The majorly alarmist Canada’s Housing Bubble an accident waiting to happen presented in late August by David Macdonald of the Canadian Centre for Policy Alternatives [CCPA] (a left leaning think tank )
(yes D.R., it’s only because of you that I read every word of this 24 page opinion piece). I’m glad I did (see – attached above), as, the colleague who forwarded this to me, admitted to not having read it all yet and being concerned with this kind of negative thinking . I am not as concerned with this opinion (folk from all walks of Canadian life are totally entitled to their opinion as, happily, am I entitled to mine).
What does concern me is the use of these opinions without an understanding or rather, a questioning of the stripe of the author and (political) motivation of the opinion. Yes, folk, surprisingly, I am a Realtor and this concept is very easy for the reader to grasp and attribute a motivation to. I will make one comment here contrary to popularly held belief, I and the majority of thoughtful members of my profession DO NOT promote a fervent conviction of the need or desire for steadily and continually rising prices. Alas, we share only the same hope of all current home owners that our most valuable asset not diminish in value and hopefully grows over time. There’s a bubble that I have burst!
In this article, terms used, like ‘Bubble bursting slowly’ could well be replaced with the more widely (and less emotive) ‘declining cycle’. But, when we are attempting to focus attention on a specific point of view and rally the sky is falling troops this doesn’t quite cut it. Reading further into this piece reveals a (I believe genuine) desire to protect the vulnerable seen as the young families that purchased homes with no down payment and seniors who can’t wait for a decade or so for prices to recover . I, too, admit to being surprised/disappointed by our ‘fiscally Conservative’ federal government’s decision to encourage zero down, 40 year amortization mortgages. I guess that this proves that government doesn’t always make responsible decisions, but I do subscribe to the belief that adults have the right to make their own investment decisions and am often appalled at the knee jerk blaming of officialdom when an individual’s (hopefully) considered investment decision, fails to live up to the optimistic expectation of that independent decision maker. CCPA’s emphasis on the who will be hurt most angle is kind but a little naïve. The young family was not forced to overextend themselves in their acquisition and neither is the senior who can’t wait forced to retain the (expensive?) family home replete with the dollop of market appreciation. While I do not ascribe to the family home as only an investment , I believe that ignoring the investment (risk) aspect inherent in such an asset is foolhardy. I totally agree with one comment of the CCPA article’s author – ‘That doesn’t mean we have to sit idly by, waiting for markets to finish their recalibrations’. Hear, hear.
While seasonality has something to do with lesser sales volume, I believe that there continues to be a nervousness regarding purchase commitment. I am still a believer that a window exists for buyers who recognize this period as an opportunity for better deals than we will likely see later in the year/ early in the next. May we crown our year with a blessed Indian summer!
Again, visit my website to see and hear the new developments. I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the go to site for North Shore Real Estate analysis and jumping off point for FULL market listing information.
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Re/Max Crest Realty
Vancouver – NorthShore
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