Kingston, Ont., has been a challenge for many years. The vacancy rate has been below two percent, making it one of the lowest in Canada. Over the last several months, for-rent signs have popped up around the downtown core, which has been an unusual sight for many. ‘It’s possible that they’re (landlords) just trying to fill holes that have been created by this mess,’ said Shawn Leclaire, a local landlord and president of the Kingston Rental Property Owners Association.”

“‘I have a couple of St. Lawrence landlord colleagues, and they’ve told me they’ve been playing musical chairs with which student is leaving next,’ said Leclair. Because of this, landlords are now left paying the mortgage, maintenance fees and insurance on properties out of their own pocket. ‘If they have persistent vacancy, that money has to come from somewhere, and that could cause a problem for new landlords,’ said Leclaire.”

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This Post Has 74 Comments

  1. ‘Every other day after this, the price is going to keep going lower and lower and lower’

    That’s the spirit! The third ‘lower’ really packs a punch.

  2. ‘Because of this, landlords are now left paying the mortgage, maintenance fees and insurance on properties out of their own pocket. ‘If they have persistent vacancy, that money has to come from somewhere’

    Yip yip yip yip yip yip yip yip
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Sha na na na, sha na na na na
    Yip yip yip yip yip yip yip yip
    Mum mum mum mum mum mum
    Get a job, sha na na na, sha na na na na

  3. “Active listings of condos in downtown Toronto hit a record at the end of September and were 215 per cent higher than a year earlier, according to Urbanation data.

    Is that a lot?

  4. The decline in rents has been more dramatic, with the cost of leasing unfurnished units in the Greater Toronto Area down 11 per cent from a year earlier in September, according to Urbanation. That’s the biggest year-over-year decline on record.”

    Records were made to be broken. The real cratering hasn’t even started yet.

  5. “Ms. Morrison advised them to seize the cash immediately because sellers typically obtain the best price the first day they arrive on the market. After that, buyers begin to use the number of days on market as ammunition. ‘Every other day after this, the price is going to keep going lower and lower and lower,’ she told them. ‘You’re just never going to get this again.’”

    I bet Ms. Morrison was advising her marks, er, clients, to “buy now or be priced out forever!” at the peak of the bubble. Fleece ’em coming and going.

  6. Because of this, landlords are now left paying the mortgage, maintenance fees and insurance on properties out of their own pocket. ‘If they have persistent vacancy, that money has to come from somewhere, and that could cause a problem for new landlords,’ said Leclaire.”

    Die, speculator scum.

    1. Living on the fourth floor, the rocks can’t reach me here. The 125 pound, twig-arm, soyboi, mostly peaceful rock throwers can’t throw rocks that high or far 🙁

      1. Hmm, i remember that as an 85 pound paperboy back in the 70s, i could loft a Sunday Chicago Tribune onto third floor back porches…

  10. “If you’re an investor, you could pick up a condo for less than you would have paid in March, no question,’ he says. ‘But you will also rent it for less.”

    Imagine you are someone who bought a condo to actually live there. The investors go underwater and walk away, and the banks don’t make the common charge payments either. Now the remaining units are left to pay more of those common charges.

    Even worse in a co-op, a form of “ownership” unique to New York. You aren’t even buying your apartment, only shares in the entire building, which often has a common mortgage in addition to your mortgage.

    You end up with a cascading failure, where some stop paying, causing others to go under and stop paying, etc.

    Same thing with homeowners association when the common infrastructure installed by the developer falls apart, and the owners can’t afford the common charge to replace it. You are going to see this sweep the country soon.

    1. You end up with a cascading failure, where some stop paying, causing others to go under and stop paying, etc.

      But…but…that could lead to cascading defaults and bigger and bigger dominoes falling. And here Old Yellen told us we would not have another financial crisis “in our time.”

  12. Homeowner’s Hell. Rotted fence posts, due to the rental tenant next door over watering, snapped-off in a windstorm. Since the concrete was below grade I decided to remove it with an electric jackhammer. The developer must have hired a crew with a backhoe bucket rather than an auger, so the fence posts were held in place with at least a 1/4 yard of concrete each; it took me all day with that jackhammer to remove just two fence posts! I bought about 3/4 yard of fill-soil from the local pit for back fill, and used a 5-gal bucket with the bottom cutout to buildup the Sackret in lifts. This isn’t friable soil either; the Columbia Basin a basalt outcrop buried in caliche!
    https://imgur.com/a/Mfsa1hU

    1. Hi RMS,
      Thanks for sharing the pic. That’s a neat solution you came up with. Too bad you didn’t do the original install.

