New condo sales in Metro Vancouver are tracking even lower than last year, like 50% lower. The pre-sale condo market is completely dead.

Eby also announces that he will double the existing empty homes tax on residential properties. Naturally, this tax disproportionately hits BC and Canadian citizens, not foreigners. In other words, the beatings will continue until morale improves.

There are 8400 unsold new condo units in Metro Vancouver that are either under construciton or already complete. Every month they sit empty the developer pays interest, property taxes, insurance, and strata fees. Not to mention the opportunity cost of that capital. You think they aren't trying to sell them? Construction and inventory loans from any lender have legal stipulations that determine what a developer can sell for, typically with a 90-95% threshold of contracted prices. An empty homes tax on new product would only tighten credit conditions further, and accelerate the rapid decline in housing starts. Capital flows to where it is treated best, and the NDP have done a good job villainizing it in just about every industry.

Premier Eby says BC home prices are falling faster than anywhere in Canada and rents have dropped 26 months straight. His answer is to raise the spec tax again and hit builders with an escalating "Unsold Condo Tax." This is the same government that posted a record $13.3 billion deficit, raised income tax on the lowest bracket, expanded the PST, and is cutting 15,000 public service jobs to plug the hole. When a government runs out of money, every problem starts looking like a reason for a new tax. Sir Winston Churchill is credited with the right response: a nation trying to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle. His own numbers sink his so-called plan. In a falling market, nobody is hoarding condos to flip. Finished, unsold units are a builder's inventory, and builders want to sell them. They're unsold because the buyers have gone. The "up to 5,000 homes" is a ceiling disguised as a promise. And those units already exist. Forcing them onto the market adds zero new supply. It just transfers the loss from the builder to the lender and tells both not to finance the next tower. Unlock 5,000 homes today, and you lose far more that never get built in 2029. Some builders are holding units back waiting for prices to recover? Carrying costs already punish that. The tax can't tell a strategic hold from a failed sale, so it hits both. B.C.’s spec tax just doubled this year, with another increase already legislated for 2027. There isn't a full year of data on the last hike, and he wants another one. Blaming Trump's trade war while raising taxes on BC property doesn't lower anyone's costs. It’s another example of how fiscally inept Eby’s government truly is. And "BC Strong" is the Liberals' "Canada Strong" with the province swapped in. Borrowed slogan, borrowed money, borrowed time. #bcpoli

Eby backing away from his condo bailout and hard pivots to a 2% "empty condo tax" on developers if new units sit vacant. My jaw is on the floor. Not because he backed away from the condo bailout, but because instead he decided to nuke an industry already teetering on collapse.

I can’t think of a policy more destructive for the development industry than this. Forced liquidations into an already illiquid market.

Bulk purchases made up 30% of new condo sales in the second quarter. High Art secured a 20% discount on bulk condo buy. I hate to say it but 20% isn’t enough.

One of these things is not like the other things cc @Dave_Eby

Canada's population increased by 0.5% over the past year, marking the slowest pace of growth since World War 1. Population rose by about 189,000 people which marked the smallest percentage change since 1915-16. Very bearish for the rental market.

Canadian Population Growth relative to trend. 😳

A $13.8B record deficit, and the NDP’s big idea is a snap election to extend their run by 2 years. They already have a majority. This is a gift to the people of BC to make a judgment call on their performance.

👀 The federal government is offering all 129 First Nations along the Trans Mountain pipeline route a combined 15-per-cent equity stake and a $2.5-million lump-sum payment for each group that agrees to invest. theglobeandmail.com/politics…

Rate hike incoming

Nobody better than @RobShaw_BC covering BC politics right now. Give this man a follow and thank me later.

Haven't met a home seller that doesn't think their house is better than the neighbours and wants to try their price. Biggest mistake today is just chasing the market lower, always a step behind.

Attention Ottawa! "Loonie Hour Investor series w/ Ben Rabidoux, Oct 13th" Come hang out with the Amigos, participate in thoughtful discussions, and make a few new friends. eventbrite.com/e/ottawa-the-… @eventbritehelp @RichardDias_CFA @SteveSaretsky @BenRabidoux

New figures show that B.C. is running up debt faster than any other subnational jurisdiction in North America, including famously indebted U.S. states such as California and New York. The province’s deficit forecast now stands at $13.8 billion for the year.  That’s equivalent to $2,400 in new debt for every single resident of the province. nationalpost.com/opinion/fir…

Wow huge news. BC politics is insane right now.

I’m sure @AlderLaneEggs has some thoughts

Must be another election coming. Budget Deficit set to widen further.

Loonie Math 260/52 = a very special number for the Babbling Turds, the 3 Amigos, weekly guests and a national audience. 5-Year Anniversary Episode drops today. piped.video/qEGp-E2jz78?si=J4uq… @SteveSaretsky @RichardDias_CFA