Janet and I also went through the 1989 housing collapse. We ended up losing $32,000 on a new townhouse condo. However, the opportunity to buy a new home in Waterloo became more affordable and we are still there today.
The price increases for homes in the Greater Toronto Area are reminding some of the boom seen in the late 1980s. (David Donnelly/CBC)
I believe more of the story is that the Baby Boomers are holding on to their homes, instead of downsizing after they are empty nesters. Unfortunately, the homes available on the market are not as desirable as their existing house.
There may also be a surge of new listings, as the opportunity to capitalize on the current home prices may be enough for the Baby Boomers to move. If this happens, pricing will be more moderate as supply increases and demand lessens.
Regardless of what happens, Kitchener-Waterloo and the surrounding Waterloo region is positioned well for any changes. There is never a bad time to buy real-estate as a long term investment.
For more information please visit: http://www.cbc.ca/news/canada/toronto/home-prices-real-estate-market-bubble-crash-1.4043803
Richard Kitts, AMP
President/Mortgage Broker | Tristar Funding Corporation o/a The Mortgage Centre
Licence Number: M08002010