I'm seeing more and more listings lately using the terms "investment," "equity" and "why rent?" The market has clearly turned. It's getting tough out there for people trying to make a living in the real estate industry. Sales volumes are down, prices are falling and more people are starting to believe the news when they ask questions and find answers about the Canadian real estate bubble. The Canadian Real Estate Association has stated prices are falling across the country and will be pulled down by overheated markets in the west for the remainder of 2010 and into 2011. TD Economics has agreed, and forecasted greater price depreciation than the CREA.
But some local salespeople don't think we get it. They continue to market properties as investments without disclaimers warning potential buyers of market volatility etc. They continue to suggest renting is throwing money away - incredibly, they push the idea that we can build equity in a market experiencing significant price volatility and overall decline. Especially those salespeople trying to sell condos.
From the latest VREB Average Selling Price Graphs, June 1, 2010 Annotations by HHV
Does that look like a market you can build equity in?