Editorial: Housing demands caution

House prices are sailing skyward, so is it safe to buy?

Buying a home is one of the most important decisions anyone will ever make. There are first homes, family homes, and downsizing homes for empty nesters, but no matter how many times you move, do it with caution.

Especially now.

Vancouverites love to complain about the fact that a 1,200 square foot house there will cost you upwards of $1 million. While prices are not so dire at this end of Metro Vancouver, that doesn’t mean houses are cheap, either. In fact, housing prices have increased sharply over the last decade, and even the severe recession of 2008 was a mere speedbump. In most of the Lower Mainland, the price of a house has more than doubled in the last decade, while wages decidedly have not done the same.

Meanwhile, major financial institutions are warning that the Canadian housing market may be wildly overvalued. We’ve seen this before – in the early 1980s, a sharp spike in house prices crashed abruptly.

It’s possible that this time is different, of course. It’s possible that house prices will just keep going up forever, or at least level out instead of dropping. But it’s also possible that things could go the other way.

Whatever happens, we just hope that people buying are being cautious. It’s possible to make an informed decision and to buy a home even amid an overheated market. Just make sure you don’t assume that prices will always increase, or that interest rates will stay low forever. For young buyers who have been burdened by more student loans and a tougher economy than their parents, it might seem frustrating to wait for another six months or a year to save more – but it might also be very prudent.

If you have the means and you’ve found a home you like, then this is the time to buy. But we advise caution. The only thing we can be absolutely certain about when it comes to the housing market is that nothing stays the same forever.

– M.C.

 

 

Just Posted

Langley baseball team brings aid to Puerto Rico

Blaze raised $50,000 for the trip to

Fraser Valley Thunderbirds bound for playoffs

Minor midget team of mostly Langley players secures spot over Family Day weekend

Langley chamber joins call to kill ‘no pipeline ever’ law

Bill C-69 will hurt the local Langley economy, Chamber warns

World Day of Prayer returns to Langley

St. Joseph’s Catholic Church is hosting the annual day on March 1.

Young Langley family plagued by angry cab customers

A couple rents a house formerly used by a cab firm, and unwelcome visitors knocking.

VIDEO: North Delta elementary school closed following stabbing that left cop, woman in serious condition

An off-duty police officer and a woman were injured outside of the school Wednesday afternoon

70% of Canadians agree with mandatory vaccines for children: poll

The debate for pro and anti vaccinations has heated up after a measles outbreak in Vancouver

VIDEO: Woman, off-duty cop in serious condition after stabbing outside B.C. elementary school

The officer was interceding in an alleged assault when he and the woman were stabbed

5 to start your day

Two people are in critical condition after stabbing, searchers recover body of missing snowshoer and more

‘A little baloney’ in PM’s claim about solicitor-client privilege on SNC-Lavalin

The Conservatives and NDP want Trudeau to waive that privilege so Wilson-Raybould can offer her side of the story

Proposed edible pot rules are wasteful, would leave products tasteless: critics

When Canada legalized weed last fall, it only allowed fresh or dried bud, oil, plants and seeds

Most Read