The Headlines Turn – ‘The End of Canadian Media Real Estate Bubble Denial?’

‘Vancouver Bubble Bursting?’Global BC TV, 3 Sep 2010 [video here]

‘Vancouver real estate ‘bubble’ an ‘accident waiting to happen’
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‘Doom and gloom predicted for Vancouver house prices’
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‘The end of Canadian real estate insanity’
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‘Housing will be banks’ next sore spot’
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‘Vancouver’s high housing prices threaten growth’
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‘Metro Vancouver housing market to slow more than expected’
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‘Why the housing market may be heading for correction’
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[Headlines showing extremes of sentiment often prove to be contrarian indicators. The most famous example is likely the ‘Death of Equities’ Business Week cover in the early 1980’s, which marked the very best equity buy-point for a generation. Similarly, the 2005 Time cover showing a man hugging a house marked the top of the US RE bubble;and the current Sept 2010 Time cover questioning the value of home ownership may well mark an intermediate term bottom (we personally expect a bit of a bounce in US housing before new lows). In Vancouver, the classic ‘top of the bubble’ Georgia Straight cover Nov 2009 shows a housing rocket-ship takeoff.

Between the extremes, however, headlines often simply reflect prevailing or developing market sentiment. Our market has begun to turn down, and there is a growing awareness of the trouble ahead. We’d imagine these headlines will give buyers pause for thought.  -vreaa]
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3 responses to “The Headlines Turn – ‘The End of Canadian Media Real Estate Bubble Denial?’

  1. Sentiment has shifted. The long, dry summer is at an end. The market will now fall further in the fall.

    It has begun.

  2. The media are only reporting this because sales are way down. They don’t understand it, so it creates a need for a story. The fact that prices skyrocketed for a decade without any fundamental reason to do so never aroused their curiosity. It was only normal. Eh, we’re the best!

    In Québec, L’Actualité, the french MacLeans, ran a cover story this summer about our love for real estate. It was full of great stats about how this middle-of-nowhere region of the province saw a 57% increase in price since 2008, etc. There was zero note of caution in their housing issue. I think this is the Canadian equivalent of the 2005 Time cover.

  3. Pingback: Aston Lau – The case against policy intervention

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