photo provided by TIME magazine. Article by David Hutchinson. December 19, 2012 (or 5 days until Christmas...)
The question everyone's asking, and overheard, like today, in the changing room of my local health club.
Man #1: "I heard the market's coming back in spring."
Man #2: "No, not what I heard."
Man #1: Really? Crap."
Man #2: "Ya, John really did the coup. Sold his condo upstairs, and flipped into a house westside on a nice, level lot for a good price."
Did John pull of the coup? Is the market coming back in spring like some random Realtor on the morning news said, oops, he said summer, sorry. What does it even mean coming back? Coming back to where, the all-time highs where investors--if we can call them that, or more precisely, random Buyers--were making Canadian greenbacks hand-over-fist, year-over-year since 1992. Not to mention, a few bumps along the way, but usually if you held on long enough--and that means a few months to a year--you'd get back on track with your investment strategy.... Which was, of course, buy, wait, and sell in a year.
The best deal of all was buying presale condos, have a few good years of restful sleep, and cash in when they were ready for your deficiency walk-thru. Even the tax person cashed in making Property Transfer Tax (PTT) the #1 income generating tool for the province of British Columbia outstripping the lumber industry. You couldn't lose....
Real estate in Vancouver is the best in the world qualilty-wise, and disclosure-wise. You really get what you're paying for, and you're completely covered by provincial laws, disclosure statements, and Realtors' Errors and Ommissions from the Real Estate Council of British Columbia. The thing is, "the buy now, sell one-year later for $100,000 profit and milk every penny out of the deal days are gone."
Now, you sell and run. That is if you have to. If you don't have to, don't sell and don't run; stay put and be happy. The market will "turn-around." Not today, not tomorrow, not the summer, not next summer.... No, now it's old-fashioned real estate: "buy and hold." Hold on for as long as you can, and buy as long as you can; just make sure you can do the first part--hold on as long as you can.
There are deals in any market, there will always be deals. In hot markets, cool markets, bull markets, and bear markets. But, today my friend the hayday is not coming back this summer. We're going to have a good, old-fashioned flatline real estate market for a few years with low interest rates, and minimul price increases. And, you know what? There's nothing wrong with that, nothing at all.