Quote:
Originally Posted by Slava
I guess as far as real estate goes the nagging question is basically this:
A) You bought a house in 2007 for $500,000
B) Would you list that home for $425,000 today?
C) Are you going to want to list in another 6-8 months for $350,000?
That is essentially what you are suggesting that the market will do here. Whether you factor in the projected growth or not at that point makes little difference in some ways. The only time a guy with a $500,000 house is selling for those types of price is when he has no choice....its sort of an artificial floor on the market in that sense?
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I think you underestimate how many people will not be able to service their mortgages through this thing and will actually have to sell. Calgary is still in the early stages of this. The layoffs have only just begun whereas in other places in North America its been going on for a year and a half. Also how many people levered up to the nines for the privilege of buying a $350,000 home for $500,000 in 2007.