“I just recently found out my inlaws are planning on selling their house in Surrey. In April, a near-identical place across the street sold for $520K. Another near-identical (neighborhood/cul-de-sac built by the same builder in the 70s) went on the market late June (just before OSFI and Flaherty brought in the new mortgage rules), sold last month for $450K.
Back in May, was at a family BBQ at inlaws’ place, they and all their suburban friends were patting each other on the back about how awesome it was to own property that kept going up and up and up. I said (because I’d had a few drinks, won’t do this again…) “Yeah, money’s never been cheaper in Canadian history and real estate’s never been more expensive but yet people still think real estate is still going up.”
It was like I’d said “pull my finger” then farted like a trombone solo. Dead silence, imagine a pin dropping in slow motion.
I’ve been half-assed trying to tell my wife’s parents that they should think about cashing out, y’know, on the house they bought in 1979 for $25K, since at least 2010. Oh, god forbid that anyone who isn’t a homeowner AND is under 40 could possibly know anything about financial planning.
Let me just say it’s gonna take a lot of willpower to not say “I told you so” as their house languishes on the market through to 2014 because “It’s worth more than $450K”, but hey, keeping my mouth shut is cheaper than a divorce lawyer. :->”
– EinsatzgruppenVancouver at VREAA 2 Dec 2012 12:32am
The loneliness of the RE bear.
Wrong and ignored on the way up; vilified and ignored on the way down.
Only masochists need apply; and only those who value truth over social ease.
BTW, that property has already dropped more than 13% in market value.