The Canadian Real Estate association must read this blog and quiver in their boots.
Please don’t correct me on that obvious fallacy. I am well aware I don’t make anybody quiver in anything.
Remember the CREA report that said prices weren’t going to fall? If you don’t, have a gander at this post I wrote just two days ago. I wrote that CREA wrote that prices would plateau at these inflated levels, and wait for incomes to catch up before going ever higher.
Oh how quickly their tune has changed. CREA has come out with a revised forecast. In this revised outlook, they now say prices will decline in both B.C. and Ontario, causing the average national price to drop. They also have revised their prediction on the number of transactions downward. These predictions are of little surprise for those who have been paying attention over the last little while.
Poor CREA. They are in danger of the MLS cartel being broken up and of a poorly performing housing market over the next decade. While CREA scrambles to issue reports that call a downturn, they lose any credibility they had left. They’re doing a good job driving their stock down to zero. We all know that in 2 years they will have claimed to have called a downturn.
I really think I should stop linking to CREA stuff and maybe even stop talking about it all together. I understand that an organization of people who sell real estate is going to be pro real estate. I understand that position completely. I would probably be puzzled if they ever honestly criticized themselves.
Yet when they issue press releases like they’ve been doing and predicting the direction of the market, people believe them. It’s the Canadian Real Estate Association, people tell themselves, if anyone knows real estate it’s those guys. Everyone only assumes the reader is aware of the conflict of interest. That’s why we shouldn’t put any merit in a report from an industry group ever. If the reader thinks he’s getting an objective opinion he is sadly mistaken.