Quote:
Originally Posted by Mike Vernon
England is far far far more expensive than Calgary, it also makes Vancouver look cheap by comparison. Not sure where that article is coming from. North America is a steal compared to Europe in general.
Housing prices in Calgary are very Oil and Gas connected. The scary thing right now is that Gas is at an extreme low, so if you think Nat Gas will eventually go up, where do you think house prices are going? The people that are sitting on their hands are in for big surprise come 2015 onward.
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The article is not about comparing housing prices in England vs. Canada. It's about salary in Canada vs. house prices in Canada which point to RE not being a steal. The reason why housing prices in England have collapsed even at low interest rates is due to this same disconnect. Calgary isn't much different but just at a smaller gap. The average working Calgarian is poorer now than 10 years ago as housing prices have not kept pace with salaries.
Energy prices have some connection to housing prices in Calgary but the biggest factor still is easy, cheap credit (low interest rates). That's why other places in Canada without oil revenue have increased just as much and could fall back just as much. If those dominos fall, high energy prices will have little effect in on softening the blow in Calgary.
Sitting on your hands probably isn't a bad idea though it should be more on your own personal finances than predictions of home prices and energy prices.