I think it's supply and demand situation in Calgary, based on our economy. I do agree that we don't seem as bad as we think based on the national index levels.
If the market is over heated and IMF is reporting I would say that it is based on the governments lending policies and interest rates which is driving affordability of home ownership up, creating an overvaluation in the market place.
I don't think it's a bubble and as discussed in other threads if you are buying a home and getting great interest rates, make sure to plan in what you would do at the end of your term if rates were 2% to 3% (double) higher and how that would effect affordability.
Another thing is to direct as much income as possible towards special payments on the anniversary, bi-weekly payments to directly reduce the principle.
If there is a correction of 10% or 15% I bet it will be in line with interest rate hikes. Also, the values will slowly return to today's values.
|