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Old 01-23-2022, 12:16 PM   #941
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Originally Posted by Flabbibulin View Post
Pretty depressing right now if your price range is in that 500k-750k zone. Any hope things will look better in the summer, at least from an inventory/panic buying perspective??
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I get it, and I dread seeing that happen in Calgary too, but it's more just me venting my frustration more than anything. I don't have the ability to compete with these people throwing these big no-condition offers around so it's looking less and less likely that I'll find a place I'm looking for any time soon. I'm probably going to be making the biggest purchase of my life on a 15 minute rushed look through a house. It's not enjoyable in the slightest for anyone.
It’s tough, we experienced that same situation when we moved here in 97. Now we’re on the other side of the equation, that same house has stagnated for the past 5 years while we’ve watched our retirement dream homes evaporate as they have now been priced out of our range. For us we’re finally seeing our home appreciate on par with homes elsewhere.
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Old 01-23-2022, 12:39 PM   #942
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I’m in the same boat. People are putting offers in that are 40-50k over asking, with zero conditions. They aren’t even getting home inspections done. It’s craziness.
These days, where ever you look in Canada, if you attach any conditions with your offer, you have 0 chance of getting a house.

The only option for a home inspection is taking someone with you while you’re viewing the house. That can end up being pretty expensive and not all that thorough.

Crazy that Calgary seems like the last larger city in Canada this phenomenon has hit.
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Old 01-23-2022, 12:50 PM   #943
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These days, where ever you look in Canada, if you attach any conditions with your offer, you have 0 chance of getting a house.

The only option for a home inspection is taking someone with you while you’re viewing the house. That can end up being pretty expensive and not all that thorough.

Crazy that Calgary seems like the last larger city in Canada this phenomenon has hit.
I bought a house in September and a home inspection was done, my parents bought one last month and their sale and purchase both had an inspection.

Maybe this happens in some instances but all sales I know of had them.

Now where I admit is getting something found and fixed from an inspection is harder. I am not sure if its fact or this mentality that you will lose the sale. Even our house sale we would have been open to fixing more than was requested, but the buyer was very motivated and basically waived everything.

Anyways I would stress that inspections still happen. You should at least get one officially done. It found a few things in my new house I didn’t put in conditions but was ready to fix on move in. Had I not, those issues wouldn’t have been at least identified and in one case could of wrecked my furnace over time for a $100 fix.
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Old 01-23-2022, 01:03 PM   #944
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I bought a house in September and a home inspection was done, my parents bought one last month and their sale and purchase both had an inspection.

Maybe this happens in some instances but all sales I know of had them.

Now where I admit is getting something found and fixed from an inspection is harder. I am not sure if its fact or this mentality that you will lose the sale. Even our house sale we would have been open to fixing more than was requested, but the buyer was very motivated and basically waived everything.

Anyways I would stress that inspections still happen. You should at least get one officially done. It found a few things in my new house I didn’t put in conditions but was ready to fix on move in. Had I not, those issues wouldn’t have been at least identified and in one case could of wrecked my furnace over time for a $100 fix.
I should clarify, I’m familiar with the Toronto, Halifax and Winnipeg market. Home inspection conditions are a thing of the past there. Nice to see they still exist in Calgary.
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Old 01-23-2022, 01:30 PM   #945
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The same thing was happening here with home inspections. The market has cooled slightly with changes to the banks, so now demand has followed and home inspections are back.

Interest rates will be up this year and that will hit demand.
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Old 01-23-2022, 04:05 PM   #946
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I have friends looking to move to Canmore sharing a similar anecdote to those reported earlier about people from Ontario buying properties sight unseen with no conditions. We all know how this will end.
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Old 01-23-2022, 04:18 PM   #947
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I have friends looking to move to Canmore sharing a similar anecdote to those reported earlier about people from Ontario buying properties sight unseen with no conditions. We all know how this will end.
I've heard versions of this anecdote from my friends all over.

Friend in Texas - California and New York folks are buying everything
My home - Sydney and Melbourne people are buying everything up
Calgary - Everyone moving from Toronto (even though when I was a kid growing up and the city grew from 500k to 1.2m with those people moving rapidly into Cowtown, housing prices didn't blow up 30% in a year until subprime lending/oil rises in 05-07).
New Zealand - Auckland people are buying everything
Sydney and Melbourne - Asian investors are buying everything up
London - Russian / Middle Eastern capital is making things unaffordable

In the short term, mortgage rates declined rapidly, which improves servicing, so you can spend more. There's more capital out there looking for a home, and it gets stuck in Real Estate valuations.

