“Finally, the market correction we’ve been waiting for!” I hear people saying recently. “Maybe now I’ll actually be able to buy my first home.”
Well, cool your jets there, enthusiastic would-be buyer. I’m sorry to break it to you, but there are reasons that home sales in major B.C. centres have fallen off a cliff, and that prices are teetering on the edge of the same abyss. And those reasons are what will probably prevent you from buying a home any more affordably than before.
Vancouver Real Estate News, Market Updates, Insider Tips, Stats, & Analysis
Here’s the thing. People will always buy real estate at the maximum price that they can afford – it’s just human nature to make a nest that you can be proud of. If lenders and governments make it really easy, and cheap, for people to borrow a lot of money to buy a home, those people will do so. Consequently, real estate prices go up. That’s what was happening with our record low interest rates over the past few years.