Experts involved in the Calgary Real Estate market say that the selling of high end homes is down drastically. The market downturn in Calgary and area does not have professionals spooked though, they say conditions are still strong.
"Cautious, price-sensitive purchasers are now weighing their options, waiting as long as six months for the right property to come along," the report says. "Properties that are priced well will sell, while those that are priced too high will linger."
Although people who buy an upscale house generally have deeper pockets than those buying an average home, factors that influence their decision are largely the same, said Lowell Martens, a realtor with Re/Max Mountain View. Article.
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Sunday, September 28, 2008
Tuesday, September 09, 2008
Real Estate In Canada Is About To Take A Plunge
Real estate experts across Canada have concluded that the decade long real estate jump is about to run off a cliff. Prices reaching of half a million for homes in Kelowna and Calgary are about to drop off significantly.
To analyze whether housing prices are overvalued, the researchers looked at current house prices in nine major Canadian cities. They compared these prices to their own calculation of what a balanced market price should be, derived from the relationship between house prices, rents and the cost of investing in housing in each market.
The study warned that the potential for price declines is greatest in cities that have a large supply of unsold inventory or a mismatch between the number of units and the number of households ready to occupy them.
Somerville concluded that only in Toronto are prices in balance with rents. In Halifax, Montreal, Ottawa, Regina and Winnipeg prices would need to drop by at least 20 per cent to be in balance, while Calgary and Vancouver would require a 7 to 11 per cent drop in prices to reach the study's equilibrium level. But the study found in Edmonton prices are actually below equilibrium, by 8 per cent... Article.
To analyze whether housing prices are overvalued, the researchers looked at current house prices in nine major Canadian cities. They compared these prices to their own calculation of what a balanced market price should be, derived from the relationship between house prices, rents and the cost of investing in housing in each market.
The study warned that the potential for price declines is greatest in cities that have a large supply of unsold inventory or a mismatch between the number of units and the number of households ready to occupy them.
Somerville concluded that only in Toronto are prices in balance with rents. In Halifax, Montreal, Ottawa, Regina and Winnipeg prices would need to drop by at least 20 per cent to be in balance, while Calgary and Vancouver would require a 7 to 11 per cent drop in prices to reach the study's equilibrium level. But the study found in Edmonton prices are actually below equilibrium, by 8 per cent... Article.
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