Calgary real estate prospects

[ExtraSlow]

I too enjoy finding fault in things I can't afford.

[Buster]

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@you&me has nailed it, imo, both in terms of the nutty $10mm asking price, and also the reasonable range of the Calgary market. That is a nice house, in a great location, but the asking price is hilarious. $10mm gets you a very nice home in a lot of places more desirable than Calgary.

What if you can't leave Calgary?

[killramos]

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This sounds asinine, but $2.5 doesn't really get you anything special in Calgary, though I can appreciate we all have different assessments of value.

In the city, $4 seems to be where the very top end starts and the air gets real thin over $5 with just a handful of sales in a given year (higher prices outside of the city are more driven by acreage)...

I don’t disagree, I just mean above $2.5 I feel like your options for just buying a lot essentially anywhere and building exactly what you want to whatever spec and design you want becomes a more logical choice. At that point value becomes a lot less relevant than getting specifically what you want.

Maybe you get lucky and someone else as built something very close to what you want where you want it. But I feel like Calgary homes north of $2.5 are far less commoditized than the market below that number is all.

[bjstare]

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What if you can't leave Calgary?

Then buy or build something just as nice for <$10mm. Unless you must live on the river, in that spot. But the buyer who's willing to pay for that exact house in that exact place because it's perfect for them sits in a pretty small (likely non-existent, IMO) niche.

[ercchry]

I have yet to heard of an 8 figure sale (or attempt sale price)where the original owner hasn’t lost money (in or around calgary)

[killramos]

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Then buy or build something just as nice for <$10mm. Unless you must live on the river, in that spot. But the buyer who's willing to pay for that exact house in that exact place because it's perfect for them sits in a pretty small (likely non-existent, IMO) niche.

This

[Buster]

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Then buy or build something just as nice for <$10mm. Unless you must live on the river, in that spot. But the buyer who's willing to pay for that exact house in that exact place because it's perfect for them sits in a pretty small (likely non-existent, IMO) niche.

Sure, but my point is that if you can't leave Calgary, and $10mm gets you what you need to be happy here, then that makes sense to me.

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I have yet to heard of an 8 figure sale (or attempt sale price)where the original owner hasn’t lost money (in or around calgary)

this is interesting. I wonder what the crossover point is.

[Masked Bandit]

How long before Beyond's $7.2M standard needs to be adjusted for inflation? What's the real number?

For those who are in the real-estate industry, how accurate do you find the Calgary numbers on Honest Door?

[msommers]

Incredibly close to exact.

[ercchry]

My house is $90k higher than the appraisal I just got done

Edit: and the stats are only showing half my bathrooms… I’d hate to see how far off it is with that corrected

I think Zillow already proved this tech to be flawed

[you&me]

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I too enjoy finding fault in things I can't afford.

It's not about can't afford (though, to be clear...), but about seeing something silly and discussing. This is the $100k modified S2K of the Calgary housing market.

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I don’t disagree, I just mean above $2.5 I feel like your options for just buying a lot essentially anywhere and building exactly what you want to whatever spec and design you want becomes a more logical choice. At that point value becomes a lot less relevant than getting specifically what you want.

Maybe you get lucky and someone else as built something very close to what you want where you want it. But I feel like Calgary homes north of $2.5 are far less commoditized than the market below that number is all.

That's the thing though... I'm in this exact position, but building exactly what I want is a losing proposition... Now, I could just not be poor, but I'm also not committed to staying in Calgary for the long (or medium, or maybe even short) term, so the idea of building into a negative equity situation is gross.

In the case of the $10mm place, they paid $1.9 for the dirt in 2018... which was arguably high, as other newer ~5,000sf homes on similarly large lots on the river have (and are) sub-$4s, so it was probably thought to be a loser from the start...

ES might not like talking about it, but a rising tide lifts all boats, and even if my boat isn't this big, I feel like I'd personally benefit if this house sold for anywhere near the ask, but I just don't see it.

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Sure, but my point is that if you can't leave Calgary, and $10mm gets you what you need to be happy here, then that makes sense to me.

this is interesting. I wonder what the crossover point is.

If you can't leave Calgary, you spend ~$4-5 like all the other rich people and put the other ~$5 into or towards a place in Palm Springs... Or Hawaii... Or NYC... Or Paris... Or literally any other top-tier market in the world that you'd like to have a(nother) home in.

The crossover point is $4-5ish, because that's the point of liquidity... The place on Marquette in Mount Royal I linked to earlier reportedly cost $20mm to build... Who's the fucking retard that signed those cheques? You don't spend $20 to build in Calgary (or even $10) because, as the data shows, the market will likely only give you $4-5 back.

[Buster]

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If you can't leave Calgary, you spend ~$4-5 like all the other rich people and put the other ~$5 into or towards a place in Palm Springs... Or Hawaii... Or NYC... Or Paris... Or literally any other top-tier market in the world that you'd like to have a(nother) home in.

The crossover point is $4-5ish, because that's the point of liquidity... The place on Marquette in Mount Royal I linked to earlier reportedly cost $20mm to build... Who's the fucking retard that signed those cheques? You don't spend $20 to build in Calgary (or even $10) because, as the data shows, the market will likely only give you $4-5 back.

I guess. It's kinda the same reason I don't have a place in Fernie/Kelowna/Golden or wherever. Commuting to a vacation property is a pain in the ass. It's not insufferable like camping. But it's still annoying. My preference is to make your day to day life as pleasant as possible, rather than relying on looking forward to some escape type property. That's depressing. It's just a slightly more elegant version of the Walmart employee wishing their life away by spending the whole year anticipating a 2 week stint in some gross all inclusive in Mexico.

[killramos]

Depends how portable your skill set/income that pays for your lifestyle is I guess

[Buster]

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Depends how portable your skill set/income that pays for your lifestyle is I guess

Only thing keeping me in town at this point is my family - I'm very close with parents/brother/sister.

[Tik-Tok]

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Only thing keeping me in town at this point is my family - I'm very close with parents/brother/sister.

Stop being poor, and bring them with you.

[suntan]

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Only thing keeping me in town at this point is my family - I'm very close with parents/brother/sister.

Everybody has a weakness.

[bjstare]

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Only thing keeping me in town at this point is my family - I'm very close with parents/brother/sister.

Ugh same.

[benyl]

yup. Extended family and rugrats keep me here.

I'm not sure when this market is going to bubble over because what I am seeing sometimes boggles the mind.

House down the street from me sold for $599K in 2021. They did a down to the studs reno (which was very well done). Owner is a builder. They listed for $1.75M and we thought they were insane. Sold in 4 days for $1.76M with a long possession date.

Interest rates be dammed.


Maybe someone from Ontario who likes Five guys instead of the Catcus club.

[R-Audi]

Problem is.. even if you didnt have local ties, where would be a better place to go thats affordable, has jobs and easy to move to? Cant think of too many places that have all 4.

[Buster]

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Problem is.. even if you didnt have local ties, where would be a better place to go thats affordable, has jobs and easy to move to? Cant think of too many places that have all 4.

Rule #1