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Canada home prices sag 4.1 pct in February

Canada home prices sag 4.1 pct in February

Old Apr 30th 2009, 3:15 pm
  #16  
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Default Re: Canada home prices sag 4.1 pct in February

Originally Posted by Souvenir
Houses in my area are on sale for prices a fair bit higher than last year. I don't know what actual selling prices are but there doesn't appear to be a downturn.
You probably need to tell everybody ware you live for this to mean any think. Asking prices don’t seem to be falling much in my area (Summerland BC) either but there are now lots of houses sitting unsold on the market for some time.
You have to remember the housing market is not liquid like the stock market and it takes some time for reality to strike home and people start to chase the market downwards.
Look towards the US most areas there have bean falling for 3 years now and still are not showing signs of slowing down.
I purchased my house four years ago for $615000 was valued for line of credit six months ago for $1.2 million, I truly expect it to drop to around ½ million before things turn around.
Important point for me was it was purchased as a home and not any sort of investment.
Would I by now definitely not would personally rent for at least two years until we see a good six months of stabilization.
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Old Apr 30th 2009, 3:47 pm
  #17  
 
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Default Re: Canada home prices sag 4.1 pct in February

Originally Posted by MB-Realtor
People still buy Real Estate in the worst of times, even in the recession of the 70's when employment was higher than now, as were interest rates, the market was still active, slower but active.

Donald Trump made his "real" money by buying Manhattan real estate when everyone else was selling.
Oh, I totally agree. For prices to be falling, houses must actually be selling - if they weren't prices would be either static or unknown as there wouldn't be a market to measure.

Originally Posted by MB-Realtor
In my time we have had 3 major downturns, 1970, 1980-1983, 1989-1996. How long will this one last, no one knows, but never before have we seen such a determined and united effort by governments to reverse it. Will it work? Your guess is as good as mine..
The current government solutions are twofold:

- Stealing the wealth of those that have cash to give to those that have debt (via low interest rates, inflation, QE)
- Stealing the productivity of future generations (via the tax required to pay for current government borrowing)

In reality the solution to debt isn't more debt and you can't create money from money. The solution is work.

As you can probably tell that I think the governments are at best a bunch of idiots and at worst scheming liars and thieves - they can blame the banks if they like, but this mess would have been smaller had interest rates gone up earlier to prevent real estate markets going insane. The problem was that money was cheap and all that money had to go somewhere - this time it went into real-estate instead of tulip bulbs.

Originally Posted by MB-Realtor
All I know is the Winnipeg market, which varies all over the place from boom to slump depending on where your looking.
I only know Vancouver and the surrounding satellite towns - I would say that currently asking prices are aspirational and don't really reflect the new reality - either that or Vancouverites just like indenturing themselves (which anything above 4x effectively is)
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Old Apr 30th 2009, 4:25 pm
  #18  
 
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Default Re: Canada home prices sag 4.1 pct in February

Originally Posted by Mike Gas
You probably need to tell everybody ware you live for this to mean any think. Asking prices don’t seem to be falling much in my area (Summerland BC) either but there are now lots of houses sitting unsold on the market for some time.
You have to remember the housing market is not liquid like the stock market and it takes some time for reality to strike home and people start to chase the market downwards.
Look towards the US most areas there have bean falling for 3 years now and still are not showing signs of slowing down.
I purchased my house four years ago for $615000 was valued for line of credit six months ago for $1.2 million, I truly expect it to drop to around ½ million before things turn around.
Important point for me was it was purchased as a home and not any sort of investment.
Would I by now definitely not would personally rent for at least two years until we see a good six months of stabilization.
Sorry. I live in Gatineau (north side of the Ottawa river). Property here is pretty cheap. There are very houses around here that would attract the sort of money you are talking about; not in the city anyway. They tend to be huge, on massive lots and next to water. Your average 3-bed detached in a good area, like mine, would probably go for about 220. A place in the road next to us, identical to mine, is up for a third more than we paid four years ago and probably 10% more than it would have gone for last year. This area is a very different market to where you are. Prices are low and quite stable. It's a place to buy live, not to invest. I doubt much flipping goes on.
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