Real estate in Calgary - another bubble?

[blankall]

Originally Posted by DoubleF

Huh? If anything, Calgary has an oversupply of condos right now with more towers expecting completion soon. Old condos get screwed by new condos because new and lower condo fees.


Some people hurting in the range of 15-30% on condos and townhouses isn't uncommon. I wonder if they 10% down and paid minimum, but I know some people who can't pay off their mortgage and realtor if they sold their condo now. So they just keep it as a rental and hope to break even on a mortgage payout in a few years. I'm going to be really happy if I can keep my losses less than 10% this summer.

Sorry if that was unclear. I meant there is not enough detached housing right now, but that could catch up once construction catches up.

[jwslam]

Originally Posted by DoubleF

Calgary has an oversupply of condos right now with more towers expecting completion soon. Old condos get screwed by new condos because new and lower condo fees.

The current generation always has the mentality that newer is always better. Businesses have gone the way of maximizing profits with no care for reputation nowadays. Sure, you can get a place brand spanking new for $0.40/sqft condo fees, but go around and ask any condo owner of a new building how quickly this has ballooned to $0.80/sqft with an impeding special assessment.

[Vinny01]

I get selling a condo if you need to pull money out for a down payment but you can find the right lender that will allow you to count your rental revenue as income to not hurt your borrowing power. When we bought in 2014 I tried to sell my condo but couldn’t get the price I wanted (I believe places in my building are nearly a 100k less today than they were in 14)

If you want to be a landlord and can get a downpayment otherwise then it might be worth checking with a broker to find a bank that will allow for that.

[tvp2003]

Realtors based in Calgary told the Financial Post that demand in the market is being driven in part by buyers from Ontario and Vancouver, who have been flocking to the city in search of more affordable homes for their families or as investment properties.

Jared Chamberlain, a realtor and the owner of Chamberlain Group, has been working in Calgary real estate since 2004 and said he’s seen many booms and busts, mostly tied to the energy sector.

“This time, it’s not an oil boom, it’s just people moving here,” Chamberlain told the Financial Post. “I don’t ever recall seeing this quick an increase (in prices).”

https://financialpost-com.cdn.amppro...496487ebc/amp/

[Hemi-Cuda]

Originally Posted by tvp2003

https://financialpost-com.cdn.amppro...496487ebc/amp/

Exactly what I and many others predicted last year when Vancouver/Toronto real estate prices kept climbing higher while Calgary stayed stagnant. People are moving here to finally be able to buy a house they can raise a family in, this is no bubble. If you're at all interested in owning a house and have the means you'd better get in now while the market is still somewhat affordable

[tony-soprano]

Your money is worth less due to inflation, bad policy (hence low supply), and low interest rates. Airport/Downtown Calgary is basically littered with shutdown businesses and smaller crowds (partially due to covid)..my guess is we see a correction tail end of 2022 with high lows.

[Regular_John]

“This time, it’s not an oil boom, it’s just people moving here,” Chamberlain told the Financial Post. “I don’t ever recall seeing this quick an increase (in prices).”

I have to suspect that having more families moving here who's livelihood isn't tied to O&G prices should be a net gain for the city in the coming years. I'm not sure it will be enough to completely remove us from the boom/bust cycle, but anything that can soften the effects should be welcomed.

[Yoho]

https://twitter.com/user/status/1489066832908722177

[Mazrim]

I'm not sure what the point of the article was. The advice is "bid really high over asking and assess the house yourself in a 15 minute viewing so you can do an offer with no conditions." The end of the article almost tries to make it sound exciting that someone has never seen the house they just bought in-person before.

[Table 5]

This thread makes me relieved that we bought a house last year.

Even though we would probably benefit from this upswing in prices, I'm really hoping this is not the new norm with people forgoing inspections/conditions and having to play the mystery bidding game. Leave that crap in Ontario/BC.

[topfiverecords]

Seems like an article that was written in the final 15 minutes before being posted, by someone related to a realtor and also getting ready to sell their property.

[burn_this_city]

Everyone get excited about making the largest purchase of your life via grainy photos taken by an aging realtor's flip phone. No conditions are allowed, it's the wild west, so you better have your home inspector hat on in the brief walkthrough that may or may not happen.

[Matata]

Originally Posted by Table 5

This thread makes me relieved that we bought a house last year.

Even though we would probably benefit from this upswing in prices, I'm really hoping this is not the new norm with people forgoing inspections/conditions and having to play the mystery bidding game. Leave that crap in Ontario/BC.

I bought a home in the spring during the brief downturn in the market, managed to pick it up slightly below asking price and had a week to work out the deal, seems like a fever dream now. The house next to me just went on the market and is getting showings at 30% higher than what I paid for mine.

[Table 5]

Originally Posted by Matata

I bought a home in the spring during the brief downturn in the market, managed to pick it up slightly below asking price and had a week to work out the deal, seems like a fever dream now. The house next to me just went on the market and is getting showings at 30% higher than what I paid for mine.

We had a similar experience. We had 3 weeks to waive conditions, had an entire day to inspect the house, and because of it we managed to negotiate another $15K off what we thought was an already reasonable price. Our house is from 1930...there's no way I would've bought this place without an inspection.

[Calgary Highlander]

I bought a condo in 2018 as rental investment (I was living at home after graduating). The person who was supposed to purchase it didn't qualify for the mortgage (and lost their deposit), and the developer offered it at a reduced "quick-sale" price of 265k. I figured it's one block away from South Health Campus/YMCA/Library, so it would be a worthwhile investment. It's always been rented and I've been lucky to have good tenants, but man was that a mistake. I'm luckily breaking even with the rent (after deducting mortgage, property tax, condo fee, and insurance) but I would have been better off investing in literally anything else.

I haven't tried putting it up on the market so not sure how big a loss it would sell for, but at this point I figure I may as well just keep it.

Just another "don't buy a condo" post haha.

[Johnny199r]

Alberta seems like the last market in the country to finally experience crazy real estate practices. Very fortunate to escape that nonsense for this long.

[Regular_John]

Originally Posted by Table 5

This thread makes me relieved that we bought a house last year.

Even though we would probably benefit from this upswing in prices, I'm really hoping this is not the new norm with people forgoing inspections/conditions and having to play the mystery bidding game. Leave that crap in Ontario/BC.

Ditto, we snagged our place before it hit the market for about 5% less then they were planning to list for. At the time I figured we saved them the cost/hassle of staging and such, but if the honest door algorithm is to be trusted then we’ve basically gained that value in the past 8 months.

We made the decision to list our old place around this time last year, I don’t think I’d be making that same move this year based on inventory.

[keenan87]

Is Edmonton seeing the same ridiculous market?

[red sky]

Had a friend who is moving back to Calgary put a bid on a house that was listed for a day at $649k. I think there were 6 bids and it sold for $725k with no conditions (including no home inspection). Crazy times out there.

[Gundo]

Originally Posted by red sky

Had a friend who is moving back to Calgary put a bid on a house that was listed for a day at $649k. I think there were 6 bids and it sold for $725k with no conditions (including no home inspection). Crazy times out there.

As someone listing later this month, this excites me. As a rational human being this is absolutely absurd.

A 1 year old Duplex in Wolf Willow just sold for $90,000 over asking. The folks only lived there 13 months and made $165,000 over what they had paid for the place.