Is the Market Poised to go UP or DOWN?

When we examine the stats for October, 2011 the only significant thing about the Real Estate market in the Okanagan /Shuswap, is that there is nothing significant about it. Sales are constant. Prices are fairly constant. Absorption is fairly constant. Interest rates are fairly constant. From my perspective the reason is obvious...there is no one force that changes the market. There are multiple forces pulling in all different directions which all add up to create one final force.

Right now there are very positive forces in Canada that are pushing our market in an upward direction; low interest rates, strong dollar, strong banking systems, the recovery of oil prices,  etc. However, there are other forces that are pushing our market to the negative; US real estate and debt crisis, European debt crisis, global recession, etc.  The result can be summed up as basically zero. 

What that means is our market will likely stay steady and constant for a while. This prediction is supported by both CMHC and the banking experts across our country. However, if there is anything that is always the same it is that nothing ever stays the same for long. So it begs the question, "If it is inevitable that the Local Real Estate Market will eventually begin to change in the relatively near future, which way will it go?"

If you believe that  history repeats itself, it will go up. Our graphs and charts indicated that we would experience a boom beginning in 2003. They indicated a bust in 2008 and that it would be a long one...and it was. The stats now show indications of a recovery. That recovery will begin over the next 2 years. It will start out very slowly just like it did in 2002 and 2003 and gradually build from there.  Once again, that adds up to a "Good time to buy". 

One thing I know for certain is there are great deals out there.  Being totally immersed in the local market day after day gives you a unique ability to see great deals.  They stick out like a sore thumb.  If you're looking for investment real estate give me a call to discuss.

"Ninety Percent of all Millionaires Become so Through Owning Real Estate" - Andrew Carnegie   

Joel Ellams

Joel Ellams

CENTURY 21 Executives Realty Ltd.
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