[flamesfever]

I think Calgary houses are due for an increase in price. However, like always it's location, location and location that will probably decide the rate of increase. Right now I'm told that the average estimated value to use is about $50,000. above the city property assessment.

For Calgary in particular, I think it's the recent rise in oil prices that are starting to give a renewed sense of hope that is the dominant factor affecting our real estate. However, in general, it's a large number of factors, all coming together, that is feeding the Canadian market, e.g.:

1. Low interest rates
2. Ease of borrowing
3. Rising material and labor costs
4. Large amount money injected into the economy
5. Currency devaluation
6. Anticipated inflation
7. Optimism with the vaccines, easing pandemic, and anticipated return to normal
8 Etc.

However, IMO the situation is not without risk, and could change. The oil price could drop, and stay low because the US oil shale play heats up and the Saudis increase production. Or interest rates could increase along with inflation, and if the economy cools off we could end up with stagflation.