As you all know, 2008 was easily one of the most brutal real estate years we have had in the last 25 years. With that said, Kamloops real estate experts are comparing our current situation with the market crash of the 80s.

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.

Knowing how the crash originally crashed is the only way you will be able to comprehend how there will ever be a rise again. Different components can easily be fingered as the market down fall. In 2000 the housing market starting a price rise that would last until 2006, in this time most communities would see their property price double.

As prices were rising at amazing rates, potential buyers acknowledged that they weren’t making enough money to purchase a home. There started to be a lot of houses on the market but no suitable buyers, this meant values had to come down in order for people to be interested in them.

The market shift can also be attributed to the sub prime mortgages, I’m sure you saw this through the many newspapers and magazines. This came about mainly by our friend south of the border, the USA. Our communities were definitely still affected by this situation.

What happened was a ton of loans were approved to unqualified buyers with very little down payment. So for people that purchased their home at the peek of the market pricing, it meant their mortgages were now worth more then their actual house was worth.

Mortgage payments could not be met due to insufficient funds, so loan company’s pressed the home owners. People were beginning to lose there houses to foreclosure. The more foreclosures happen the more houses starting coming on the market. Prices would fall because there were not enough buyers for all of the houses. It was no longer a sellers 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.

Big metropolitan areas have had a rise in property prices already this year. The good news is that when house prices in the city start rising, usually the smaller communities are there to follow. Another key reason for a rise comes because now properties are in a more affordable range again so people feel comfortable buying. We stuck through it and now prices should return to rise.