Conspiracies Galore! Metro Vancouver experiences positive growth despite doom and gloom prophecies

According to Alison Meek, a history professor at Western University, uncertainty around the scientific process, combined with mounting frustrations with lockdown measures, and a struggling economy, has created a perfect storm in which conspiracy theories can flourish. The CBC recently reported that the most popular theory of late pertains to the notion that the coronavirus escaped from a lab in Wuhan, China. Another prevalent theory is that the COVID-19 pandemic is a way for billionaire Bill Gates to microchip people.

Other conspiracies are more fringe: only six per cent of Canadians believe the pharmaceutical industry is involved in the spread of the virus, while four per cent of Canadians believe in the link between 5G technology and the virus, or that the US military developed the coronavirus as a bio-weapon. On July 20th, comedian/actor John Oliver waded in one the topic with an episode of his popular satirical HBO show “Last Week Tonight”. “The only difference now is that our current pandemic is coming in the age of the Internet, when it’s not only easier for people to do bad research and spread their results, but it’s also possible for them to make material look startlingly authoritative,” said Oliver. Sadly, people across all levels of education, across age groupings, across political ideas, all are susceptible to online misinformation.

However, research suggests the political profiles of COVID conspiracy believers differ from non-believers. Findings also noted that people who do not receive COVID-19 related news on social media platforms like Facebook, Twitter, YouTube, Reddit and others, are less likely to believe conspiracy theories than those who get considerable amount of news this way. So, what can be done? John Oliver provides practical direction, listing three expert-approved questions for guarding against slipping into conspiracy: Is there a rational non-conspiracy explanation? Has this been held up to scrutiny by experts? And how plausible is this theory as a practical matter?

I do think another key to the prevalence of conspiracy theories could be directly correlated to the growing mistrust of leaders and institutions. In Canada, this mistrust is fueled by the latest conflict of interest challenges the governing federal Liberal party is facing. Some would argue that recent and proposed housing policy is aimed at just that.

Now, what could a real estate conspiracy theory be? How about the one about the government wanting to create a nation of renters? Some would argue that recent and proposed housing policy is aimed at just that. Then there is the story that CMHC has commissioned a quarter-million study into taxing capital gains on principal residences or creating a federal property tax. Is this to expected as the feds look to pay for COVID-19 relief?

It was small comfort hearing that Finance Minister Morneau confirmed recently that the federal government was not considering taxing any or all of the gain in value on the principal residences of Canadians. Despite all this negative hearsay and the obvious slowdown in the first month and a half of the pandemic in BC, including lock down conditions, a lack of open houses, and sales centres being closed to the public, within weeks of the reopening, Metro Vancouver experienced accelerated new homes sales activity for both new and re-sale product. In fact, sales in June and July have outperformed in sales and pricing from the same time period in COVID-19- and flu conspiracy- free 2019.

It appears real estate demand in the BC and the Metro Vancouver market has demonstrated its resilience once again and provided further evidence that our industry’s under-supply arguments are not a conspiracy theory, but the truth. Clearly, we are now feeling the results of COVID related pent-up demand. Like the concerns about a second wave this fall, time will tell if this a short-term gain or a sustained market trend.