Quote:
Originally Posted by Winsor_Pilates
The other thing is most of these buyers are move up buyers, so it's a combination of equity they've made in the market and/or help from parents to buy at those prices.
I have lots of clients selling Vancouver condos for around $900,000 & buying houses in the suburbs for $1.2-$1.4 with a rental suite that will bring in $1500-$2000/month.
And they initially bought that condo around $500,000-$550,000 so they have 500k in equity built up.
You also have couples buying together who each owned a condo before, so they sell both condos (with gains they've made) and buy 1 house/duplex/townhouse.
Can't say I've ever had a first time buyer just save up $200,000, qualify for an 800k mortgage and buy a million dollar property.
People to start smaller and work up the ladder.
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I don't disagree with this at all. However, I do know many people who went straight into detached without jumping up. These were all fellow lawyers, many in a two lawyer family situation. I also know many people who got help from their parents to buy those condos, which now start at around $750k for something descent.
I think Calgary will be different though. Firstly, because there aren't many higher end condos that people can step up from. Secondly, because detached housing, even after it increases in value, will still be within reach. You won't see the step up process. Instead people will largely dive right into detached.