Changing Coming for the Real Estate Market

By Torrey Hough

2008 will be known best known for it's rough real estate property foreclosures and price drops. There has not been a real estate market crash. The 1980's crash has been referred to many times in the same breath as the recent disaster.

House owners are going to happy to hear that prices should start to rise again by the end of 2009, something they thought they'd never hear. In order for the market the rise again it will have to hit an ultimate low which experts say is right around the corner.

In order to understand a market recovery you need to know why it crashed in the first place. Many factors are related to this problem. Between 2000 and 2006 house prices in North America went way up, most places recorded their prices doubling.

Kamloops real estate properties rose, house buyers started to realize that they could not afford buying a home. When a large part of the purchasing market can not afford to buy a property, the house pricing has to fall to meet the needs of the buyers

Some experts also talked widely about mortgages and how sub prime lending and how it helped speed up the market crash. Lending in the USA was at the for front in this regard. With our country being right beside the powerful US, it hit us hard as well.

Loans were being applied for by potential purchasers that knew they couldn't handle the payments. Loans were still being approved for these buyers with little to no down payments and extended years on their mortgage terms.

Eventually the pressure mounted as the inadequate buyers were missing scheduled mortgage payments. Foreclosures were starting to pop up everywhere. Pricing started going south once all these bad mortgage owners foreclosed on their property. The market started filling up with foreclosed houses, this meant there were more houses then buyers, it turned into a buyers market.

Unfortunately, Canada and the Kamloops real estate market is directly affected buy those happenings in the USA. Now that their market is near its bottom, we will start to see some change in our real estate market.

Also realize to that if you were to look today, most big city centers are seeing property prices increase, this means that it cant be far away for people located in the suburbs and smaller cities. Since house prices have come down, there are now more people that can afford them. This means that Kamloops real estate along with the rest of Canada is should start to see good things happen.

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