Quote:
Originally Posted by troutman
http://www.canada.com/calgaryherald/...e07c08&k=18782
Average MLS sale price seen rising despite lower demand, job growth
The CMHC says average MLS sale prices for all residential properties are expected to increase to $429,000 this year from an estimated $414,066 in 2007. In 2009, it is forecast to hit $450,000.
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But price growth is being driven by LAST YEARS (price inflated) new home sales. Last years prices do not show-up in the average price until posession is taken this year.
There is going to be a LOT of data supporting higher prices in the next 6 months. It is a VERY specific and dedicated plan being put forth by the home builders association and various related interests to clear their inventories. In other words it is propaganda - virtually all of the data available you will quote is directly issued or indirectly issued (submitted data being easily manipulated) by people in the industry.
I don't know of any legitimate third-party oversight?
After that they won't care that prices fall, and will simply wait it out as the little guy takes the big fall before they re-enter the deflated markets with much more room to (re-)grow again.
Furthermore, EVERY person i know who would want to sell a house or justify the price of their house (including the people in the industry) is counting on prices growing in the spring. The funny part is (1) why would people sit around all winter with prices falling $30,000+ in many segments and just wait to pay more months later and (2) NOT ONE person i know who wants a house is waiting until spring. They either bought over the winter or are waiting until next winter because they know after this big push prices will start dropping. Something has to give.
Claeren.