The future of our market
Where are we at and where are we headed? Long ago was a time when you could rely on purchasing real estate to make a short term buck or be relatively inexact on what you wanted as you purchased a home with minimal regrets. Those days have changed. Now we live in a world of tighter mortgage rules, inflated property prices and a whirlwind of information. As John Naisbitt said best, “We are drowning in information but starved for knowledge.” For our much debated “Real Estate Bubble” to burst, there first must be a bubble to pop. Although it makes for great speculation, our market does not include a bubble, yet it does have room for over inflated properties requiring a correction.
Prices remain relatively flat in many areas of the Lower mainland, a fact the news will refuse to tell you. Although in the Fraser Valley, August 2012 showed 20% less sales than August 2011, listings were down as well, by almost 8%. We are definitely seeing a bit of a correction in our market, yet many neighbourhoods and types of product still continue to thrive. The two facts you cannot ignore are that British Columbia continues to see approx. 40,000 new residents move here each year, and the Fraser Valley is the most affordable area outside of Vancouver yet within the Lower Mainland to own a home. For prices to go down significantly, you need people who have to sell, either because the economy has collapsed and they don’t have any income or developers have built a whole bunch of units that are unsold and the bank is screaming at them or foreclosing or something like that. None of those conditions appears imminent.
If you know someone looking to buy or sell, rely on a professional who knows the market in and out, and is willing to go the extra step to build strong relationships. When you notice someone who could use my help, please take out your cell phone, look up my number and call me. This way we can talk about the best way to connect your friend with me so they have an opportunity to get the best advice first.
Until next time,
Darin Germyn sells real estate in White Rock, Delta, Surrey and Cloverdale. Darin is a Multi-Award Winning Real Estate Professional with Macdonald Realty Ltd. in Surrey BC.
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