Real estate in Calgary - another bubble?

[peter12]

Originally Posted by Rutuu

The whole world is experiencing the same thing, it's not a Calgary thing only.

The whole western world

[blankall]

Originally Posted by Fuzz

I suspect the demand is there(to an extent) for people who work at the hospital. No one is commuting to downtown daily form there(unless they are insane).

It's about the same distance time wise as the neighborhood I grew to in, Sundance, and a large portion of the people from their commute to downtown. That part of the chat is almost all families or empty nesters who probably should downsize.

The one bedroom condo would have limited demand, although the hospital could be a factor for sure.

[Mazrim]

Originally Posted by peter12

The whole western world

Doesn't make it any less frustrating to deal with, though. My wife and I are pretty fortunate that our current landlord is flexible about this situation and we essentially have no fixed date to find a house. I can only imagine what it's like for those who need to move out sooner than later.

[blankall]

Originally Posted by peter12

The whole western world

It's also hit pretty much the entire rest of the world too:


Asia:

https://blogs.adb.org/blog/housing-u...ty-crisis-asia

Brazil:

https://rioonwatch.org/?p=60460

Mexico:

https://www.forbes.com/sites/scottbe...h=5ef6ddeb4ec8

South Africa:

https://www.enca.com/news/people-des...g-johannesburg

https://www.bnnbloomberg.ca/the-glob...ries-1.1654418

In South Korea, President Moon Jae-in’s party took a drubbing in mayoral elections this year after failing to tackle a 90 per cent rise in the average price of an apartment in Seoul since he took office in May 2017. The leading opposition candidate for next year’s presidential vote has warned of a potential housing market collapse as interest rates rise.

China has stepped up restrictions on the real-estate sector this year and speculation is mounting of a property tax to bring down prices. The cost of an apartment in Shenzhen, China’s answer to Silicon Valley, was equal to 43.5 times a resident’s average salary as of July, a disparity that helps explain President Xi Jinping’s drive for “common prosperity.”

Rental apartment listings in Buenos Aires city are down 12 per cent this year compared to the average in 2019, and in the surrounding metro area they’re down 36 per cent, according to real estate website ZonaProp.

Baby boomers consuming the youth that they need to support them.

[CliffFletcher]

The global housing boom isn’t just about boomers.

But as a recent paper by Gabriel Chodorow-Reich of Harvard University and colleagues explains, what might appear to be a housing bubble may in fact be the product of fundamental economic shifts. The paper shows that the monumental house-price increases in America in the early to mid-2000s were largely a consequence of factors such as urban revitalisation, growing preferences for city living and rising wage premia for educated workers in cities...

Fundamental forces may once again explain why house prices today are so high—and why they may endure. Three of them stand out: robust household balance-sheets; people’s greater willingness to spend more on their living arrangements; and the severity of supply constraints...

https://www.economist.com/finance-an...-last/21807002

Households have more money (the professional-class two income household didn’t exist 40 years ago), those high-earning households are chasing limited numbers of detached homes in major cities, and borrowing money is historically cheap. And the main way boomers are contributing to the higher prices is by helping their kids buy homes. That and having the discourtesy to live longer and want to stay in their homes as they age.

[moncton golden flames]

Originally Posted by 81MC

their profit margin on infills is ridiculous enough it doesn’t matter to them.

I'm not sure you understand the industry enough to make such a bold statement. Everyone believes developers make money hand over fist, which is simply not true in most cases.

[blankall]

Originally Posted by CliffFletcher

The global housing boom isn’t just about boomers.



Households have more money (the professional-class two income household didn’t exist 40 years ago), those high-earning households are chasing limited numbers of detached homes in major cities, and borrowing money is historically cheap. And the main way boomers are contributing to the higher prices is by helping their kids buy homes. That and having the discourtesy to live longer and want to stay in their homes as they age.

It depends a lot on the city you live in, but, for the most part it's a generational issue. The young people earning $300k+ in family income remain relatively rare. They are competing for what once were medium level properties, yes, but they aren't driving up the prices, so much as they too are victims of the system. The double professional household would have, in the past, had a relatively luxurious lifestyle. Now, they are very much middle class, and in some cities lower middle class.

Everyone is getting knocked down a level or two by the policies that have concentrated wealth in the hands of the boomers.

[blankall]

As a side note, I was back in Calgary this week. I stayed at my brother's townhouse in the Altadore area. Fantastic. 2500 square feet of legit space. Detached Garage (for motorcycle repair or other hobbies). Could not hear neighbours at all. Walkable to all sorts of amenities and downtown. They have one kid, but that place could easily accomodate three. The cost of renovation was relatively cheap too.

Prices have gone up, but they paid about $600k for it. It's a legit medium density option for Calgary.

[Hemi-Cuda]

Originally Posted by blankall

As a side note, I was back in Calgary this week. I stayed at my brother's townhouse in the Altadore area. Fantastic. 2500 square feet of legit space. Detached Garage (for motorcycle repair or other hobbies). Could not hear neighbours at all. Walkable to all sorts of amenities and downtown. They have one kid, but that place could easily accomodate three. The cost of renovation was relatively cheap too.

Prices have gone up, but they paid about $600k for it. It's a legit medium density option for Calgary.