The printing presses are slowing and interest rates are set to climb aggressively in Canada (BoC is quite hawkish). I'm NOT calling a housing crash, but prices should dip 5-10% from the highs and you will be able to have the time get a housing inspection plus conditions for finance.

Are they building a big project in the Halifax area? What is driving sustainable demand in that area out of curiosity?
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Old 01-23-2022, 04:20 PM   #948
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The real estate market in this city is totally messed up right now.

I have a 2 bedroom condo in Marda Loop that has lost like 20% of its value since I bought it 9 years ago. I want to buy a larger place for my family now, but the fact that I have no equity in my condo and the blazing hot market in single family or attached homes means that I'll probably be here for the foreseeable future.
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Old 01-23-2022, 04:34 PM   #949
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Originally Posted by Rutuu View Post
I've heard versions of this anecdote from my friends all over.

Friend in Texas - California and New York folks are buying everything
My home - Sydney and Melbourne people are buying everything up
Calgary - Everyone moving from Toronto (even though when I was a kid growing up and the city grew from 500k to 1.2m with those people moving rapidly into Cowtown, housing prices didn't blow up 30% in a year until subprime lending/oil rises in 05-07).
New Zealand - Auckland people are buying everything
Sydney and Melbourne - Asian investors are buying everything up
London - Russian / Middle Eastern capital is making things unaffordable

In the short term, mortgage rates declined rapidly, which improves servicing, so you can spend more. There's more capital out there looking for a home, and it gets stuck in Real Estate valuations.

The printing presses are slowing and interest rates are set to climb aggressively in Canada (BoC is quite hawkish). I'm NOT calling a housing crash, but prices should dip 5-10% from the highs and you will be able to have the time get a housing inspection plus conditions for finance.

Are they building a big project in the Halifax area? What is driving sustainable demand in that area out of curiosity?
Re:Halifax

It started off as lots of Ontario people returning home to/relocating to Nova Scotia during the pandemic as they could now work from home with their Toronto wages and Toronto equity from the homes they sold.

This kind of reset the market and turned things kind of crazy. Low interest rates and lack of inventory due to no one wanting to move during Covid created a frenzy where prices shot up and competition became fierce.

There is no big project or uptick in the economy there. Still a limited employment market.
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Old 01-23-2022, 04:34 PM   #950
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Originally Posted by Johnny199r View Post
These days, where ever you look in Canada, if you attach any conditions with your offer, you have 0 chance of getting a house.

The only option for a home inspection is taking someone with you while you’re viewing the house. That can end up being pretty expensive and not all that thorough.

Crazy that Calgary seems like the last larger city in Canada this phenomenon has hit.
I bought my house in Vancouver in September with an inspection and full subjects, it's not impossible.
You're right that it's hard and rare though, and things have gotten even tighter here in the 4 months since I bought.

You can also book a full inspection before the offer time on properties. For example if they're taking offer Monday 5pm, book an inspection Monday AM.
Downside is you're paying for the inspection and may not win the bid, but you can at least get a full inspection done.
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Old 01-23-2022, 04:38 PM   #951
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The real estate market in this city is totally messed up right now.

I have a 2 bedroom condo in Marda Loop that has lost like 20% of its value since I bought it 9 years ago. I want to buy a larger place for my family now, but the fact that I have no equity in my condo and the blazing hot market in single family or attached homes means that I'll probably be here for the foreseeable future.
I feel for you in your situation.

We speak regularly to a real estate fund manager. His golden rule for real estate investing is you need to look at your purchase price compared to new supply when speaking about apartments, units, townhouses, condos, storage, student housing, etc. If you buy below the cost of new builds then you're in a good position. If you're in above, well, that is trouble.

Same goes for single detached homes. There are actually two assets in this situation, the house which depreciates (needs repairs and maintenance) and the land. The land in a place like Calgary where you have net migration and rising incomes (outside of commodity crashes) will appreciate. No land with the condo is where you get stuck. You'll need rental yields to climb without new supply coming on.
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Old 01-23-2022, 04:42 PM   #952
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Re:Halifax

It started off as lots of Ontario people returning home to/relocating to Nova Scotia during the pandemic as they could now work from home with their Toronto wages and Toronto equity from the homes they sold.

This kind of reset the market and turned things kind of crazy. Low interest rates and lack of inventory due to no one wanting to move during Covid created a frenzy where prices shot up and competition became fierce.

There is no big project or uptick in the economy there. Still a limited employment market.
Thanks for your reply.

You mention low inventory. That has been common as well.

