When you own something you might be delighted to hear that the price is rising.
Even if you don’t sell it to cash in, there’s a certain amount of psychological comfort to be found in owning something ‘valuable’.
So it’s not remarkable that many people are delighted by the rising cost of real estate in Canada.
But is this just the economic equivalent of a sugar high? If all homes are rising in price you don’t really benefit from selling unless you leave the market or downsize to where the percentages are smaller.
Jonathan Miller, a US real estate appraiser posted an article comparing the US and Canadian markets.
He makes the point that sharply rising prices in US markets didn’t work out to be indicative of a markets health, rather they led to the inevitable hangover when the party was over.
Is it different here?