February 7, 2018

Prices Reached A Peak But Have Been Sliding Ever Since

A report from Reuters on Canada. “Home sales in Toronto fell 22 percent in January from a year earlier as rising interest rates and tighter mortgage rules weighed on demand. The average price of Toronto homes was C$736,783 ($589,002) in January, little changed from C$735,088 in December, and 19.8 percent lower than the market peak in April 2017. The real estate board said sales of detached homes fell 26.0 percent in January, while condo sales were down 21.9 percent, semi-detached home sales fell 13.1 percent and townhome sales fell 12.6 percent from a year earlier.”

“Toronto’s housing market swooned in May 2017 after the provincial government stepped in with a foreign buyers tax, among other measures, amid fears of a housing bubble. A suite of so-called B-20 rules on mortgage lending that require stress tests on uninsured mortgages took effect Jan. 1, and are expected to make it harder for many buyers to qualify for a mortgage.”

From Bloomberg. “‘It is not surprising that home prices in some market segments were flat to down in January compared to last year,’ said Jason Mercer, the Toronto Real Estate Board’s director of market analysis. ‘At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace.’”

“It was the weakest month of sales for January since 2009. New listings rose 17 percent from the same period last year, but it was the second lowest level for January in the past decade. Active listings soared 136 percent from a year earlier.”

The Canadian Press. “The Toronto Real Estate Board says Greater Toronto Area realtors reported 4,019 home sales for January through the MLS, compared with a record 5,155 sold a year ago. Last month’s average selling price was also down, falling by 4.1 per cent to $736,783 from $768,351 a year ago. Sales volume and prices for townhouses, semi-detached and fully detached houses were all down. The biggest decline was in the average price of fully detached houses in the surrounding 905 area code, where the average price dropped by 12.0 per cent to $879,048. In the 416 area code, the average fell 3.9 per cent to $1,283,981.”

From CBC News. “Housing sales in the city dropped over a quarter last month compared to January of 2017, according to new numbers from the Realtors Association of Hamilton-Burlington. In Burlington alone, prices fell by 8 per cent. The median in January was $625,000, down from $680,000 in the same month the year earlier. Housing prices in Hamilton reached a peak in April of 2017 when the market was at its hottest, but have been sliding ever since. ”

“The overall Hamilton-Burlington median price was down 12.3 per cent from April 2017. The Hamilton-only price was down 11.8 per cent from last April. And in Burlington, the peak was higher in March – January 2018 median price was down 17 per cent from March last year.”

From Mississauga.com. “The average price for all types of real estate in Mississauga has fallen back to levels not seen since the summer of 2016. According to the latest monthly tracking data from the Toronto Real Estate Board, the average selling price for all types of dwellings came in at $631,372 in January 2018. While that represents a 9.8 per cent year-over-year decline over January 2017, those who purchased during last year’s spring peak are looking at some fairly steep losses to kick off 2018.”

“The Mississauga market has shed 20.9 per cent since March 2017, when the average selling price for real estate topped out at $798,670. It has been in decline since. The detached home sector was the hardest hit, falling 13.4 per cent to $1,022,125 last month compared to an average selling price of $1,181,365 in January 2017. The average selling price for a detached home in Mississauga has fallen $231,623 — or 18.5 per cent — since peaking last March at $1,253,748.”

“In addition to regulations making it more difficult for prospective buyers entering the market, three interest rate hikes of a quarter point each by the Bank of Canada since last summer have also increased the costs of borrowing.”

From Mortgage Broker News. “Five weeks into the latest B-20 regime is all it’s taken for brokers to sound off. Homebuyers are having trouble qualifying for mortgages, as was predicted, and many are securing loans from the private channel. According to Ron Butler of Butler Mortgages, in the name of cooling down two overheated markets, the government has callously acted against the interests of consumers.”

“‘If you live in Medicine Hat and want to finish your basement by refinancing, why should you be afflicted because of something that’s about two big cities in Canada,’ Butler said of Toronto and Vancouver. ‘If your qualification test forces them out of A lending and into B lending, you’ve totally screwed the consumer, and why should that be government policy?’”

The Financial Post. “Since the revised mortgage guidelines came into force, both the Bank of Canada of rate and benchmark rate has risen, dealing a ‘double extra whammy’ to borrowers, said Dave Teixeira, vice president of operations, public relations and communications for Dominion Lending Centres. Dominion mortgage brokers are seeing a higher rate of rejection and clients have to submit multiple applications to various institutions before finding a lender that works, he added.”

“Private lender Fisgard Asset Management Corporation in Victoria is seeing an influx of borrowers and ‘better quality business’ said Hali Noble, its senior vice president of residential mortgage investments and broker relations. ‘A lot of these people should be bankable,’ said Noble. ‘But they’re not.’”

The London Free Press. “After back-to-back record breaking years, the London area real estate market got off to a sluggish start in 2018. The London St. Thomas Association of Realtors said 400 homes were sold in January, down 28.8 per cent from the same month last year. John DeBlock, a veteran realtor with Remax Centre Realty said there are still plenty of interested buyers, some with mortgage approvals obtained before the new rules kicked in. DeBlock said Toronto buyers have not disappeared and the new mortgage rules have increased their interest in regional markets.”

“‘They used to qualify for $1 million and now they only qualify for $750,000 and they can’t find anything for that in Toronto,’ said DeBlock.”

The Windsor Star. “After a rip-roaring year for local real estate in 2017, housing sales in Windsor and Essex County plummeted in January. Residential sales fell more than 21 per cent — year over year — from 364 units in January 2017 to 286 last month, according to the Windsor-Essex County Association of Realtors. ‘It’s a big number — it is a concern,’ said association past-president Kim Gazo, a sales agent at Deerbrook Realty.”

“But not to worry, at least not for now, Gazo insists. ‘If dramatic declines continue in February and March, I think then we can start losing sleep,’ she said.”

The Calgary Sun. “The Calgary Real Estate Board (CREB) has weighed in with its expectations for the Calgary housing market in 2018 and this year should be a little slower, but still a lot like last year in terms of sales activity and price growth. ‘Housing market conditions are expected to remain relatively unchanged in 2018,’ says CREB chief economist Ann-Marie Lurie. ‘The market will continue adjusting to the new normal in this economy.’”

