MARKET NEWS

At an investor’s conference that I attended recently, the presenter quoted American billionaire investor Warren Buffet who once said that as an investor, it is wise to be “fearful when others are greedy and greedy when others are fearful.” If this statement is true, now would be an excellent time to be greedy. Since the early spring of 2018 the housing market in the lower mainland has undergone a significant shift from that of a hot sellers’ market to a more balanced or buyers’ market. I believe that the desire to move up or down the property ladder still exists, but it is fear and uncertainty that is holding quite a few people back – perhaps as extremely as a dam waiting to overflow. A large contingent of buyers, in my opinion, are hopeful that prices will fall, but history has shown that this simply does not occur – at least not the drastic “bubble bursting” type of drop which some may be predicting. Sure there are dips, but over time, housing, has proven to be an appreciating asset and it is very likely only a matter of time before the market rises again. Those waiting for the bottom are playing a dangerous game because they will never know we’ve reached it until it’s already on the way up. Trying to predict the market is what an investor attempts to do and that’s risky business. Most of us are not home investors, we are home owners. We need to live somewhere and we choose property types and locations that meet our housing needs and our budget and as those aspects of our life change, we move to housing that better meets our needs. People will always need housing and the lower mainland continues to be one of the most desirable places in the world in which to live. Immigration continues to increase and the cost of construction continues to rise. These factors and many others including 40 years of data, suggest housing prices, at some point, will almost certainly go up. It’s not so much a matter of if but when. My fear for those sitting on the sidelines is that the dam of pent up demand will break and the market will begin to flood with activity and the calm still waters of today where offers are being negotiated and proper due diligence is being done will turn into the rapids of 2016-2018 with sellers firmly in the driver’s seat and buyers scrambling to get back in. A balanced or buyers’ market such as we have today is an excellent one to make a move and if you are considering buying or selling or simply want to chat about the market, please give me a call. There is lots of terrific opportunity that exists right now and I’m happy to share my expertise and insight with you so that you can make more informed decisions and the ones that you feel are best for you and your situation.