Thursday, May 27, 2010

Sunshine, lollipops and rainbows everywhere

Ahh... ya gotta love it.

Almost as if on Que, enter the Canadian Real Estate Association trying to slap down yesterday's bank economist's attempts to piss on the R/E parade.

"Don't expect big drop in B.C. home prices," trumpets the CREA. "If you are waiting for housing prices to drop substantially in B.C., it's probably not going to happen."

Of course not, real estate only ever goes up.

CREA Chief Economist Gregory Klump predicts a small decline in the average price in B.C. in 2011. "After that it will likely stabilize so what's going to happen is over time incomes will continue to rise as well. So that's going to return the ratio to its long term average. It's going to take longer than elsewhere in Canada because you're farther away from a long term average than other provinces are."

But if Klump's prognosis is still no pessimistic for you he quickly adds that "the price-to-income ratio may be affected by investors - again skewing the market upward."

Leslie Gore would be so proud.

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2 comments:

  1. Such a load of bullshit my wages will not increase inline with the advances the real-estate market has locally. Absolute bullshit it's worse than a lie it's not even concerned with the truth.

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  2. @ Anonymous
    I think he's saying big money investors will skew the traditional price:income market indicator. So despite the fact our income isn't going up, these investors will throw money into the pot to keep prices going up up up! Who are these investors anyway?? Dirty cops from HK who escaped with millions??

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