Colds and Sneezes

Colds Suck

A cold makes you feel grumpy, gives you headaches, coughing fits and endless sneezing. A cold is no fun and for most people it simply sucks!

Headaches

The Vancouver real estate market has been suffering from a bad cold for most of the year. Coughing and sneezing since the first quarter of this year, Vancouver residential prices have been in a continual decline leaving sellers expensive price reduction headaches.

Asprin Doesn’t Work

Some economic Doctors kept telling patients that after a short while, the pain would go away. It hasn’t! The opposite has happened – the cold symptoms have spread to more people and markets. It is no longer contained to our local market and has expanded to provincial and country wide levels. Condos, single family homes and major projects have all been affected. Current status suggests an epidemic.

Not A Cold – More Like a Plague

The Vancouver housing cold is not going away – at least not for a while. According to Scotiabank Group its about to get worse and last a lot longer.*

“The downturn in global growth is gathering momentum, with virtually every region of the world in full-blown retrenchment mode. The developed world continues to be negatively impacted by sharply lower investor confidence, reduced consumer spending, and declining industrial production — developments that have been exacerbated by the deepening financial crunch.”

Highlights:

1. significant setback in the demand for goods & services

2. triggered a synchronous reduction in economic activity

This one-two punch has knocked the wind out of the sails of global growth

  • jobless rates are expected to ratchet significantly higher over the next year
  • deflationary winds picking up speed
  • construction-related sectors will likely benefit from the global push to beef up infrastructure expenditures.
  • consumer spending will remain the weak link
  • the multi-year focus will be on reducing debt, saving more, and spending less

The Wrap

The self-reinforcing nature of the global downturn, magnified by the unprecedented disruption in credit flows, suggests a greater downside risk to growth through the first half of 2009, and a lengthy period of convalescence that should extend well into 2010.

5 Ringed Blanket

Within this report are indicators that the Vancouver real estate market’s cold will last beyond 2010. The 2010 Olympics it seems, may not be the electric blanket that warms us with a cure and may as skeptics have suggested, leave us unplugged.

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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

*Scotiabank Group Report courtesy of Scotia Bank.

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

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