Monday was, again, a bearish day for supply (what a concept – if supply goes up, its bearish:-) ) There were 255 new listings and only 87 sales, for a sell/list of 34.12%. That sell/list has to make the bears sing (maybe just growl with delight?).
A theme we’ve touched on before is the question of why, in a market that looks so over-valued, would a smart investor buy. I won’t hazard a guess, but nature of the question implicitly rejects the first answer that will spring to many minds: if the investor is smart he’s not buying because he’s stupid. The greater fool theory is limited in that respect. (Its worth pointing out that dismissing someone merely because they disagree with you on something is childish. We really have to critically evaluate why someone does something before we pass judgement).
Case in point:CAP REIT is purchasing a bunch of Transglobe rental properties. Why? CAP is Canada’s largest residential landlord, so we can assume that they know their business. Generally a sale involves two parties working on different win scenarios (they aren’t zero sum games). It may seem obvious to many why Transglobe sold, but not so obvious why CAP bought. Ideas?
Privacy legislation has been a recent them in comments. My feeling is that observance of privacy legislation is not as simple as it seems, even with the help of qualified legal counsel. Case in point: Richmond recently passed a bylaw to combat metal thieves. It appears that the bylaw may be struck down, in part due to concerns reaised by the Privacy Commissioner. This isn’t the first time privacy concerns have gotten in the way of bylaws that are, one would assume, drafted by competent legal help. I’m not saying privacy legislation is evil; I’m just pointing out that its a complex challenge to a lot of people and bodies, and can easily challenge qualified legal minds.