Recently, I had dinner with a friend who rents.
She said she’s cheering for the real estate market to crash, and threw her arms up with glee at the current downturn in prices. Why I ask?
Does my friend fully understand what she’s wishing for?
Cheering for a real estate crash isn’t like rooting for the New York Yankees to lose or for an icon like Christiano Ronaldo to miss his shot on goal.
It’s wishing ill on others.
Would you cheer for your neighbour to lose their job? Or for your brother-in-law to go bankrupt?
Imagine the ripple effects in BC’s lumber industry when housing starts slow down? A crash in values will slow construction and cause thousands to lose their jobs.
Many people have the perception of homeowners as rich. This is wrong.
Canadians who own homes are just like you and me. Even where homes are valued over $1 million, many families will rent rooms in their basement to help shoulder the mortgage.
An extra $700 a month for a room is a big deal to a middle-class family struggling to pay their mortgage, especially those who are seeing an increase in their monthly payments.
In many instances, couples have worked years to save up their down payment for a shot at a single-family home. And many of my clients ask parents for help with the down payment.
Some renters will tell you that they’re cheering for a crash in home values, because prices are too high. What do they care if they have no plans to buy?
Most don’t, just like my friend.
Couples who’ve made the decision to own their own home often value personal freedom and the financial independence that comes with long-term home ownership.
Vancouver homes that sold for $300,000s in the 1990s sell for five times as much today. And with it comes the financial security we should all wish for each other.
In many instances, couples make great sacrifices to claw their way into the real estate market by limiting purchases of a family car or even delaying children
The truth is that people buying homes today have strong reasons and the steely determination to turn their home aspirations into reality.
I feel that the real reason why people cheer for a housing collapse is that they envy homeowners. They envy the very thing they don’t have.