Spoons1961

OK so Canada is'nt suffering the global credit crunch like the US and UK. However, having just been over, the number of properties on the market now has increased dramatically in the past 12 months. There are also a lot advertising price reductions.

Does anyone have a view on whether there is likely to be a significant fall in prices, because we're in a position to buy having sold our house in the UK, but can't decide whether to rent for the time being or not ?

Constructive and informed opinion would be appreciated

livermanl

I would always advise someone to rent first mainly because you could find that you don't like the city and want to move...

Another reason is that as a Brit you really don't know what to look for in a house as if you look on the 'photos of winnipeg' thread you will see a lot of people are caught out by things such as foundations is basements, house shifting...there are more problems but living in a house in canada can be expensive enough without things going wrong on you.

Therefore i would advice you to keep your eye on the market and get the experience of living in a canadian house for as cheap as you can.

Also I am pretty sure that BC house prices have always been high and have always stayed high whereas calgary is more of an up and down market...Just something to consider.

R I C H

Depends somewhat on whereabouts in BC you're talking about.

Here (Kamloops), selling prices are at a similar level to last year, so the previous 4 or 5yrs of price increases have leveled off. The market is somewhat saturated with properties, the last figures I saw showed 30% or so more for sale than the previous 12mths. I guess people are trying to take advantage of the equity they've seen grow recently.

Local forecasts suggest moderate increases will continue over the next few years (+5% p/yr). I think many people that have put their properties up for sale here this year have been over-optimistic about the values, hence the price reductions you may have seen as the market adjusts itself.

Spoons1961

I Appreciate your comments, but we've spent a lot of time in Canada and have relatives who emigrated 11 years ago. My concerns are really about the cost of buying a property. Prices have rocketed over the past 4 years.

So called experts seem to think that Canada will ride the global storm, but the Inventory of Real Estate agents seems to imply a different story. Just wondering what views the members of this site have on the subject.

Bleech

Hard to tell really. Here in Kelowna houses are still selling quickly (the area I live anyway), but not as fast as last year. Owners are still over inflating their prices, but it seems people are still willing to pay! Most people think prices will level out for a while rather than drop, but we'll see.

Surrey Expat

It is more of a buyers market now, but no expectations of a melt down. The CDN economy is strong, as is the loonie. Like anything buying property is a crap shoot.

MB-Realtor

Lets be honest here, NO ONE can accurately predict the economic future at the moment.

The "so called" experts are giving their considered opinions, there is more chance that their educated guess will be better than those gleaned from this board no matter any of our expertise.

My only advice is to keep a close watch on the American economy, if it continues to fall we must have repercussions in Canada as its our biggest trading partner. If Canadian unemployment rises, these people may have to sell their homes, desperate home sellers drive down the market price.

So my advice to you (for what its worth) would be to rent, month to month if possible, have your money in quickly available deposit account(s), watch the American market, once it begins to rise again that should be the end of the financial problems and signal the "bottom" of the housing market, thats the time to buy.

Ikatita

as someone who does economic forecasts for a living, I can only agree to that.

also agree on the recommendations.

ellsie

We are selling a property in Campbell River and the market is full of properties for sale here and over the Comox valley, and people here are dropping prices. Locally there are job losses and some people are looking for work in Alberta.
I have also heard that properties in town are becoming more popular as gas prices continue to rise.