Vancouver Housing Correction
Date: 2011-08-04, 7:25PM PDT
The Vancouver housing market hasn’t experienced a correction in pricing like the rest of BC did back in 2008, BUT IT’S COMING! If you are being told otherwise you only have to look back a few years to see where that mind set has destroyed investors. 1995-97 Bre-X Minerals went from penny stock status to $286 (split adjusted) per share then back to zero, 1995 to 2000 the Dot-Com Bubble, 2000 to 2008 the BC Housing Bubble. With regards to the Housing Bubble, the Okanagan was hit particularly hard with home owners and investors purchasing properties in a frenzy thinking prices would continue to sky rocket out of sight and out of range. They were wrong, and for those who bought in the summer of 2008 the losses were substantial, not to mention they signed up with mortgage rates between 5.79% – 6.25%. In hind sight what happened then looks absolutely crazy now. “Greed has wiped out many an investor, but foresight has made millionaires.” What has this got to do with you? It is only my opinion but I believe that the Vancouver housing market is in for a substantial correction. Not just because the pricing in some areas has risen so sharply but because of how it happened and what might take place to stop it. What would happen to the market if word spread that prices had flattened out or were coming down? I can tell you what happened in Kelowna. Buyers sat back and waited while homes sat on the market, some for months, some for over a year and some didn’t sell at all and were removed from listing. Meanwhile sellers grieved helplessly as they watched their equity evaporate. If this happens to you, how will it affect your life?
What to do: Like I said earlier, Kelowna and the Okanagan was hit hard and has been a buyer’s market since the fall of 2008. I have personally seen homes in my area of Glenmore Kelowna removed from listing after a year because they didn’t sell. Prices continued to drop and have pretty much been flat-lining for the last few months. It is still a buyer’s market but eventually it will turn around and prices will begin to rise again because people love to live in the Okanagan. Sell high and buy low and in my opinion that translates into selling at a profit in Vancouver and buying at a discount in the Okanagan.
Who am I: David Iverson, Accredited Mortgage Professional with White House Mortgages. I am the person you want to contact to arrange your mortgage and my team of Realtors, Notaries, Lawyers, Appraisers, etc are also here to assist if you need them. My references include Asian investors in Vancouver and Kelowna if some translation would make you feel more comfortable. Call me, I can help!
Written by David Iverson Mortgage Broker
White House Mortgages
107 – 1980 Cooper Rd Kelowna BC V1Y 8K5