The global confession

International Herald Tribune

With the Vancouver media so consumed with local real estate coverage, you’d think it was in the news everywhere in the world. Scan the headlines outside of B.C. and the answer is clear: The world isn’t talking about Vancouver.

That said, every once in a while the international media does opt to join in on the fun. The International Herald Tribune took their turn last week. In a manner typical of foreign coverage, the article starts with a few fast facts about Vancouver’s rising prices before turning the whole thing over to the superstar realtors for commentary. Interviewed are Bob Rennie and Malcolm Hasman. (Perhaps Zoost hoped to chip in but had a “problem” with his phone?)

For their part, King Bob and Malcolm the Mogul share stories of spectacular success: Sales are ahead of projections, wealthy immigrants are eager to buy, it’s busiest market in 25 years, etc. But buried within the kibbles and bites is one revolutionary, absolutely astonishing quote. From the mouth of Mega Malcolm:

A lot of prices have been reduced to some degree… But the truth is, they were overly inflated to start with.

Coming from a top realtor, this is a revelation of epic proportions. It’s not everyday we hear something like this. In fact, up until this Spring with listings achieving record highs, it would be heretical for an industry official to speak with such negativity.

Ladies and gentlemen, the day of reckoning is coming. You have been warned.

6 Responses to “The global confession”

  1. Billy Sigher Says:

    I had mad respect for Malcolm. I haven ever met him, but I assume he could sell a bag of s— to you if he wanted.

  2. Arwen Says:

    Overly inflated to start with? In Vancouver? How is that even possible? You can’t pay enough for the chance to sail and ski in the same day!

  3. Tony Danza Says:

    I would love to meet Hasman and kindly ask him to stop filling my mail box with his paper spam sh!t. But seriously, when things go downhill in Vancouver RE count on Bob et al to regale us with how they saw it coming all along. Meh.

  4. mathamatical Says:

    Yep, once again don’t worry if you’re selling a condo a rich immigrant will buy it. That is why inventory is sky rocketing and sales declining! Can’t believe one of my co-workers is still brainwashed. Still believes his North Van condo will be worth 540,000 by 2010. The main reason is because the papers are expecting 5-10% increases and because his uncle is an RE agent.

  5. curiousobserver Says:

    First off, I really enjoy this site and find your observations on real estate marketing hilarious.

    I don’t own in Vancouver and am unlikely to for some time, even if the market went down 20%. Regardless, I’m fascinated by the drama of it all.

    I’ve read your predictions on why the market should crash, and I’ve also read the posts of the Langley financial planner, and obviously there is a compelling argument.

    When I talk to real estate agents who suggest a more modest correction is likely (and they do acknowledge this is coming), their reasoning comes down to the fact that interest rates are low, mortgage practices are more sound than in the US (even if not completely), and demand for housing, baring a major external event, is solid. The arguments seem consistant with how it’s framed in the IHT article.

    They see these set of circumstances as different not only from the American context, but also that of the crash which occurred after Expo; particularly in regard to the difference in interest rates.

    Do any of you see merit in these arguments? Is it possible we are just going to see slower growth, and not a crash?

    Thanks for your comments!

  6. Joe just Joe Says:

    What Malcolm stated, isn’t that prices in Vancouver were overly inflated to begin with, he is stating that listings that have had their prices reduced are listings that were overpriced to begin with. That’s a big difference.

    Nothing is stopping me from listing a 1br in bby for $500K, it won’t sell though and I’ll eventually have to lower the price if I want to sell it. That doesn’t mean the market is overpriced it means I wasn’t asking market pricing.

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