I have a column in lovmag magazine. This is my article for the Fall 2011 edition.

download article courtesy of lovmag

 

Apparently our 'holy' real estate market is about to take a plunge, according to the current stats and trends. I hope those stats and trends have all the accuracy of a Harold Camping prediction of the Apocalypse, and suspect that I am not in for long term disappointment. According to local media reports, there have been both positive and negative trends in the market over the past few months. Alas, the final outcome will probably tell a similar story: no heavenly growth over the coming year, nor fire and brimstone. Given past events in Canada’s, the United States’ and other property markets around the globe, these times of tribulation usually start out as predictions, the prophecy self-fulfilling itself through a frenzy of buyers and sellers. In the past, owners have tied their own nooses. It’s human nature, and I have had the misfortune to witness it. People feed off media, hype and other people's energy, getting caught up in the fervour of what is going on around them. Remember though, that quiet meditation and deep breaths are the way to enlightenment. HAVE FAITH 1. Be wise, be careful. Make your own educated decision. Based on last year’s sales, there has been a 14 percent increase, yet 7.3 percent below last year’s mark on listings of property. 2. Be sure of what you are about to do before you do it. Like anything business related, investing (or divesting, in the case of you sellers out there) is a gamble, whether it be a 'secure' investment or not, it always comes with a certain amount of risk. 3. There is currently a lot of foreign investment in our market. People are excited to buy a piece of everything Vancouver has to offer and money is often no object, which plays a part in driving prices up. Will this foreign investment ever wane, causing a correction in the Vancouver market? There is no denying the possibility. 4. With every push there is a pull. You might notice prices decreasing, which in theory could light a fire in the purchase market. It’s the old quantity versus quality trait alive and well with regard to transactions and price. Interest rates will also come into play, as higher rates can have a cooling effect. Indeed, any number of factors could cause our local market to level out for a period of time. 5. What we need to remember is that this is Vancouver. Dip or no dip, correction or no correction, we live in a beautiful, liveable city that will continue to attract buyers who are ready to duke it out with their pocketbooks over a finite number of properties. Ty Campbell Real Estate Representative Sotheby’s International Realty Canada tycampbell@live.com