Extra! Extra! Read All About It! – Pablum From ‘The Vancouver Sun’ Lulls Locals

What motivates ‘The Vancouver Sun’ to print an article like: ‘Real estate market calm expected to follow hectic 2010 in Metro Vancouver; Home sales forecast to increase modestly across B.C. as prices stabilize‘, 27 Jan 2011?
It contains no ‘news’ or analysis whatsoever. It consists of hopeful statements regarding price direction from a family who have recently purchased a home, and reassurances of stable markets and price increases from BCREA, CMHC, UBC’s Land Economics department, and a realtor. There is no mention whatsoever of any downside risk.
The only conceivable purpose of this article appears to be to lull current owners and potential buyers into believing that the Vancouver real estate market is stable, cosy, and benign. It’s an advertisment dressed up as a newspaper article. -vreaa
[hat-tip to Mr. Poppinfresh at VREAA for pointing out the importance of non-articles such as this one.]

“Carrie and Mike McDougall — with their daughter Kylie, 3, and son Colton, 4 — moved to British Columbia from Alberta recently and bought a new house in Maple Ridge. They were comfortable with the price they paid and are expecting prices will go up in the next year, as are experts across Metro Vancouver.”
“Hopefully, it was a good time to purchase,” McDougall said in an interview.

Other excerpts:

“There will be a much more gradual increase in consumer demand and less volatility. There will be more stable market conditions this year.” – Cameron Muir, chief economist for the B.C. Real Estate Association

“We’re calling for a three-percent price increase in 2011.”– Robyn Adamache, senior market analyst for Metro Vancouver with Canada Mortgage and Housing Corp.

“[I’m] seeing an uptick in buyers who believe interest rates are heading north. [I] believe there will be a modest increase in both pricing and demand this year.” – Ron Antalek, a realtor with ReMax Ridge Meadows Realty.

Tsur Somerville, director of the centre for urban economics and real estate at the University of B.C.’s Sauder School of Business, said he doesn’t like forecasting the future, but nevertheless believes that 2011’s real estate picture will be largely determined by the speed of the recovery and the Bank of Canada’s action on interest rates.

14 responses to “Extra! Extra! Read All About It! – Pablum From ‘The Vancouver Sun’ Lulls Locals

  1. What I love are predictions based on nothing… “I believe prices will increase by 3%.” Based on what? Intuition, gut feeling, reading chicken entrails? Yet, every burp and fart from any of these industry types (all with vested interests) is faithfully reported verbatim by the Vancouver Sun… Is it a suprise no one pays to read this newpaper?

  2. Blah, blah, blah. How do these newspapers stay in business? Oh, I forgot. They are barely hanging on. How many times have they changed owners in the past few decades? I forgot it has been so many.

    Must be another bone thrown to their Re advertisers. Looks like they are on a weekly buy and had nothing to report this week for the advertorial.

  3. anecdote a)

    SNAKE OIL SALESMAN BUYS THREE CASES OF OWN PRODUCT
    I just heard from a very reputable source of a Realtor of Chinese origins (been here a while) who owns two homes, getting a HELOC to use as a 200,000 DP on a third, 800,000 property. Seems like they truly believe prices will never go down.

    anecdote b)

    Some friends’ friends took my links for VCI, VREAA and Greater Fool and shoved them back up my assistance. They bought a condo in South Burnaby two days later. Two days!!!

    TPFKAA is back to real(i)ty.

  4. oops, second one was supposed to read anecdote b). I think I need a blogging holiday.

    [edited to reflect that -ed.]

  5. The Vancouver Sun’s practice of selling out their articles to business interests is not new. 4 months ago my girlfriend was on the cover of the Sun’s business section for a piece about how “employment prospects are getting better”… when they spoke to her, they unapologetically admitted that it was a puff piece promoting the recruitment agency that helped connect her with her job.

  6. “They were comfortable with the price they paid and are expecting prices will go up in the next year, as are experts across Metro Vancouver.”

    -Buy now, before the prices increase-

    this type of statement is annoying… It asks the question, what does rising prices have to do with the price you paid? I guess everything if you are wanting to sell, and “oh shit” if you have to sell into a declining market. It just makes no reason because didn’t they buy the house to live in? and if they are happy with the price, good on them and lets hope they can keep on paying it for many years and not needing CMHC bailout.

    • Agreed.
      This is why we have long maintained that there is a ‘speculative component’ to almost every local sale, for the last 4 – 7 years

  7. Pingback: Extra! Extra! Read All About It! – Pablum From ‘The Vancouver Sun’ Lulls Locals | Realtor In Vancouver

  8. kc,

    The point is that if prices rise forever you don’t need to worry about the price you are paying now. This is the scam. Don’t concern yourself with the financial terms and don’t worry about a house inspection. None of it matters because inflating prices will take care of any future circumstance.

    Until they don’t.

    • 4SlicesofCheese

      This is EXACTLY what my father tells me.
      He tells me buy now price does not matter.
      If you don’t like the place move in 2-3 years and it will be worth 60-70k more.
      If you cannot pay the mortgage just sell it and buy a cheaper place with the money you made from selling it.
      He is not only giving me advice he actually wants to give me 200k for downpayment, even with that and my own I would still not even consider it.
      Everytime I visit my parents, first thing he asks me is have I looked at any new houses. I just have to say “Yeah I am going to an open house this weekend”. I tried once to tell him I think theres a bubble, that did not go well haha I will just stick to my “Yeah I am going to an open house this weekend”

      He has been infected with this way of thinking from MSM and friends. Meanwhile not listening to anything his family says, including a nephew that works at Goldman Sachs who called the bubble in the states years ago and says the same thing is going on here now.
      Hard to blame him as he seen his house triple in value in 15 years, he is a simple hard working man, somehow always lucky with real estate.
      At the same time a few of my aunts have lost ALOT of money in the past investing but that does not seem to take that into account.

  9. Yup real estate is still being bandied as a can’t-lose venture. It’s akin to the stock promoter promising your money back if things head south.

  10. TheBestPlaceOnEarth

    They have a home to raise their children. Proud homeowners for sure. No worries of being kicked out by a landlord or skyhigh rent increases. Enjoy your new home and life in the BestPlaceOnEarth. Prices longterm going much much higher.

    • Why not contact The Vancouver Sun?
      Perhaps they can add you to their stable of pumpers.
      We’ll look out for your quotes next time they serve us pap.

    • Based on what? Hope? Fumes?
      Maybe a boatload of Chinese billionaires will land on wreck beach and will buy up everything within a 10 mile radius? Maybe the Bank of Canada will lower the discount rate to -2%? Maybe very Albertan will realize they’ve always hated winter and will want to move to Vancouver?

      TBPOE, stop drinking the kool-aid and look at reality… Cross the BC-California border and you can buy the same house for a 25% discount. (BTW, that last part was a dig at Peter “The Brain” McKay.

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