Why is the market going crazy?

[gladaki]

Originally Posted by Super-Rye

The girlfriend and I just purchased a place.

I had heard stories from friends and co-workers who recently went through the whole process and they were telling me that they lost out on some places they liked because they waited a day to think about it. The girlfriend and I went in prepared to put an offer on a house that we liked right away.

Day 1 we saw 3 houses, 1 of which we fell in love with. Went to write up an offer right away only to be informed that the house was sold hours before.

For the next few days we looked at some nice houses that weren't for us, and some beat up houses that didn't look like anyone would want.

Eventually we got an email about a house that has just been put on the market. We set up a viewing for the next morning and put in an offer just after lunch. The house was conditionally sold to us later that night which is very fortunate because since then only a few houses in our price range (in the area's we are looking at) have been released and they're not nearly as nice as the one we purchased.

It's a crazy market out there.

May be I am wrong. But, I think canadian housing market is over value and thats what exactly reports from IMF says..

[calgarywinning]

I think it's supply and demand situation in Calgary, based on our economy. I do agree that we don't seem as bad as we think based on the national index levels.

If the market is over heated and IMF is reporting I would say that it is based on the governments lending policies and interest rates which is driving affordability of home ownership up, creating an overvaluation in the market place.

I don't think it's a bubble and as discussed in other threads if you are buying a home and getting great interest rates, make sure to plan in what you would do at the end of your term if rates were 2% to 3% (double) higher and how that would effect affordability.

Another thing is to direct as much income as possible towards special payments on the anniversary, bi-weekly payments to directly reduce the principle.

If there is a correction of 10% or 15% I bet it will be in line with interest rate hikes. Also, the values will slowly return to today's values.

[darklord700]

City of Calgary is adding more fuel on the fire.

"City poised to limit areas available for suburban growth"

http://www2.canada.com/calgaryherald...tml?id=9574514

[HockeyIlliterate]

Originally Posted by darklord700

City of Calgary is adding more fuel on the fire.

"City poised to limit areas available for suburban growth"

http://www2.canada.com/calgaryherald...tml?id=9574514

The cynic in me thinks that a tight housing market (and higher housing prices) is precisely what a city wants, despite all of its protestations to the contrary.

Higher housing prices equals higher tax revenues for the city.

A tight housing market equals a more powerful city council, which can award its friends and punish its enemies with land-use decisions.

Higher housing prices equals greater net worth numbers for the city residents, which provides a wealth effect and spurs consumption by the residents.

A tight housing market (and higher housing prices) is a back-door way to exclude undesirables from particular locations (and, conversely, keep them in only certain areas).

I could go on, but it should be obvious: a city can take steps to reduce a housing bubble independently of what the federal government and banks may do. One can only wonder why a city declines to avail itself of its many options...

[lorenavedon]

Originally Posted by darklord700

City of Calgary is adding more fuel on the fire.

"City poised to limit areas available for suburban growth"

http://www2.canada.com/calgaryherald...tml?id=9574514

big deal. You could fit another 3 million people easy in the current perimeter. Just comes down to not every single person is going to have a detached home with a yard. Calgary will have to turn into a modern city instead of Sprawlville.

[CubicleGeek]

The market is as crazy as everyone has been hyping it up to be. I've been wanting to leave the slum lord life for years and took this opportunity to list an old inner city property I have been renting out as the lease just expired at the end of February. Not only did I list what I thought was high, it resulted in a 3-way bidding war, and I ended up with more than the listing price. Absolutely insane. A place I've actively been trying to sell on and off for the last four years with little success and interest sold in a day.

[Flamenspiel]

Yea, it looks like the supply of older properties is way down. I cannot find a 50 foot property in the SW around Richmond park. From Killarny to Glenmore Trail.

[Travis Munroe]

Rarely do they hit the market. Developers have already spoken to the owner offering a quick seamless cash deal for when they want to sell!

