Quote:
Originally Posted by Ducay
Exactly. The drop in oil prices in the 80s had such a dramtic effect on house prices because people were paying 20% interest on their mortgages. More recent drops in prices in the last 6 years havn't had such a dramatic effect given people are paying less than a quarter of that.
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Rates can only go one way from here
Quote:
Originally Posted by DoubleF
With the rent prices going on, I think sellers have the option to consider pulling the property off the market and renting out instead of lowering price to sell. You might be lucky seeing maybe a 3-4% drop at most depending on the community, but I wouldn't bet on overall bottoming out.
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Rent has been sky high because so many people are moving to Calgary to work. Rent will significantly drop if oil decreases and less people are moving to the city or more people are going back to where they came from.
As a born and raised Calgarian I have seen the highs and lows of our petro based economy. In the long term I expect Calgary to continue to prosper but it is naive to think that there will not be ups and downs with the volatility of oil.