    2. I used cardboard tubes for concrete forms after taking out rotted posts plus concrete footings which left giant holes in the dirt after levering out the old footings. Lucky they were only like 90lb each footings but still allot of digging.

      1. “I used cardboard tubes for concrete forms…”

        Locally, it’s a mom-n-pop true value hardware. Real construction supplies are an hour’s drive away, each way. Hence, the workaround.

    4. FYI – Next time you have rotted fence posts in concrete, just clean out all the rotted wood and slip another right into the perfectly shaped existing square hole that it came out of, assuming it’s still plumb.

      1. The top of the Sakrete was well below grade, sprinklers hit the fence and puddles form at the posts. On the other side of the yard we ran a 3″ x 36″ gas powered auger down through several rotted posts until we hit soil and inserted new posts. The sprinklers are properly adjusted in ambient conditions, but the wind arrives and carries the spray against the fence, house, windows, etc., life in the desert.

        1. Sure, but you can pour more concrete to raise it above grade. I was just giving an alternative to breaking up that behemoth slab of concrete. My motto is “work smart, not hard.” 🙂

          1. “Sure, but you can pour more concrete to raise it above grade.”

            From that 1st photo I had no idea that I would be jackhammering an entire pallet load of Sakrete. I’m not kidding…it was a real Conan feat!

            My motto is “work smart, not hard.”

            Copy that!

  14. NBA to drop ‘social justice’ messaging following ratings collapse

    By Rebel News | October 07, 2020

    The National Basketball Association will no longer promote social justice messaging in its games following record-low ratings.

    Amid declining viewership and increasing criticism of its “wokeness,” from an audience disinclined to being lectured to by millionaire athletes like LeBron James, the NBA intends to leave social justice activism “off the floor” next season.

    “Adam Silver told them, ‘Hey guys, this is what we’re going to do to support our players. Our league is overwhelmingly comprised of African American players. This is important. This is a partnership. We need to work together to get through this season and into next year,’” NBC News reported. The messages agreed upon by the NBA, which were presented in court as well as on player jerseys, included: Black Lives Matter, Say Their Names, Vote, I Can’t Breathe, Justice, Peace, Equality, Freedom, Enough, Power to the People, Justice Now, Say Her Name, Sí Se Puede (Yes We Can), Liberation, See Us, Hear Us, Respect Us, Love Us, Listen, Listen to Us, Stand Up, Ally, Anti-Racist, I Am A Man, Speak Up, How Many More, Group Economics, Education Reform and Mentor.

    Hundreds of players continue to wear uniforms brandishing these messages.

    Missing from the list of approved messages is support for the people of Hong Kong. NBA has faced vigorous criticism from Hong Kong independence activists after Houston Rockets general manager broke ranks with the league by tweeting, and quickly deleting the message to “stand with Hong Kong.” Morey’s remarks were lambasted by LeBron James, who said the manager was “misinformed or not really educated on the situation.” The fiscal implications of Morey’s remarks were substantial as Chinese broadcasters severed business relations with the NBA and paused their broadcasts of the games, which are popular in China.

    In addition to its financial losses stemming from its stance towards democracy in Hong Kong, the league’s viewership is down by 68% for the finals this year amid the focus on social justice.

    Speaking on an ESPN broadcast ahead of Game 4 of the Finals between Lakers and Heat on Tuesday, Silver said that viewers can expect a “return to normalcy” going forward.

    https://www.rebelnews.com/nba_to_drop_social_justice_messaging_following_ratings_collapse

    1. Gold soars back above $1900 as the US dollar plunges (heckova job, Janet Powell). Meanwhile, the Fed’s bullion bank accomplices have added to their already massive short positions against gold and silver. This market rigging has been extremely profitable for the Fed’s primary dealer cronies, but one of these days the trade is going to blow up in their faces when the stampede into the safe haven of physical gold and silver (as opposed to the fraudulent paper gold and silver traded on the COMEX and EFTs) forces panic-buying by the Fed’s market-riggers to cover their short positions.

      https://www.cftc.gov/dea/futures/deacmxsf.htm

      1. Gold soars

        I guess you could say this every other day, as the price has been sideways for the past couple of months.

      2. This market rigging has been extremely profitable for the Fed’s primary dealer cronies, but one of these days the trade is going to blow up in their faces when the stampede into the safe haven of physical gold and silver (as opposed to the fraudulent paper gold and silver traded on the COMEX and EFTs) forces panic-buying by the Fed’s market-riggers to cover their short positions.

        Hyperbole. They’ve been doing it for decades.

