Thursday, January 8, 2009

Maria Mak - Vancouver Real Estate Agents - Don't blame Real Estate

Recent reports have suggested a direct correlation between a sharp rise in bankruptcies with the drop in house prices, but we should be careful not to draw this conclusion. Consumers need to be aware that the drop in real estate values is not the real culprit here. I know it's easy for people to look at the drop in home values and the sudden increase in bankruptcies and come to the conclusion that one causes the other.

However, when you think of it - it's not the drop in the value of your home that causes financial stress, it's your ability to service your mortgage and that's a factor of the sharp rise in unemployment, not the drop in home values. Quite frankly, you qualified to make payments on your home in the first place, so once your mortgage is in place, what happens to the value of your home after that has little relevance to your ability to continue making those payments.

So the real cause for concern for most Canadians should be rising unemployment - not home values. So Please don't blame real estate, this is not a proper timing to point fingers at whoever, whatever.etc. Our economy will pull through, just like a roller coaster, it will be UP again one day.

If you're thinking of buying and selling real estate, contact Maria Mak and my team at Sutton Centre Realty at 604-839-6368, or visit my website at, you'll be smiling too!

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