Careful of What You Hear About the Market

(July 16, 2012 )

You no doubt have heard the media going on and on about the housing market slowing down.  Yes, the market is definitely slower than previous years.  I believe that Greater Vancouver has been spoiled in a way over the years, where buying pretty much anything would have made you money in a short period of time.  That is definitely not the normal case for most of the world, and therefore when the market final slows down, homeowners may feel a panic to sell and get out.  

But as you know, everything goes in a cycle, and as the market slows down, it will come back up later.  For someone living in their home for the "long term", you'll see the market cycle back up.  I don't think EVERYONE should cash out of the market.  Investors holding lots of properties, that flip multiple houses would probably cash out, because they are playing a short term game.  

If you are buying and selling at the same time, you are either buying/selling low, or buying/selling high.  I've personally seen people trying to "time" the market by selling, renting, and waiting to get back into the market.  A lot get stuck because the market jumps up before they can find the "right" house. 

Definitely not downplaying the softer market we are facing now.  Housing unlike stocks will always hold some standard level of prices, because it's a tangible asset, and a necessity that people buy for reasons like location, family, convenience, lifestyle, etc.