    1. One woman, who was not from Greeley, but happened to be at the hospital during the protest yelled across the street “tell them to let you out of jail.”

      She identified herself only as a nursing home administrator in another community. She said has seen more deaths due to depression among her residents since the pandemic than she has COVID itself, blaming mandates and restrictions more than the virus.

      “The isolation is what kills these people,” she said. “It’s just incredibly sad that they can’t live out the last part of their lives with their family surrounding them.”

      1. where i grew up lots of 2 family houses, we lived over my grandmother till i was 9 and my father had his own house built on the 1 acre property we had subdivided into 4 lots we only used 1 lot for 20 years ….then my brother kept one and grandmas house at the time was a long term rental, when both tenants moved out we sold the house and 2 lots to a developer

        1. An acre of desert scrub is priced as high as $500,000 in some parts out west. Kinda hard to do what the olds did.

    2. I’m holding out hope for a COVID-related collapse in rents to result in outfits like this one going broke, due to buying into a collapsing bubble. The owner occupied market doesn’t work well when Ponzi-financed outfits like this one dessicate all the inventory.

      1. I’m not holding out hope for any material changes to the system before I die. It’s clear the FED is “all in,” and their deranged currency games may prove to have a longer life than I do.

        1. It’s clear the FED is “all in,” and their deranged currency games may prove to have a longer life than I do.

          My thoughts as well. There may be no justice in this life.

    1. The MSM is kvetching again about the lack of $1200 checks and $1000 a week unemployment bennies.

      1. “…kvetching…”

        Okay, I had to look it up. It’s always nice to add something useful to my four-lettered word vocabulary. Thanks!

  22. Public schools want to teach a new history

    “The 1619 Project is an ongoing project developed by The New York Times Magazine in 2019 which “aims to reframe the country’s history by placing the consequences of slavery and the contributions of black Americans at the very center of [the United States’] national narrative.” Wikipedia

    1. You can look forward to a lot more Critical Race Theory crammed down our children’s throats in case Biden-Harris win in November.

      “Critical race theory, the 1619 Project, and the crusade against American history is toxic propaganda, ideological poison that, if not removed, will dissolve the civic bonds that tie us together. It will destroy our country.

      That is why I recently banned trainings in this prejudiced ideology from the federal government and banned it in the strongest manner possible.”

      1. You have to hand it to the globalists, they are executing almost flawlessly. If they win all the marbles next month, the pace of change that will follow will be breathtaking.

        1. Well, if the Citizens of the USA are stupid enough to vote for what would be a Fat Cat Globalist and Commie take over of Government by false narratives than everyone gets taken down with these stupid Citizens.

          I was reading about George Soros. He’s just one more rich guy who wants a One World Order with open borders where his vision of the World takes place that he calls OPEN SOCIETY .

          The Money Changers and the Commies and Fat Cats shouldn’t be running the Government or the World.
          We had a American Revolution that started over a Stamp Act tax by King George, but what is occurring now is a thousand times worse than what created this Government by the people that these monsters are trying to take away. It’s mind-blowing that this could of happened but it did.

          1. While I prefer civil discussion and voting, remember what Jefferson said.

            “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure…”

          2. We’ve all heard about the “great reset”. In order to pull it off the globalists need to take over the US in November, meaning they have to take the WH and the Senate. And I don’t expect them to play fair. If they have to stuff the ballot box, they will.

    1. Months before, Mission Local had reported that homeowners were not getting paid full rent by HubHaus—even if their tenants were paying in full and on time, raising the question of where all this money went. One homeowner, angry the company blamed COVID-19 for suddenly shutting down, told Mission Local that “They are a venture-funded company that should have business interruption insurance, access to small business assistance, credit lines, etc.”

      Gee, homeowners, maybe you should’ve dealt directly with quality, creditworthy renters – attracted with reasonable rents – instead of greedily turning to a scam company that just added another layer of cost for hard-pressed renters.

