Quote:
Originally Posted by macker
Moreso Commercial real estate and farm land but that is taking things way OT...If you listen to a guy like Jim Rogers he is always pounding the table about this and thinks that we should all be buying farmland in Canada and Brazil etc. There might be a bubble in real estate in Calgary in the future but I can't see it happening in the next 1-3 years.
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Prices will drop when interest rates increase, but I don't think it will be a major drop. I've been saying all along that this winter would tell the tale, unfortunately I started saying that before the interest rates were lowered. Regardless looks fairly decent in Calgary.
There will be a number of people who will be in trouble when interest rates rise however. I believe the historical average for interest rates is 8% or so. I would not be surprised to see interest back at 7% within a couple years, that could cause MAJOR problems for many owners.