Tuesday, November 1, 2011

A Different Perspective

Faithful readers know this blog is very bearish on Real Estate.

Juiced by easy credit it seems obvious why the Real Estate bubble has blown so big and even more obvious that it's implosion will be massive.

But not ever one shares that viewpoint. And today we bring you that alternative take on where we are and what lies ahead.

Local Real Estate Guru Ozzie Jurock in the perma-bull of Vancouver R/E and last week shared his thoughts in the Vancouver Sun.

  • “In 1960 your home sold for an average price of $13,105. Yes! By 1970 we reached $24,000, by 1980 we clocked in at $100,000, by 1990 $230,000 and by 2000 $296,000. In the last 11 years we rocketed from there to where we now are at $1.1 million (average used home sale price between Lions Bay and Mission).

    We have had massive inflation in housing prices, driven by excess, cheap easily available money and today we are doing more – much more – of the same.

    Real estate remains cyclical. I have told my subscribers to expect a downturn in the Interior and Vancouver Island over a year ago and a slowdown in Vancouver, too. But, I remain convinced that the naysayers will be wrong again. Yes, the numbers are bigger, the zeros larger and yet each time – after climbing a wall of worry – we muddle through with the result that hard assets will be even higher five to 10 years later.
To Ozzie the never-ending spiral of price appreciation may stall but it will never end. 

Who can blame him?

An entire generation has grown up and has never know any other pattern.  How could the future possibly be any different?


Email: village_whisperer@live.ca
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  1. I wouldn't disagree with Jurok's premise over the longer term. Just the fact that money creation and inflation are present will help drive price higher over the longer term. But short term, we are in for a world of hurt.

  2. Here have 2 sandwiches and a smile!

  3. Come here and give me a big hug!

  4. Ozzie Jurock is a pumper and does not know anything about market.