“The market is definitely in favour of buyers with excellent financial credentials, particularly due to a large inventory of homes for sale. The apartment sector, plagued by oversupply in the MLS and new homes markets, is expected to stay very much a buyers’ market, with downward price pressures, for the most part of the year. ‘For buyers, there are a lot of supply choices in all prices across most product types,’ says 2018 CREB president Tom Westcott. ‘Sellers need to understand what niche their home falls within, their competition and how fast they have to sell.’”

RSS feed


Comment by Ben Jones
2018-02-07 09:24:24

The title to the last article:

‘Housing market to experience déjà vu’

It just gets worser.

‘At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace’

And presto-chango, what da ya know Jason, plenty of inventory. What happened? It’s just been a few months. Did you build-build-build? No, that’s not it.

‘Home sales in Toronto fell 22 percent in January from a year earlier as rising interest rates and tighter mortgage rules weighed on demand’

Well golly, that’s just what I’ve been telling the shortage-cult people here on this blog. There ain’t no shortage of shacks anywhere. And what’s happened in Toronto proves it beyond a doubt.

Comment by BlueSkye
2018-02-07 10:25:23

“Inventory” is deceptive realtor talk for number of people wanting to sell their so-called investment. Same goes for “Vacancy”.

Comment by Sean
2018-02-07 11:11:15

Where are all the “If we had more inventory we’d sell more houses” realtor folks? There it is Jason, go sell it!

Comment by whirlyite
2018-02-07 15:24:04

Haven’t I read something like this before?

Comment by oxide
2018-02-08 09:38:25

During that last bubble I remember reading about a low inventory of land … only to discover that there was plenty of buildable land; but it was optioned to the hilt by the likes of Tool Brothers and Ryan Homes and the like.

BTW, the builders are starting to build again in the outer burbs on that same land.

Comment by Professor 🐻
2018-02-07 23:26:50

‘At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace’

Isn’t this exactly what housing market experts have been saying about why U.S. home sales have been recently spiking?

No mention to my knowledge of the resemblance of this development to the parabolic price blowout phase of an asset price bubble…

Comment by Senior Housing Analyst
2018-02-07 09:29:20

Annandale, VA Housing Prices Crater 14% YOY As Fairfax County Housing Correction Deepens


Comment by Senior Housing Analyst
Comment by taxpayer
2018-02-07 11:58:00

I’m 3 miles away form there. Prices are firm and inventory low-way LOW.

Comment by Mafia Blocks
2018-02-07 12:01:57


Herndon, VA Housing Prices Crater 12% YOY


(Comments wont nest below this level)
Comment by oxide
2018-02-07 12:40:09

Did a quick zillow check of my nabe. Not much is for sale. Anything that is for sale is:

1. overpriced by about $50K
2. trashed foreclosure up for auction.

The trashed foreclosures are in ok shape but the decor hasn’t been updated in 30 years. I mean really bad: paneling, mirrored walls, brass light fixtures, and yikes kitchens (not that I like the Home Despot special, but yikes).

(Comments wont nest below this level)
Comment by Mafia Blocks
2018-02-07 14:03:17


Arlington, VA 22202 Housing Prices Crater 6% YOY



Comment by CryptoNick
2018-02-07 09:38:57

Cryptocurrency market could hit $1 trillion this year with bitcoin surging to $50,000, experts say

Cryptocurrencies could go on a bull run greater than last year and pass the trillion-dollar value mark, Jamie Burke, CEO at Outlier Ventures said.

Technological advancements and new investor products could push bitcoin to $50,000 in 2018, Thomas Glucksmann of Gatecoin told CNBC.

Investors may focus on so-called “utility tokens” this year which are digital coins that can power blockchain technologies, according to one expert.
Arjun Kharpal | @ArjunKharpal
Published 7 Hours Ago Updated 4 Hours Ago


Comment by Mr. Banker
2018-02-07 09:48:51

“new investor products”

Lol, new investor products made out of thin air.

Comment by In Colorado
2018-02-07 12:54:51

This reminds me of when they were selling “paper gold” not too long ago.

Comment by Neuromance
2018-02-07 18:43:14

Mr. Banker: Lol, new investor products made out of thin air.

It’s like a video game where you can buy items in the game: https://www.google.com/search?q=cost+of+items+in+online+games

Humans are very good at accepting logical constructs and virtual objects. It is a strength and a weakness.

Comment by CryptoNick
2018-02-07 11:06:52

‘Bitcoin is my potential pension’: What’s driving people in Kentucky to join the craze
By Chico Harlan
February 3, 2018
Jacob Melin, right, helps client Jim Baker in the offices of Crypto Consulting Group in Louisville on Jan. 18, 2018. (Luke Sharrett/For The Washington Post)

He had invested in bitcoin almost two years earlier, so now Jacob Melin had a new house, a new truck, a new consulting business and a line of people coming into his office, trying to become wealthy as quickly as he had. One person said he expected to use a modest investment to “retire in 12 to 18 months.” Another said he wanted to use the proceeds to start a business. And a father of two talked about paying off his own student loans and buying several acres of land — all the things he did not see a chance to do with his income as a software salesman.

“Us little guys working our butts off, we can’t get ahead,” Cedric Knight, 35, told Melin. “This is a once-in-a-lifetime opportunity to change my life.”

Knight and others visiting Melin were pinning their hopes on a new form of currency whose potential value the world was only beginning to recognize. Millions of people around the world are chasing after fortune by investing in bitcoin — which has soared by more than 2,500 percent in value in the past two years — and other digital instruments known as cryptocurrencies.


Comment by 2banana
2018-02-07 11:50:27

“It’s a great time to buy,” he said. “Right now. A great time.”

These folks, who are barely getting by as it is, are going to be wiped out.


By mid-January, he had invested a total of $1,500 in cryptocurrencies and seen the value dwindle by about $100. He texted Melin a cartoon — a dejected man holding his head in his hands. The caption read: “When you bought a crypto coin an hour ago and it still isn’t up 1000%.”

Knight, meantime, went home, cooked dinner and then decided to reopen one of the eight cryptocurrency apps he had downloaded. His account had fallen nearly $500 on the day — his initial $1,500 was below $900 — and he said he was “freaking out.” But then, he thought about what it meant to be a cryptocurrency investor. There would be days such as this. But there might be better days, too — much better days. If there were, he did not want to miss out.

