Yeah, I know. August is far too early to be using an autumnal metaphor, but housing market cycles don’t run on a regular schedule like the seasons do. You already know that our local real estate boom has withered on the vine, but did you know markets are slowing across the country? I guess the big question now is how bad will our housing hangover be?
Anyone looking to sell in the next couple of years has to be hoping we don’t follow the US cycle, where one third of all new owners owe more than their house is worth and a quarter of homes sold in the last year were sold at a loss. Of course thats on a national level, cities like Stockton California are in much worse shape with prices dropping 38% in one year.
Will demand return to the lower mainland real estate market or will we see modern day ghost towns in the burbs?
If you don’t believe in all this doom n’ gloom perhaps its time to buck the trend and invest in real estate. Money is still cheap and sometimes big risks bring big rewards. You could try Spain where prices are predicted to drop 20 to 30% over the next four years, or the UK where there’s lots of listings to choose from. Some see bright spots in the New Zealand housing market if you want to go a bit further afield. They’re only talking about drops in the 10% range.