Pure hype built it up, so fear and reality will tear it down...

One word for British Columbia's housing market.....ouch! This market, primarily in the lower mainland, has experienced the biggest price run-up in history since about 2002. The following post by GSE36 on BC Real Estate Talks says it all in my mind.....

"I have mentioned this b4, and I will mention it again. Many people are basing "correction estimates" based on regular real estate cycles. However, what we are experiencing right now is of historical proportions. We have NEVER experienced a cycle like this before. This is same as in the US (largest boom in history). Just look at the graphs (US, Canada, UK, etc) and you'll say it makes all the other cycles pale in comparison. Therefore, there is a chance that what will happen will likely be of historical proportions as well. Vancouver is basically a culmination of all the potential hype of a real estate asset bubble. You put all the factors together, and it creates for one heck of a hyped market: 1) strong west economy (really riding off of Calgary's fame) 2) consistently top city to live (but not considered world class by many) 3) running out of land (surrounded by waters, mountains, etc) 4) olympics 5) worldwide housing bubble (everybody in RE-mode) 6) low interest rates 7) rich foreigners "

Couldn't have said it better myself. The current situation in Vancouver's real estate market cannot be compared to anytime in history. The following graph summarizes this market's 30 year history and my plan :-)