“I’m almost afraid not to take the chance,” he said, and soon, he added $260 to his cryptocurrency account.

Comment by Mr. Banker
2018-02-07 13:37:58

“These folks, who are barely getting by as it is, are going to be wiped out.”

It’s God’s Plan.

Matthew 13:12.

(Comments wont nest below this level)
Comment by da bear
2018-02-07 15:21:58

Buy Gold!

Revelation 3:18

Comment by Anonymous
2018-02-07 12:47:56

One person said he expected to use a modest investment to “retire in 12 to 18 months.”

Is it wrong for me to LMAO at these people?

Comment by b
2018-02-07 13:15:58

Ya it is.

Folks that fall into schemes might be naive, wrong and perhaps greedy.

Folks that target the naive intentionally are evil - lets crush these first.

(Comments wont nest below this level)
Comment by BlackSwandive
2018-02-07 12:18:28

“Cryptocurrency market could hit $1 trillion this year with bitcoin surging to $50,000, experts say..”

“Experts say.” LMFAO. Is this like a Beanie Baby expert? Did they have tulip experts?

Comment by CryptoNick
2018-02-07 13:23:18

Winklevoss: If you can’t see bitcoin at $320,000, you just lack imagination
Published: Feb 7, 2018 3:06 p.m. ET
‘We believe bitcoin disrupts gold’
Getty Images
Tyler Winklevoss and Cameron Winklevoss are still fired up about bitcoin.
By Shawn Langlois
Social-media editor

‘You know the criticisms are just a failure of the imagination.’

That’s what Tyler, one of the Winklevoss twins, had to say to the skeptics — and there are many — who fail to see the massive potential for bitcoin (BTCUSD, +4.13%) and the rest of the crypto space.

“Cryptocurrencies aren’t really important for human-to-human transactions… but when machines-to-machines trade economic value, they are going to plug into protocols like bitcoin and ethereum,” he explained to CNBC. “They are not going to open bank accounts at J.P. Morgan… those were invented by bankers before the internet existed. Trying to use them as payments or money on the internet is a square peg in a round hole at best.”

His brother, Cameron, says bitcoin will one day be worth 40 times today’s price, which is currently just over $8,000, thanks to a double-digit rally.

“We believe bitcoin disrupts gold (GCH8, -1.02%). We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity,” Cameron said. “Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. Its sort of equals a better gold across the board. We think regardless of the price moves in the last few weeks, it’s still a very underappreciated asset.”


Comment by Rental Watch
2018-02-07 13:46:13

it’s more portable, its fungible, it’s more durable.

It’s also more easy to lose. Gold is a bit harder to lose.

Comment by OneAgainstMany
2018-02-07 14:08:29

It’s also more easy to lose. Gold is a bit harder to lose.

And it is a lot less tangible.

(Comments wont nest below this level)
Comment by CryptoNick
2018-02-07 19:04:10

“Bitcoin is actually fixed in supply so it’s better than scarce …”

OK, but how many thousand virtually identical cryptocurrencies have already been launched?

Hopefully for the Winklevii twins, greater fools aren’t scarce.

Comment by Ben Jones
2018-02-07 19:23:29

‘Winklevoss: If you can’t see bitcoin at $320,000, you just lack imagination’

Artificial intelligence.

Comment by Karen
2018-02-07 21:45:15

Good one.

(Comments wont nest below this level)
Comment by CryptoNick
2018-02-07 18:53:02

As Bitcoin Bubble Loses Air, Frauds and Flaws Rise to Surface

Checking the values of virtual currencies in January. Such currencies have slid more than 50 percent in value from their peaks early that month, bringing various problems to the fore.
Geoffroy Van Der Hasselt/Agence France-Presse — Getty Images
By Nathaniel Popper
Feb. 5, 2018

SAN FRANCISCO — You did not have to be a technophobe to worry that the virtual-currency boom of the past year papered over plenty of problems.

The scale of those problems is starting to become clear as digital tokens have slid more than 50 percent in value from their peaks in early January, with steep drops on Monday pushing the value of Bitcoin specifically below $7,000.

Hackers draining funds from online exchanges. Ponzi schemes. Government regulators unable to keep up with the rise of so-called cryptocurrencies. Signs of trouble have appeared at nearly every level of the industry, from the biggest exchanges to the news sites and chat rooms where the investment frenzy has been discussed.

On Tuesday, the leaders of the two main regulatory agencies in the United States that oversee the technology, the Securities and Exchange Commission and the Commodity Futures Trading Commission, are to testify before the Senate banking committee about their efforts to police virtual currency markets. In the past two weeks, both have brought major cases, but people in the young industry said regulators had barely made a dent.

Some virtual currency enthusiasts argue that the problems are no different from what has happened in other booms, like the internet bubble of the 1990s. But even true believers say the design of virtual currencies — meant to cut out middlemen and government authorities — has made bad behavior more prevalent amid this particular bubble.

“Cryptocurrencies are almost a perfect vehicle for scams,” said Kevin Werbach, a professor at University of Pennsylvania’s Wharton School. “The combination of credulous buyers and low barriers for scammers were bound to lead to a high level of fraud, if and when the money involved got large. The fact that the money got huge almost overnight, before there were good regulatory or even self-regulatory models in place, made the problem acute.”

Comment by Ben Jones
2018-02-07 09:40:42

‘If your qualification test forces them out of A lending and into B lending, you’ve totally screwed the consumer, and why should that be government policy?’

Have you tried stamping your little feet Ron?

Comment by BlueSkye
2018-02-07 10:29:04

Ron is a danger to his community and hisself. His life plan is to buy what he can not afford and promise to pay later.

Comment by Ben Jones
2018-02-07 09:46:31

‘In Burlington alone, prices fell by 8 per cent. The median in January was $625,000, down from $680,000 in the same month the year earlier. Housing prices in Hamilton reached a peak in April of 2017 when the market was at its hottest, but have been sliding ever since…The overall Hamilton-Burlington median price was down 12.3 per cent from April 2017. The Hamilton-only price was down 11.8 per cent from last April. And in Burlington, the peak was higher in March – January 2018 median price was down 17 per cent from March last year.’

