Buried in a piece of about the economy, Global reports that Vancouver Real Estate will drop another 10% in 2013.
Naturally is is couched with the rationalization that this drop will be - at best - a correction, not a crash because interest rates aren't heading up anytime soon.
But it's significant to note we have now moved from the "prices are flat" mantra to this is a "correction, not a crash" mantra.
(hat tip GreenhornRET)
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With 70% of people owning a home right now, reality about the market will be resisted every inch on the way down.
ReplyDeleteI expect that by the time we crash, the industry will have been announcing the bottom for months already.
Heck, we see that already and its barely begun. Goes to show just how much people lust their money.
The comment that scares me is that the CND $ is 10% over valued. I guess here is another example of the market getting it wrong, and the gov't will need to devalue to get the "right" valuation.
ReplyDeleteSo in real terms re prices will drop 20% this year in Vancouver ?
ReplyDeleteSo the ingredients for a soft landing are:
ReplyDelete- glacial growth
- never before seen low interest rates, with banks actively chaining customers to debt
- never before seen consumer debt levels
- never before seen price to rent and price to income rations for residential real estate
- highly likely that 60% or more of the population has massively over weight portion of total assets in real estate.
Makes sense.
I get the feeling that somehow the global as well as the Canadian financial sectors have read "the Secret" and think that is how stuff works.. just saying or thinking something will not magically make it happen.
This will unfold and unwind in the most painful of ways over a period of time that I think people will come to describe as generational lol.
Good luck.
well said
DeleteI am hoping for a 20% drop in Surrey...
ReplyDeleteI am just hoping for affordable shelter; be it renting or buying for my family.
ReplyDelete