In the ongoing struggle to curb negative speculation, a new word is taking hold as the preferred term of the real estate intelligentsia. I’m talking about dip. As in Vancouver housing prices are expected to “dip” until 2010.
The press seized on the dip in October. Our first big taste of dip came on October 24 with the Sun headline “Housing may dip until 2010.” In November, another headline: “Bank adds to opinions on shallow housing dip.” Yesterday, this one: “Metro Vancouver to see deepest property-price dip nationally.”
For perspective, the dip is 14.8 per cent deep, which amounts to $84,000 in lost value for the benchmark home. This is a correction, not a crash, says Royal LePage.
Whatever this is, a dip this isn’t. Correction, crash, whatever. But to say it’s a dip is to imply it’s temporary, that the highest prices constitute the baseline. This thinking is backwards. Let’s talk about dips when prices return to historical norms.
Photo credit: Seabamirum