Neil Macdonald: Why a U.S.-style housing nightmare could hit Canada

[b_t]

Still seems to me like house prices in this town are out of control... a nice contraction would be real nice. $400k for tiny ass houses, in a city where you can just keep building out forever and ever? ridiculous

[masoncgy]

Current prices are unsustainable over the long term anyway. Speculators will run up the prices and then once the ride is over, the poor kids just trying to have a slice will end up holding the bag, along with all the people who have no business investing in real estate for profit.

Calgary is one of the few places not experiencing a correction or getting into a correction. Will that last forever? Probably not.

I don't think Calgary will slide as much as other areas though.

[Xtrema]

Originally posted by masoncgy


LOL wut? Go back to 2008-09 when Alberta's real estate tanked. People were making big dollars then and it still unravelled like it did everywhere else. In fact, some of the worst drops were in Alberta.

Strange how that seems to be forgotten. It wasn't even that long ago.

The problem with 2008-09 was over speculation on both end. Before 2008, people are over optimistic. After 2008, people are over pessimistic (with good reason).

And when the smoke clear, it went back to normal which is about 10% less than peak and grew steadily since.

The fact is as long as there is no nuclear fusion ready for market, we will be in business. Even if we have viable unlimited energy TODAY, we will still be in business for a decade or 2.

We will continue to grow with the normal rate, and other than a WW3 breaking out or somebody find another huge oil reserve somewhere, we will be ok. But if we think we won't be the next Detroit in the next 50-100 years, you are just kidding yourself.

[dawerks]

Housing sales up 10% in Calgary, prices up .4%

Yup, big collapse happening.

[masoncgy]

Originally posted by dawerks
Housing sales up 10% in Calgary, prices up .4%

Yup, big collapse happening.

Originally posted by masoncgy
Calgary is one of the few places not experiencing a correction or getting into a correction. Will that last forever? Probably not.

Meanwhile Vancouver sales are off 32%.

[Sugarphreak]

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