26 November 2008
More on Real Estate Markets
Posted by Ryan Coffey under: Just For Fun; Nanaimo Real Estate Market; Selling; Uncategorized .
Yesterday my managing broker shared an article with everyone at my office from the Globe and Mail. I presume, or rather I hope, that this article was intended to be used as something to educate our clients as the Realtors are no doubt already well informed as to what is going on with the markets. So, I am sharing it with the world via my blog. The following article is a nice summary of the current situation in Canada’s Real Estate markets as seen by analysts. It’s nice to see something that describes things clearly that doesn’t require a lot of prior knowledge to follow. It’s also nice to see something coming out of a fairly mainstream media source that doesn’t just gloss over details and report certain details without explaining their significance or balancing them off with other details. Such a method of journalism is in my opinion what has induced that state of fear that so many are gripped with these days, which of course makes things worse. This article is straight up information. I like that method better. It promotes a more balanced response.
Regardless of what the market is doing, it’s good for someone and bad for someone else. For example, right now is good for investors who want to buy to hold/rent, first time buyers and for people who want to move to a higher priced property. But it’s not good for people who recently bought something in hopes of selling it right away for profit like flipping or assigning the sale. But like I have been saying many times on this blog since its inception, if its a home you’re buying just make sure you’re in a position to make those payments regardless of what the market is doing. My ongoing series explores this in detail.
Finally, I’d like to point out context. The sales charts in the article only compare the present to the recent boom. OF COURSE if you compare anything to a boom market, it’s going to look bad. It’s using record setting trends as the benchmark. Look at the big picture and things don’t seem so dire. Look at the November 8th post that included the average price stats for Nanaimo back to the early 80’s
Here is the article in question:
Ryan Coffey