‘The Mississauga market has shed 20.9 per cent since March 2017, when the average selling price for real estate topped out at $798,670. It has been in decline since. The detached home sector was the hardest hit, falling 13.4 per cent to $1,022,125 last month compared to an average selling price of $1,181,365 in January 2017. The average selling price for a detached home in Mississauga has fallen $231,623 — or 18.5 per cent — since peaking last March at $1,253,748′

‘The average price of Toronto homes was C$736,783 ($589,002) in January, little changed from C$735,088 in December, and 19.8 percent lower than the market peak in April 2017′

Starting to sound kinda C$ blood-bathy.

Comment by Ben Jones
2018-02-07 10:26:44

Something else in all this. The MSM will apparently never admit to a bubble or call it popped. In Manhattan, Miami, London, Dubai and the dozens of other places we read about, they’ll describe in any terms except a mania or a mania in past tense. Sure, every once in a while the B word gets dropped but almost always in saying it doesn’t exist.

Comment by BlueSkye
2018-02-07 10:31:11

The media call it a bubble when people lose half their money. It’s difficult to understand things when they aren’t called by their right name.

Comment by tj
2018-02-07 12:59:04

It’s difficult to understand things when they aren’t called by their right name.


(Comments wont nest below this level)
Comment by alphonso bedoya
2018-02-07 15:02:38

When they started to call invasions incursions the game changed.

Comment by Neuromance
2018-02-07 18:34:20

The FIRE sector provides advertising dollars, hard copy and readily available pundits to opine on all topics FIRE, which brings in readers/viewers/listeners and thus brings in yet more advertising dollars. Not a chance they will bite the hand that feeds them and makes their life easier. Their job is to print interesting and emotional stories and thus get readers/viewers/listeners and thus get paid (everybody gotta eat). Informing is incidental. Not being cynical, just identifying the business model and cashflow.

Comment by oxide
2018-02-07 12:46:12

The detached home sector was the hardest hit, falling 13.4 per cent

Interesting. You would think that the SFH would hold their value (because no one shares walls unless they have to). Then again, probably everyone had the same idea, and therefore SFH were the most overpriced to begin with.

Comment by b
2018-02-07 13:22:35

Yes - i am stunned that all those condo building across the great toronto area (GTA) are not falling in value more. If you think condo association fees are high in the US, you have not seen anything by Canadian standards.

A few years, there was a scam (my word - not officially), where the condo association after year 2, would transfer the mgmt contract to a separate company. Very coincidently (ha ha - my chuckling), principals in this separate company were owned or related to people in the Toronto real-estate hierarchy

I wish i had the corruption gene. I would be so rich

Comment by Mr. Banker
2018-02-07 17:47:59

“I wish i had the corruption gene. I would be so rich”

Go into banking.

(Comments wont nest below this level)
Comment by b
2018-02-07 13:17:28

Oakville (next suburb over from Burlington) is expecting to build another 15K homes in the next 5 years.

As prices drop XX %, there is still supply coming online

Comment by messagetorudy
2018-02-07 10:21:12

Obama just implicated in new Page-Strozk texts. Maybe the guys building all these unwanted condos in Miami, LA, etc. can start working on additions to Gitmo.

Comment by Apartment 401
2018-02-07 11:15:46

Obama and Hillary need to spend the rest of their lives in prison.

Comment by MacBeth
2018-02-07 17:32:31


Comment by 2banana
2018-02-07 11:54:44

Now add in that it was all directed and tracked by obama.

Massive corruption. Treason. Barely a peep from the fake legacy media.


“Here’s what is unbelievable: the MSM, most Democrats and some Republicans are jumping up and down acting like the President has committed some heinous act. There has to be some Freudian thing there. Jeebus, this only was an attempt to use the spy powers of the entire US government to stop a political opponent, in a presidential election no less, and then to run a coup operation after he won. How do people not get a life sentence in prison for something like this?”

Comment by palmetto
2018-02-07 12:13:36

“How do people not get a life sentence in prison for something like this?”

When you don’t have a functioning justice system, that’s what you get. I warned about this back when Comey and Lynch were standing side by side smirking on the TeeVee. We DON’T have a functioning justice system. We have a protection racket for wealthy and influential people.

Soros should be in jail, the barons of Wall Street should be in jail, the banksters should be in jail, probably many Congresscritters should be in jail.

Comment by Ben Jones
Comment by palmetto
2018-02-07 13:30:16

The Despicables vs. The Deplorables

I don’t see any way this ends other than with martial law, but I hope I’m wrong.

Comment by Ben Jones
2018-02-07 16:11:55

Here’s a transcript of the exchange:

WALLACE: “Mr. President, when you say what you just said — what Josh Earnest said as he did, your spokesman, in January — ‘the information from the Justice Department is that she’s not a target,’ some people, I think, are worried whether or not the decision, whether or not how to handle the case, will be decided on political grounds, not legal grounds. Can you guarantee to the American people, can you direct the Justice Department to say, ‘Hillary Clinton will be treated as the evidence goes, she will not in any way be protected.’”
OBAMA: “I can guarantee that. I can guarantee that not because I give Attorney General Lynch a directive, that is institutionally how we have always operated. I do not talk to the Attorney General about pending investigations. I do not talk to FBI directors about pending investigations. We have a strict line and always have maintained it –”
WALLACE: “–So, just to button this up –”
OBAMA: “I guarantee it. I guarantee that there is no political influence in any investigation conducted by the Justice Department or the FBI, not just in this case but in any case. Full stop Period.”
WALLACE: “– And she will be treated no differently?–”
OBAMA: “Guaranteed, full stop, period. Nobody gets treated differently when it comes to the Justice Department because nobody is above the law.”
WALLACE: “Even if she ends up as the Democratic nominee?”
OBAMA: “How many times do I have to say it, Chris? Guaranteed.”


Notice how arrogantly these people claim the moral high ground when they are really lying snakes.

Comment by redmondjp
2018-02-07 17:51:14

And the bigger the lie, the more emphatic that they are about it. That’s how you can indirectly tell what the truth is - when you poke a spot and there is a loud yelp, you nailed it.

Comment by BlueSkye
2018-02-08 06:11:58

“Police corruption cannot exist unless it is at least tolerated…at higher levels in the department.”

Serpico 1971

Comment by Rental Watch
2018-02-07 13:58:30


(Comments wont nest below this level)
Comment by palmetto
2018-02-07 14:08:05

Of course. Mozillo never went to jail, either.