Sounds like the WFH play. I am super curious if that trend is sustainable. I can definitely see 2days a week, but that doesn't work for people that moved out of market.

Anyway there could be some smoking deals in 3yrs time in Halifax.
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Old 01-23-2022, 04:55 PM   #953
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The same thing was happening here with home inspections. The market has cooled slightly with changes to the banks, so now demand has followed and home inspections are back.

Interest rates will be up this year and that will hit demand.
As long as inventory stays super low prices will remain very high. IMO reopening post covid won't have all that much of an impact. The issue is demographics and baby boomers not downsizing as they become empty nesters.

The millennials are the biggest cohort ever, and that are increasingly starting to have kids and demand more space. You've also got lots of gen xers who have been trying to buy for a while, and their incomes are increasing as they turn 40. Even people from Gen Z are starting to have children.

In places with lots of land, I could see prices easing, once construction costs come down and houses are eventually built. That's a multi year process though, and who knows where inflation and interest rates will be by then.

I do agree that the market has cooled, but it seems like only because prices are now much higher.
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Old 01-23-2022, 05:13 PM   #954
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Just gone through the house selling process recently. Had a so called lower cost house we had lived in for 30 years. Talking to realtors coming in for viewings they all said the same that their is very little of that type of inventory and most of the buyers which I saw were millennial or at least to me younger clients. Being a senior and chatting with several I did kind of hear the we need to have a house and not it would be nice to have a house. Needless to say asking price means nothing if a few people like the house they drive the price up over list. No problem here but thats the reality out there.

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Old 01-23-2022, 05:27 PM   #955
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As long as inventory stays super low prices will remain very high. IMO reopening post covid won't have all that much of an impact. The issue is demographics and baby boomers not downsizing as they become empty nesters.

The millennials are the biggest cohort ever, and that are increasingly starting to have kids and demand more space. You've also got lots of gen xers who have been trying to buy for a while, and their incomes are increasing as they turn 40. Even people from Gen Z are starting to have children.

In places with lots of land, I could see prices easing, once construction costs come down and houses are eventually built. That's a multi year process though, and who knows where inflation and interest rates will be by then.

I do agree that the market has cooled, but it seems like only because prices are now much higher.
Definitely a nuance of the market that should be pointed out as the demographics are important.

Speaking of land prices. Toronto was ahead of Sydney by 20% 6months ago. You should see the look on someones face when I tell them Sydney real estate is "cheap".

There was a poster talking about infills going up in Calgary's inner burbs with developers soaking up stock. Wages for the middle class outside the public sector have been pretty flat for a decade, but land prices go up as urban populations grow (its where the good jobs are). A $600k house is still a $600k house that is at the edge of affordability for a family making $100k, that house is just going to be smaller and further out from where all the amenities are (CBDs/Beaches/City Views/Mountain Views/entertainment districts, etc).

Big blocks that can be subdivided close to the core will be priced out for single families as they'll have different economics.
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Old 01-23-2022, 07:13 PM   #956
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Originally Posted by _Q_ View Post
The real estate market in this city is totally messed up right now.

I have a 2 bedroom condo in Marda Loop that has lost like 20% of its value since I bought it 9 years ago. I want to buy a larger place for my family now, but the fact that I have no equity in my condo and the blazing hot market in single family or attached homes means that I'll probably be here for the foreseeable future.
I wish someone had told 24 year old me to not buy a condo. That decision delayed a house purchase when I had a family by several years, and ended up costing me a lot more over the years vs renting due to depreciation. I will make damn sure my kids don't make that same mistake
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Old 01-23-2022, 07:53 PM   #957
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I wish someone had told 24 year old me to not buy a condo. That decision delayed a house purchase when I had a family by several years, and ended up costing me a lot more over the years vs renting due to depreciation. I will make damn sure my kids don't make that same mistake
I will never understand buying a condo vs renting. Not one part of it.
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Old 01-23-2022, 08:07 PM   #958
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So who you gonna rent from if no one owns them?
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Old 01-23-2022, 08:44 PM   #959
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So who you gonna rent from if no one owns them?
People with capital who hold it for cash flow purposes, but that would never live in a place like that
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Old 01-23-2022, 08:53 PM   #960
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People with capital who hold it for cash flow purposes, but that would never live in a place like that
Geez sounds like a society where only the rich own property and the rest pay them to live in perpetual servitude. Are we trying to emulate medieval Europe?

Also sounds like a great way to massively drive up house prices due to “low supply”, when really the issue is that speculators are buying up all the houses to price out your average middle class family.

Well good thing we don’t have to worry about that. No problems like that here or in other countries with out of control real estate markets.
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