We read the papers and listen to the news. The housing market has gone into a tank and the bottom is falling out of it.
I am not saying it is not a bad scenario, but I would also like to put it in perspective.
This year between February and November the prices have come down about 18%. Yes the sales are down considerably. 50%, 60% or more in some areas. But the prices haven't come down that much.
18% reduction in prices is still substantial and certainly not a good news for someone that has to sell in this market. \
But a price reduction had to be expected. The market was far too hot and climbing at an unsustainable rate. Pretty soon, regardless of the financial collapse everywhere, our market would adjust.
Just like it has in the past. Take a look at the chart. Both in 1990 and in 1996 adjustments of between 18-20% were recorded.
There was no world financial crisis in those years, but by adjusting rates to control inflation the housing market adjusted itself. This time is different with a different set of circumstances.
Our jobless rate is expected to reach 6.6% nationally, but not here in BC. We are still beter off than the rest of the country and certainly miles ahead of the US in terms of numbers of foreclosures and overbuilt housing developments.
With 6.6% of workers out of a job. there are still 93.4% of us working. It is not easy, but it is not th end of the world yet.
Great time to buy, or to move up. More on buying and selling in this market in my next blog.
If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call me; Jeff Stark, 604-506-8481 or email; jeff@jeffreystark.net