Comment by Rental Watch
2018-02-07 14:35:52

My new question for anyone who ever champions E. Warren is to ask them if they can provide a quote where she publicly lambasted Corzine for his financial misdeeds.

They can’t, because she hasn’t, because she’s a politician first…check your ethical self-righteousness at the door.

Comment by messagetorudy
2018-02-07 15:37:49

And the odds are quite high Trump wasnt the only person the deep state went after. I’m thinking McCain and Romney were targets as well who then possibly (at least for mccain) got blackmailed by what they (DOJ, FBI, etc) found. And its also likely they went after smaller fish who were just developing their voices and represented a potential threat in the future (little Marco?).

Comment by palmetto
2018-02-07 16:05:56

From what I was reading in the lovebird texts, the only R candidate they liked was Kasich, because he was all for executing Snowden. You can’t make this stuff up.

(Comments wont nest below this level)
Comment by messagetorudy
2018-02-07 18:33:00

Their general attitude towards Trump was that he was uncouth - all the while they’re cheating on their spouses with each other. DC really IS hollywood for ugly people - seen the same thing there.

That right there is grounds for getting your clearance yanked and fired as you are a target for blackmail. Some animals are more equal than others however.

FBI is going to have to be purged with fire as they’ve lost all credibility.

Comment by palmetto
2018-02-07 20:38:49

Yep, rudy. The FBI is toast. Disband and replace with the US Marshalls, DEA (no ATF, please) or whatever interim combination of agencies will do. They are in a state of treason at best. Going forward, none of their information in any federal case will be of any use, because it can’t be trusted and defense attorneys will rip it to shreds. This can’t possibly be cleaned up, it has to be razed to the ground.

One thing gleaned from the texts:

“LOL Pg 297 - the FBI has comfort dogs drop by the office.”

Comfort dogs. You can’t make this stuff up.

Comment by palmetto
2018-02-07 20:49:37

But I repeat myself. You really can’t make up the stuff that’s in these text messages. These people must be on some serious meds. I mean, how do you even text this stuff knowing that it can be made public? Well, that’s what the meds are for, I’ve mentioned it before, they block the effect of conscience, otherwise people would be putting guns in their mouths and jumping from windows. It’s true.

Comment by Ben Jones
2018-02-07 21:02:25

‘how do you even text this stuff knowing that it can be made public’

They thought it couldn’t be made public. Said so in the texts.

Comment by palmetto
2018-02-08 06:56:09

Gasp, is nothing sacred? Missed that one, although I admit I’ve only done a skim so far, only so many hours in the day.

If the damage these people have done wasn’t so great, I could almost feel sorry for them. But, I’m sure a few visits with a comfort dog will help them.

Comment by tresho
2018-02-09 03:50:20

I’m sure a few visits with a comfort dog will help them.
If that doesn’t work, issue them a comfort porcupine.

Comment by Apartment 401
Comment by jeff
2018-02-07 20:01:38

None of this can be true because I have not seen it on The CBS Evening News.

Comment by cactus
2018-02-07 10:30:30

What happened

Shares of semiconductor company MACOM Technology Solutions Holdings (NASDAQ:MTSI) slumped on Wednesday following a mixed fiscal fourth-quarter report. MACOM matched expectations for earnings but came up short on revenue, and its first-quarter guidance was far below analyst estimates. The stock was down about 16% at 11:50 a.m. EST.
So what

MACOM reported fourth-quarter revenue of $166.4 million, up 9% year over year but nearly $4 million below the average analyst estimate. The company pointed to a hard pause in network infrastructure demand in China, which affected all its networks’ businesses. Networks revenue was up just 3% year over year, with strong growth in other segments picking up the slack.

“a hard pause in network infrastructure demand in China”

China always China

Comment by palmetto
2018-02-07 11:01:35

“a hard pause in network infrastructure demand in China”

Of course! People are busy trying to get their funds out. That oughta be good for a boost in RE sales on the West Coast.

Comment by Mafia Blocks
2018-02-07 11:21:41

They don’t have any funds. They’re deeper underwater on rapidly depreciating houses than the domestic DebtDonkeys.

Comment by redmondjp
2018-02-07 17:53:53

Wrong 100% again, HA. They have more dollars over there than they know what to do with. That’s why they are sending them back to us.

(Comments wont nest below this level)
Comment by Mafia Blocks
2018-02-07 18:00:54

Hello my good friend.

Parker, CO Housing Prices Crater 8% YOY


Comment by BlackSwandive
2018-02-07 22:08:00

A 19.59% annual increase in your Redmond property taxes, jp. Woohoooo!

Comment by messagetorudy
2018-02-07 13:54:20

Any qualcomm insiders care to chime in on the broadcom bid? Looks like PRC just trying to buy their patents. If your diet lacks crazy, read up on the former ceo of broadcom Henry Nicholas, likely drug addict/con man that made billions pumping fake numbers. Supposedly was on the fasting diet (probably with a side of meth), once the walls started closing in on him he puts assets in his wife’s name and then had a fake divorce or something along those lines. Probably a bitcon pumper now.

Comment by rms
2018-02-07 19:44:25

Hehe… this guy has his priorities in order.

Billionaire sought secret lair for Sex and Drugs

Comment by rj not in chicago anymore
2018-02-07 11:22:35

Ben - this……http://www.5280.com/2018/01/whats-next-denvers-housing-market/

Comment by Apartment 401
2018-02-07 11:30:07

Realtors are liars.

Comment by 2banana
2018-02-07 11:37:15

In democrat speak:

Proposition 13 overhaul = tax increase

And, oh yeah, it’s for the children

And guess what “overhaul” will be next…


Is California ready for a Proposition 13 overhaul?
San Jose Mercury | 2/7/2018 | Katy Murphy

A new ballot initiative that takes aim at how commercial properties are taxed under California’s Proposition 13 could raise $6 to $10 billion more each year for schools and and other programs and services, according to a new analysis by the Legislative Analyst’s Office.

At the heart of the initiative, which is still being reviewed by the state attorney general’s office, is a property tax law enshrined in the state constitution since 1978. Proposition 13 caps taxes for all kinds of properties — residential and commercial — at 1 percent of a property’s purchase price, allowing for increases of no more than 2 percent per year, even if the value of the property triples or quadruples over time.

