Thursday, July 5, 2012

Thurs Post #1: BC Real Estate Association declares, "there will be no price drops" - CBC


So CBC-TV ran a story yesterday titled "Vancouver home sales drop sharply in June" and is embedded above for your viewing pleasure. The central theme of CBC's piece is to determine if we will see lower real estate prices. Check out the very last portion of the story where the reporter closes by stating:

"So does all of this supply mean there are going to be bargains? An economist at the BC Real Estate Association says 'NO', that the price drops of 3.5% earlier this year are going to stay there."
It would appear the BC Real Estate Association is drawing a line in the sand on all this talk about a 'depressed' market and declining prices by declaring it simply won't happen. Contrast this with realtor Keith Roy who yesterday told his clients that, not only had he sold his house, but he was recommending that now is the time to "cash out" and sell your home. More significantly Roy said:
"if the media picks up on this story, you can be sure the rest of the market will follow the west side (with declining sales and exploding inventory)."
Well it certainly seems the BCREA is moving to quash this very outcome. After going through all that work to redefine the way the HPI benchmark price is calculated (twice this year, actually), it's clear they will brook no perceptions that house prices will go down.

You have to wonder how long before Roy receives a 'snot-a-gram' from the BCREA about his advice to clients.


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  1. "An economist at the BC Real Estate Association says 'NO'"

    So who is this economist? Or is he the "spine-less, signature-less" guy that God Rennie refers to?

  2. I question where the economist received their degree. 1st day of Econ 100 you learn Supply>demand=lower market clearing price.

  3. if you look at the BCREA forecast, they have prices falling 3.2% in Vancouver this year. That is by definition a "price drop".

  4. Incredible, these guys obviously have never been to an auction. Supply will explode and the number of transactions collapse. In the realtor world that means prices stay high until buyers capitulate - right..

  5. Mission Accomplished.