Was that a Real Estate Bubble that just floated by?

By
Real Estate Agent with sales representative : Keller Williams Experience Realty

 

Barrie real estate 2010

 

 A real estate bubble is defined as a period of  rapid increases in valuations of  housing until they reach unsustainable levels relative to incomes and other economic elements, followed by a reduction in price levels.

As the economic pendulum swings to and fro in Canada, in Barrie Ontario that sway has always been less exaggerated than in other larger Canadian urban centers. Maybe it is our conservative nature. Maybe it has to do with our persevering attitudes that see us through extreme weather shifts.

When Barrie awakens to two feet of fresh snow we get on with our day. Toronto shuts down and calls in the Army. Somewhere in there lies the difference but whatever spawns that herd mentality that drives Toronto and Vancouver's masses to orgiastic home buying crescendos is never seen here in easy go lucky Barrie Ontario or at least thankfully not to those extremes. 

Much of 2009 gave us lower sales numbers than the previous year but by the fall of 2009, statistics for much of Canada showed market activity up over the previous year's fourth quarter. A shift had begun away from wait and see attitudes mainly fed by  American cable news channel's nightly cries and chants of economic killer bees that never did find their way across border.

Buyers that traditionally would have bought earlier in each of Barrie real estate 2010the past ten years stepped up towards year end.

The following spring market was busier than usual in 2010 fed by still many who had been holding off and compounded by those anxious to buy ahead of the pending HST, a tightening of mortgage qualification rules and the growing possibility of rising bank rates.

In Barrie, that increase in real estate activity as we saw over the past nine months triggered barely a glance and a yawn from the citizenry where as in larger metropolises the babbitts were literally lining up three days early for new condo releases and once more entering into bidding wars for tired wartime duplexes and seven figure homes alike, driving up property values further beyond sustainable levels. Barrie real estate 2010

Mob mentality has no practical place in real estate trade but it is what I believe will
be having economists summing up the year 2010 in Canada as having gone through a real estate bubble.  I will go on record now as having predicted that in 2010 Barrie survived a real estate ripple.

Posted by

 Mike Montague

  

Barrie Power of Sale Listings

Barrie home values

 

 
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Rainmaker
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Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

Mike, it probably has a lot to do with population density. In Vancouver and Toronto people will pay a premium to be in a more desired neighbourhood.

Jun 17, 2010 05:18 AM #1
Rainmaker
194,782
Mike Montague
sales representative : Keller Williams Experience Realty - Barrie, ON
"Who Moves You?"

The deeper question is Malcolm....what creates and drives that desire?

Jun 17, 2010 05:30 AM #2
Rainer
84,684
Carl Stars
Sutton Group About Town Realty - Burlington, ON

Mike time for you to hear my theory !! I wrote an article about a bubble and I was told  I was nuts by a few rainers.  So here is my updated thought>

 

Houses will continue to get more expensive.

People will have to work longer and harder to keep them.

Taxes will go up !!

Welcome to Europe.

I always enjoy reading your posts have a  great day

Jun 17, 2010 06:07 AM #3
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Rainmaker
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Mike Montague

"Who Moves You?"
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