What will 2013 mean for Vancouver real estate? Time will tell, but it looks like China will play a part in the city’s fate. People from that Asian locale have snapped up quite a bit of Vancouver real estate at astounding prices, creating several new millionaires in the process. Many large, well known corporate banks have been involved in the process.
At home, our companies are pulling in belts and expecting more from their employees, at perhaps a lower wage. Having inexpensive products readily available helps those employees make ends meet. So we turn to places like China for those cheaper than home-made goods, making those countries rich. They take that money and invest in our local real estate at inflated prices. That makes it almost impossible for workers here, with those lower wages, to buy those houses. To live the homeowner dream, we scrimp and save and buy even more of the imported products, which makes China even wealthier.
Who knows if this cycle will continue in this New Year? Interest rates are still low, which helps. Prices are slowly coming down, another point favoring local investment. And still, many people prefer to invest in something tangible, like a home or apartment building, rather than putting that money into the stock market.
Predictions are that in some areas, particularly those that aren’t as popular, home prices will end up decreasing. But, even with that carrot dangling before your eyes, take a good look at the Canadian economy as a whole; take the nation’s pulse if you will, before entering into any long term commitment. Definitely buy a home if you can afford it and need a place to live. For everything else, study the market twice over and keep your emotions under control while making those investment decisions.