BCREA Chief Economist Cameron Muir's sharply denounces the concept that we have a housing bubble - in Vancouver or anywhere. He affirms that "...sharp and significant declines in home prices are (susceptible to) massive economic shocks...." However, he then goes on to point out the "big test" would have been when the greatest "financial crisis since the Great Depression". The economic crash triggered by the financial market in the USA, threw the world economies into a tail spin and set the doomsayers abuzz. Yet home prices dropped just 15% and then quickly recovered (in Vancouver at least). Not the 50% the so-called experts were predicting.
What does that mean to the average home owner? It means housing markets aren't stocks. They don't swing wildly with public opinion. Oh, they're affected by them, but not dramatically so. People safeguard their home investments and don't submit to emotional roller coasters.
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