Vancouver Real Estate Buyers could be Waiting a Long Time for a Price Collapse

This headline for an article in the Vancouver Sun from last week was a great way to kick off 2013. 
 
"Vancouver real estate buyers waiting for a price collapse in 2013 could be in for a long wait
 
Sales remains strong despite cool condo market"
 
 
Read more: http://www.vancouversun.com/business/Vancouver+real+estate+buyers+waiting+price+collapse+2013+could+long+wait/7754204/story.html#ixzz2HPRx8VbZ
 
 
The media isn't always that kind to the Real Estate Market here in Vancouver...let's be honest positive new doesn't sell the same way as negatitive new does. 
 
 
Here are a few key points BY TRACY SHERLOCK at the VANCOUVER SUN
 
 
“To get prices to really tank, you’ve got to have something happen. Either you’ve got to have overbuilding, or you’ve got to have some big change in the world of finance, such as large movement in interest rates or a financial disruption, or you’ve got to have a real negative economic shock,” Somerville said. “You’ve got to have some combination of those, or one of those to make prices drop dramatically.”
 
Overbuilding of single-family homes in Metro Vancouver is difficult because land is so limited, said Tsur Somerville, director of the centre for urban economics and real estate, Sauder School of Business at the University of B.C.
 
 
 
“On the condo side, even though starts have picked up, it’s nowhere near where they were during the peak. The yield curve for interest rates is very flat so the market isn’t expecting interest rates to rise dramatically,” Somerville said. “But if I could predict interest rates, I could be really, really rich.”
 
Cameron Muir, B.C. Real Estate Association chief economist, thinks if buyers are waiting, they could be waiting a long time.
 
“Three years ago we saw the largest financial crisis since the Great Depression and an ensuing global recession. If that’s wasn’t enough to trigger a correction in an asset bubble, I don’t know what is,” Muir said.
 
“The condo market in Vancouver has not been ‘hot’ since 2009, and perhaps even earlier than that. Prices on the condominium side have been relatively flat for three years, so that doesn’t signal any kind of asset bubble welling up,” Muir said. “There has also been little speculation in the marketplace over the past few years and home builders have been kept in check in terms of their total units in production.
 
Like Somerville, Muir said the market won’t crash unless there is a recession or a spike in interest rates.
 
 

This headline for an article in the Vancouver Sun from last week was a great way to kick off 2013. 

"Vancouver real estate buyers waiting for a price collapse in 2013 could be in for a long wait Sales remains strong despite cool condo market"

The media isn't always that kind to the Real Estate Market here in Vancouver...let's be honest positive news doesn't sell the same way as negative news does. 

Here are a few key points BY TRACY SHERLOCK at the VANCOUVER SUN:

“To get prices to really tank, you’ve got to have something happen. Either you’ve got to have overbuilding, or you’ve got to have some big change in the world of finance, such as large movement in interest rates or a financial disruption, or you’ve got to have a real negative economic shock,” said Tsur Somerville, director of the centre for urban economics and real estate, Sauder School of Business at the University of B.C.  “You’ve got to have some combination of those, or one of those to make prices drop dramatically.” Overbuilding of single-family homes in Metro Vancouver is difficult because land is so limited. 

 “On the condo side, even though starts have picked up, it’s nowhere near where they were during the peak. The yield curve for interest rates is very flat so the market isn’t expecting interest rates to rise dramatically,” Somerville said. “But if I could predict interest rates, I could be really, really rich.

” Cameron Muir, B.C. Real Estate Association chief economist, thinks if buyers are waiting, they could be waiting a long time. “Three years ago we saw the largest financial crisis since the Great Depression and an ensuing global recession. If that’s wasn’t enough to trigger a correction in an asset bubble, I don’t know what is,” Muir said. 

“The condo market in Vancouver has not been ‘hot’ since 2009, and perhaps even earlier than that. Prices on the condominium side have been relatively flat for three years, so that doesn’t signal any kind of asset bubble welling up,” Muir said. “There has also been little speculation in the marketplace over the past few years and home builders have been kept in check in terms of their total units in production. Like Somerville, Muir said the market won’t crash unless there is a recession or a spike in interest rates.

Read more:http://www.vancouversun.com/business/Vancouver+real+estate+buyers+waiting+price+collapse+2013+could+long+wait/7754204/story.html#ixzz2HPRx8VbZ


For all of your Vancouver Real Estate needs contact Morgan DuVernet with Century 21 In Town Realty today! 

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