This week, The Wall Street Journal (it’s true!) reported that home sales have slowed in Vancouver, “one of the hottest real estate markets in North America.” Well-known Richmond Notary Nancy Schick Skinner said that this month has been her slowest in about ten years. And prices are also down.
Meanwhile, Business in Vancouver reported earlier this week that this year’s home sales will decline, but next year’s sales will recover: “A moderating trend in Vancouver has recently been exacerbated by tighter high-ratio mortgage regulation.” Some people have been pushed out of the market as a result. Will they ever be able to buy?
Last, the Financial Post reports that our demographics will inﬂuence house prices. In the coming years, baby boomers apparently will be selling their homes to downsize, and will use that money to fund their retirement. In Canada, we have 9.6 million boomers – one-quarter of the population. Their spending and other habits will affect real estate prices.
But if real estate prices drop and stay lower, that will also affect boomers’ ability to fund their retirement. If you fall in that age category, don’t assume your house will be the “foundation” of your retirement. Look at everything (including whether you may need to work longer!).
This ad will appear in the Richmond News on November 2, 2012.