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Vancouver housing starts signal peak of cycle

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PatrickGunville | 22 Aug 2013, 12:32 AM Agree 0
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New construction starts typically peak towards the end of the real estate cycle, just as cost of ownership is pushed out of the reach of first time home buyers. Booming prices lure in an abundance of builders and developers hoping to make a quick buck. Their marketing teams are trained to hype up the market, and drive sales of the new properties on the market. Soon, the media has everyone believing the housing market is invincible, and that their is no risk to their investments. However, as developer greed exhausts the market, and pushes the cost of home ownership out of the reach of new buyers, very quickly an over supply of housing is formed, and with increased supply, combined with decreased demand, we know prices will come down. This is the exact stage Vancouver is at, in its own economic cycle, an over supply has been built, and demand continues to fall. Protect yourself, keep informed, don't be an average investor!
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