  24. If you ask me what has come out by the Trump election was just how advanced the Commie and Fat Cat Globalist takeover of our systems has been.
    We have systemic fake news, a couple generations of Commie brainwashed young people in the corrupted school system, and a Political Party that is all in on the false narratives that tried to take out the elected President.
    The main stream news thought it was more important to report on the fact that a fly landed on the VP during the Debate, than the evidence released that Hilary bought the Russian Hoax to deflect from her computer crimes, and the CIA head and Obama knew about it.
    I always though that Biden ran to bury his and his cohorts treasonous acts that include Bidens Son taking bribes from Foreign Countries where Biden obstructed a investigation on it.
    These are extremely corrupt Politicians that with the media in their pocket think they don’t need to discuss their deranged policies, and it’s enough to call Trump a racist and a murderer of 200 thousand Covid deaths, while they let their buddy China off the hook.
    Is it any wonder that all the treasonous forces that want to bring down America want to rewrite history .
    This is very critical for the USA to take back the government from these corrupt entities so correction of their damage can begin.
    Rigged markets , gouging price fixing monopolies, Fat Cat Globalist looting and collusion with Communist China is what the Political sell out artist have brought us to.
    Michelle Obama with crazed eyes on a tape claiming this Country is racist and the protest are peaceful.
    These jerks need to be taken out of office because they will destroy any chance of correction of what when haywire in the USA , especially in the last 25 years.
    We will turn into a Communist hell hold where your at the mercy of Globalist Fat Cats and Commie taxes to pay for the give me crowd, which include the Fat Cat looters.
    Our founders didn’t create this government to be a One World order controlled by Rich Globalist and Commies redistribution of the wealth.

      1. dictator/authoritarian

        The Deep State doesn’t want the people to notice who the real authoritarians are. We’ll find out on election night how effective their deception has been.

  25. Redpilled Redhead.

    Did you get the California ballot mailed to you where they have a vote to reduce the voting age to 17?

    This is really alarming to me that Biden/Harris might win and the media let’s them get away with not discussing their polices, including Court Packing..
    Just unreal.

    1. The media isn’t letting them get away with not discussing their policies … it’s actively helping them. We are at a fork in the road, where the nation could follow California’s path and become a one party state. And we all know how peachy keen everything is in California these days.

    2. Did you get the California ballot mailed to you

      So far just our absentee ballots.

      Court Packing

      Mark Levin had Ted Cruz on last Sunday to discuss his new book One Vote Away: How a Single Supreme Court Seat Can Change History. Sunday’s show typically reairs on Saturday. I highly recommend that people watch it.

      1. OMG,

        Pelosi just introduced a bill for Congress to have the power to take out a President with the VP evoking the 25 tamendment.
        It’s very clear that this is what they would do with Biden and Harris . All the speculation that they want the puppet Harris for President is confirmed by this act of Pelosi.
        It’s also scary to think how many Bills this Despot power monger Nancy Pelosi might introduce to increase the power of Congress if the Dem gain power again.
        Pelosi wants a major bailout for her Nephew in California to be included in the new Covid relief Bill.
        Look, this corrupt old power hungry nut need to be taken out, Vote for the Republicans to take the house back. Court Packing is a given if the Dems win.

        1. Adding DC and PR as states, removing the filibuster and packing the Supreme Court are the end of our constitution republic.

          1. the end of our constitution republic Too late! I think it ended a while ago. Government by consent of the governed still might regenerate if a sufficient number of the governed wake up and exert themselves.

          2. the end of our constitution republic

            Some fighting back may be required.

            The majority of people think this is a personality/congeniality contest, like Prom Queen or something.

          4. I’d like to be optimistic about this and say that moves like this would trigger some kind of Great Reshuffling. That some Silent Middle would stand up and vote for meritocracy.

            But I can’t. Why bother with merit when you can print $50K/year and just sit home and play games all day? What if work was no longer rewarded? Our transit infrastructure is already falling apart. What will happen if we lose our water system or electric infrastructure?

          5. Too late! I think it ended a while ago.

            Exactly. This was on full display when Trump was elected. The globalists immediately went to work to try to remove him. They simply want Biden in so they can go back to work. The USA is over, and has been for 20 years.

          6. The USA is over, and has been for 20 years.

            If that were true, we wouldn’t be having this discussion. For those willing to see it, the trajectory has been clear for the last 20 years but we are now at the precipice.

          7. If that were true, we wouldn’t be having this discussion.

            It is true, it’s just that the last gyrations and death throes have yet to be felt. Look around at all the cities, the homelessness, the depravity, the lawlessness. It’s at a record everywhere. This was happening long before the Kung Flu.

            They’re talking about a $7 TRILLION “stimulus” package. This says nothing of the FED’s balance sheet. To say these numbers are eye-popping would be a gross understatement. They’re criminal. The currency is finished.

        2. It’s also scary to think how many Bills this Despot power monger Nancy Pelosi might introduce to increase the power of Congress if the Dem gain power again.

          I don’t know…they don’t even use the power they have now? Seems like they just squabble and let the President do whatever he wants while they complain (either party).

          1. As I see it , it was more of a gradual take over . Trump was a threat to their plans .

            This is a very serious threat to the Constitution Republic of the USA..

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