The initiative would change the constitution so that commercial and industrial properties — and land not intended for housing development — are instead taxed based on their current market value. The idea, long favored by critics of Proposition 13, is often called a “split roll” since it would not affect protections for residential properties. Commercial properties valued below $2 million would be exempt.

Comment by taxpayer
2018-02-07 12:00:45

biz owners are ? 2% of voters
they can be easily hosed

Comment by cactus
2018-02-07 13:38:59

schools huh

Comment by Mr. Banker
2018-02-07 14:49:10

Hey, No Child Left Behind.

Comment by rms
2018-02-07 19:53:21

“A new ballot initiative that takes aim at how commercial properties are taxed under California’s Proposition 13 could raise $6 to $10 billion more each year for schools and and other programs and services, according to a new analysis by the Legislative Analyst’s Office.”

There are many wealthy families involved in RE Syndicates that enjoy heavily discounted property taxes thanks to Prop 13. It’ll never pass, IMHO. They are just making noise… sorta like making Women enroll in the Selective Service.

Comment by Senior Housing Analyst
2018-02-07 11:42:38

Denver, CO 80211 Housing Prices Crater 10% YOY As Subprime Mortgages Proliferate


*Select price from dropdown menu on first chart

Comment by 2banana
2018-02-07 11:45:31

HNA Group is one of China’s biggest companies.

And they hold 5M shares of Deutsche Bank.


HNA Real Estate Group Misses Payment
Nasdaq | 2/7/2018 | Reuters

BEIJING/SHANGHAI - An HNA Group company has failed to make an early payment it had agreed to on a 1.7 billion yuan ($271.9 million) trust product that falls due next week, two sources with direct knowledge of the situation said, the latest indication of financial stress at the highly leveraged conglomerate.

The uncertainty over HNA’s repayment of the trust loan underscores wider apprehension surrounding the debt-troubled conglomerate, as well the ongoing heated discussions now taking place behind the scenes between the group and its creditors.

HNA is facing liquidity pressure and a potential cash shortfall of at least 15 billion yuan in the first quarter of the year, the company told its major bank creditors at a meeting in Haikou last month.

Comment by taxpayer
2018-02-07 11:54:49

deep thoughts -can $63 oil save Canadahhh?

I sold my canadian sht so either way

Comment by BlackSwandive
2018-02-07 11:58:42

In the face of the world’s largest ever glut of crude? I think not…

Comment by BlackSwandive
2018-02-07 11:57:35

Everywhere I look, I see bubbles. Land, houses, stocks and bonds, automobiles - new and used, machinery and equipment, cryptoscams, commodities, etc.

I don’t know how this ends, but it’s 2005 all over around here and the eCONomy is on steroids. Land and house prices up 20%+ YOY.

Comment by BlueSkye
2018-02-07 12:38:12

It’s not 2005 all over again I’m sorry to say. I don’t think any of the problems of 2005 have been resolved. They have been nurtured into bigger problems.

Comment by taxpayer
2018-02-07 11:59:14

BI-partisan spending bill=Ben Dover

Comment by Senior Housing Analyst
2018-02-07 12:08:43

Newton, MA Housing Prices Crater 6% YOY


Comment by oxide
2018-02-07 13:10:31

New trend on the tiny/small house front: search YouTube for “laneway house Vancouver.” Here’s one example where they explain it:


Basically a laneway house is a 450-800 sq ft accessory dwelling unit (ADU) built in a backyard of the property so that the house faces an alley (laneway). Vancouver started allowing it several years ago. It’s not a bad concept. But they are very expensive and the ADU cannot be sold separately from the main house (not sure how that works). And they cost upwards of $250K :shock: But I guess for Vancouver, it’s “affordable housing.”

Comment by rj not in chicago anymore
2018-02-07 13:34:51

Hey there 2B - another ILLANNOY report for your bullet chamber there friend!!!
So glad I am outta there - I thank God every.single.day that He delivered me from that flea infested cess pit!!

Linky here……

Comment by Senior Housing Analyst
2018-02-07 14:43:12

Neptune Beach, FL Housing Prices Crater 14% YOY On Plunging Housing Demand


Comment by OneAgainstMany
2018-02-07 14:59:01

The discussion about the MID being trimmed got us talking about which states are net contributors to the federal government and which states are net takers from the federal government. I found this article to be a very interesting commentary, and I learned what while it still is largely true that red states take and blue states give, it is not as clear cut as it used to be.

Think Carefully Before Cutting Off Subsidies to Red States
Megan McArdle
5 February, 2018



“They earn much less than they spend, and they’re not even embarrassed about it. Others (richer, better educated, and more all-around dynamic) have to send their hard-earned money to Washington, while getting precious little back in return. But these folks? They gorge themselves on government benefits … they take and take and take … and then actually they have the cheek to complain about the system that keeps them in welfare dollars and Medicaid checks.”

“I am speaking, of course, of the red states.”

“Well, not all red states, to be sure. (Should that be a hashtag? #NotAllRedStates?) But many red states get a lot more back from the federal government than they pay in to the system. Which has made folks living in rich blue states that are net donors a little testy.”

“Which got me thinking: Is it even true that red states are net recipients of blue state largess?”

“In fact, it’s not as clear as liberals think that the system consists of “Makers and Takers,” with the blue states making the money, and the red states taking it. That belief seems to come from a years-old graphic, based on data that dates back to the middle of the George W. Bush administration. Since then, the electoral and economic maps have both changed a little bit.”

“So let’s break it into two questions: Why do states send a lot of money to the federal government? And why do they take a lot of money out?”

“The answer to the first question is pretty simple: The U.S. federal income tax is steeply progressive, meaning that it brings in most of its revenue from high earners. If your state has a lot of people with high incomes in it, you will send a lot of taxes to Washington.”

“Why money comes back to your state is a little more complicated. Pew has helpfully broken down federal transfers into five categories:

Retirement benefits
Non-retirement benefits
Grants (mostly transportation, education, housing and Medicaid)
Government contracts for goods and services
Salaries and wages”

“Most of the transfers do not come from “red state welfare” like agricultural subsidies. They derive from Social Security, Medicare, Medicaid, unemployment insurance, food stamps, welfare, the maintenance of the national highway system, the purchase of goods and services for the federal government, and the operation of federal facilities and lands.”

