Joel Carcone

Let is be said from the onset of this blog I am not trying to paint a rosy picture of the real estate market. Any so called market ‘bubble burst’ will only mean more sellers selling (a situation that I don’t mind dealing with!). I simply fall on the side of the fence of those who believe that there will be a market correction in the next few years but feel that desirable properties, areas, and products will continue to escalate in price for years to come.

I lean toward the belief that regardless of market conditions purchasing real estate is still the secret to wealth. If you wish to argue this point look no further to the worlds richest people and/or ask Donald Trump what he thinks about the bubble debate and if he is going to shut down business until this debate is resolved. Owning real estate is by far the best investment no matter who you are. I clearly think that buyers (even first time buyers) need not worry about the fear of a market crash when making a purchase. What they should consider is; purchasing a great property and being able to pay for it.

I recognize that 1980-81 saw a so called crash but I believe this was at a time when housing was easily within reach to a wide range of Vancouverites with all sizes of wallets. We now live in an age where owners have worked hard to pay for their properties. Most now value upgrading and beautifying their space and have spent a vast amount of blood sweat and tears to revolutionize there living enviroments. This is not something people are going to want to easily give up! Let’s say that tomorrow every property is worth 10% less – many of these individuals will simply not sell (most will just hold out for the inevitable increase to return).

One thing I do know for sure; If prices go down there is going to be not shortage of takers ready willing and able to buy to take advantage of the saving (if this were to take place). There is clearly more buyers in the market. Ask any good realtor how many buyers they are working with and if they are like me they will have many who are trying to get into the market despite the gloom and doom take of ‘bubbles’. Many now recognize that waiting for the bubble to bust will only be a long and expensive task (one that may even jepordize ownership). We also must look back to the last 5 years where in Vancouver multiple offers have become the norm then exception. If prices go down people will continue to bid on the lion’s share of properties. Mysteriously this would result in another shortage in product and prices will of course go in the upward direction.

What I do know is; “A good deal is a good deal”. At the end of the day when you get a property for a price that is good well then you have gained value. Regardless of “hot deals” the single most important thing to consider when making a real estate purchase is; “location, location, location” (yes, this goes right back to page 1 of Purchasing Real Estate for Dummies.) When you buy in what is considered a desirable location then you need not think about what the market is doing (because all the market is really doing it adoring your property and thinking how much better it is then theirs). I truly believe that buyers should focus more on studying where to get good value real estate then trying to determine what tomorrow mornings real estate market has in store. People will forever need places to live and places that are better then others locationally will always be worth more to buyers.

Many predict ‘attached properties’ (such as condos, strata’s, townhouse, and duplex’s) will continue to do well in the face of any change in market conditions. As ‘detached housing’ has become out of range for most buyers condos and other ‘attached properties’ will be the number one (and in some cases only) choice among many who refuse to move further away from the Vancouver area to seek affordable housing. Theses are the people who rather give up square footage of then move away from the central business region of Vancouver.

I think if you want to make a move – do it! Just be sure to get a great property that way whenever you go to sell it, it will be worth more then you paid (regardless of what analyst say or what happens with the so called ‘bubble’)

I know that selling a record number of homes this year has obviously painted a rosy picture of the market in my mind; however I see clear evidence that places such as the North Shore, Victoria, West Vancouver, Kitts not to mention San Francisco, New York, London will continue to experience smooth sailing in terms of market conditions as they will always be in demand. I recognize that there is a valid argument on the other side of the debate I just simply believe it just means that buyers and sellers need to make informed decisions (utilizing the advice of qualified realtors, bankers, and financers). I know that I am still feeling confidient about purchasing). I think that there may be a bubble but that this bubble has a long way to go before it gets to its breaking point. But then what do I know - I just sell real estate.

By Joel Carcone
www.joelcarcone.com
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