Providing Thoughtful Analysis on the Housing Market
Decent points made by Mrs Park.Concentrating on the essentials - lack of affordability and the unsustainable nature of the price increases that we have seen.
On another note - 5 year fixed mortgage rates went up significantly today.
At VREAA we have transcribed some of the key quotes from this interview:http://wp.me/pcq1o-Ei"I must talk to 5 people a week who say: "I've lost a ton of money in the stock market over the last ten years, but I've still got my house, and our plan is to sell our $1.2 million house and downsize to a $500K condo, in the next two or three or four years.""I think that boomers are going to find out that the population behind them has a whole lot less money and a whole lot less appetite for the million dollar homes."---A crucial component of the coming Vancouver RE price bust will be the liquidation of properties by those owners whose financial futures are entirely wrapped up in the market price of their primary residence. -vreaa
Sorry, link didn't work, click on vreaa above and scroll to relevant post.
"I've lost a ton of money in the stock market over the last ten years"In fact the S&P/TSX total return has been +4.67% annually over the last 10 years - and note the starting point was near the top of the dot-com bubble:Take a lookA lot of people seem to have trouble with "buy low, sell high". But the missteps in the stock market are going to be dwarfed in RE. And of course, only a few can get out at the top, even if they have the wisdom to do so.
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