The Aftermath Of The Real Estate Insanity Of 2020 - 2022 Huge Mortgages Too Many Co-signers & Years Of Pain

Here's what we know: from the Fall of 2020 to March of 2022 many Real Estate Markets in BC & Ontario became crazy: FOMO, Work From Far-Off Home, you name it

2/ Near the end of this totally crazy run many so called Real Estate experts would calmly explain ongoing 5% to 8% increases in the price of homes would continue to be the norm

The few of us who said this was a stupid idea & the Bubble would burst were ridiculed

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Time For Mark Carney To Pull A Doug Ford: Apoligise & REVERSE The Condo Bailout

It's not hard Prime Minister: Just get in front of a microphone & say:

"My Friends, the People have spoken & we are canceling the Condo Purchases, we will still achieve Affordable Housing"

2/ Premier Ford does this on a frequent basis

- Private Jet
- Greenbelt

It's easy: when Ford fucks up a decision he gets a call from Kory Teneycke who straightens him out & an apology ensues

Canada needs you to cancel the Condo Bailout

But you won't

You're not Doug Ford

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What's The WORST Thing About The Carney Condo Bailout? The Developers He's Bailing Out Made Fortunes for 20 Years

And everyone who keeps suggesting it's smart to buy instant Low Rent, Non-Market affordable homes instead of waiting for Build Canada Modular Yurts is stupid

2/ Because a thinking person would realize; Don't buy these units NOW & Government may not need to buy

Wait until the Developers drop the prices MUCH FURTHER

Or let the Developers go into Receivership & buy at the lowest price from the Receiver

It's critical to understand

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Carney Government Loses It's Mind & Just Saves Condo Developers In BC: Unfuckinglievable

Unlike Carney's deal with Ontario which was a HST Sales Tax reduction scheme in BC they just went whole hog & BOUGHT New Construction Condos the Developers can't sell

Which is NUTS

2/ The Unsold Condos that your Tax Money is buying will be used for Social Housing

But how do all Canadian Tax Payers feel about that?

Did you want your taxes to go for Healthcare & Pensions or to bailout Condo Developers?

What's your opinion Canada

Doesn't matter

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GTA House Prices Continue To Fall In May Even As Sales Of Homes Show A Slight Improvement

Actual unit sales of homes increased 6.3% in May Yr on Yr even though prices just keep grinding down 4.6% Yr on Yr

Sales are still well below the 10 year average

What's this mean?

2/ First of all be VERY careful of some lying Realtors claims that prices are UP compare with the January price point

Average price is effected by the MIX of homes sold

If more cheap condos were sold in January (traditionally worst sales month) compared with May (best month)

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Insolvencies, Bankruptcies, Foreclosures & Power Of Sales Will Continue: They Won't Level Off For Awhile

We've seen constant, rapid rise in Insolvency Filings & homes being lost to lenders: these Financial Disasters will continue to accelerate into 2027

Here's why:

2/ All these elements of personal Financial Disaster connect to 2 things

- The Deterioration of the Canadian Economy
- The collapse of House Prices in 2 Provinces

The drop in house prices is a huge driver of personal financial calamity in Ontario & BC

Because of Leverage

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Sell The Airports
Sell The Seaports
When You're The Prime Minister From Brookfield EVERYTHING Is Financial Engineering

Federal Government doubled down: Not just sell the Airports, sell the Seaports too

Here's the truth: companies who buy these facilities insist on PROFIT

2/ Therefore once sold eventually the cost of using Airports & Seaports must RISE

The Federal Government's plan is to raise Billions for "Other Projects"

Well, with a $60+ Billion Annual Deficit Government should have access to money to finance "Other Projects"

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Why Are Bankruptcies & Insolvencies Growing So Fast? They Have Reached 2009 World Financial Crisis Levels

Main Reasons:

- The Collapse of Residential Real Estate
- Growing Unemployment in Full Time Jobs
- Inflation Destroys Affordability

This will ikely get much worse

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https://twitter.com/globalnews/status/2053933978571170058

The most striking aspect is the growth of Homeowner Insolvencies

From 2015 through 2023 the number of Homeowners filing Insolvencies was incredibly low

The growth in Home Values in Canada provided an ever increasing buffer of equity that could be tapped for cash

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When Will Canadians Tell The Prime Minister: TIMES UP!

It's been over a year since Prime Minister Carney's election & at what point do Canadians question his promise of: Build Bigger & FASTER than ever before

When will Canada become the Energy Superpower he told us?

2/ Look, I get it, things take a bit of time

But so far it's:

- MOUs
- Open Agencies & Crown Corps
- Start some things already approved

Where is the New Oil Pipeline to the North Coast of BC?

Where are the NEW Mines?

Where are NEW Natural Gas Liquification Plants?

