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)

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?

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.

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.

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

M- : “I’m wondering who’s left to buy– in my group of friends and acquaintances, my observations on who has bought are:
-2006-2008: non-bearish friends and acquaintances who could really (or in two cases couldn’t) afford it, bought.
-2009: bearish friends and acquaintances bought (all of them).
Yep, in my circle of friends and acquaintances, all of my bearish friends (with the means to buy) have bought. There are two exceptions: myself, and a couple who just returned from overseas. Aside from them, the only other renters work low-wage jobs, or are recent graduates.”

mohican: “I have observed the same thing within my circle as well. Including myself, most bearish friends have purchased already. They largely took advantage of the winter 2008 price dip and negotiated hard to get a decent deal. Many are still bearish – including me – but just wanted a little lifestyle certainty and were willing to pay for it. I don’t know where the future buyers will come from – overseas? The ownership rate is at an all time high right now as per statscan.”

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.

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.