House prices ?

[69cougar]

So I have been watching house prices (and lot prices) increase dramatically and it got me wondering.

Will they ever level out??


Thoughts??

[Ben]

Lumber, concrete and labor prices have gone up a lot. Plus, the market is big in this city.

Not sure when it might settle out.

[HRD2PLZ]

It just keeps climbing now, most areas are selling very quickly now, even when compared to just a few months ago. We are still behind Toronto and Vancouver for property values, but as Calgary grows and as we continue to have Corporate Headquarters relocated to the city I think property values will continue to grow at a fairly steady rate. If interest rates spike, we may see the market level out slightly... There is a TON of younger people trying to get into the market lately, hoping to get in before the prices are out of their range.

[2.0turbo]

Compared to other growing areas of Canada, Trades get paid a lot less here. Expect the housing prices to keep going up. It will level off when people stop moving here. Smaller builders will go out of business while the bigger ones will pay more for trades and continue to sell.
Houses are only cheaper here than Van or TO because we haven't been growing as long as them. When we're the size the lower mainland is now, the prices will be the similar.

[89coupe]

Where the hell are you looking, on the very outskirts of Calgary or something? For a decent house/area you are looking at 360-450K for a house that size now. You must be looking in the NE or the very outskirts of the city with a basic package.


Originally posted by 69cougar
So I have been watching house prices (and lot prices) increase dramatically and it got me wondering.

Will they ever level out??

For a move up home around 2200 sq ft it seems to be pushing $290 to $310 on average. I am thinking they must be rapidly apporaching the point that the "average" person will not be able to move up as salaries do not seem to keep pace. I know there is a lot of money in Calgary but I am thinking about the demographics and that there are more and more younger people trying to buy homes. BTW I know that house prices here are cheaper than TO or Van, blah blah.

Thoughts??

[2.0turbo]

Originally posted by 89coupe
Where the hell are you looking, on the very outskirts of Calgary or something? For a decent house/area you are looking at 360-450K for a house that size now. You must be looking in the NE or the very outskirts of the city with a basic package.



Most estate areas start at $350. You can buy a nice house in that size in the NW, SW, SE, or NE below the $300's. BTW, every new area is in the outskirts of the city and new homes in the NE are no cheaper than anywhere else.

[sputnik]

Originally posted by 69cougar
So I have been watching house prices (and lot prices) increase dramatically and it got me wondering.

Will they ever level out??

For a move up home around 2200 sq ft it seems to be pushing $290 to $310 on average. I am thinking they must be rapidly apporaching the point that the "average" person will not be able to move up as salaries do not seem to keep pace. I know there is a lot of money in Calgary but I am thinking about the demographics and that there are more and more younger people trying to buy homes. BTW I know that house prices here are cheaper than TO or Van, blah blah.

Thoughts??

Why would you wait for prices to "level off"? Chances are very good that if they do level off, they will do so at a much higher price than houses are now.

Your best bet is to upgrade as soon as you can and start earning equity (hopefully). Or just pay off your smaller house and be happy with less. Personally I dont mind living in a smaller house on the outskirts, it gives me more disposible income and more security in case I should happen to lose my job or have an emergency expense come my way.

[t-im]

I never seen a decent house in a decent neighborhood in the NW or SW below 300k that's 2200sqft (which is a tad on the small side)

and which estate area's start ~350K???

off the top of my head, Hamptons is about 500k+ to build new (that's really lowballing it too) and there is nothing decent below the 380-400 mark in the used market around there.

[2.0turbo]

I guess it depends on what you take on a "decent" area is. I would say Bridlewood is a nice place and you can buy and build in there for under 300g's in that size.

[2.0turbo]

Originally posted by t-im
I never seen a decent house in a decent neighborhood in the NW or SW below 300k that's 2200sqft (which is a tad on the small side)

and which estate area's start ~350K???

off the top of my head, Hamptons is about 500k+ to build new (that's really lowballing it too) and there is nothing decent below the 380-400 mark in the used market around there.

Panarama Estates starts at $345's, Evergreen Estates is about the same. :dunno: Thats just to name a couple.

[max_boost]

I paid $426K for my house in Crescent Heights. It's one of those innercity infills (25X120). My neighbour, a sous chef at some restaurant in Eau Claire paid $320K for his, only two years ago. Our homes are identical, built by a developer who purchased the 50X120 lot and divided it.

It increased over $100k in two years, ummm how are you supposed to save for that? :rofl: :eek: :banghead: I did the best I could, I originally wanted to live in Hillhurst but that's not going to work because prices are into the 500's in that community. :cry:

[t-im]

Originally posted by 2.0turbo

Panarama Estates starts at $345's, Evergreen Estates is about the same. :dunno: Thats just to name a couple.

Except for a select few streets, those area's aren't very "estate." Adding "estate" to the end of a neighborhood name doesn't mean they are that nice.

[sputnik]

Estate Homes ($350K+) > Move Up Homes ($250-300k).

