real estate today!

That the Vancouver real estate market has taken a brief breather in the continued climb to never before attained heights is without dispute.

The slowdown is expected to last for as long as a year starting in July/August 2008.

Q. Will we see a real dramatic decrease in real estate values in the lower mainland?

A. It seems highly unlikely that prices will drop drastically, even the most pessimistic of so called experts peg selling price reduction as less then 15%. Most of this due to the speculators and flippers not being active at the moment and hoping for a drastic reduction in prices so they can participate in another run-up of prices.

 

Affordability has certainly been a factor that has made it almost impossible for 1^st time buyers to buy a home in Vancouver and suburbs and that still has not changed and will not likely change. Many row townhouse properties are also out of the reach for 1^st time buyers.  Leaving the 300-400 sq .ft condo as the only viable option for 1^st time buyer that want to live in town

Overall, that means what's ahead is hardly a housing collapse. "Prices may fall a bit more and the market stabilize for a few months before the large number of sidelined buyers realize that the bottom is now and this is absolutely one of the best buying opportunities that they are going to have going forward. With historically low mortgage interest rates, Sellers willing to negotiate, lots of properties to choose from and ample time to shop for a suitable properties that fits all the Buyers needs.

 

Q. Who's buying now?

A. Experienced multiple time Buyers that know they are never going to see a better opportunity to trade up and that by doing so in sell low buy low market they can literally save tens of thousands of dollars. Savvy 1^st time buyers that are buying prime assignments at 10-20% less then the face value of the contract for frightened speculators that just want to get out. Investors shy of the stock market investing in income properties for secure long term growth for the retirement years. Suburbanites close to retirement are cherry picking the cream of downtown condos bargains with the intention of moving into the downtown core to retire when the market reaches new highs in the not too distant future.

 

Vancouver is one of the most desirable places in the world to live, has that changes because of the slowdown in the markets and the economy? Not at all.  Will Vancouver become a less desirable place to live any time in the foreseeable future? Highly unlikely!  Will real estate values keep rising as they have historically? You can take that to the bank for sure.

What to do? You decide!

What not to do? Don’t wait too long and miss the next market run!

Perhaps you don’t recall late 1980 &1981 when the speculation among the nay-sayers was that real estate prices had reached a pinnacle they would never reach again, False Creek condos we selling for as high as $80 per square foot. In 2008 they reached $2800 per sq ft and higher. In other world class cities prices rose to $7000+ per sq. ft. we still have a long way to go before prices reach world class.

Don