Last few days, was browsing through mls.ca for home listings and was talking to realtors, private sellers and some friends who own houses.
The people who brought houses some year back are trying to sell and get profit.
The new people who brought houses are really struggling on the payment.I am strongly expecting the housing crash to affect Vancouver too. Reason : more people take loans through consultant, the job of consultant is to get a big money,so lot people have taken more than they can afford.They all expect the money to go up and get more money out of it.
If a home has income of 60k /annum he gets 5k per annum, in a normal scene without tax, 5 k to hand and 2.5 k for mortgage. But the fact is total money is not coming to hand, there is taxes, and then people wont consider other expenses related to home while buying (heat and hydro ). They are going very up than expected. If one person of home goes sick ? full budget to more loans.
The high pay jobs are information based and they are shifting to places where there is low pay. Now how people can expect they will get paid high for providing services to the low pay people.
Finally these people who brought houses for high money expecting somebody will buy for more money is going to end up as losers.
The finance guy was saying : "If you need i can arrange more money ". I felt he is saying "my commission is based on how much you take".
The realtor was saying " For buying a house: buy a house and them wait than waiting to buy a house" . I felt its this way, " i wanna get my money, so buy now".
What i decided is wait, and not to pay a 250k worth house 500k because somebody is saying prices are high. As there is no more high pay job opportunities no point in saying prices are up.
The fun part is last day ( march 28 - spring ) was snowing in Vancouver )