Price Trends Suggest a Correction in Vancouver
There’s no shortage of predictions for Canadian real estate prices nor is there a shortage of opinions on how financial markets function. But predicting markets correctly is an almost impossible task, as famed economist John Maynard Keynes once said “The market can stay irrational longer than you can stay solvent.”
But let’s dive in anyways.
The latest from Macquarie Research group, a leading provider of financial, advisory, investment and funds management services believes that a 25% correction in the Canadian National home price index would bring it back to trend.
Of course, in Vancouver that’s even higher. Famous Blog dog Garth Turner‘s doodling shows a 33% price correction would be required for Vancouver real estate just to fall back to it’s “normal” trend line.
There’s no question a price correction would come as welcoming news to many Vancouverites. According to Metro News, Doctors, lawyers, computer programmers and accountants can’t afford to buy a home in Vancouver.
But alas, segments of the market are still hot hot hot leaving some bulls to believe prices could triple this year and heck may even quadruple next year…