This chart needs very little explaining as I have talked about the Vancouver Real Estate price bubble this summer already. Now we have a chart to show us the result of taxes created by the government, who will get blamed for it. Somebody or some event will always get the blame, as even a fire in Alberta, crashed the real estate market.
All this is no different than any other real estate bubble we have seen. Every major country in the world will experience or have experienced price bubbles in real estate. Now it’s Vancouvers turn. They will come up with a multitude of reasons why it will just be temporary, but this is going to last much longer due to the charts vertical nature. Looks more like a Tulip Mania chart, and we know what happen to tulip prices after the Tulip Bubble crash.
This is not going to be over and done with in a few short years, as we are sure to get a counter rally or two before it hits a major bottom. Even after it hits another major bottom it will not go back to the bubble mania path anytime soon.
I see the potential for 3 price level support ranges for the years 2012, 2009, and 2000. Can prices fall back to the 2009 price level, before it smooths out or starts to go sideways again? They sure can but it will take a long time to do it. People are going to learn the hard way how leveraged real estate can act when buyers no longer show up.
Many people have been calling for this bubble to pop as there is lots of evidence on Twitter.