Yes, we are on the same page.

The kicker? He’s listing it as a furnished short-term occupancy, ie a hotel, for 100 bucks a night.

Last I checked, most condo boards have rules against this kind of thing: if you’ve shelled out 300K plus for a condo, the last thing you want is an unlicensed and unsupervised B & B operating on the other side of the wall.

Reason #347 not to buy a condo in Saskatoon…

“as far as I know, America has a fairly normal debt to GDP ratio”

Really? I’m not sure about other G20 countries, but there’s a lot of good information on the web. Check this out:

http://tinyurl.com/5j2hqu

In particular, check the debt to GDP ratio against where it was around 1930 or so.

Today’s total U.S. credit relative to GDP has surpassed significantly the levels preceding the Great Depression, actually. Back then, the total amount of credit in the financial system almost reached an astonishing 250% of GDP. Using the same metric today, the debt level in the U.S. financial system surpassed 350% in 2008, and that’s not even counting the last few month’s worth of bailouts.

As of November 19, 2008, the total U.S. federal debt was $10.6 trillion, with about $37,316 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $6.3 trillion. Adding unfunded Medicaid, Social Security, Medicare, veterans’ pensions, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household.

All the foreign held debt is a problem, too.

The US debt in the hands of foreign governments is 25% of the total, virtually double the 1988 figure of 13%. Lenders from Japan and China held 47% of the foreign-owned debt. This exposure to potential financial or political risk should foreign banks stop buying US Treasury securities or start selling them heavily was addressed in a recent report issued by the Bank of International Settlements which stated, “‘Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. While unlikely, indeed highly improbable for public sector investors, a sudden rush for the exits cannot be ruled out completely.”

Actually, you might say most of the money was lent into existence. Check out “fractional reserve lending”.

This is a recent post from Peter Schiff:

Peter Schiff: The Truth About Bailouts

http://tinyurl.com/5ge4t3

By the way, just for fun, you might want to check out this tasty new cereal… I hear it’s big on Wall Street these days:

http://tinyurl.com/6egpnj

“do you still have that chart of yearly sales around here somewhere, Norm?”

Somewhere, but it’s getting easier to lose track of stuff around here. Tell you what though, I’ll update that one and post it with my monthly review which will be up before the end of next week.

“you seem to be doing nicely, which is good to see.”

Bless you! This market is treating me well as I am learning how it works. My listings are selling and I’m running low on inventory. Perhaps I’ll have nothing to do over Christmas.

Looks like my ski jump might be happening after all: do you still have that chart of yearly sales around here somewhere, Norm?

Personally, though, you seem to be doing nicely, which is good to see.

‘To be clear, Ms. Warren is not predicting a Canadian housing collapse, but rather a cooling in price gains. Nationally, she expects prices will rise 10 per cent this year, slow to the “high single digits” next year, and eventually fall back in line with the rate of inflation, which would put them between 2 and 2.5 per cent.’

For what is available, Saskatoon is quite expensive rent wise. Was considering a move out there myself, but decided against it when on tour of some rental accomodations, was not enthused by circa 1980 orange apartments with street parking in minus thirty weather, all for what I pay for under ground 10 blocks from the U of A.

Saskatoon had appeal when I first looked a few years ago, but with rental rates beyond Edmonton, and the level of jobs below Alberta, it does become a tough sell. Not sure it “sucks” but the rental rates sure do!

The positive which I have taken away from my little trip to Saskatoon is that Edmonton is a pretty nice place to live, and the “high cost of living” argument for Edmonton just isn’t backed up, as it is quite competitive to “home”. Haven’t lived in Saskatoon for quite some time anyway, but now there really is little reason to move back.

http://www.reportonbusiness.com/servlet/story/RTGAM.20070913.whousing0913/BNStory/robNews/home

Still to be delusional and pretend Saskatoon, with family incomes $16,000 less than Calgary, similar rent prices, and a violent crime rate twice that of Calgary, is a decent place kind of sucks too.

I don’t do any work with rentals so I haven’t tracked the numbers. CMHC does do a “Rental Market Outlook” on an annual basis. Not sure if you can find archives on their website at http://www.cmhc.ca but you may be able to call them and get access to past reports. Only issue really is accuracy. I find their more recent reports really understate rental amounts.

Lol. I think that’s 1 each, isn’t it?

I guess that my own daily schedule brought too much optimism as I have been quite busy through November. Four firm sales on my own listings, one conditional, and two offers on one other which I’ll present this morning.

Nick,

Here’s a link to a post I did on the Scotiabank ‘overvalued” story.

http://tinyurl.com/5cwkek

“Gormley, Wood et al. are beligerently against any realistic assessment of Saskatchewan’s actual mediocre performance at pretty much everything.”

Don’t worry Nick. You are quite adept at representing the other end of the spectrum.

Mark,

Given the constant barrage of bad news that we’re hearing I have to agree that things could be much worse.

Royal Bank did something similar shortly afterwards.

http://tinyurl.com/5ub7vj

Norm, as far as I know, America has a fairly normal debt to GDP ratio in the world. I mean may other G20 countries have higher burdens given the size of their economies. George? Plus, all the money the US government is spending right now isn’t gone, so to speak. It’s not like dropping bombs. A lot of it is stock, and assets, that may pay back. George?