Comment by Rental Watch
2018-02-08 09:19:58

I resent the kind of arguments discussed in the article.

When it suits Democrats, they start making the argument that the wealthy states pay in more than they get to the Federal government as evidence that they are taxed plenty, and shouldn’t have their states taxed more–thus the argument against the repeal of the SALT deduction, etc.

Yet, when it comes to individuals, where the wealthy pay in WAY more than they’ll ever get back, the Democrats are the first to drive for yet another pound of flesh (investment surtax, “wealth redistribution”, higher marginal rates, etc.).


Comment by OneAgainstMany
2018-02-08 19:01:46

I think you missed the point Rental Watch. There are plenty of progressives that want to raise taxes on the wealthy. What I think liberal democrats get testy about is not necessarily raising taxes exclusively on the wealthy, it’s targeting certain wealthy people and not others. Going after someone for ideology is different than shared sacrifice.

Comment by Neuromance
2018-02-07 17:21:21

New Fed Chairman Powell could have a few surprises in store for the market
by Jeff Cox
February 2, 2018

• Jerome Powell took over as Fed chairman Monday and was greeted by a sharp drop in the stock market.
• Most Fed watchers assume Powell will follow former Chair Janet Yellen’s script closely, but that could be a mistake.

His comments came as the Fed was embarking on what effectively was the fourth leg of its asset purchase program, this one named QE3, for quantitative easing. Some in the market nicknamed it “QE Forever” or QEternity” for its open-ended nature after previous iterations set a specific total for how much the Fed would be buying.

“I suspect that the channels that we’re using now, which principally are asset prices, may not be working at all as well as our models say,” he said at the July meeting, two months ahead of the QE3 implementation. “On the list of potential costs, I would include inflation, the difficulty of exit, the risk of creating expectations we can’t meet, the prospect of capital losses, market function, and the grab bag of stability issues.”

Ultimately, Powell deemed the costs “manageable” and he ultimately voted to proceed.

“I’m concerned that the actions contemplated in this meeting are setting us on a path to a much larger balance sheet with likely benefits that are not commensurate to the risks that we’re bearing,” he said at that meeting. “It will be very difficult to get off that path unless we begin to prepare the markets starting with this meeting.”

Powell’s sentiments as expressed to his board members since then are not known, as 2012 is the most recent year for which transcripts are available.


Comment by BlackSwandive
2018-02-07 22:59:58

Why the f**k are we still in QE with unemployment at supposed all-time lows and the stock market through the roof? Has anybody asked the question. Are they trying to blow the mother of all bubbles? This is insanity.

Comment by Professor 🐻
2018-02-08 05:57:08

Those are 2012 statements discussed above… released after five years delay.

Comment by jeff
2018-02-07 17:42:56

I was going to think about selling my house but the Old Lady’s pot roast with roasted potatoes, carrots and gravy took my mind right off of it.

Comment by Mafia Blocks
2018-02-07 17:44:24

If you came here for the HBB house special, crow and crater taters, you’ve come to the right place.

Comment by jeff
2018-02-07 19:57:24

Realtors may be Liars but Pot Roast speaks the truth.

Comment by BlueSkye
2018-02-07 21:29:32

Pot Roast is a Seduction.

(Comments wont nest below this level)
Comment by tresho
2018-02-08 04:37:45

Then there is that really seductive roast pot.

Comment by Professor 🐻
2018-02-08 05:59:57

Pot Roast is an option in rental home kitchens…

(Comments wont nest below this level)
Comment by BlackSwandive
Comment by jeff
2018-02-08 00:11:38

That’s a lot of Pot Roast.

Comment by Apartment 401
2018-02-07 18:09:27

Newcleus - Jam On It (1984):


Comment by Ethan in NoVA
2018-02-07 23:04:02

A number of years ago I sought permission to use the Newcleus song “Computer Age” in a video and “Cosmo D” replied to my email. I was happy for the rest of the week.

Comment by Taxpayers
2018-02-07 18:18:50

Zillow says I’m down $1890 in one month
Oxide ?

Comment by Mafia Blocks
2018-02-07 18:39:59
Comment by azdude
2018-02-07 18:53:16

the trump honeymoon is over.

Comment by Mr. Banker
2018-02-07 18:58:37

This Bitcoin scam works well because people are stupid …


Comment by alphonso bedoya
2018-02-08 00:48:09

Did Jeremy Corbyn announce, on Jan28th, that Labour would buy every homeless person in England a house ….?

I speechless with all of these acts of kindness :
Bitcoins, free housing, tax reform…

Comment by Professor 🐻
2018-02-08 06:05:59

Where is the kindness in telling people that Bitcoin is going to $320,000, then cashing in your put options after their virtual currency HODLing loses 65%?

Comment by alphonso bedoya
2018-02-08 12:25:19

“…then cashing in your put options after their virtual currency HODLing loses 65%”

You just wrote gibberish.

Comment by Parker
2018-02-08 01:25:01

It looks like the real estate agents who have been proclaiming the impossibility of a bubble might be clamoring to get properties onto the market before this thing collapses under its own weight. There has been very low inventory with maybe around 10 new properties listed per day in my search area. Yesterday was 17, today there are 42 new listings. And the walls come tumbling down…

Comment by Mafia Blocks
2018-02-08 07:25:20

Don’t let the 25 million excess empty and defaulted housing units get in the way.

Comment by tresho
Comment by BlueSkye
2018-02-08 07:53:11

Those homeless folks will have to give commuters the middle finger from someplace else.

Comment by azdude
2018-02-08 06:13:12

We need the FED to print some more cash and stop the fall in the markets.

Trump and the republicans are being discriminated against.

Comment by jeff
2018-02-08 10:35:19


Does your husband ever get tired of listening to you?

Comment by Professor 🐻
2018-02-08 07:08:18

The latest crackpot theory out of Wall Street analyst research is that Buttcoin is now leading the stock market up or down. Good luck containing your FUD, stock and crypto HODLers!

Why stocks could charge up 10% from here, unless bitcoin gets in the way
By Barbara Kollmeyer
Published: Feb 8, 2018 7:59 a.m. ET
Critical information for the U.S. trading day
Where bitcoin goes, stocks follow?

