Reductimat sent in a link to this article on News1130 about the recent Angus Reid poll on home prices. I don’t think I’ve ever seen an article that lays down so many giant day-glow dots and then refuses to connect them. From the photo of several condo towers under construction downtown (supply) to the demand side economics “three-quarters of current home owners say they could not afford the prices currently being charged for real estate in their neighbourhood.”
Its tough to pick the best gem from this brief article, but I like this paragraph :
Lucas Marshall from Angus Reid says waiting could cost you even more money. “It’s dangerous…chances are prices aren’t going to be more favourable, and most people who do own homes say they’re very lucky they got in when they did.” In fact, 95% of current owners who took part in the survey said they’re happy they bought when they did.
Are you kidding me? How many people holding an asset that’s shot up in value are going to be unhappy with their purchase? 5 percent apparently. And since when did past performance create any sort of guarantee for future results?
Lucas says the overall message from the survey is do your best to buy now because prices are not likely to drop.
So when was the last time a poll indicated a price drop, and if we reach the point were %100 percent of owners couldn’t afford the house they’re living in at current prices where are we going to find buyers? The move-down crowd?