Here's a link to a National Post story on the madness:
http://www.canada.com/nationalpost/f...f9f72a&k=35968
Quote:
|
"The resale market is quite insane," said Mr. Clark, whose board is expected to release another set of stellar numbers on Friday that will almost certainly surpass the record high for home prices in the city set last month.
|
Man... I wonder what those Friday numbers will say. I actually think comments like "500/day" actually fan the flames, spooking people to "buy-buy-buy!!!" Now that I've found a new place I'm all for appreciation, but certainly I still remember the sense of dread everytime CREB would release it's numbers when I was buying.
The g/f and I debated this the other day. Your average entry level job for a new grad (ie AP clerk) in Calgary pays around 40,000 in Calgary. A person in that tax bracket pays about $8,000 a year in taxes, leaving about $2,600 monthly. At that pay rate it's pretty hard to buy a place without substantial savings.
But should there be an expectation to be able to buy at such a young stage of a person's life and career? In major cities like Vancouver, it's pretty tough to "buy" that 1st house outright, most people rent for a while and then go for the buy as income rises. In London, some people may go their entire lives without owning a place.
As Calgary evolves into a major city, should every person making $40,000 a year be able to buy a house or condo? Can a major city sustain that? Given trends in other major cities - I'd say no. (which sucks as we lose good people to other cities)