A 2500 sqft townhouse for $600k? Are you sure you're using the right terminology? I haven't even seen duplexes sell for that much, let alone townhouses

EDIT: nm, I've obviously never shopped for inner city properties before. Makes me appreciate my suburb house even more

[shermanator]

I wish I could get a 2500 sq ft townhouse for $600k in Altadore. Although there have been a few Garrison Woods that are / were in that range. Depending on the duplex you're getting closer to a million. Sucks for those trying to enter the market but for me, I couldn't care less. I am close to paying off my mortgage and am not looking to move. No reason for me to stress about it.

Whenever I do look to move next I will be subject to whatever the market conditions are at that time, whether the market is hot or we are in another downturn.

[blankall]

Okay...I was off...The home is technically in Garrison Woods. Was $700k...but is 2800 sq feet.

[you&me]

25, or 2800 sf is a BIG townhouse. Like, very abnormally large. Especially for $700k

[timun]

Man, I think about how much money my grandparents could have made if they'd stayed in Altadore longer. Both sets of my grandparents were original owners in the neighbourhood; my dad's folks died >20 years ago, and my mum's folks sold their place in 2005. I think my dad and his siblings sold their parents' house for about $230,000, while my mum's parents got about $390,000 for theirs. Had they held onto them they likely would have got $600,000+ as long ago as ~2012.

[blankall]

Originally Posted by you&me

25, or 2800 sf is a BIG townhouse. Like, very abnormally large. Especially for $700k

Checked again...$725k. This was 3 years ago. At that point, it had been sitting on the market for a while, and had already gone through several price reductions.

[I-Hate-Hulse]

Originally Posted by blankall

As a side note, I was back in Calgary this week. I stayed at my brother's townhouse in the Altadore area. Fantastic. 2500 square feet of legit space. Detached Garage (for motorcycle repair or other hobbies). Could not hear neighbours at all. Walkable to all sorts of amenities and downtown. They have one kid, but that place could easily accomodate three. The cost of renovation was relatively cheap too.

Prices have gone up, but they paid about $600k for it. It's a legit medium density option for Calgary.

Townhouses as you describe are really the best option for Calgary to be the missing middle. No it's not a dense as a 7 storey apartment condo, but it really is the most acceptable option for individual independence and tolerance for governance for Albertans - yet still achieve density.

[you&me]

Originally Posted by I-Hate-Hulse

Townhouses as you describe are really the best option for Calgary to be the missing middle. No it's not a dense as a 7 storey apartment condo, but it really is the most acceptable option for individual independence and tolerance for governance for Albertans - yet still achieve density.

Plus it's a far more reasonable form to expect families to accept. There's lots of ra-ra-ing about 3br inner-city apartments for families, but the hard truth is a family really needs more than just 3 bedrooms for a place to be a home, not to mention the fact that 3br condos tend to bump into townhouse pricing anyways.

[Regular_John]

Originally Posted by blankall

As a side note, I was back in Calgary this week. I stayed at my brother's townhouse in the Altadore area. Fantastic. 2500 square feet of legit space. Detached Garage (for motorcycle repair or other hobbies). Could not hear neighbours at all. Walkable to all sorts of amenities and downtown. They have one kid, but that place could easily accomodate three. The cost of renovation was relatively cheap too.

Prices have gone up, but they paid about $600k for it. It's a legit medium density option for Calgary.

The lack of noise from neighbouring units in our fourplex was one of the more pleasant surprises in our new place. We get much, much more noise from the sidewalk & streets then any of our shared walls.

I’m really not sure how they soundproof/fire break between units, but unless I’m outside flipping burgers on the BBQ next to their living room window, I hear literally nothing from the units I share walls with.

My other neighbours toddler made a game of tossing toys down the stairs one afternoon and he texted me asking if they were making too much noise… I didn’t even realize they were home that day.

[DoubleF]

Originally Posted by blankall

Checked again...$725k. This was 3 years ago. At that point, it had been sitting on the market for a while, and had already gone through several price reductions.

2400 square foot usable space? So that's like a 1600 sq foot townhouse with an 800 sq foot basement?

For instance, I had a townhouse just shy of 1400 sq ft. Including basement it was considered just a smidge over 2000 sq ft of useable space.

IIRC, you're in BC, so I wonder if you're confusing the usable space vs the listed sq footage differences of the two provinces.

That being said, a 1600 sq ft townhouse for $700K seems too high as well.

[you&me]

Originally Posted by DoubleF

2400 square foot usable space? So that's like a 1600 sq foot townhouse with an 800 sq foot basement?

For instance, I had a townhouse just shy of 1400 sq ft. Including basement it was considered just a smidge over 2000 sq ft of useable space.

IIRC, you're in BC, so I wonder if you're confusing the usable space vs the listed sq footage differences of the two provinces.

That being said, a 1600 sq ft townhouse for $700K seems too high as well.

Definitely an important qualifier.

For the sake of clarity, I was assuming Blankall was referring to above ground square footage, which is the industry standard for new and realtor listed homes in Alberta, with basement square footage being added to that number.

Referring to a 2800 sf townhouse should mean there are 2800 sf above ground and additional square footage in the basement.

For example, referring to a 3,000 sf bungalow takes on a whole different meaning, depending on whether you're including the basement, or just above ground space (same for a 2800 sf townhouse too, I suppose)...

[bagofpucks]

I’m helping a friend look at acreage properties and I am absolutely shocked at the total lack of inventory right now. Seems like the most of the properties available are around Bragg Creek and over the $2M range. It will be interesting if more properties become available in the spring.