Vancouver’s Zeros Are a Headache
Posted November 26th, 2008 in Real Estate, Sharing the Experience | 
A Trillion Wonders
Mike McCardle is a local TV personality who puts forward ideas that make us think and wonder. McCardle did a piece the other night on Global TV that might help to understand the current state of the Vancouver Real Estate market. It’s a piece that visualizes the reality of pay-back.
Vanishing Zero’s
Having followed this blog over the last months you will have seen statistics showing the market’s dive. Sales have disappeared – some would say they have reached zero relative to past years. This stalling has instead, started to remove zeros from behind prices being asked for Vancouver properties.
It Began Before
Zeros began to disappear from house prices before we became aware of the global financial meltdown. With that unveiling we now recognize that the zeros needed to eliminate that problem are practically beyond comprehension.
Headaches
Within a smaller scope, a similar problem exists for Vancouver’s home buyers. Buyers feel the pain created by the zeros attached to home values. That pain is derived from their visualization of Vancouver values in combination with their ability to repay amounts borrowed. The enormity of long term financial commitment overwhelms them causing a headache that stalls their buying activity. In pain, they do nothing – zero.
Sand
Mike’s vignette serves well as a metaphor to understanding the Buyer’s state. While his point is to help us visualize the enormity of government borrowing, in scale, it relates to the task in front of a Vancouver home buyer.
You Would Think
A Vancouver Buyer had written the last words of McCardle’s script. Quoting liberally;
“the amount is a headache to think about, but the bigger headache is that you have to pay it back.”
Watch McCardle’s “Trillion” by clicking the image
*Image Courtesy Global Television
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I’m always happy to answer your Vancouver Real Estate question? Call or send me an email Twitter or Skype me at YatterMatters.
Larry
*Courtesy Global TV.
