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.
House owners are going to happy to hear that prices should start to rise again by the end of 2009, something they thought they’d never hear. In order for the market the rise again it will have to hit an ultimate low which experts say is right around the corner.
Knowing how the crash originally crashed is the only way you will be able to comprehend how there will ever be a rise again. Different components can easily be fingered as the market down fall. In 2000 the housing market starting a price rise that would last until 2006, in this time most communities would see their property price double.
Kamloops real estate properties rose, house buyers started to realize that they could not afford buying a home. When a large part of the purchasing market can not afford to buy a property, the house pricing has to fall to meet the needs of the buyers
The market shift can also be attributed to the sub prime mortgages, I’m sure you saw this through the many newspapers and magazines. This came about mainly by our friend south of the border, the USA. Our communities were definitely still affected by this situation.
What happened was a ton of loans were approved to unqualified buyers with very little down payment. So for people that purchased their home at the peek of the market pricing, it meant their mortgages were now worth more then their actual house was worth.
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.
Also realize to that if you were to look today, most big city centers are seeing property prices increase, this means that it cant be far away for people located in the suburbs and smaller cities. Since house prices have come down, there are now more people that can afford them. This means that Kamloops real estate along with the rest of Canada is should start to see good things happen.