Quote:
Originally Posted by snootchiebootchies
Color me skeptical about rebounding housing prices.
- Albertans still have persistently high debt loads
- increasing interest rate environment
- lower for longer oil prices
- more stringent mortgage rules
- oversupply in the condo and rental markets
- dismal (but improving) jobs market
There was such a build-up during the boom that I just don't see a rebound anytime soon. Moreover, I'm not confident that we've seen the last of government intervention in the real estate market. It's possible the bottom is behind us but I really don't see much appreciation until there is real evidence that jobs and job security are coming back.
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I think that there are signs of recovery though. Oil is basically double where it was at this point last year. People I talk to in the industry are much more confident than they were even 3-4 months ago. So if you didn't lose your job (which yes, a lot of people have), you were worried about it. That fear is dissipating though and when it does, people are more willing to take risks.
I have also heard of companies starting to hire more. If you kept your job, don't think that you'll lose it now, and were debating buying a house you are buying while rates are low and prices are at least lower than they were. Real estate changes pretty quick. Think back to 2008-09 when you could buy a condo and get extras like a free trip to Hawaii or whatever thrown in. It was like that for a while...until it wasn't. And once the deals were gone, that was it.