2008 will be known best known for it’s rough real estate property foreclosures and price drops. There has not been a real estate market crash. The 1980′s crash has been referred to many times in the same breath as the recent disaster.
There are signs though that the market will start recovering and we could also start to see houses gain value next year. This would be a huge sigh of relief for homeowners that have seen their house prices drop. The Kamloops real estate market is showing signs of bottoming out which definitely shows it will start creeping back up.
You will only begin to learn how the market can rebound once you know how it failed. The problems can’t be blamed on any one thing. A huge reason it all started was house and property prices doubles in value from ’00 – ’06.
It got to a point where house prices were so high that most average people could not financially manage getting a property. If there are an abundance of listing and no buyers then the asking amount would have to come down in order to level with the potential buyers.
Some experts also talked widely about mortgages and how sub prime lending and how it helped speed up the market crash. Lending in the USA was at the for front in this regard. With our country being right beside the powerful US, it hit us hard as well.
Loans were being applied for by potential purchasers that knew they couldn’t handle the payments. Loans were still being approved for these buyers with little to no down payments and extended years on their mortgage terms.
Eventually the pressure mounted as the inadequate buyers were missing scheduled mortgage payments. Foreclosures were starting to pop up everywhere. Pricing started going south once all these bad mortgage owners foreclosed on their property. The market started filling up with foreclosed houses, this meant there were more houses then buyers, it turned into a buyers market.
As stated before all of North America was effected by the approval of those bad loans. Our economy always tends to follow Americas. An upswing in out market is inevitable due to the markets in the US being near there rock bottom.
The majority of large cities are already seeing a rise in real estate prices, meaning that a rise in the little communities shouldn’t be far behind. Also now that with the down trend in real estate pricing, you will see more people can afford to buy again. You will start to see how this will affect us in a positive way. It had to happen sooner or later.
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