Just on the heels of my other post we find another story where the reporter makes sweeping predictions based on a very narrow focus.He uses a $4 million dollar home that is not selling and having to drop prices by close to 10% as an example of our ailing housing market in Canada and further goes on to predict that maybe we are following the US into a measured slow down. Did it ever occur to this genius that maybe the home was over priced in the first place? Or that a $4 million home likely does not well represent the overall Canadian real estate market as a whole. Did he ever bother to look at the facts when he reports that a small area of West Vancouver and its woes of recent price declines again does not really reflect the overall Canadian market in either size or scope, or the make up of the typical Canadian real estate participant?So, once again, know the facts. The current media reports of large price drops in Canadian Real Estate is as a result of micr areas like West Vancouver that in the short term can skew the numbers. Also know the facts, our mortgage market and our real estate market are no where near the same fundamental challenges facing our neighbours to the south.Don’t fall into these stories written by uninformed sensationalists who are just trying to get their name in lights.
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By Sharon Gregresh, November 26, 2008 @ 10:33 am
I agree with your take that there has been some very narrow minded reporting out there. I attended the National Association of Realtors conference in Florida this month. There was a standing theme at most of the economic sessions I attended. Most seemed to believe that the world is seeing its first full scale media driven recession and advise first that people shut of their televisions and radios and cancel newspaper subscriptions for the next 12-18 months. And, second they advise that individuals start living their lives again without financial fear (be financially responsible though.)A very key difference to our lending styles and the past US lending practices is that in Canada you cannot finance more than your property is valued. Hopefully most Canadian’s were not using the equity in their home as an ATM like some of our neighbours to the south.