“So it starts,” says realtor Dan, “assignment sales for $600,000 townhouses in Oshawa.” Two new listings just hit the market, same development, same pitch by two buyers scrambling to get out of new builds before closing day:

Client Remks:**Assignment Sale** Stunning “Melrose” Collection Corner/End Unit From Tribute Communities**. Brand New Town House Under Construction **Expected Occupancy Oct – Nov 2017**Over 1800 Sqft ** 4 Spacious Bedrooms**Located On Peaceful Streets & Crescents**Enjoy The Ambience Of Contemporary Urban Village Setting**Proximity To University Of Ontario Institute Of Technology** All New Regional Shopping Center**Great Access To Community Trails, Parks, Golf Courses. Extras:**Brand New Stainless Steel Kitchen Appliances Pkg + Stackable White Washer & Dryer**. Monthly Condo Fee (As Per Corporation) Brkage Remks:**Assignment Sale** Agreement To Be Assigned. Buyer & Buyer Agent To Verify All Measurements & Taxes.

These days assignment clauses are sullied, with governments in BC and Ontario trying to stamp them out, suggesting they’re the modus operandi of the flipper set. In an assignment scenario, the buyer of a property (existing or pre-construction) is granted the right to assign the agreement of purchase and sale to another party. In other words, he can sell the paper to a second dude, who is then responsible for paying the seller on closing day. Flippers and speckers like this, since they can make a few bucks in a rising market without having to arrange a mortgage, pay land transfer tax or actually end up with real estate. It’s just a futures play.

“There are speculators who enter into agreements to purchase property with no intention of buying them or living them, crowding out families who want to buy their own home,” the Ontario finance minister said last month in announcing a crackdown on assignments. Now the province will require full disclosure, work with the CRA to ensure gains are taxed and land transfer levies paid.

But here’s a prediction: the use of assignment clauses is about to blossom as a wave of scared people try to exit from real estate deals (like new townhouses in Oshawa) because of the shifting economic sands. No doubt about it, the market in Merry May is a whole lot less happy then it was in March.

The latest proof (as if more is required): Friday’s jobs numbers. Ouch. And wages. Double ouch.

Here’s the news: last month we lost 50,500 jobs in the private sector, more than 31,000 of them full-time. We gained 34,300 part-time jobs. Overall the country added just 3,200 positions, all government hires or people creating their own jobs (no benefits, no pension).

That was a disaster. Worse: the average wage rose 0.7% annually in April – compared to 2% inflation and a 25% rise in Toronto house prices. This is the most dismal showing for incomes since the 1990s, and massively below the long-term average of almost 3%. More grief: 45,000 people left the workforce last month, half of them moisters who gave up looking.

At the same time, there’s a 90% probability US interest rates will rise again next month since their labour stats are positively Kardashian. Another 211,000 new positions in April, with the jobless rate at 4.4% considered to be full employment (and the lowest in ten years). Average wages increased 2.5% – or three-and-a-half times more than in Canada. So it’s a slam dunk the Fed will hike in June, then again once or twice before the end of the year.

Given four American rate bombs in 2017, with our loonie at 73 cents, it seems unlikely the Bank of Canada would risk cutting. So the march to higher money costs in both countries is inevitable. A new report from Desjardins this week warns people with mortgages that renewing at 5% in two years is something they should budget for. It also figures that’ll have a big impact on the price of houses.

For years now Canadians have been willing to swallow a steady diet of debt to buy houses their incomes could not afford. That made sense in a steadily rising market. The sacrifice had legs.

Now people must ask themselves if reward has turned to risk.

So, it starts.