Quote:
Originally Posted by Claeren
I agree, and that is why i think a lot of downtown and area real estate is still a good buy.
What concerns me is when suburban property (condo's especially, but houses also) roughly matches city core property prices. There is ZERO long term scarcity in a city like Calgary for that type of property therefore its long term value is only for its use (as a dwelling).
I have no problem paying (close to?) current prices for Cresent Heights or Bankview, etc. It is when you are in a farmers field that i get nervous about inherient worth.
Putting it another way, few other cities in North America hold their prices from their core to their perifery as well as Calgary does. All of the comparative cities (or larger) have high downtown prices but none are like Calgary when standing in the middle of no where an hour from the core. That should tell people about something when paying $500,000 for one of those homes.
Claeren.
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I disagree somewhat; if prices tumble in the suburbs, it will affect downtown real estate as well. Even people who love urban life can be tempted out to the suburbs if the price difference is large enough; the money saved can be applied to other lifestyle goals... travel, early retirement, reduced working hours, etc..