The BC Real Estate Association has released a revised forecast predicting that house prices in Metro Vancouver will drop 14% in 2009. Condohype beat me to the punch on the basic math:
Here’s the spin-free version: The BCREA expects the average home value in Greater Vancouver to decrease $7,147 a month, every month, in 2009.
Given that the BCREA is forecasting the average home price here to drop by more than $85,000 this year, real estate isn’t looking like the most stellar investment oppourtunity. Of course, with interest rates incredibly low the security of a GIC isn’t going to be a big earner and things aren’t looking too great in the stock markets either.
So my question to you is this: What do you want out of 2009 and where will you be putting your cash? Will you be satisfied to simply minimize losses, or will you be making riskier moves in an effort to get your money working for you?