An interesting headline that incidentally refers to headlines in general. I guess this is also an indictment of the need for headlines to grab attention and then clarify what is meant within the article itself when it is read. But, what if it is not read? Possibly a mistaken comprehension of the subject; or am I being paranoid?
This thought was prompted by the headline of a recent Vancouver Sun article which read – “B.C. house price increases to drop next year by half”. The salient words are likely “house”, “price” and “drop” and may quite likely imply at a cursory glance that prices are dropping. Upon a full perusal the fact of the predicted “rate of increase” being halved became evident. This referred to B.C. wide average prices and was made by Canada Mortgage and Housing Corporation. Remember that I always warn that one needs to know “which” market is being discussed. In this case, however, I think it is a fair comment and may well apply equally to our North Shore and in fact to many parts of the Lower Mainland. This is excellent news and reflects appropriate market forces at work. The figures given are that 2007 growth is predicted to be 12.1% (over 2006) and that 2008 at 6% (over 2007). The piece continues with good comment on housing “starts” (new homes being built) dropping to just over 33,000 in 2008 vs. just over 36,000 in 2007. Again, a healthy market reaction to demand. So, at the risk of sounding repetitious, the need to a) know which market (or sub-market) is being reported on and b) to read the whole thing, is paramount to being able to put the message in context and see if it “jives” with what one thinks is a likely outcome. I feel that this is a sound prediction and, as I have said, a healthy reaction of a healthy market.
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