There’s an article in this week’s Maclean’s Magazine that questions the credibility of the statistics coming from the real estate industry. It’s a valid argument, and one that is worth having, but I do have some issues with the article.
If you haven’t already read the article, you can do so right here.
While Maclean’s criticizes the data produced from real estate industry sources, it claims that the Canadian real estate market will soon follow the US housing market into a steep decline which will take years to come out of.
This argument is predicated on the predictions of a real estate futures market. The problem is that the company the article claims to be running this futures market denies the market exists (in a letter that Teranet wrote to the OREA). The company, Teranet, also denies they were ever contacted about the article (as does the CREA).
The article also claims that realtors have a vested interest in pumping up the market. It argues that if markets decline, there are fewer transactions and this results in less money for realtors.
That is true. In a declining market there do tend to be fewer transactions and a smaller pie for all realtors to share. However, for those of us in the industry for the long-term we’d be awfully short-sighted to only wear rose-coloured glasses. We are professionals. We know that real estate is cyclical and has ups and downs.
Personally, as a Vancouver realtor it’s in my interest to be honest with you. Being honest and upfront about current Vancouver real estate market conditions earns me respect and credibility. I don’t tell people just what they want to hear, I report to them what are the facts of the current market…and I believe that the vast majority of realtors look at it the same way.
It’s an interesting read. However, given some of the glaring errors in the article, it does put into question it’s validity.
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