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Prime Minister Carney Operates A Government For The Elites: It's Becoming Obvious Now

It's just out there now, it's become clearer

The 80% of Canadians who ARE NOT in the top income or top wealth brackets are being left behind

This is a Government for top tier Canadians

2/ People can say: Oh No, look at the Essentials Benefit to help lower income people hurt by inflation. Look at the reduced taxes for lower income people

None of that really helps Working Poor or Middle Class Families because Inflation still runs HOT & is about to get hotter

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Peak Fuckery: Parents Who Took Out HELOCS & Mortgages To Provide Down Payments For Kids To Buy Homes In 2021 Now In Power Of Sale

Sounds crazy right? And it's not thousands of parents but it is happening right now in Ontario to some Seniors

It's tragedy & it's not fixable

2/ Think back to 2021: Real Estate was going crazy

Many RE Agents actually suggested if people didn't buy homes at sky high prices that they would be shut out of ever owning a home

Many Realtors suggested 10% or higher price increases FOREVER

Because Immigration, Blah Blah

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Canadian Rents Have Gone Down 18 STRAIGHT MONTHS & More New Construction Rental Supply Is Coming Than Ever Before In History

Yeah, Mom & Pop Landlords who bought units in the last 6 years knew things were bad

But in some Canadian cities we're headed for Landlord HELL

2/ Not even kidding

If you bought a Pre-Con Condo in 2020 - 2022 in Toronto or Vancouver you were already in big trouble on Price

You paid way too much

But if you managed to close you were faced with big Negative Cash Flow

Which is bad: but it's going to get WORSE

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Conservatives Members Of Parliament Crossing The Floor To Become Liberals: Those MPs Were BOUGHT

I don't think we can end Floor Crossings because it's just too hard, it's almost a Constitutional change

But look at WHY people elected to represent one party switch parties

2/ It's because they're BRIBED to do it

Not bribed with money, bribed with Perks, bribed with quiet promises of future higher paying positions in Parliament, bribed with assurance of Party Support in the next election, bribed with Polling numbers that favor the Liberals

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How Bad Is It That Canada's Economy Is Completely Dependent On Tax Policy?

Canada has gone down such a wrong road

Yesterday an announcement changing a Tax Policy was done to save the Residential Construction Industry

From a Tax Policy that killed the Construction Industry

2/ Which is fucking nuts!

We taxed the Housing Industry literally to DEATH: taxes, fees & levies were 30% of the price of a new home compared with 2% 30 years ago

Then the Government announces a TEMPORARY waiver of the taxes

1 Year for HST
3 Years for 50% off Development Fees

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Oil Breaks Through $100 A Barrel & Mortgage Rates Go Up As 5 - Yr Canada Bond Yields Jump 9% In A Week

What to do if you are in the middle of purchasing a home or have a Mortgage Renewal in the next 3 months?

LOCK IN A RATE NOW!

There are a few low rates still around today

2/ But likely gone tomorrow or the next day

I have covered this story before

Oil price up = Inflation up = Canada Bond Yields up = Mortgage Rates up

But what about Variable, which has nothing to do with Bond Yields?

Variable is a Bank of Canada decision

What will BoC do?

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The Trickery Never Ends In Real Estate Sales: Let's List The House The House For $250K Less Than We Will Take

For the last 20 years Residential Real Estate has used some of the worst Sales Tactics

Not every Realtor does this but too many do it endlessly

Fake list prices

2/ For a hundred years Real Estate was sold by offering a house at slightly above the price you wanted & some back & forth negotiations happened & the Buyer & Seller arrived at an acceptable sale price

When GTA house prices went nuts in the early 2000's this concept died

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246 New Construction Homes Sold In The GTA In January: Lowest Since 1981: WTF Is Going On Here?

Lowest in 45 Years? Even Though the Population is more than DOUBLE

This a truly disturbing number

Why is it happening? How did we get here? When will it return to normal?

2/ Let's start with a very important stat: 80% of GTA New Home Sales for the last 8 years are HI-RISE

Therefore if Hi-Rise Development stops New Home Construction stops

Once this Hi-Rise concept is understood the rest of the reasons for the New Home Catastrophe fall in place

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Government Spending At All Levels Has Just Gone Nuts: There's No End In Sight

Government of Canada Deficit: Non-Covid Record High

BC Deficit: All Time High

Manitoba Deficit: All Time High

We all know how big the Deficits are in Ontario & Quebec

Why is this happening?

2/ The answer to this question is in 3 parts:

Because they can

Because spending is easy

Because it's politically beneficial

Let's break it down

There's no Balanced Budget requirement for the Feds & Provinces: most US State Constitutions forbid any Budget Deficits

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Another Day Another Bank Consolidation: Canada With Few Banks Wants To Have Fewer

Just a couple of days after the Fairstone purchase of Laurentian Bank, Equitable Bank aquires PC Financial from Loblaws

It's a smaller transaction but meaningful

It shows a pattern

2/ PC Financial was a good idea 25 years ago

Loblaws had millions of people moving through it's stores every month: why not sell them Financial Services & roll those services into a Loyalty Plan using a brand Loblaws had already spent millions to establish

No Brainer?

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Brampton House Prices Down 31% From Peak: Will It Go Lower? Why Did It Happen?

The TRREB system says Brampton house prices have fallen 31% from Feb 2022 to October 2025

$1.346M to $934K

That's a shit ton of losses, likely another 10% to 15% more to go

WTF Happened?

2/ Power Of Sales Happened

Lenders are taking alot of homes from Borrowers who cannot make mortgage payments & those homes need to be sold FAST

Why so fast?

Because lenders, half of them Private or Alternative Lenders (not banks) need the money back

And don't have a choice

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New Home Construction Collapses In GTA: Very Simple Reason

If every New Construction Home on offer is substantially more expensive than similar Resale Homes so who the hell is buying the New Construction Home

Not just a bit more expensive: 10%, 15% or 20% more expensive

2/ And not just the GTA, all across Ontario

Who is going to pay $1075 a sqft for a Pre-construction Condo if there is massive supply of almost new Resale Condos at $900 a sqft & if you just want until 2026 it's $850 a sqft

And that's just 416

Let's check out other cities

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