A Shifting Market

We, as people, often tend to want to see things in absolute terms ...it's either black or white.  The same can be said for how people see the real estate market. Last year was going up ... and now it is crashing down.  We see it as good or bad ..buyer or seller ..hot or cold.. but as we know things aren't that simple. The real estate market doesn't move in straight lines. It's not always up or down.

What we have seen in the second half of this year is a much different market than that of the past seven years. After seven years of upward growth and four years of unprecedented escalations of value, absorption, and development anything else is going to look like a slowdown or "crash".  

In reality what we are now seeing now is a more normal market where there is a lot less speculation, and more activity from those actually looking for a home. With prices stabilizing, absorption has slowed and the future will be more predictable. We have arrived at what some would term a more balanced market. Yet sceptics keeping talking about a bubble burst and the media continue to drive the paranoia of a looming correction reminiscent to those we experienced in the past.

History does as we know tend to repeat in similar patterns and motions that we have experienced in the past, however in 2008 we are sitting in a much different position that we were in 1980's and 1990's. The major indicators of change that existed during those times are absent from what we are seeing today. Interest rates have and are projected to remain relatively low, job creation is up, and unemployment is down. As a region we continue to grow at more than 30,000 people per annum or 15,000 households*, and our economy continues to be one of the strongest in Canada.

So, yes, we are seeing a slowdown but it should be seen as positive event as it would be foolish to think we could continue to support the growth we had up to 2008.  People will still need homes, we still continue to grow, upgrade, downgrade, upsize, downsize, move across, and move out and move in. Demand is down from past levels but still very much exists. As consumer confidance returns Buyer's will continue to take adavantage of market conditions, by taking time to be selective, and to find that ideal home in the ideal location. 

*stats from MPC inteliigence

 

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