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Originally Posted by looooob
you raise some interesting points...however the Calgary market may be at a different stage right now than the US or Toronto real estate markets
that's not to say that it's never going to bust, of course, but there might be more years of upswing in it yet
anyone else's thoughts??
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Certainly. Obviously it seems like what is happening in Calgary (Alberta as a whole, really) cannot be sustained. Materials are stretched too far, labour is in high demand, supply is much lower than demand and prices are going through the roof. If prices are outpacing inflation consistently, it cannot be sustained, that is a fundamental truth of economics.
However, if the economy can stay robust... say for the next 5-6 years (to coincide with most of the major oilsand projects coming on production), then maybe it is possible... but who knows what effect such a trend will have on the rest of the economy?
Banks are driving the cost of housing because they are willing to give out these ridiculous mortgages with low rates and no money down. If anything ever happened to prevent these people from paying their mortgage, the banks will not have any sympathy and will foreclose on the property. It will be a fiasco.
Toronto is a little more stable because it has more than one industry that can support a population, unlike Alberta which relies heavily on energy.
Look at Nova Scotia, that region has been depressed for years because fishing and shipping have gone to the pooper. If you really want to buy land that has potential to be worht something, go out there.
Everyone will tell you, if it is profit you want, buy low and sell high. Calgary's markets have never been higher... so why buy now if it is value that you are looking for?
If you're simply looking for a place to live... well that's another matter. If that is all you're looking for then you would be a fool to pay the prices that are out there today to buy. Nothing wrong with paying rent to liveand directing the difference elsewhere.
That being said, there will always be mini-markets within the greater markets that will have their own trends. Real estate is quite an interesting game to play.