Majority of people are now days are buying and selling homes to earn some profits on these deals, take a look at some of the ridiculous prices on MLS Vancouver. If you are one of them, there is no way you have not heard of the real estate burst that everybody is talking about. Some of you believe it to be very true and a possibility in the near future whereas others just brush it off as another scare that no real basis.
Analyzing how well the situation has been gauged is in everyone’s interest. A lot of people are affected directly by it while others are affected indirectly.
The Initial Explosion
Ever since 2008, there has been a huge increase in the number of people looking to buy real estate. The recession hit most countries around this time but Canada was untouched as far as the real estate business was concerned. People continued to sell and buy Port Moody real estate and continued to make money on them. Various factors were given the credit for this. From stable bank structure to growing population needing and owning houses, everything was factored into realize that we have survived the recession. Part of it was because of the fact that everyone wanted to invest in property as it was seen as a safe as stable.
The Downwards Spiral
By the end of 2014, there was a substantial decrease in the number of people wanting to buy real estate as a business venture. This was due to various factors but mostly due to the fact that people had exhausted their investments in first and second buys. This was not the only reason but the very fact that there were lesser buyers meant that the value of property decreased rapidly.
Suddenly there was an increase in the interest rates. This was an affect of several factors playing out together but it did have an impact on the buyer’s pocket. Another factor was the fact that the first time buyers had already bought the property they were looking for and did not want to buy anything new. Also the fact that there was a fear of the bubble burst changed the way people viewed real estate deals.
All these factors have changed the market a lot but to say that no one is selling or buying properties anymore would be an incorrect observation. Vancouver realtors are still striking envious deals that leave both the parties happy and content. The business is not booming the way it used to be but the situation is salvageable.