Originally Posted by Flamenspiel

Yea, it looks like the supply of older properties is way down. I cannot find a 50 foot property in the SW around Richmond park. From Killarny to Glenmore Trail.

[calgarywinning]

Owners also approach developer companies before listing asking top dollar for re-develops.

Best to canvas the neighbourhood or to get a developer that is savvy at getting these properties. However, most are going to re-development.

[nik-]

Originally Posted by HockeyIlliterate

Higher housing prices equals higher tax revenues for the city.

That's not how property taxes work.

[Travis Munroe]

Was out with a buyer this evening - property came on the market around 4pm and the buyers are leaving for the day tomorrow. Knew we couldnt wait until Sunday so we got in around 6. Called at 7 to inform we were writing an offer and there were already 3 others on the property! Although we will never know, I was told that 3 of the 4 were very very close to each other but our offer got the win!

I just started working with a buyer who "fired" their previous realtor as he/she wanted to wait until weekends and compile a list of properties to see all at once. This market certainly does not allow for that type of shopping!

Going out with 4 different buyers tomorrow and all but 2 of the properties I will be seeing are new to the market within 3 days. Listings and choices are increasing however the demand seems to be picking up!

[darklord700]

http://www.citiesjournal.com/top-11-...s-in-canada/9/

11 worse housing markets in Canada and Calgary is not on the list.

[HockeyIlliterate]

Originally Posted by nik-

That's not how property taxes work.

Notwithstanding the fact that my quoted post did not reference "property" taxes, depending on the jurisdiction, higher housing prices can, in fact, result in higher tax revenues for the city.

[Flamenspiel]

"Owners also approach developer companies before listing asking top dollar for re-develops.

Best to canvas the neighborhood or to get a developer that is savvy at getting these properties. However, most are going to re-development."

A friend of mine has a property in the area, how would they become aware of such goings on? I would think the tenants would trash any note offering cash to buy the property.

[Brewmaster]

Alberta now accounts for 87 per cent of all the jobs created in the entire country since February of last year.

http://www.calgaryherald.com/busines...113/story.html

[oilyfan]

Originally Posted by HockeyIlliterate

Notwithstanding the fact that my quoted post did not reference "property" taxes, depending on the jurisdiction, higher housing prices can, in fact, result in higher tax revenues for the city.

Can you explain how?

[gladaki]

This is Toronto real estate market. Crash will be epic, Some how I think it will have some ripple effect on Calgary as well.

http://projects.thestar.com/race-to-rhodes-ave/

$717,000 for half a house?...............25 bidders?

That means there are still 24 buyers out there looking up and down the street.

The owner paid $525,000 to buy the place a year earlier.

I really don’t understand calgary bidding war as well. Disposable income vs housing prices doesn’t support this, unless there is major changes in income as compare to 2011.

These are just my views ..

[Winsor_Pilates]

Originally Posted by gladaki

This is Toronto real estate market. Crash will be epic, Some how I think it will have some ripple effect on Calgary as well.

...

These are just my views ..

What is so epic about this?

For the sake of argument, say you are right (you're not) and a huge crash comes. Millions of Canadians end up in major debt, unable to pay bills, foreclosed, even homeless etc.

What is to great about this that makes you so happy??

[Bill Bumface]

No kidding. Ever since this big run-up, I've been hoping prices just stay flat for a decade so incomes can catch up. I'm good with not having a complete economic disaster from the situation...

[Johnny199r]

Originally Posted by Winsor_Pilates

What is so epic about this?

For the sake of argument, say you are right (you're not) and a huge crash comes. Millions of Canadians end up in major debt, unable to pay bills, foreclosed, even homeless etc.

What is to great about this that makes you so happy??

Personally, it feels good to do the responsible thing and get rewarded for it in the long term. When trying to buy a house sensibly (large downpayment, low mortgage, not overextending yourself) and being driven to your wits end by people are financially irresponsible (when competing for the same interests as you) feels like just desserts when things return to common sense.