Take this for example, under the heading on MSN as "can US fears hurt our real estate?" Which, funnily enough, gets re-named "US slowdown may boost Canada's real estate market" once you click on the link.
Really? I wonder who that economist would be? (Emphasis mine)
The prospect of a U.S. recession has some homeowners and prospective buyers nervous about the impact on the real estate market in Canada, but one economist says a slowdown could actually boost activity in Canada's housing sector.
Gregory Klump, chief economist for the Canadian Real Estate Association, said it's still an "open question" whether the U.S. slowdown will turn into a recession...Which means, they'll actually keep buying in Victoria then eh Greg? News flash: recession is here. But of course, they weren't saying that in the US back in 2005 at their peak either, or were they?
"The chances are about 40 per cent, but the U.S. Federal Reserve is expected to cut interest rates and do so very aggressively to prop up their growth and keep them out of recession,"
"So while they're heading for a soft patch of growth it's an open question whether they'll enter a recession. My own thought is no, they won't."
"Softer growth means lower interest rates and lower interest rates are positive for the housing market," he said.Long story short, these MSM clowns then ask the other resident "expert" they turn to, the guy who makes a living selling RE, about what the local (Toronto) market is experiencing--Greg previously stated that only towns dependent on manufacturing may face a market downturn--Toronto it appears would be different because:
"Toronto is primarily a finance-based city and our economy is doing very well, and as long as that continues, the real estate market here should continue to be healthy,"I guess they've been too busy selling condos to pay attention to what has happened to the financial markets, and in particular to financial stocks since January 1.
They must think we're stupid.
As an aside: thanks for the great discussion this past week. We've enjoyed reading it immensely and hope it keeps up. It's why I blog. My hats off to you all. Cheers.
I've just realized that PB linked to this article already H/T. Welcome back too PB, we've missed you after 11 days.
UPDATE: Vancouver Realtor says adjust to the new reality of price reductions (they're already happening here too)
Video courtesy of VK: cheers.