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Originally Posted by Claeren
haha, i am certainly not waiting for prices to fall (any more than they already have). Not sure where you got that idea? I think prices will just sit relatively flat for 10+ years until inflation catches up and affordabilty is restored. We might see a 5% drop at some point but even that is pushing it, the fundamentals are just too strong in the economy for people to accept a loss on their property.
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I can agree that prices in the area likely will stay pretty flat, and that I wouldn't expect housing prices to keep rising with inflation there likely will be a catch up period as you suggest. The principal of people not wanting to sell at a loss so long as they have jobs is also one I agree with. Home owners aren't losing out so much as it is uninformed speculators who are now carrying a second morgage.
Radley does make a point when he brings up the new buying products that were offered in Canada for the first time and how it also coincided with the hot economy, and lower interest rates. It was pretty much the perfect storm to create a real estate spike and it did lead to the crazy growth rate of the last two years. There is a limit as to what people can afford and with the new buying products people didn't waste anytime to run up to that limit. And like anything else...there were people who got to the party a minute late and followed their friend or connections advice to invest and got burned. Isn't the first time people made an uninformed investment and got burned on it either.