Buy Low Sell High
Buy low sell high is the age old mantra of market wisdoms. If you rely on statistics to tell you when the low has arrived you have a problem – data is historical. The implication – the low you were waiting now confirmed via higher market values says you missed the low point.
With an HPI price of $588,790, fourteen years ago Vancouver home buyers also waited for that low to arrive. According to this 1998 REBGV report, prices on the west side of Vancouver were down 17.5% but, “buyers still hesitated to make a purchase” – those buyers were waiting!
It is hard to define what makes a market turn. That knowledge remains uncertain. It may be a function of domains such as murmuration.
Observation suggests that things such as global economic issues, changes to mortgage rules, relative lower income, lack of financial stability, higher debt levels or simply the summer sun have impact and may singularly or as a group, influenced today’s buyer to wait.
Not an Option
When life slows and money gets tight humans tend to stay home and let nature provide the entertainment. Vancouver real estate’s September numbers are but a week away – a gestation period much shorter than the nine months it takes to produce a child.
Notes from collegial conversation suggest that some buyers have decided that they can wait no longer. Birth and future sales records may prove this notation incorrect but while buyers in 1998 may have had different reasons to wait, empirical observation finds that when it becomes increasingly difficult to navigate your way in stores aisles or sidewalks due to the influx of buggies and prams crammed with small people or distended about to be mothers – waiting to buy a Vancouver home at the all time low fades when there are soon to be new kids on the block.