Some of you guys need to read the original post and stick to the original question.

Hes looking for something around 2200 sq ft. Nothing fancy just bigger. There are TONS of houses being built for under $300k all over this city. It doesnt need granite counter tops and marble floors to be considered a "non-starter" home. He didnt say he needs to be inner-city or in an "estate" neighbourhood.

Check out Cardel's website (www.cardelhomes.com) they build in several areas in the $250-300k range.

[Khyron]

1600 worked for me - and should continue to be fine for many years. Can always reno the basement later...

Khyron

[sputnik]

Originally posted by Khyron
1600 worked for me - and should continue to be fine for many years. Can always reno the basement later...

Khyron

:werd:

I would rather have smaller payments and my house paid off sooner with cash in the bank.

Sure, you can make more in equity. But I consider it a pretty good hedge. Considering if interest rates continue the climb and the housing market suffers, at least I will have cash benefitting from the higher interest rates.

[69cougar]

Originally posted by sputnik


Why would you wait for prices to "level off"? Chances are very good that if they do level off, they will do so at a much higher price than houses are now.

Your best bet is to upgrade as soon as you can and start earning equity (hopefully). Or just pay off your smaller house and be happy with less. Personally I dont mind living in a smaller house on the outskirts, it gives me more disposible income and more security in case I should happen to lose my job or have an emergency expense come my way.


I pretty much have to wait right now

[Mr. Burns]

I paid $215,000 for my place in hidden valley two years ago. Now houses on my street are going for $250,000 +

[2.0turbo]

Have you thought about going to one of the outlying areas? You can get a hell of a lot more for your money. Under $300gs will get you a walkout onto green space or water feature with about 2600 sq/ft of developed house. Depending on where you work or what you do places like Airdrie and Chestermere are no further from downtown than Tuscany and nearly all the new NW communities.

[Aleks]

I took the plunge this summer got a starter home in the SW. It's small but has 3 bedrooms and 4 levels all completed, with a double garage. I think it will do for the next few years. Hope the prices continue to go up 10%/year at least :D

[Weapon_R]

Originally posted by sputnik

Hes looking for something around 2200 sq ft. Nothing fancy just bigger. There are TONS of houses being built for under $300k all over this city. It doesnt need granite counter tops and marble floors to be considered a "non-starter" home. He didnt say he needs to be inner-city or in an "estate" neighbourhood.

All of Calgary's ballers seem to be on Beyond for some reason...

There are thousands of good homes in the sub 250k range, and you don't have to live in Forest lawn to find that price. A 2200sq ft. home can easily be found in that budget.

Btw - I don't live in the NE, but sometimes it sounds like you guys think the NE is worse than Detroit, which isn't even remotely true.

[AJL]

Hopefully by the time I graduate from University 4-6 years housing wont be that bad. I wouldnt mind buying a 1-2 bedroom condo for around $140-160k... but since I might be going to UBC that wont be happening. No chance I could afford a house in Van. :(

[Khyron]

Originally posted by Weapon_R
Btw - I don't live in the NE, but sometimes it sounds like you guys think the NE is worse than Detroit, which isn't even remotely true.

Maybe not as bad as Detroit, but worse than Bagdad!




I kid, I kid.


Speaking of starter homes......Wait till you have a kid or kids!!

These starter houses just don't have the room IMO for the stuff that kids use these days!!

If you are not planning on having kids then no problem.


Our first condo was 900 f3 - that would have been tight with kids, especially since no basement or garage. But 1500 + garage + basement is tons of space for 2 adults and 2 kids IMO. I believe that if you have a lot of extra space you just tend to fill it up with crap.

I don't have any yet - maybe my tune will change in the next few years. But I knew lots of kids that grew up in apartements, duplexes etc and they seem ok. :nut:

Khyron

[Xtrema]

Originally posted by Khyron
Our first condo was 900 f3 - that would have been tight with kids, especially since no basement or garage. But 1500 + garage + basement is tons of space for 2 adults and 2 kids IMO. I believe that if you have a lot of extra space you just tend to fill it up with crap.


True word of wisdom. Builders and developer keep building bigger homes and charges more for it.

Not 15 years ago, a typical family dwelling is around 1400-1600sqft. Anything over 1800 is consider luxurious.

Now everyone wants a 2000+ sq ft home. Unless you have a family 6+ with more than 2 incomes or can paid it all in full, you don't need that much space. Just more crap/rooms to clean.

All these 2000+ homes have living room and dining room that you never set foot into anyway except may be entertaining guests @ Christmas.

As for the raising price in question, I've saying to myself "this must be the peak" since 2001 but it hasn't stop yet.

I say buy now, get what you can afford, so you are at least be protected from further increases. Unless you own a profitable business or rigging in oil $$, your wage increase won't catch up. House prices have been going up ~ 10%/year for the last 3 years.

And I don't think many of you employees can say to have 10% raises in the same period.