This is what Vancouver had between 1981 and 1987.
The Governemnt of Canada, in its infinite wisdom, decided to halt the inflation of the ’70s and raise interest rates to 20%. The real estate market crashed and I mean crashed. By the time I got the listing contract back to the office the house was worth less! Homeowners had mortgages that exceeded the value of their homes, many declared bankruptcy.
A Buyer’s Market is when there are more homes for sale than there are buyers. Prices are dropping so buyers wait it out. In fact, many homes don’t sell when it’s a Buyer’s Market, they expire! It may take six moths, and many price reductions, to sell in a Buyer’s Market.
The Buyer has all the negotiating leverage.
It was a dismal time in Beautiful B.C. back in the early ’80’s and then along came Expo ’86. I remember many of my clients getting out of the market in ’86 because they thought the small ray of sunshine in the market that year would disappear after Expo. Those who bought in the hay-days of ’80 got to break even in ’87.
Unbeknown to us all, our very localised market was about to change forever. The Feds opened the doors to Hong Kong and Taiwan immigration and the cash poured into the Province.
It was also a Buyer’s Market in Vancouver between ’94 and ’02 but nothing as bad as the one in the early ’80s.
Immigration from Korea started in the late ’90s and currently (2010) Mainland China.