Posted by Tim Stobbs on June 17, 2008
Where, oh, where has my equity gone? Oh where can it be?
Leave it alone it will come home wagging your HELOC behind it.
Finally, it is starting to happen. People have regained some sense and the housing boom in Regina has seemed to settle down and actually looks like it we are getting some price corrections downwards now. Someone must have informed the real estate agents that they were trying to drive up the prices of used homes to almost the same price as completely new ones.
Now the corrections down in my neck of the woods doesn’t seem to be huge perhaps around $10,000 to $30,000 from the peak. This is partly from a large number of listings this summer which has shifted us back to a buyer’s market.
So I wonder if real estate fever is finally going to die down a little? I can only stand so many conversations that go “Did you hear? A house around from mine sold for $X. What do you think mine is worth?” And trust me I’ve been subject to a lot of those in the last year.
Perhaps the more interesting question is how many people bought new homes in the last year and are now potentially watching their house value drop and see how big their mortgage is. Now it will take a while for things to settle down here, but I don’t think we are going to see any panic selling or people walking away from their houses. The bubble here isn’t anywhere nearly as big as the US.
So what’s this going to do to my net worth? Drop it of course, but I’m not worried. Actually I’m sort of relieved this happened. The prices increases were getting insane so it will be nice to have a net worth increase reflect more of my savings and less of my house.
So how is the market doing in your part of the world?