“A long time bear friend of mine just bought a place on the North Shore after many years of waiting. He said that he no longer believes that prices will crash. Prices will keep going up, it’s really different here, renting is throwing away money etc…
He stretched the mortgage to the absolute maximum of what the ‘helpful’ broker was able to get. His monthly housing expenses will instantly double (for an equivalent unit!) and there may be some renovations necessary. But at least he is not a lowly renter anymore.
Interestingly, during the whole buying process, he asked me multiple times for my input / opinions on buying in today’s environment. I told him that I won’t give him any opinion for or against buying and that he should just do what he *feels* is right.”
– bubbly at VREAA 30 August 2012 at 10:42 am
Theories of market psychology have it that markets top when the last bear who is going to capitulate does so. But then we’ve noted that before.
The Vancouver market likely topped in 2011.