As we slide toward Fall, out of the shimmering mirage days of summer, there is a lot of talk out there about housing prices in Canada – and none of it is real good. Interestingly, there is less of an attempt to put a positive spin on things from the Real Estate sector, I’m wondering if this is because they are hoping that everyone is just too busy with preparing for school, or purchasing an iPhone 4 to care about what their home price might be doing.
On a more serious note though, it does raise the question of whether property is the sound investment it has been considered to be for years, and down at the household level, this sort of news should prompt home owners to determine exactly why they live where they live and whether they would live there if the house was no longer an investment.The days of speculation purchasing probably have not disappeared entirely, there will always be a reason for people to have unrealistic beliefs in the market – and some people will make money off of it, but others will lose.
One thing’s for sure, the days of the McMansion are over, average new house sizes are shrinking as developers and builders struggle to market to cost and energy conscious buyers. However, the price of gas as it stands has not been a huge deterrent to families purchasing in the middle of a suburban development where it is impossible to walk to any schools, services or stores, or for people to consider that they really don’t need a 5.7 litre diesel truck to run errands.