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Originally Posted by metal_geek
More sensational media reporting... Try to give this guy come crediablility, then name 2 big markets and pass the article to your boss..
You'd have to be stupid to not see the correction right now, and that it's correcting more in places that went up alot. Calgary/Edmonton had alot of in migration from other parts of the country and it drove up demand. I think the factors that drove up alberta's market were not the same factors that drove up some of the other markets. Alberta's market was undervalued to start relative to the national average. Job prospects are still strong in alberta compared to most other places in the country, and I don't see alberta becoming any less attractive then it was before, especially considering a surplus of housing, and greater afordability.
There are too many factors involved to just lay blanket statments and talk about largest declines. All it does is create drama and scare people into thinking we are the US. COMPLETLY different circumstances...
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Thats just it, Alberta does not have greater affordability. Also last I heard there are more leaving Alberta right now, at least those already from Canada.
My gf and myself both make good livings, with very secure jobs. We have no children, and we can't afford bottom of the barrel. When I say we can't afford I mean we can't pay for something reasonably, I'm not talking a 40 year mortgage with nothing down. If you are stretched with a 40 year nothing down, in my opinion you can't afford it. Which is going to be the problem.
Don't forget, 40 year mortgages with no money down are gone in 2 weeks. Thats going to significantly cut into who can buy and decrease the number of buyers. Everyday on MLX listings exceed sales by a 2 to 1 margin in calgary, this has been happening for several months. This is no exageration, most days it ends up being more than 3 to 1 in terms of listings to sales. Common sense tells you what will happen.
Combine many more listings, plus the buying population decreasing significantly, prices look to drop. When home owners can't sell at their asking price because a) people can't afford because they can't get 40 year nothing down mortgatges and b) there are too many listings, it doesn't look good.
Who knows, real estate is one of those things, my gf and myself were looking in early january/feb, but between my work and research I decided to hold off for at least 1 - 2 years. If prices stay the same or increase then I don't want to own property here, simple as that, however I don't think that will be the case.
Look at the U.S. subprime mortgages are the same as 40 year mortgages with no money down.. Its going that way...