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Bouncing Back!

Posted On: 2009-01-09

 

Press Release: Global West Mortgage Corp - Rod Minnes, Managing Broker

A population that keeps growing, a bit of help from lower interest rates and various government incentives sure to come, and a stock market that nobody trusts anymore will bounce the property market back on course!

Whilst we cannot deny that there has been a market downturn, it would have defied all economic ideals to remain going forward at the pace of the past few years! Housing affordability and the lingering affects of the USA property market debacle are the 2 major things that brought everything to a grinding halt halfway through 2008!

The good news is that for those of us who have lived through the ups and downs in the previous decades, many believe that ebb of this downward trend will dissipate over the coming year! Why would we say that in the face of daily news forecasting doom and gloom? Here is why!!!

1. Canada has been a lot more cautious in its lending practices than almost every other country in the civilized world! There is no such thing as a free ride and any promise of quick returns and an easy buck has been treated with prudence, thus limiting the major damage that has been experienced internationally!

2. Interest Rates are currently approaching all time lows, and marked to go lower, indicating that with current market reductions in pricing, the market has changed to a buyers market, where first time home buyers become an important facet of the market again! First Time Home Buyers are the plankton upon which the real estate food chain begins, and they had been left to find rentals as affordability for them was not available!

3. Stimulus packages will eventually kick in and provide much needed help in the job market and related industries. This will take some time to filter on down, but later in 2009 I believe we will see the effects putting an end to the employment woes we currently face down east and in the USA.

4. Population growth in the Interior BC area continues to be a major factor in real estate right now. While many are moving in or back from Alberta, many are coming east from the coast as well, looking for the lifestyle we all currently enjoy! See attached population statistics showing our area is the most sought after in BC! Country wide statistics also show BC as one of only 3 provinces with above national average influx! During this economic changeover, LOCATION is the predominant factor that baby boomers are looking for as they retire, and this will keep our market stabilized!

5. While many will project the stock market as the place to invest now, with all the losses having been absorbed, it is felt it will take a long time for many to TRUST the market again, and when they achieve some level of return on their losses, they will flee the markets for the safe confines of property investments!! That should happen in 2009! Once assured retirement vehicles, the mutual fund market place has made many potential retirees rethink their portfolio setup, and this will allow more second home purchases, rental purchases as we go forward, with funds leaking out of the share market! For any of those people bemoaning their lack of growth in property value, you only need to take light of the people invested in the markets to prove that REAL ESTATE is still a safe haven in all economic times, and that a correction is a natural progression in all investment cycles!

In the past few years, a lot of property was sold not as a result of high skill level!! That all changed in the later half of 2008!!! The frenzy came out of the market and buyers became far more discerning and started to take their time to look around some more! The need for more astute appraisals for listed properties became essential to selling! The need for a professional REALTOR is now paramount!!! Work with someone who has experience in the marketplace, a proven track record, and the means to advertise and display your property!
Buyers need to get the best information possible before making a purchasing decision, and again, you must trust your REALTOR and the experience they bring to the situation!

Prices are not going to rocket up in the next year or so, or even in the near future, but the return to steady growth should be on the horizon, and quite frankly that is a healthy state to be in!! Many of us heard the stories of the fortunes made in the last real estate boom, and dream of the next, it will be awhile coming, but nonetheless, many more people retired on steady growth property investments than did the quick so called right place right time fortunes!!!!

For more information on mortgage products, interest rates or to find out what your own personal options are in this market contact: Global West Mortgage Corporation

Rod Minnes, Managing Broker - 250-541-2366 or toll free, 888-541-2366

 

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