I vistied an open house (500K price after 20 k reduction) in my neighborhood this weekend. Realtor told me that bank of Canada is going to cut interest rate lowest in history so it's right time to buy. I said "Yes you are right, I never thought about that". Now he really becomes friendly start giving me his professional advice.

I asked him how much of that cut bank would like pass to customer. No ans.
I start talking oil price, recession, economy, inventory flood in spring, RE market performance in last 18 months not only in Calgary but all major cities in North America. He said... yes/yes but you are paying your mortgage and long term investment. I asked him what is the cost for owning this place with 0 down (no down in rent), townhouse fee ($250), taxes ($2800), maintenance cost, %age going toward paying interest to bank from monthly payment as you mentioned lowest rate in history. I can rent same place in $1800-2000. Last thing I asked, are you familiar with Garth’s book or website (greaterfool.ca)?

I was discussing regular concern that every buyer has in this market but he did not want to talk about that. I asked his business card in case I would like to buy in next 5-6 months. He did not give me and said u can get from spec sheet... Exactly that is called professionals like doctors, engineers, CPA.

US Bank Stocks Fall on Fears More Losses Ahead

Markets Have Record Slide For Obama Inauguration

An index of bank stocks lost 19.7 percent on fears of more losses. The Dow Jones industrial average fell 332.13 points, or 4.01 percent, to end unofficially at 7,949.09. The S&P 500 Index slid 44.90 points, or 5.28 percent, to finish unofficially at 805.22. The Nasdaq Composite Index tumbled 88.47 points, or 5.78 percent, to close unofficially at 1,440.86.

"Nothing can cure what took us four years getting into this mess other than time, over the next several quarters ... Nobody wants to venture and pick a bottom. There is just too much investor fatigue out there," Morgan Keegan's Patten said.


Bank of America [BAC 5.10 -2.08 (-28.97%) ] fell to its lowest level since January 1991, as analysts said the U.S. largest bank will remain under pressure until it rebuilds its capital, four days after posting its first quarterly loss in 17 years. Citigroup shares [C 2.80 -0.70 (-20%) ] fell 18 percent, while Bank of America stock sank 240 percent.


Not only US but UK, Germany, France, Japan, China, India, Brazil, South Korea, Singapore and all other countries are going in much deeper recession and Govts world over have no tool to handle economic crisis of historic proportion.

Canada RE market is going to go US way sooner or later.

Keep well,

Cheers!