This week I returned from Puerto Vallarta, Mexico. While home sales might have slowed down slightly, asset appreciation is still happening in PV, and it is clear that those with money continue to buy there including many Canadians.
I suspect that as paper portfolios diminish in North America, hard assets such as homes offer an attractive option for refuge.
Will Canadian parents leverage their own home to help the children buy in while the selection is so good, and let’s face it, the selection is generally very good?
Our Boomer neighbours (in Port Moody, BC) recently sold their apartment condo to buy a house (upsize). Their son, daughter-in-law, grandchild, and dog, live in the main area of the house while they are very happy in a self-contained basement suite (which offers more space than their condo did).
Some Boomers continue to buy second properties; for positive cash flow, as well as recreation.
More affordable housing prices and low mortgage rates are attracting buyers who had been kept out of the market before.
As more domestic luxury homes become available, so will the bargains.
Each geographic area, with its unique demographic factors, will offer different long-term opportunities for home buyers and investors.
There are now opportunities for governments to not only control the lenders but also a money-grubbing, home building industry from causing such an over-supply of inventory in Canada, and the resultant economic devastation.