Criticism continues to pour in regarding one industry player’s pending book and bleak outlook for the housing market.
“Yes, if we keep posting through media that 'the sky is falling', then it will. A large number of condo investors are speculators,” Gloria Lee wrote on MortgageBrokerNews.ca. “They don't have access to concrete data and so media and people like Macbeth (who) write these books do have small … impact on our housing market.
“Cluster enough small negativity and it becomes a big problem. Anything at this time could be a trigger.”
A portfolio manager with an upcoming book release has sounded the housing correction alarm bells but one broker has already poked a hole in his theory.
In the original Globe and Mail article, Hilliard MacBeth of Richardson GMP advises 30-50 year-old condo owners – the cohort who make up the majority of condo ownership – to sell their condo units because they are “terrible” investments. But as one savvy MortgageBrokerNews.ca reader points out, this could be a direct cause of a housing crash.
But industry professionals aren’t sold.
“What a silly suggestion to sell off one’s condo holdings; what about the losses that come in the form of penalties from breaking mortgages? How can a portfolio manager be so loose in its suggestion?” Alphonse Negro, a mortgage specialist with BMO wrote on MortgageBokerNews.ca. “Real estate investments are long term. Hold onto them. Stats are proving that 2014 is another banner year as in certain price ranges everything is selling quickly.”