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The thing is with Gen Y getting into real estate in doves now mostly has to do what happened to the RE in the last 10 years. So you are in your early 20s and for most of your 20s all you have experience is a rising housing market with uninterrupted home price gains. So on the surface it is understandable these kids want to get into the market and not paying much attention to all the bearish talk on Canadian housing.
I just don't fundamentally believe what we have witnessed in the last 5 to 10 years as something of a new norm. This time is not different. Vancouver is not special. Home prices gain over the long run is basically just inflation. So basically just 2% a year? Vancouver home price gain is triple or quintuple that of inflation close to 10 years or something I think. I think it is pointless to call a top in any market but I am seeing a lot of froth in this market and it tells me to be very careful. Lots of these Gen Y kids are going to learn that regression toward the mean will be a bitch.
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