I personally think those are great numbers, given the kind of press the world has been through these past few months. If not for non-stop headlines of the economic collapse of the century, you probably would have had well over 200 sales. Some people balked. I really do think those numbers, in the face of what we’re going through, are pretty good. Call me crazy. Anyway, my bet is on a strong January and February and the TSX back over 10,000. I’m optimistic, for sure, very much so, but I believe back in September some on here predicted 10 months of inventory and a 240 average by years end too. That seems a little dire now.

I’m sorry Saskatchwan sucks so much for you.

I think John Gormley is an impediment to recruitment of new residents to Saskatoon. Like Tom Lukiwski, Gormley (News Talk’s poster boy) gives us the intolerant red neck appearance.

Gormley, Wood et al. are beligerently against any realistic assessment of Saskatchewan’s actual mediocre performance at pretty much everything.

http://www.youtube.com/watch?v=TwumZ5I6vkM

One more loud mouthed booster on the red neck network says little about any objective evidence Saskatchewan is more desirable than still $16,000 a year higher paying Calgary!

More good news for Saskatchewan today, in a roundabout way.

‘Scotiabank predicts Oil Rebound’

”

I also remember Scotia Bank was one of the first to come out and say Saskatoon housing was over valued!

Mark, think you could also provide a link to that study?

No Merril Lynch saying Saskatoon was 50% over valued (when most of us only think it is 20 to 30% over valued) by was kind of earth shattering end to one sided positive news, so of course it didn’t get any coverage, the media was busy going wild over estimates of GDP growth for 2007 that all overshot Saskatoon’s average economic growth.

I concede.”

As if the visible acknowledgement weren’t enough of a testimony Norm’s character, I would like to let people know that he even sent me a personal email to ensure that I would not miss his comment.

I think that November was shortchanged a little by the way the business days fell on the calendar this year, but maybe it’ll help the December numbers? Either way, I will now go on record as predicting in December sales in the 120s… or lower (ouch). If I’m wrong, I will be as magnanimous in my miss as Norm was.

But for now, I think I’ll gloat a little. Gloat gloat gloat gloat… okay, I’m done.

Phoenix has over 300 days of sunshine a year. Many are drawn by the year-round good weather with an average temperature in the low 80’s.

If I was closer to retirement, I would consider one of those newer houses going for 100 bucks sq ft including a pool backing a golf course. If only I knew how to swim and golf

Golf Course Homes in Phoenix-Mesa, AZ

http://www.newhomesource.com/golf-homes/state-Arizona/amenity-golf-homes/area-Phoenix-Mesa

I am fan of Peter Schiff and Ron Paul. Unfortunately, I think they know their stuff.

http://tinyurl.com/5jgwfa

Variable rate mortgages fall to prime + .6%.

http://tinyurl.com/5zwg8o

“Not that I want to beat a dead horse, but Phoenix is not the biggest bubble in the States when it comes to housing.”

Ouch, and they still look like a load of cash. I saw a magazine of Phoenix listings the other day. There were some homes I’d love to live in for under $100K.

How to be a vulture: “I’m often asked by people who like to prey on others how to buy real estate in a falling market, like this one. The danger of doing so is that you buy before the bottom arrives, and take a capital gains hit. The advantage is you hold absolutely all the cards, and can strike a great deal while the victim-seller is writhing in pain and begging for mercy. That’s the fun part.”

This man has a strange idea of “fun.” I’m not saying that a buyer shouldn’t try these things, but watching someone who “is writhing in pain and begging for mercy” isn’t my idea of a good time.

I’ve seen several of these Peter Schiff snippets. It’s hilarious how they actually laugh in his face only to eat crow later. I tend to lean in his direction. America is probably insolvent. I suspect that they’ll find a way to milk another good run though before they finally drive themselves to bankruptcy.

A few thoughts on gold for you and Crikey. Picked this up behind the wall at GlobeInvestor. Thought you might find this excerpt interesting.

“The price of gold topped $1,000 (U.S.) an ounce earlier this year and then lapsed into a decline that took it to the $700 range. Recently, it has rebounded back above $800 as part of the same flight-to-safety theme that has driven down government bond and T-bill yields. Gold could have a bright future if the U.S. dollar were to fall from its current high level – bad times for the buck cause investors to seek the security of gold. Then again, gold could be shunned at a time when inflation, always a plus for gold, is no threat at all thanks to a global economic decline.

If this mixed outlook doesn’t make you wary of gold, then consider the returns investors have made in the medium term. The average precious metals fund actually lost 5.4 per cent on a compound average annual basis for the five years to Oct. 31. The average loss for the past three years was 6.5 per cent, and for the past two years it was almost 30 per cent.”

Something to think about.

Bookrat,

I concede.

November closes with just 181 units sold, down from 317 last year and well below the five year average of 227…and yes, even lower than the 187 units recorded in November, 2004.

That’s friggin “abysmal” man!

http://www.youtube.com/watch?v=LfascZSTU4o&feature=related

Pretty accurate from 2 years ago. The other guy is eating his words now.

Better stay clear of buying Garth’s house. He knows all my tricks. But how did he get a photo of me?