Quote:
Originally Posted by MillerTime GFG
Without a doubt, there are big differences between the Vancouver and Calgary markets, which was one of my points in regards to the Fed’s policies.
I think we’re actually arguing about two different things. I’m certainly not saying first time buyers aren’t getting help from family, because they are. My argument was that most 35 year olds don’t have 160k liquid assets, and most first time buyers are not putting 20% down with the help of a gift. Most commonly gifts are to get someone over the 5% hump. I do some business in Vancouver, but not a lot, so I can’t say for certain, but I imagine this would largely be the same there.
And yes, I do own a small brokerage in Calgary for those wondering and have been brokering for 8 years.
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I never said "most" first time buyers have $160k. However, it doesn't take most buyers to horribly skew a market. You only need a few crazies to set new benchmarks in a neighbourhood. You then fuel bidding wars with cheap credit. People get more and more desperate and start doing things like going in with 5% down on houses well beyond their means. This is when doing things like getting parents to co-sign or provide funds from Helocs on their own property becomes the norm.
I wasn't saying this has happened
yet in Calgary. Calgary has, up until now, had one of the most depressed real estate markets in Canada. Of course, this isn't a trend there yet.
My overall point is that we are going to see real estate in Canada continue to rise for 2 reasons:
1. Low interest rates and federal economic stimulus; and
2. Wealth transfer from baby boomers.