A Requiem for a Housing Bubble

[rc2002]

http://www.sprott.com/pdf/marketsataglance/08-2006.pdf

[benyl]

all forecasts suggest that Canada will not follow the American bubble.

[is300izo]

Very interesting article and actually kinda scary. The only thing in my opinion that will save Alberta from seeing the same bubble burst as the US is obviously our crazy economy due to oil and gas. I do think that things are slowing down a bit but there is just too much money being made in this province to allow the rising real estate market to fall. On the other hand if oil prices drop then we are all going down but luckily the US govt will not let that happen so I think that we pretty safe for now. The article does raise a interesting point though, how much money can you make before you say 'ok i need to sell' or 'lets just hold on for a little bit longer and see if we can make some more'.

[Tik-Tok]

Whatever. If my house price dropped in half... it's doubled since I bought it, so as long as it doesn't go below $200g, I could care less. I'll probably be living in this place for another decade anyways.

I wouldn't be able to find a better place if I tried. 1900sq.ft living space, triple bay garage, r.v. pad (turned into both project car parking, and dog run), and still have a bigger yard then most new developments.

[rc2002]

I think it's anyone's best guess as to whether Canada will follow the US. But historically Canada is usually not far behind. It might be just misplaced hope on my part - I'm looking to buy so I'm hoping for prices to fall.

I think it could happen really fast when/if it does happen. If consumer confidence falls, and interest rates rise, it could be pretty interesting. Plus, what happens when housing inventories in Calgary get to the levels in the US?

[googe]

oh ffs not another one

[rc2002]

^ Sorry dude. Just thought it was an interesting read is all.

[dericer]

Originally posted by richardchan2002
I think it's anyone's best guess as to whether Canada will follow the US. But historically Canada is usually not far behind. It might be just misplaced hope on my part - I'm looking to buy so I'm hoping for prices to fall.

I think it could happen really fast when/if it does happen. If consumer confidence falls, and interest rates rise, it could be pretty interesting. Plus, what happens when housing inventories in Calgary get to the levels in the US?

This is a new era though. Now the US has reduced their overall trading partners by 12%, and the majority of parnters that do large volume trading with the US are militarily dependant on them aswell.

Combine that with China no longer using US Bonds by 2010 (However 2008 has been reported), and many other nations stopping their use of US bonds, the US's over inflation of Gold is really starting to bite them.

Canada is amking a strong attempt to limit our overall dependance on the US. Whether it be as a major energy supplier (Non Hydro of course), and our initial entrance into the EU.

Canada is slowly diversifying away from the US. Now does that mean we will have a contigency plan when the US does collapse?

Let's just hope Harper isn't in office when it happens, because what ever we end up giving as aid to the US, we won't see back.

[max_boost]

Most people are worried about not having enough of a downpayment. You Richard Sir have over 25%. What the hell are you waiting for. haha You know my take. BUY NOW. haha

[sputnik]

Originally posted by dericer
Let's just hope Harper isn't in office when it happens, because what ever we end up giving as aid to the US, we won't see back.

Do you really think that Harper is just going to give the US money?

Sure. The Conservative government might support the US more than the Liberals/NDP, but remember that the Conservatives are also fiscally conservative (i.e. CHEAP). I wouldnt expect the current feds to start shelling out cash to the south.