What happens if the bubble pops?

Over on the Vancouver Housing Market Blog there’s an interesting historical discussion of 1981. That was the year when real estate prices in Vancouver fell by about 50% after a fast strong run up in prices. There were a few factors that caused that crash, but ‘this time its different’. As long as we keep bidding up the price of Condos in Vancouver we’ll all be fine.

But just for the sake of argument, lets say the real estate market in vancouver crashes in the next year or two.. what would that mean? Well for one thing houses and condos would be worth a lot less. This could be depressing to current owners, but not the end of the world. If you can afford your bills you stay put right? Eventually prices will go back up, you’ll just be paying some premium rent on the money you used to buy your place. As long as you don’t have to move you don’t have to worry about the fact that you cant sell your place.

If things get really bad? Well, I guess in the worst case scenario that would be unemployment and foreclosure right? Buy why get all negative? Even in that gloomy scene you can look at the bright side. Its all a matter of perspective – Vancouver has one of the mildest climates in Canada, people come all the way from Quebec to live on our streets. We have lots of prime real-estate in parks and tarps are cheap! So lets stay positive! I’m off to view this 500 sq. foot condo on east side right now – the MLS listing says I can “just paint and profit!”.

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NotShopping
NotShopping
14 years ago

What?I don't want to have to live under a tarp with those people!(Well maybe the librarians)Hey Guys it won't pop because its NOT A BUBBLE! We have land that is in demand! They aren't making any more of it! You are just wishful thinking!

Anonymous
Anonymous
14 years ago

if you can't trust realtors than who can you trust?Bon Jovi? Alan Thicke? Tony Parsons? Tony Blair? Librarians?

thorgodofprofit
thorgodofprofit
14 years ago

Just Paint and Profit??Hmm.. Sounds almost too good to be true. But if you can't trust realtors than who can you trust?