Canadian RE Marketplace … distortions

The Vancouver market is being used as a ‘boost’ to the provincial and national house sales numbers.

This sort of reporting is what brings about the market distortions and perpetuates the myth that ‘all is well’ in Canadian Real Estate.

Canadian banks want the retail residential mortgage consumer to continue to operate with confidence, while the truth of the matter is that home prices in major markets are moving beyond any sort of affordability and the re-sale values of properties almost everywhere else, especially in markets where employment challenges are evident (and growing) are suffering equity destruction.

Organizations like Real Estate Boards are getting desperate to paint a rosy picture over the more accurate decay that is settling in on many markets.

Watch for a significant correction in the working class neighborhoods while the white collar and advantaged locations will be used to ‘paper over’ the increasing losses.  Any reports that use the words ‘average’ or make year to year comparisons are worthless.

Read what the Financial Post is supporting from the CREA:

http://business.financialpost.com/2011/05/09/strong-housing-forecast-for-canada-report/

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