Check out the title of the following stories:
Wow! Sunshine and lollipops! Bidding wars around the corner!
Not quite. What we have here is a classic sleight of hand. The headline looks rosy, but what they’re reporting on is the month-over-month data. That’s unusual as most reports from CREA (Canadian Real Estate Association) emphasize year-over-year data. What’s up with that?
Interesting that CREA itself would neglect to mention year-over-year comparison, given that sales volume in all the big centres were off between 20 and 40% year-over-year in August. Of course, that doesn’t make nearly as exciting a headline.
However, the price trend is strengthening to the downward, now having fallen 6.3% nationally since May (hey….if we counted closing costs associated with selling, wouldn’t that wipe out the average new homeowner’s equity, which was estimated by CMHC to be a a paltry 7%?).
And to think that I’m foolishly throwing my money away by renting a beautiful home at a fraction of the cost of ownership while growing the assets in my portfolio! What a dunce!