Negative outlooks may impact market

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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 “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 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 “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.”
  • K R on 2014-09-29 3:16:46 PM

    Hahaha, savvy reader points out that a book can be the cause of a major market housing crash. That statement alone is laughable.

    No, you are right, all the mortgage brokers and real estate agents who are telling people that the market will go up forever are the professionals to trust.

  • Victor Simone on 2014-09-29 3:53:07 PM

    Is consumer confidence still a leading economic indicator ? It was when I took the CSC course. If so, then Mrs. Lee is correct.

    Enough people crying, the sky is falling, and the next thing you know ...

  • Angela Wong-Liao - Invis Inc on 2014-09-29 6:20:17 PM

    I agree that negative statements can have some impact but not as significant, when the market change, it can be related to several factors: demand and supply, interest rates, unemployment rate, foreign exchange, etc. We should not be over reacted to any negative remarks, however, it is also prudent that we are cautious to purchase investment properties when we have the bull market for so long, practically since June,1996, a little blip in early 2009 and the real estate market have been up till now.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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