One year ago Canadians were being pummelled by overly-negative media reports regarding the global economy including real estate. While cleaning up some files I came across two copies of Maclean's magazine featuring articles that had prompted me to write letters to the editor as did others in the housing business.
As far back as their October 6, 2008 edition, Maclean's cover was emblazoned with the headline "Canada's Looming Real Estate Crisis" followed by the sub-title "Why House Prices May Soon Fall Through The Floor." Further, the Maclean's March 2, 2009 cover story boasted "The value of your home is about to drop another 20%."
Late in 2009, Canada began to show signs of what will be a slow recovery from the current global recession lead by a strong real estate sector. Was there ever a crisis? No. Did home prices drop significantly last year? No they didn't much less did they "...drop another 20%." Sure, some over-heated markets such as Calgary and Vancouver that saw huge run-ups in prices over a short period saw price adjustments but the prediction of a widespread "crisis" by Maclean's and other purveyors of doom and gloom just didn't happen.
Little more than midway through the month of January, real estate sales locally are running more than double what they were in January of last year, currently at $12.4 million versus $11.9 million for the entire month of January last year. I suspect positive information such as this is not going to make the cover of Maclean's or other print media, it simply doesn't sell newspapers or magazines.
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