Western Canada Housing Market - Drop?

[CasperWho]

Interesting Globe & Mail Article..

[EnRich]

good then maybe ppl like me can actually afford to go and buy a fucking house... These house prices are rediculas.... its as if I need to have a gf with a 2nd income to be able to afford a morgage... fuck these prices right now!!!

[Super_Geo]

Ah sheit... a good buddy of mine just put his name next to a $380k mortgage @ age 25... A house crash would fuck him over supremely. But then again, I'm sure there's an economist that'll for every possible prediction out there...

[djayz]

everyone shouldve known it was too good to last
prices arent just going to keep going up and up and anybody who bought in the last year isnt going to be able to turn their house around for a quick profit unless they do it now.

considering that a 2 bedroom house somewhere in the southwest went for 12 million dollars i really think everyone would have to be in the oil and gas field to afford any type of house in calgary if the housing market were to keep going up.

simple law... What goes up...must come down.

[pinoyhero]

You're right there's always an economist or some other professional that's willing to step out and make a prediction. I can't are it happening but who knows.

[googe]

Originally posted by djayz
everyone shouldve known it was too good to last
prices arent just going to keep going up and up and anybody who bought in the last year isnt going to be able to turn their house around for a quick profit unless they do it now.

considering that a 2 bedroom house somewhere in the southwest went for 12 million dollars i really think everyone would have to be in the oil and gas field to afford any type of house in calgary if the housing market were to keep going up.

simple law... What goes up...must come down.

tell that to vancouver. houses in the core are over a million, a 2 bedroom apartment doesnt exist downtown for under half a million. 300 gets you a bachelor pad studio with no rooms.

and they dont even have oil...

they went up, stagnated, then went up some more.

[toyboy88]

Originally posted by googe


tell that to vancouver. houses in the core are over a million, a 2 bedroom apartment doesnt exist downtown for under half a million. 300 gets you a bachelor pad studio with no rooms.

and they dont even have oil...

they went up, stagnated, then went up some more.

...they have the ocean and the beach tho haha

[is300izo]

I honestly dont think that we are susceptable to the same outcome as the USA especially here in Calgary where we have more or less created our own little market. I believe that the oil and gas prices will have a direct correlation with the real estate market in Alberta wich will offset any downfalls in the overall Canadian market. But who knows, I cannot tell the future.

[a1jatt]

This was a bubble not boom. Bubble must blast..sooner or later.

A couple more articles like one above can poke it. Buyer panicked and pumped the price which was fueled by propeganda of real estate agents and builders. Now it is time for sellers to panic.

you are absoluetly right...what goes up, comes down (with same speed ?

[Tik-Tok]

When they're talking about a "drop in prices" they aren't talking about a big one, maybe you'll only see 95% of what you paid for, but as the city keeps getting bigger, that price will just keep going up, only at a more reasonable rate. So it might take 3-4 years to get what you would have gotten 3 months ago.

Anyone who believes the prices are going to drop back to affordability is delusional, we're a growing city, with LOTS of oil. Where do you think the US is going to start spending all their dough once they back out of Iraq?

[Aleks]

Originally posted by Tik-Tok


Anyone who believes the prices are going to drop back to affordability is delusional, we're a growing city, with LOTS of oil. Where do you think the US is going to start spending all their dough once they back out of Iraq?

[djayz]

only thing we can do is wait and see

like i said not everyone can afford a house at todays price...once it goes higher no body will be able to afford a house and thats when prices come down.

i know so many people that are just renting now because they dont want to buy a house that has nothing in it for more than 400k. These same people all have the money to buy a home but know value when they see it.

A house like mine i wouldnt pay more than 300grand for it however a house smaller than ours no basement went for 450k...these prices arent right and wont be.

I say end of this year prices will head down when people realize that buying a home when its at its peak price is stupid.

[Altezza]

Originally posted by Tik-Tok


Anyone who believes the prices are going to drop back to affordability is delusional, we're a growing city, with LOTS of oil. Where do you think the US is going to start spending all their dough once they back out of Iraq?

Ever been to Houston, TX? Probably not...

[sputnik]

Originally posted by Altezza


Ever been to Houston, TX? Probably not...

Exactly.

For $400,000 in Houston you get a 4000 sq ft house with marble floors and hardwood cabinets and woodwork... all on a 75ft lot with an inground pool and a view of a ravine.

[Super_Geo]

Originally posted by Altezza


Ever been to Houston, TX? Probably not...

Texas' oil boom is long over. Their rates of production are dropping annually. (Thank you peak oil... )

Originally posted by sputnik


Exactly.

For $400,000 in Houston you get a 4000 sq ft house with marble floors and hardwood cabinets and woodwork... all on a 75ft lot with an inground pool and a view of a ravine.

It'll be like that in Alberta after natural gas/oil sands peaks... though we are sittin gon top of a ridiculous amount of sand...

SAGD FTW!!

[sputnik]

Originally posted by Super_Geo

It'll be like that in Alberta after natural gas/oil sands peaks... though we are sittin gon top of a ridiculous amount of sand...

SAGD FTW!!

Why would houses get cheaper?

[Super_Geo]

After the gas and the sands peak (which is really far down the horizon)? As production declines fewer jobs are needed.

[DoubleLP]

With all these articles coming out now saying that "the market is going to fall" and that "prices are going to drop", people are going to panic and put there house on the market along with many other people creating a flood in the market and then there will be way too many houses on the market causing the prices to drop substantially.

I am just going to sit and wait in my rented apartment for that to happen so that I can grab a house at a very affordable price.

[whodiman]

Originally posted by DoubleLP
With all these articles coming out now saying that "the market is going to fall" and that "prices are going to drop", people are going to panic and put there house on the market along with many other people creating a flood in the market and then there will be way too many houses on the market causing the prices to drop substantially.

I am just going to sit and wait in my rented apartment for that to happen so that I can grab a house at a very affordable price.

Your theory makes sense. However, I have heard this same plan from many people. I wonder, if enough people plan to buy when the houses fall whether the houses will really fall that much...or if they fall how long they will stay at a low price.

[DoubleLP]

That is hard to tell at all. But if it happens then I shall be on that bandwagon.

I remember back in the 80's when oil dropped out big time and the housing prices dropped just as quick that there were people heading to the bank and dropping the keys off to their houses because the amount the owed on the house was much higher then what it was worth.

I do not think that will happen again, but the prices do have to come down sometime. Wit the housing prices up, the vacancy rate drops because more people are moving into apartments because they can not afford to buy a house. If the housing prices drop, vacanct rate increases, rent prices drop, everyone benefits!


Here is hoping!