Bond King Jeffrey Gundlach has spoken, and he’s calling for more of this market unwind and volatility. He’s saying that it’s going to “be turbulent and not just a few days.”

Low yields/low vol paradigm went on so long and became so heavily invested in that now the unwind will be turbulent and not just a few days.
— Jeffrey Gundlach (@TruthGundlach) February 7, 2018

The DoubleLine Capital founder has been camped out with the bears for a while now — among his 2018 forecasts is a negative finish for the S&P 500 this year.

So if you’re expecting to ride out a few more weeks/months of bumpiness, our call of the day gives you one more big thing to consider, when it comes to stock direction.

The call comes from Christopher Harvey, Wells Fargo Securities’s head of equity strategy, who had this to say about the “growing market” for cryptocurrencies on CNBC last night (h/t iBankCoin):

“[Investors] are not sure, at this point, how much they should pay attention to it and whether it’s going to be a systematic risk. I don’t think it’s a systematic risk, but it is a risk,” he says, hinting that bitcoin (BTCUSD, +4.64%) and its ilk can be a driver of stock-market action.

Wells Fargo is predicting that the worst is over for stocks, forecasting a nearly 10% rise for the S&P 500 from here, to hit 2,950 by year’s end.

“If we’re right, and risk is bid again, it wouldn’t surprise us to see a bid in some of the crypto markets,” Harvey said.

So if that call is right, when stocks go up, then cryptos will follow. But of course, that could work the other way — and if the floor drops from under bitcoin, that might not work out so well for equities.

This bitcoin-stock relationship is becoming a bit of a buzzy topic. Morgan Stanley says they’ve been moving so much in tandem, that the latter’s diversification value may be eroding. So much for the crypto revolution sticking it to Wall Street.

Mind you, it should be noted that stocks yawned at that crypto crash back in late December, as this chart shows:

[Imagine virtual Bitcoin chart here]

That time bitcoin crashed in December 2018, and stocks didn’t care…

But it’s different now — isn’t it?

Comment by Professor 🐻
2018-02-08 08:04:12


Dow industrials down 150 points as Thursday decline picks up steam
Dow Jones Industrial Average
Last Updated: Feb 8, 2018 10:00 a.m. EST
-133.19 -0.54%
Previous Close

Comment by Professor 🐻
2018-02-08 09:13:52

Vanguard’s chief economist: ‘Decent probability’ that bitcoin goes to zero
By Ryan Vlastelica
Published: Feb 8, 2018 9:16 a.m. ET
Vanguard is optimistic about blockchain, but not bitcoin

Add Vanguard to the growing list of major Wall Street institutions that are skeptical of bitcoin.

Joe Davis, Vanguard’s global chief economist and the head of its investment strategy group, weighed in on the world’s largest digital currency, expressing enthusiasm about bitcoin’s underlying technology but extreme bearishness about the cryptocurrency itself.

Comment by Professor 🐻
2018-02-08 08:14:27

Do you plan to ignore your FUD and HODL your stocks in the next leg down of the correction?

Comment by Professor 🐻
2018-02-08 09:05:39

Did you BTFD earlier in the week?

Comment by Professor 🐻
2018-02-08 09:21:56

The Financial Times
Equity Valuation
The ‘buy the dip’ mantra faces unexpected test
US stock volatility’s return poses a challenge for investors used to buying any pullback
The Cboe’s volatility index, which slumbered below its long-term average of 20 for much of the past decade, breached 50 this week © FT montage; Bloomberg
Nicole Bullock and Eric Platt yesterday

It took less than a day to debunk the longstanding mantra that financial markets are in an era of low volatility. As the shockwaves ripple out from this week’s ructions, another truism of recent years — that investors should “buy the dip” — faces scrutiny.

Robust global economic growth and the momentum that corporate earnings have favour holding equities, some analysts and investors say, even as interest rates rise and central banks slowly retreat from an era of very supportive monetary policy.

“Clearly the well of optimism that led US equities to new highs has run dry, at least temporarily.” says Craig Burelle, an analyst at Loomis Sayles. “But the global economy remains on firm footing, and that has not changed over the past few trading sessions.”

And given the magnitude of the surge in volatility and wild swings in share prices, sentiment will probably remain febrile as the market takes time to find a footing, echoing the reaction after previous shocks in August 2015 and early 2016.

Michael Arone, chief investment strategist at State Street Global Advisors, says: “We had an incredibly rapid ascent in risk assets. We were all wondering when we would have this sell-off, everyone was expecting it and now we are starting to see it.”

Comment by Professor 🐻
2018-02-08 09:08:04

Mortgage rates hit 14-month high as bonds sell off
By Andrea Riquier
Published: Feb 8, 2018 10:48 a.m. ET
So long, lower for longer
Bloomberg News/Landov
Rates, schmates… demand for housing is holding strong - for now.

Rates for home loans rose to the highest in more than a year, raising the prospect of a fresh headwind for housing that mortgage professionals think the market can handle — for now.

The benchmark 30-year fixed-rate mortgage averaged 4.32% during the week ending Feb. 8, Freddie Mac said Thursday. That was up 10 basis points from the prior week and leaves rates more than 30 basis points higher than where they started the year. The 15-year fixed-rate mortgage averaged 3.77%, up from 3.68%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.57%, up four basis points.

Comment by palmetto
2018-02-08 09:26:21

Yes, but, what does this all mean for housing? Got cancelled closings?

Comment by palmetto
2018-02-08 09:27:58

Keep letting the air out! Thank you, Jerome Powell!

Comment by Professor 🐻
2018-02-08 09:31:01

Will 2018 be the year when economic gravity is finally restored to asset markets?

Comment by Professor 🐻
2018-02-08 09:34:52

Pound jumps and markets slide as Bank of England hints at rate rise - live updates

Britain’s central bank has dropped a clear signal that borrowing costs will rise this year - possibly in May

Governor Mark Carney’s press conference - highlights start here
Carney: Rates won’t hit 5%
Bank of England leaves rates on hold
Says interest rates could rise faster than expected
Pound jumps towards $1.40

Comment by palmetto
2018-02-08 09:39:47

Chines HNA liquidating billions in US wewestate.


We’re going back to the future, 1980s style! Get out those shoulder pads and pleated pants!

Name (required)
E-mail (required - never shown publicly)
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post