Quote:
Originally Posted by flylock shox
If it was going to pop, it ought to have popped the last time around.
The thing about Van is that there's a ton of foreign investment here driving up prices. And even if prices do begin to fall, there is a huge backlog of people just waiting to snap up condos and houses as fast as possible, which will simply buoy the prices right back up again.
Basically, I don't see any way Vancouver housing prices start to drop substantially until some baby-boomers start dropping off.
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My thought is that record low interest rates have held up the market. Once they rise, I think we'll see a correction throughout Canada.
The baby boomer theory is interesting as well. I've read a few thesis' similar to your point that boomers will downsize from family homes to condos/smaller homes as they age and therefore hurt the real estate market. Same point could be made for the stock market where as they age they'll move from equities to safer investments hurting the stock market. Basically, the returns on homes and investments of the past few decades won't happen again due to the boomer demographics. It'll be interesting to see what happens.