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Looking back at housing

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November 02, 2013 – Comments (0)

I was looking back at housing posts and came across the one where my most beloved Vancouver home was sold.

I still think about that home and miss it.  It truly was a beautiful home in wonderful location.  Something that I never expected was Vancouver's housing market never had a correction and it is actually up by 10-15% in the last 6 years since we sold. Something I never factored into my analysis is that Vancouver remains a safe haven for Chinese looking for a place to put their money.  I think Vancouver's market will correct at some point, but not until the Chinese market corrects. As long as wealthy Asian immigrants are buying homes in Vancouver the market will remain high. When you consider what is happening to their housing market, http://www.bloomberg.com/news/2013-10-22/china-home-prices-rise-led-by-record-gains-in-four-major-cities.html, Vancouver is much safer.  It seems to me that China is about where Japan was in the early 90s, with similarities in aging population.  People have high equity in their homes, which was also true for Japan.

Some markets in outer areas in BC were hit with declines, such as the ski resorts.  

Financially, even though Vancouver's bubbled market is now more bubbled, I am better off to have sold.  I bought a home here in the north that was pretty cheap compared to Vancouver.  I had enough equity from being house poor for 14 years in Vancouver to be mortgage-free here and I have a suite that covers all of the utilities, house insurance, taxes and the routine maintenance.  If I didn't have the house I'd be paying at least $1500 per month for rent and utilities.  

 Anyway, I never expected Vancouver's housing market to remain high as it has.

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