No, not blogger, bakery or bunion. I’m talking about a very dirty B-word when it comes to the BC market: Bubble. I’m talking about Realtors (not including Rob Chipman) using the word bubble or referring to the possibility of a downside for the market here.. Whether their purpose is to deny the existence of a Vancouver housing bubble, entertain the possibility or sound warning bells (hey, it could happen). It’s interesting to see how Realtors phrase any reference to a Vancouver real estate bubble and the idea that prices won’t keep rising like they have:
Duncan Browns market update May 2006:
My best guess is that this intense pressure on prices will force buyers to back off a little which could take the heat out of the market for a few months, while it adjusts. This kind of minor correction could be exactly what the market needs in order to sustain itself over the long term and prevent those infamous “bubbles” from bursting!
Jacob Krause blog entry March 2006:
Buyers putting up 5 per cent of the price of a home and mortgaging 95 per cent are doing the same things as stock market junkies snapping up securities on margin. The only way they make money is if the asset rises in value, and quickly. So far the 5 per cent-down crowd have done very well, since their extreme leveraging has paid off in a rising market. But if housing prices move in the opposite direction, their tiny little bit of equity can evaporate in a week or two, leaving them with nothing but a sea of debt. Oh yeah, and a home they “own.”
Tom Everitts anti bubble tirade September 2006:
I’ve been involved with this ‘bubble’ argument for so long, it is inevitable that the naysayers will be right one day. One day….but not now, nosiree…not a chance folks. Once again, during the lull that was August, everyone started throwing the ‘bubble’ word around again. ‘Ohhh, it’s coming this time’. ‘Ohhhh, all those people shouldn’t have bought’….’Ohhh, blah, blah, blah’.
So thats three random remarks made recently by Realtors in Vancouver.. Seen any other interesting remarks from people involved in the day-to-day business of selling homes here? If you’re looking for a place to buy is this a topic that comes up for conversation between yourself and your realtor?