Will Vancouver Housing Bubble Pop?
There’s always 2 sides of the coin. Such as this article Vancouver Prices Are Not Cooling. Some predict continued growth for Vancouver real estate while some are saying the Vancouver housing bubble could pop. I want to provide some insight on some research I found yesterday. Famous real estate investor and best selling author Robert Kiyosaki predicts a major economic collapse. You could say it’s just another investor who has his opinions, however his predictions do have some factual findings. If there’s one person I would take real estate advice from it would be Robert Kiyosaki who owns a real estate empire with a net worth of 80 million.
Robert was saying how the United States is in more debt than they were in 2008 when there was a major recession. In fact the United States has added an additional 7 trillion in debt. The Chinese economy is slowing down. Anytime the biggest economy slows down evidently the rest of the world will feel the ripple effects. The Canadian dollar is the lowest it’s been in 15 years. Mortgage rates are at all time lows, trying to encourage spending. The fact is people are getting in way over their heads purchasing at 5 or 10% down. With an unstable economy and massive debts we could see a lot of people default on their mortgages should the economy continue to trend downwards. Salaries are not keeping par with the rise in housing. It all adds up to a giant mess.
Now, being a Realtor here in Vancouver of course I don’t want to see a housing collapse. However, I think it’s negligent to say everything is fine. Most Realtors are convincing their clients to buy now. Maybe they’re right maybe they’re wrong, nobody can truly predict the future of the market. Ultimately people taking on massive debts to get into the housing market is a scary thing. What happens if the Canadian economy collapses or interest rates rise?
If you’re buying in today’s market it’s important to plan. Not going in way over your head to try and buy something just for the sake of owning. Be diligent, but also don’t try to “time” the market, that can be a dangerous game because ultimately nobody knows when or if the Vancouver housing bubble will pop.