Quote:
Originally Posted by ranchlandsselling
I'm still amazed at some of the pricing going on out there.
I see a townhouse listed around $385 today that I know the exact same floor plan sold when things were running up in 2013 for $365. It's insane. Let's say that there's $20k in reno's done, and a $20k difference is applicable assuming ALL THINGS BEING EQUAL.
They're not. At all. It's a vastly different Calgary than it was 18 months ago and 36 months ago.
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My understanding is that the demand and interest in the sub $500k homes is still high which allows them to not suffer as greatly in the price adjustment. A $500k plus home needs to drop its price to increase the pool of suitors drastically to find a buyer.
For instance, the sub $500k homes/starter homes have interest from new home buyers, individuals downsizing/downgrading for practical purposes/ability to afford a home, new immigrants/new to the city, multi home owners etc. Afford ability allows for the price to fall slower. The lower price doesn't need to go lower for a hit in a pool of potential suitors.
The average price will still fall as the floor doesn't move as much, but the top prices drops dramatically.