Vancouver`s real estate market may be rebounding from its recent slump, but it will never be the same, said Bob Rennie, the man that many call the city`s condo king.
The numbers look promising for a real estate recovery, with interest rates, home prices and monthly mortgage payments all dropping, Rennie said on Thursday at the Urban Design Institute`s Annual General Meeting. But he warned it won`t be the same market it was before the crash.
"The buying habits of all demographics have changed forever. I`ve been doing this for 35 years, and now more than ever, a saying that was given to me when I started my company, is [true] — a man that adheres to a position previously stated when times change is a fool," said Rennie.
The luxury and investor market is gone and developers need to realize the old market is never coming back, the high-profile real estate marketer told the gathering.
"It`s the rich guy that got whacked. The average two-income homeowner was simply not in the stock market. The most important demographic realization, I think, is young buyers do not have mutual funds or assets that eroded. They had no assets to lose, so they`re on very stable ground and we have to pay attention to them."
Now is the time for developers to focus on lower-income buyers in a way they never have before, Rennie said.
"It`s time to reinvent ourselves and what will tomorrow`s starter condo look like? It`s back to basics. It`s back to a basic affordable model. Somebody in this room is going to have to come up with a proper affordable model so that we can take care of this first-time buyer," he said.
Rennie also said that, despite the popular belief that Vancouver has an oversupply of condominiums, he is forecasting a shortage of affordable units in the downtown area due to a construction slowdown and continuing demand among entry-level buyers.
The numbers look promising for a real estate recovery, with interest rates, home prices and monthly mortgage payments all dropping, Rennie said on Thursday at the Urban Design Institute`s Annual General Meeting. But he warned it won`t be the same market it was before the crash.
"The buying habits of all demographics have changed forever. I`ve been doing this for 35 years, and now more than ever, a saying that was given to me when I started my company, is [true] — a man that adheres to a position previously stated when times change is a fool," said Rennie.
The luxury and investor market is gone and developers need to realize the old market is never coming back, the high-profile real estate marketer told the gathering.
"It`s the rich guy that got whacked. The average two-income homeowner was simply not in the stock market. The most important demographic realization, I think, is young buyers do not have mutual funds or assets that eroded. They had no assets to lose, so they`re on very stable ground and we have to pay attention to them."
Now is the time for developers to focus on lower-income buyers in a way they never have before, Rennie said.
"It`s time to reinvent ourselves and what will tomorrow`s starter condo look like? It`s back to basics. It`s back to a basic affordable model. Somebody in this room is going to have to come up with a proper affordable model so that we can take care of this first-time buyer," he said.
Rennie also said that, despite the popular belief that Vancouver has an oversupply of condominiums, he is forecasting a shortage of affordable units in the downtown area due to a construction slowdown and continuing demand among entry-level buyers.