Calgary real estate prospects

[max_boost]

So generous
I’m also waiting for that gift from my parents lol

[CompletelyNumb]

Looking at any inflation adjusted chart of median detached prices and median salary across Canada for the last few decades makes me believe that no real "crash" has ever happened in our lifetimes.

It definitely went flat for along period of time, which allowed ma y to catch up in income, but median wages didn't catch up with those people.

[Buster]

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I think we would need 2% interest rates again but I’m not sure that is going to happen anytime soon.

I would say 95% of new homes are built below average. Highly recommend a good home inspector if buying pre existing or building. I’m terrified of all the new infills and renovated homes that are hitting the market.

If you want to be entertained, follow Nook & Cranny homes on Tik Tok

Marty is hilarious.

Thankfully for my kids we will be able to give them real estate, the younger generations need that edge to get ahead now.

You are arguing against your own claim in this post.

Home values are a function of economics. If younger people can't afford homes, then eventually the equity in the boomer generation of homes will be liquidated. High home prices is another way of saying pent-up and immobile capital is embedded within the home market. That capital is unproductive capital - it is providing no utility. Eventually, the economy will right itself and there will be pressure to release that capital (or certainly less pressure to keep it there).

As for prices...you need to compare inflation adjusted values now and in the future.

[killramos]

Yea while I think it’s nominally unlikely that face value prices drop much.

I think our currency is going to end up so far in the toilet that that will be the mechanism of devaluation.

[89coupe]

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You are arguing against your own claim in this post.

Home values are a function of economics. If younger people can't afford homes, then eventually the equity in the boomer generation of homes will be liquidated. High home prices is another way of saying pent-up and immobile capital is embedded within the home market. That capital is unproductive capital - it is providing no utility. Eventually, the economy will right itself and there will be pressure to release that capital (or certainly less pressure to keep it there).

As for prices...you need to compare inflation adjusted values now and in the future.

Liquidated for sure, to who, developers. The cycle continues. Young people won’t be buying a run down shit box. The boomer
generation is already liquidating, their 1950’s bungalow that they paid $40k for, now selling for $800-1M, the home is unliveable in most cases but the land is incredibly valuable.

The Gen X era is next, we are all close to retirement, some already retired. Our values haven’t increased near as much depending on when you bought, if I held on to my first home that was built in 1999 it cost me $224k, current value around $750-859k

The wealth gained is less and less it seems unless you are able to inherit.

[killramos]

So if corporations aren’t going to be allowed to own SFH’s.

Isn’t that going to implode the whole buy, tear down, rebuild infill business model?

[Buster]

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Liquidated for sure, to who, developers. The cycle continues. Young people won’t be buying a run down shit box. The boomer
generation is already liquidating, their 1950’s bungalow that they paid $40k for, now selling for $800-1M, the home is unliveable in most cases but the land is incredibly valuable.

The Gen X era is next, we are all close to retirement, some already retired. Our values haven’t increased near as much depending on when you bought, if I held on to my first home that was built in 1999 it cost me $224k, current value around $750-859k

The wealth gained is less and less it seems unless you are able to inherit.

There are numerous economic factors at play here that you are not considering. Primarily, the interest of the Millennials and the GenZs to continue to prop up the boomer balance sheets (ie their home equity). They won't. The GenXers have been dumb enough to think they can still win the ponzi. But there is far less interest among the following generations to continue that ponzi.

That isn't just for home equity, it is also for entitlements, golden healthcare systems, public pensions, etc.

Why do you think the GenZs are turning against Trudeau so decisively. They know the current economic structure is unsustainable...and that includes the artificial storage of economic capital/capacity in their elder's home equity.

[ExtraSlow]

[bjstare]

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Realtors? Yes.

[max_boost]

Is land that precious cuz I see empty land everywhere lol

[89coupe]

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Is land that precious cuz I see empty land everywhere lol

Inside city limits?

[88CRX]

The government is pushing that all new homes need to be net zero by 2030… tell me how prices are going down anytime soon. Go!

[max_boost]

We just redraw city lines and get new govt lol haha

[arcticcat522]

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There are numerous economic factors at play here that you are not considering. Primarily, the interest of the Millennials and the GenZs to continue to prop up the boomer balance sheets (ie their home equity). They won't. The GenXers have been dumb enough to think they can still win the ponzi. But there is far less interest among the following generations to continue that ponzi.

That isn't just for home equity, it is also for entitlements, golden healthcare systems, public pensions, etc.

Why do you think the GenZs are turning against Trudeau so decisively. They know the current economic structure is unsustainable...and that includes the artificial storage of economic capital/capacity in their elder's home equity.

Millennial and Gen Z still need somewhere to live. Rent will continue to rise because of the lack of housing supply that I dont see ending anytime soon. Even if they don't want to purchase a house prices will stay steady until supply catches up to population. Buy in desirable location and hope it stays a good location....

[max_boost]

Isn’t the master plan to turn young people into renters? Lots of new condos seem to be majority rentals. 1.5k-2k 1br or 2-3k 2br
You will own nothing and be happy
Family life expensive, yolo, don’t have kids, bring in more immigrants who can live 10 people to a house, wheels keep going etc.

[Buster]

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Millennial and Gen Z still need somewhere to live. Rent will continue to rise because of the lack of housing supply that I dont see ending anytime soon. Even if they don't want to purchase a house prices will stay steady until supply catches up to population. Buy in desirable location and hope it stays a good location....

They do, but GenXers retained the same expectations/preferences as the boomers. The young'uns will not either have, nor want to spend, the type of money that will be required to ensure the continued inflation of the boomer home equity.

[arcticcat522]

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They do, but GenXers retained the same expectations/preferences as the boomers. The young'uns will not either have, nor want to spend, the type of money that will be required to ensure the continued inflation of the boomer home equity.

So buy starter homes, duplexes, townhouses as investments. Not million dollar estate homes. I'm keeping my eye out for a nice duplex.

[ExtraSlow]

The financial capability of the gen z and alpha are likely to be lower in any real terms, so when gen x sells, who's buying?

[Buster]

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So buy starter homes, duplexes, townhouses as investments. Not million dollar estate homes. I'm keeping my eye out for a nice duplex.

I think you're missing the point. The younger generations have no ability (nor interest) to keep the housing market in an inflated state.

[max_boost]

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The financial capability of the gen z and alpha are likely to be lower in any real terms, so when gen x sells, who's buying?

Their kids
$1 bob