B.C. Real Estate’s Big Bear
Posted November 17th, 2009 in Real Estate, Sharing the Experience | 
B.C.’s Real Estate Market
Commenting on British Columbia’s real estate market, Cameron Muir, BCREA’s Chief Economist says in the November 17/09 missive that -“Despite a lackluster economy, low mortgage interest rates have induced many potential buyers into the market. However, the recent phenomenal pace of home sales is expected to moderate in the coming months as pent-up demand dissipates and eroding affordability begins to impact the purchasing power of households.”
What was that?
Did you witness a morphing, a transformation? Was that Muir suggesting caution in your home buying venture? Leaves you to wonder if in the months ahead when walking in the vicinity of the BCREA headquarters in the 700 block of Georgia street, that you stay alert – watch for bear scat!
Other Changes
This morning at 4:30, the Mackey’s – life long clients, brought into this world a little bear of their own. His name – Nathanial. Mom and cub are fine. A big ‘shout out’ of congratulations to you both.
*Disclaimer: Information Courtesy BCREA. While believed to be accurate it is not guaranteed.
So, this isn’t going to go on forever?
I have to admit that I’m feeling a bit unsettled. Lately, some of the die hard bears I know have been buying while many of the biggest bulls seem to be kind of worried. When the people who live to pump the market start sending out warnings…
It’s like we’re living in Backwardsville.
Norm,
Suspect is that a similar pattern is happening here. A number of the bear/bubble blogs have disappeared. Within those that remain, regular comments tell that many ‘bears’ succumbed to the low rates as they realized the market wasn’t stopping.
From the Vancouver Real Estate Anecdote Archive
As to you being unsettled – hell I’m always unsettled when multiple offers drive any asking price into the stratosphere. As you know this causes a domino where the neighbours now think they should get the same or higher. It’s a brutal circle of ‘me too’. Makes the conservative steel pipe in my back rattle.
Adding to this bother is that only weeks ago, economic sages like Muir, were singing a different song. Then this past week the Pres of ING says: Low interest rates have caused some Canadians to act “irrationally” in the housing market, potentially taking on too much debt that could lead to economic difficulties down the road, says the president and CEO of ING Direct Canada. Mere days before that, BOC’s Carney was spouting ‘prudence’.
It seems Norm, that there are a lot of high powered boys singing something close to the same song. I suspect, that what has you and I ‘unsettled’, is that we like them, are wondering if anybody is listening.
For those of you reading who don’t know Norm Fisher – (teamfisher.com).
Norm is one hell of a dedicated REALTOR in Saskatoon. I consider him amongst the wisest of wise men in real estate. When you think Real estate in the east and the west has gone nuts – look to the flatlanders. They can usually see it coming for miles.
It seems many bears have given up while the MSM is finally catching on to the bubble the bears have been preaching all along.
I am pretty sure this could indicate a change in the comming months for vancouver RE. Be that slower sales with high prices or something in between, I think the days of the super bull market are done for a while.
Davers,
“I’m pretty sure” – Seems you are ‘unsettled’ as well.
Larry,
Yep, but I am not too concerned about the short term. I have a lease that takes me at least until next september so I wouldnt be able to react to the craziness even if I wanted to.
Davers,
If recall serves, that’s just about when BOC’s Carney expects to ramp up the rates. If your goal is to purchase when your lease is concluded, you sir, will most definitely be living in interesting times.
Will Carney’s rate adjustment be enough to cool the market? Doubtful.
I anticipate but reserve confirmation at this writing, that we have this month, reached the price highs of 2007. Interest rates were ‘normal’ then and so the question is – how much more will this market climb during the balance of ’09 and the first three quarters of 2010? Will you be ready?
Larry,
Interest rates may have been higher but the economy was also better. I think those 2 factors almost cancel each other out.
Should the economy improve prices could rise further. But if nothing changes I would expect a plateau in the coming months. (and obviously if the economy falls further then i expect prices would fall)