Thursday, September 6, 2007

What are these guys smoking?

...When they write things like this:
He compared home prices to rents, saw "little evidence of speculation" and found a "very low" risk of an Edmonton housing bubble.
Yes, this comes from one of the biggest if not the biggest beneficieries of high housing prices TD Bank: Economist Carl Gomez, at TD Financial Group, in the latest issue of his quarterly Housing Bubble Watch, has written that "Edmonton still remains the second most affordable" large Canadian city in which to own a home.
Oh really. How about Ottawa? Or Winnipeg? Or even a suburb of Toronto? May be Halifax isn't a big city either.
As had been strongly desired by the usual suspects, the media is going all the way to make everyone feel good. Yeah, the prices are down but so what, we are still up 27% YOY. Well just wait for a few months and the YOY will become just as useless.
But here's my take. You can go on and sugar coat whatever statistics you want for the masses. Ultimately, everyone is going to realize the true value of a shoe box home in the middle of prairie is not remotely close to $400k. They are all trying hard to bring the last set of suckers in who will get into $400k debt for a 30 year old bunglow for the rest of their lives living in a city with 2 month summer.
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