I really hope the real-estate bubble is bursting, especially here in Vancouver. I know that it’s probably not good for real estate agents (sorry Dad), or people who bought in the last year (sorry cousin Adrian), or the economy in general, but it had to happen eventually. Prices just don’t reflect reality any more. Check out the slope on the graph of prices in Vancouver – they’ve gone exponential in the past 3 years. The average home in Vancouver costs over $500,000. Who can afford that!?
The signs the the bubble is bursting are starting to appear:
- First, new home prices dropped for the first time in 9 years!
- Listings of unsold homes are increasing and sales are dropping
- A prominent Canadian politician mentions that the bubble is bursting and receives angry e-mails from real estate agents and mortgage brokers
- But even some real estate agents forecast drop in sales of homes
- And the real kicker, mortgage changes set to come into affect on October 15 will make 40-year mortgages and zero-down mortgages illegal.
Maybe in a year or so when the market finishes crashing I’ll be able to afford something in this city. Until then I’ll keep on renting.