A condo boom can be compared to a night of heavy drinking. (Or as I call it, “Thursday.”) When you’re in the thick of it, it’s the best fun you’ve ever had. It’s easy to make conversation. Things you wouldn’t normally be interested in start to look pretty good. Money in your pocket is fast to disappear. The thought of the hangover doesn’t cross your mind.
But the hangover always arrives. When it does, you hate it. You wonder how you could be so stupid to drink so hard. You open your eyes to find yourself in a foreign apartment. White walls with no art. There’s a Malm dresser in the corner. Next to that, a Poang. Below, laminate “wood” floors. Down the hall, a chaise. It’s a condo. You vomit.
With real estate, the hangover doesn’t go away with a day in bed. You’re stuck with the anguish until the market decides it’s done. Already, Vancouver real estate prices are down eight per cent year-over-year. Developers are halting projects. Creditors are pulling out. Arson is a growth business.
Friends, the hype era is over. The hangover is here.