Real estate in Calgary - another bubble?

[Winsor_Pilates]

Calgary condo prices will only go up if/when larger properties go high enough to pull the values up with them.
If housing supply gets limited enough and expensive enough, it has a trickle down effect on smaller property types.

I recently saw a snake graph showing condo prices in Calgary, Vancouver & Toronto from about 2005 onward, and it's crazy how close they were at one point before the 2 other markers took off & Calgary didn't.

[flamesfever]

It's interesting to look back a couple of years in this thread and read about what the posters were saying about purchasing condos. The general feeling was that they were a terrible investment because of things like poor condo boards, rising costs, special assessments, past history of stagnant and falling prices, etc. And yet, that was the time to buy.

I have always felt that one should always keep a little bit of a contrarian point of view, and avoid the herd mentality, especially when it comes to investing.

[Bill Bumface]

Originally Posted by accord1999

They're probably needed to meet City requirements for unit density in new communities.

Which is a dumb policy, IMO. Let people build their sprawl on the edges, just make sure road layouts and lot sizes support future densification.

Building condos out there means the low income people that buy them need to own and operate a car they can't afford for large distances or spend 3 hours on transit.

Instead, why not have some sort of density swaps where we get more inner city development/housing going where those people can thrive a bit more.

While we're at it, charge people out the ass ton for sitting on unbuilt land. The surface parking lots taking up space perfectly good housing could be occupying need to go.

[CliffFletcher]

Most Calgarians have kids by their mid 30s. And they have a strong preference for raising those kids in detached homes. There are only so many housing units you need for single people who can afford to buy but don’t have kids.

[I-Hate-Hulse]

Originally Posted by flamesfever

It's interesting to look back a couple of years in this thread and read about what the posters were saying about purchasing condos. The general feeling was that they were a terrible investment because of things like poor condo boards, rising costs, special assessments, past history of stagnant and falling prices, etc. And yet, that was the time to buy.

I have always felt that one should always keep a little bit of a contrarian point of view, and avoid the herd mentality, especially when it comes to investing.

I won't disagree there there was an arbitrage opportunity from say, 2021-2023, but all the negative fundamentals you mentioned are actually magnified in these times of inflationary and distrust of authority. Going long on Calgary condos has significant holding costs, which, as a few posts above me exemplifies - is a risky proposition.

[username]

Good news for buyers and sellers in the US. The NAR settlement is going to significantly drop the commissions realtors make, reducing the price of homes.


How long until such an agreement comes to Canada?

[Winsor_Pilates]

Originally Posted by username

Good news for buyers and sellers in the US. The NAR settlement is going to significantly drop the commissions realtors make, reducing the price of homes.


How long until such an agreement comes to Canada?

We will probably see something come of it to Canada; but commission's are already about half in most Canadian markets compared to many US markets.

[Slava]

Originally Posted by CliffFletcher

Most Calgarians have kids by their mid 30s. And they have a strong preference for raising those kids in detached homes. There are only so many housing units you need for single people who can afford to buy but don’t have kids.

I think this is a significant factor in the density discussions as well.