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I think the idea of RE dropping is hard for many here on RS in their 20s or early 30s. Ever since they entered the productive life, RE has only gone up.
For the last decade, GVR's RE has boomed pretty much non-stop. There was a hiccup in 2008, but then Canadian government decided to do the unthinkable (in the past at least), dropping the interest rate to pretty much 0 to avoid any sort of hard crash.
The truth is, that measure didn't prevent the RE crash, it simply delayed a bit. With even cheaper money for more people to access, the RE kept booming. The booming of RE brought growth not only in RE, but pretty much the entire GVR's economy was booming along.
The problem? Without RE continue to boom, trade people don't get paid as well as before, their spending reduces, and every subsequent business that relied on these activities would suffer.
Lower mainland as a whole is already in the shithole. The 2008 drop already showed the gov't that such price was not sustainable. But the gov't decided to force it to go further. That was the point of no return IMO. Soft-landing now is out of question. We probably won't see much effect any time soon. But in 2~3 years, when mortgages are up for renewal, that's where the bloodbath would take place.
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Nothing for now
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