Quote:
Originally Posted by stacey
This is insane, does anyone know anyone (well off money wise )that rents, besides drug dealers
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And I talked about this earlier in the thread.
When everyone you know ones one house, maybe two or three, it is the best time to NOT own a house.
When no one you know wants to own real estate, any real estate, it is the best time to buy.
Last year 71%+ of Calgarians owned at least one home and 25%+ owned 2 or more homes (from what I could gather). A typical balanced market has between 61%-65% home ownership. The point being, demand had been met and the market was oversupplied. There are too few people (29% instead of 39%) to buy the houses that too many (71% instead of 61%) will want to at some point sell. That is a pretty big spread that has to be corrected over the long term, something you will see in mean reversion in home pricing in Calgary.
Most interesting will be when baby boomers all start trying to 'cash in' their retirement savings (almost all of which is home equity) in the same 10-20 year period. It will not collapse the market, but I am guessing it will likely keep taking the steam out of any potential near-future bubble (leading to long term flat pricing, and therefore renting being clearly the better option).
Claeren.