“Through four downturns over the last 25 years, I’ve learned that the market always comes back. Hold on for the next boom.” –Bob Ransford, former real estate developer
This morning, with the weather being nice, I hit the balcony for a read of Westcoast Homes. While perusing the fine literature — by fine I mean lack of thickness — I came across a “lessons learned” column by Bob Ransford.
Mr. Ransford’s commentary is probably the closest we can expect for a balanced real estate column in the Sun. He warns against speculation. He urges a close look at the fine print before signing a deal. But like other expert commentaries, much is said about buying opportunities “disappearing” for those who wait.
This is an unfortunate piece of advice. It plays upon emotion rather than rational assessment. Buy today or miss your chance! Don’t let one of the 15,000 active listings disappear! It’s balderdash.
Look, it’s not enough that condo prices are “reduced” from peak levels. A reduced price doesn’t mean a good price or good value. A 1991 Chevy Cavalier at 40 per cent off is still a 1991 Chevy Cavalier.
I’ll say it again, the predictable direction of prices in a declining market is in line with rents and local incomes. To those who want to buy today and “hold on for the next boom,” there will be blood. I urge you to consider the numbers.
Remember, Chevy Cavalier.