Hold Off Buying That New Home
photo credit: karlfrankowski
As I wrote earlier, now is definitely NOT the time to buy a house in Vancouver.
The latest real estate report came out and all the signs are in place for huge price drops in the next 4-8 months.
I’ll get a lot of angry realtors on this subject, but that’s the first sign
Inventory is piling up fast, sales are slowing as fast.
Condos will be first to drop – followed by homes in the burbs.
Out here in Port Moody open houses aren’t getting anyone in.
Here’s a good post of what’s happening now.
The good news right now is that the renatl market also has a lot of inventory.
My advice: Rent for the next year, and watch for the bottom of the real estate market.
Don’t buy now – there is absolutely no upside.
Here’s the skinny on what the real estate pros are talking about amongst themselves.
The media has jumped aboard:
July 14th, 2008 at 10:57 am
WHAT??!! Are you trying to kill the housing market in Vancouver???
Please don’t tell anyone!!! Let them find out for themselves later.
Instead, you should be urging them to buy a house, and the more expensive, the better. Let’s keep the market propped up for as long as possible!
July 16th, 2008 at 12:18 pm
Vancouver better be careful…. this market does not look good… The economy is not doing well enough to sustain these prices.. and we don’t want to head into a major recession!! All one has to do is look up information regarding previous recessions in Vancouver… The great depression being the most disadvantageous.
For example, a large house in Shaughnessy would have cost $30,000 in 1920 (Glen Brae House) -$820,556.25 in todays dollars taking into account inflation… 19 years later, that same house sold for $7500 in 1939 ($118,065.65 in todays dollars).
That is an enormous decrease!! The real estate market is NOT a sure bet… this is what people have to remember! House prices do… and WILL drop.