This is what I am talking about
There has been more and more experts this past week or so to all agree that the recent media reports regarding the housing market have been overstated (link)“We argue against taking an overly alarmist view to domestic housing prospects,” said Adrienne Warren, economist and real estate market specialist at Scotiabank. “This is not a U. S.-style bust caused by over building, speculative buying and imprudent lending, but rather a cyclic slowdown accompanied by a valuation adjustment in several large centres where booming demand conditions and temporary supply constraints led to an overshooting in prices.” In a separate analysis, TD Bank calculated that home prices last month were down only 4.6 per cent from a year earlier, less than half the 10.9 per cent reported by the Canadian Real Estate Association.“As suspected, the difference arises predominantly because of large double-digit drops in sales in some of Canada’s most expensive markets in British Columbia, which our index controls for,” TD said, noting that sales in thatprovinceweredown50per cent from a year earlier. “Since average prices in British Columbia are the highest in the nation, the drop in sales tends to overstate the extent of price declines.”Putting EVERYTHING into perspective, even for people in western Canada is that even if there is a drastic 15% drop in prices since the 2007 peak, this will leave much of the appreciation in the market over the last 10 years in tact.As we have said numerous times in the recent future. If you are a seller, and you need to sell. Then accept your fate and know that your house has to be priced at 2007 peak prices or slightly lower. If you can’t accept that, then wait 2-4 years or longer to see if our market can get to your expectation of 15% to 20% higher then 2007 peak prices.If you are a buyer, then buy properly priced product. It is out there. Get your realtor to show you what the home sold for or what very comparable homes sold for in 2007 that is the price, and if you get it, then you are doing well. Enjoy the buyers market.
