Well if it's only going up then in 5 years a house at 250 000$ with an appreciation of 17.5% will cost.... 559 924$

So in 5 years we will either all living in Apartments and broke or something will give.

My wage hasn't gone up 17.5 per year.

It'll burst soon. Just wait.

BTW at 17.5% per year in 10 years it'll be 1 254 061$.

I doubt people will either earn that much more or be able to afford that much.

I have not bought a house yet so I'll keep saving tons of RRSP's and put that towards my first house once things get undumb.

X

 

The only problem is we aren't creating more land but we are creating more people, and those people need a place to live so that land is only going to get more valuable. This is basically going back to supply and demand. I was lucky enough to find a place early last year and one of my neighbours just sold for 30% more than what I paid for my place. The only thing that will slow down the increase in prices is the increase in interest rates... but that's just my two cents.

 

Thats what I'm doing to.. but there are no empty lots available even REMOTELY close to downtown or anything else for that matter. Most people buy lots with these old ratty houses on them.. then tear them down and build a nice new house.

Thats what I'm doing. My house is beyond repair.. but the lot and garage are amazing.. so the house will be wrecked when I can afford a new house in the lot. The cool thing about these older lots is that there is PLENTY of space available.. since real estate was cheap many years ago. So its not un-common to see these lots the size of a gymnasium with these older houses from the pre 1960's.

 

The problem where I live is all these dam albertans ( [img]tongue.gif[/img] )have decided that Vernon is the perfect spot for there summer homes. We have townhouses down the road from me going for 600,000+ and are seasonal use only. Not only are you paying $600,000 for a townhouse, but you can only live in it 6mnths of the year!!!!

Then you have the new deveoplment across the lake from me, 2300 new homes a gold course a winery etc...someone from New York just spent $600,000+ on a LOT. And its not even lakefront!

People are buying million doller lakefront homes and tearing down the house to build new ones.

All this in a 45,000 pop. town 5hrs from vancouver.

Wacko.

 

Paul.. Grande Prarie isn't too expensive... $190k will get you a fairly nice starter home..

Fort McMoney on the other hand... whewf... wow thats nuts. Paying $300k ++++ for a trailer.. WOW.


I honestly dont understand how there is a "BUBBLE" in real estate... its not related to a fickle thing like the stock market.


PEOPLE NEED HOUSES. And with a constantly growing population... there are always going to be people to buy them. Its not like the population is going to take a huge hit and there will be an influx of houses on the market. how could that happen?

I dont get what people say when they figure that houses will go down in price. its all about supply and demand. I can only envision a continually steady incline of house prices. It wont be as steep as it now is.. in places like Calgary, Fort Mac and so on given about 5+ years... when the oil production slows down. but even then.. how long have real estate prices been astronomical in Toronto and Vancouver?
Same thing with New York and so on..

 

Yep, those communities are largely 1-resource funded and when that crashes.....look out. I remember the one I think in 1987 and then one in the mid-early 90s?

Out here there only seemed to be one price drop after a big upswing and that was about 1980. Interest rates went to about 22% too..... I think that was nation-wide though.