According to an article in todays Province CMHC has gotten out the crystal balls and they forsee a ‘return to balance‘ in the next year or so in the Vancouver housing market. Hopefully they’re reading the tea leaves and not smoking them. As prices and interest rates have inched up over the years they believe that the recent slow-down is a sign of things to come:
“In general, we see a trend toward more balanced conditions next year,” said Cameron Muir, senior market analyst for CMHC in Vancouver. “In the last few years, most markets in the province have been in the seller’s favour.
“The erosion of affordability is going to begin to impact the market next year. High home prices and increasing interest rates will make housing less affordable and squeeze out buyers at the margins.
“With fewer first-time buyers able to afford homes, it will ripple through the whole market.
“It’s not a disaster, it’s a return to balance,” Muir added.
Ever seen a see-saw when one person gets off? The unlucky fella left on the other end usually ends up with a bloody nose.