?So, if you want some Vancouver real estate should you buy now ...

?Will the Vancouver housing market crash? Should I be waiting for a major drop in prices before buying a home in Vancouver? Should I sell my Vancouver home, rent for a while and then be able to buy an equivalent home for a lot less money? The answer to all of them is a resounding NO.? ?
?Housing prices did crash in the 1980?s but a major difference is that at that time many homes had been bought by speculators on very small margins and interest rates soared well into double digit levels.
Now, very few homes are held on spec and any anticipated increase in interest rates is expected to be very modest. Mortgage rates may even go down. Canadian banks make a significant share of their profits from mortgage lending and it is a low risk part of their business since their prudent lending standards reduce the chance of default. Also, many mortgages are guaranteed by the Canadian Mortgage and Housing Corporation (CMHC).? ?
?The cost of housing in Vancouver is not likely to change dramatically for the foreseeable future. It may soften a bit or it may even rise a bit.? ?
?Prices are about 3 per cent lower than they were six months or a year ago, but are 4 per cent higher than they were three years ago. Prices for detached homes have been the softest, while apartments and townhouses have seen much less change, reflecting the trend to condos as a more affordable form of housing.? ?
?There are two groups which would benefit from declining home prices. First are people in the Vancouver area who do not own real estate and whose income level does not enable them to afford the size and location of home to which they aspire. Many have adjusted by seeking a smaller home and/or one in a less costly neighbourhood. But some cannot afford even that.
A second group are the retirement age baby boomers across Canada who hope to spend their golden years in this small corner of Canada where you don?t have to shovel snow. They are frustrated because a home anywhere else in Canada buys much less home in and around Vancouver. They are also one of the main reasons why a housing crash will not occur. Any drop in prices will lead to retirees entering the Vancouver housing market, putting a floor under prices.
Those in the international community do not seem to mind our house price levels. When looked at in a global context, home prices in Vancouver are not unreasonable. Ask anyone from London or Hong Kong. And people from around the world see not only good value in our real estate, but also an open society, a pleasant climate and a stable political environment.
Finally, the majority of people in greater Vancouver already own real estate, benefit from current housing values and would be hurt by a crash or any serious drop. They do not want to see the value of their biggest asset decline. Home equity often forms a large part of retirement savings and people count on it in their financial planning.? ?
?So, if you want some Vancouver real estate should you buy now even if you pay a little more and get a little less than you had hoped? Probably. And should you sell your Vancouver real estate in the hope of buying it back later for less? Definitely, not.?
- from ?Little chance of correction in Vancouver real estate market?, Roslyn Kunin (?Troy Media BC?s Business columnist; consulting economist?), Troy Media, 18 Mar 2013 [hat-tip ATP, who added, perceptively "same old, same old".]

If it really was a case of paying ?a little more? and getting ?a little less?, few would be discussing the matter. We fully expect that people will ?pay a little more and get a little less? in the Vancouver RE market. Fact is they are paying a lot more and getting a lot less.
This ?same old, same old? column archived here for the record. It will eventually be noteworthy that in March 2013 some people were still making ?limitless demand? arguments for ongoing endless price strength in the Vancouver RE market.
And it is remarkable that an economist would not give any thought to economic fundamentals in their discussion, and wouldn?t consider indicators such as price:rent or price:income ratios in their analysis.
- vreaa

Source: http://vreaa.wordpress.com/2013/03/19/so-if-you-want-some-vancouver-real-estate-should-you-buy-now-even-if-you-pay-a-little-more-and-get-a-little-less-than-you-had-hoped-probably-and-should-you-sell-your-vancouver-real-estate-in-the/

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