Optimism and Pessimism shape the Canadian Housing Market
It has always been assumed that buying is better than renting, that, in the end, you’re saving money and making an investment by purchasing a home. Ideally, you should buy small to start out and build equity to sell later to buy bigger. Personal growth should coincide with real estate growth.
We need to think of real estate as a steady long term investment; gone are the days when we will see values increase by several thousands of dollars overnight, but that doesn’t take away from the fact that buying is still the way to go. We just need to redefine what ownership means nowadays, as the world is a different place than it once was.
Over the past few years, Canadian life has certainly gone under the knife, undergoing an abrupt and extreme makeover. The country’s still on the surgical table. No one quite knows what will happen, or what beast will emerge, when the procedure’s all said and done, but things are definitely changing.
Benjamin Tal, CIBC’s housing expert and deputy chief economist, aptly sums up this change: “We in Canada, especially in big cities, are fixated on buying a house the moment you graduate from university or get married.”
Tal believes this to be an unhealthy mindset, one that inevitably leads to housing busts. You see, if Canadians’ minds are unhealthily conditioned for home buying, there are some that’ll take that housing plunge without being necessarily prepared, financially or emotionally. This, of course, doesn’t help the economy at all.
The thing about such analysis is that its speculation, nothing more. One housing analyst may be fiercely optimistic while another is depressingly pessimistic. There’s no absolute when it comes to the Canadian housing market; it is dutifully chameleon-like. It really depends on YOUR perspective. Are you an optimist or a pessimist?
At River City Financial, we know that real estate, ultimately, comes down to one question: are you an optimist or a pessimist? Housing analysts are not united in terms of the market; there’s varying opinion across the board. When it comes to buying a home, the decision’s entirely up to you. Are you financially and emotionally prepared? Is your glass half full, or is it half empty?
Regardless of your opinions on the global economy, one thing is certain: buying and embracing ownership is the quickest way to personal growth. We will help you on your path, especially if you’re buying a home in Edmonton, whether you’re a wily veteran or a first time buyer.
*Image courtesy of Andriy Popov
Post by Yvonne Wilchewski