MSM Continue To Pump RE – “What’s next? “Cigarettes found to extend lifetime: Marlboro?”

We continue to register that the local mainstream media largely remains in the comfy pockets of their advertisers from the real estate industry.

An ‘article’, ‘Housing market to remain strong in 2010: Re/Max’, 3 Dec 2009, from the Vancouver Sun ‘by’ Kim Covert [joke ghost pseudonym? -ed.] is essentially written by Re/Max. (Full article reproduced in comment section.) Gobal Canwest Channel 2/7 news also ran this as ‘news’.

These relevant posts from discussion at vancouvercondo.info -

Limey 4 Dec 2009 2:16 am – “I don’t want to start picking on the Canadian mainstream media, or the state of BC journalism in general. But in other parts of the world, if you wrote an article about RE, and where it’s going in the next year, and only used one source, and that source had a suspiciously high level of investment in the RE industry, it would be regarded as some sort of joke. What’s next? “Cigarettes found to extend lifetime: Marlboro”? I mean, for christ’s sake – it’s pathetic. Where’s the objective discussion questioning the status quo? Am I being naive? I thought this is what newspapers are supposed to do – not re-write advertisements for large corporations.”

Carioca Canuck 4 Dec 2009 10:05 am – “Last night we were watching GLOBAL/Canwest Channel 2/7 news, which is sponsored be REMAX. Their latest fluff piece that is linked here was front and centre masquerading as a “news” article. ROFL !!! The wife looks at me and says “This is bullshit….” Pretty interesting comment coming from someone who just moved here 6 years ago from a foreign country, and has only started closely watching the mess that is our RE market, over the last 24 months.”

“Vancouver is back in boom times… Unlike anything in the world… The speculation is that prices will go up after the Olympics”

Speculators continue to bet on rising Vancouver RE prices, and some still appear to be anticipating that the effect of the Olympics is not yet priced into the market.

Here are extracts from a report by Sam Cooper in The Province 29 Nov 2009 -

“The buzz is back. In scenes rarely seen since the Vancouver real-estate market peaked in early 2008, a horde of hungry investors lined up for hours in a downpour Saturday [28 Nov 2009] to get first dibs on pre-sale condo units in a tower to be erected in Yaletown. Cam Good, who is heading up marketing for “The Mark” by Onni, said some investors even slept outside Friday night to ensure prime line-up positions. “We’re blown away by the turnout,” Good said from inside the downtown pre-sale centre as about 50 investors scrambled around a model of the building.”

“While the global debt and credit crisis continues to haunt developments in former real-estate hotspots like Dubai in the United Arab Emirates, Good said Vancouver is back in boom times.”The [real-estate] strength in Vancouver is unlike anything in the world,” Good said.”

“Mayur Arora, who told The Province he hoped to land a top-floor unit, and his realtor K.D. Dhaliwal, said location and scarcity make the site an attractive investment. “I’m here because they are selling Yaletown at today’s prices, but the speculation is [that] prices will go up after the Olympics,” Arora said.  Steve Dhana was amazed by speculator interest as he watched investors rushing to place bids on units. “The prices went up $50,000 last night,” Dhana said. He hoped to buy a unit in the $500,000 price-range, and also expected prices to surge in February 2010.”

“I read a realistic and balanced RE article in the Vancouver Sun” – vreaa

The Vancouver Sun has unexpectedly published a sober and cautious article about Real Estate. This contrasts with years of articles that have most often read like RE promo brochures. The article is from the 20 Nov 2009, Vancouver Sun Business Section, with no apparent byline. Excerpts below, full article is reproduced as first comment in the comment section -

“In B.C., which has the highest prices and biggest mortgages, buyers seem more confident than other Canadians that prices will continue to rise. Even if they are right it would be prudent to remain cautious.”

“Low interest rates have been a godsend for mortgage borrowers, and a curse for savers…. But interest rates can change in the blink of an eye.”

“Financial advisers warn that real estate valuations can go down, as well as up, and people should diversify their investment portfolios, especially in retirement when a house should represent no more than 25 per cent to 33 per cent of total wealth.”

“Would-be buyers should enter the market with eyes wide open and view their purchase first as a place to live, and only second as a store of wealth.”

VREAA editorial comment -

1. What percentage of Vancouver owners are on target to have their house represent no more than 33% of their total net wealth by retirement?  Answer: Very few. Currently, for many owners, their home value represents greater than 100% of their net worth in that the outstanding mortgage is larger than their other savings and investments. And rising RE prices have further decreased the sense of need to build savings outside of RE equity.

2. What percentage of Vancouver owners currently view their homes ‘first as a place to live, and only second as a store of wealth’?  Answer: Very, very few.

Audio anecdote: “Hey, would you like to kick yourself?”… “Today’s real estate market could be at rock bottom, and when markets hit bottom, the winners are buying.”

At this point in the real estate cycle, to be luring individuals who are “worrying about living paycheck to paycheck” into RE ‘investment’ could be seen to be imprudent.   Listeners to Vancouver Radio station ‘CKWX News 1130′ this week (16-20 Nov 2009) were exposed to this 60 second ad about once an hour. The meaty bits are italicized. Or click here to subject yourself to the AUDIO -

“Hey, would you like to kick yourself? That’s what you would be doing if you ignore this opportunity. Today’s real estate market could be at rock bottom, and when markets hit bottom, the winners are buying. Come to a free learn to be rich workshop and discover how to join the winners based on the teachings of Robert Kiyosaki, best selling author of ‘Rich Dad, Poor Dad’, the number #1 book on personal finance. Rich Dad’s learn-to-be-rich workshop is free and happening in the Vancouver area today through Friday. This totally free workshop will introduce you to tools and strategies that could create extra cash flow and free you from worrying about living paycheck to paycheck. Don’t kick yourself next year saying “Why didn’t I invest when I had the chance?” This is your chance. Register now online at richdad*******.com or call 800-399-****. Get a free gift for attending. Registration is free. Call now 800-399-****.”

Visual Anecdote – ‘Real Estate Lift-Off’ Cover of the Georgia Straight

Would you get onboard this rocket? Heading into orbit, or destined to end as a giant fireball? -vreaa

The Nov 12-19, 2009 Georgia Straight Cover, a free publication available on the streets of Vancouver.

See extracts and comments on article HERE.