Friday, July 10, 2009

VERITAS TD&F: TOUCHDOWN - PERSPECTIVE ON HOME SALES

There was surprising news this week that sales of existing Toronto homes (resales) shot up 27 per cent in June from the same month a year ago. Hardly recessionary. “Multiple offers. Frenzied buyers. Higher prices.” That was the lead on veteran Toronto Star Business reporter Tony Wong’s piece. But what was really Touchdown-worthy about the story was the context that was brought to it by Wong and those he interviewed. It would have been awfully tempting to take this theme too far and issue an ‘all is well’ war cry. “Shifting mortgage rates and a great unfreezing of confidence have resulted in a very strong wave of home buying in the GTA,” housing analyst Will Dunning said. “But what really matters over longer periods is job creation, and the signals from the market are discouraging.” Added Dunning: “I expect the short-term impacts of changing rates and postponed buying will soon pass and the GTA housing market will be weaker in the second half of the year.” The reason Dunning is respected by journalists, aside from the 25-plus years he’s being doing this, is that he doesn’t necessarily feed his quotes into the theme of an article. He is honest and analytical. It’s great to make your story as “sexy” as possible, but not at the cost of your long term credibility. Yes the numbers were surprisingly good news, but there are still challenges ahead and more to be done to fix the economy. That was a good balanced message and a Touchdown.

No comments: