Housing Market

[forreal]

Hey guys
I was just wondering what are your guys thoughts on the housing market right now in calgary?? Im thinking of selling my investment property I have because im in so much debt right now. Not sure if I should sell right now or wait a while? What are your guys thoughts?
thanks

[Canadian Turbo]

Re: Housing Market

Well the market has relaxed a bit now, but I don't think things are bad at the moment they are just closer to normal compared with the crazy market we saw in the spring. Therefore if you sell now the price has to be right as there are choices out there for people, but if you do price right you should be able to sell.

Now the other point to think about is that summer is generally the slowest time of the year for our market so it is possible things could pick up again in the upcoming months or it may continue on this cooling trend. So, maybe you should wait a little while longer and see how things go and then list your place.

My thoughts anyways

[The_Stig]

Re: Housing Market

it has gone down about 15,000 in the last month and a half. It will continue to go down a little before it levels off. The only advantage to really wanting a couple months is there is going to be a bigger selection to choose from.

[R_Ethug]

Re: Housing Market

actually the market is starting to go nuts again.. houses average price is now 400k here and was 375 back in july.. my place i'm building has gone up 20gs already even.. just wait another week and it'll take off .. all the students,etc coming back and stuff.. it will level off but i think its at the point now where this is where prices are gonna stay

[liquid]

Re: Housing Market

Calgary is and always will be a boom-town. It's very cyclical. I think everyone has made very good points, and all are valid. The market has cooled somewhat since the crazyness that occured in the spring and early summer, so right now is not the worst time to sell. With that said, I don't think the Calgary market is going to crash, I think as Blair and Ryan mentioned... it will drop just slightly and level off.

I think it depends on the type of property you have, and the situation you're in. If you REALLY need the capital you shouldn't worry to much about selling. Just make sure that if you use a Realtor, that you negotiate with him/her. My Realtor paid some of her money to close the deal for me to buy my place.

It all depends on your financial picture. Revenue properties are great to have, but not if they are handicapping your personal finances.

[Khyron]

Re: Housing Market

I would sell soon if you are in debt. All it takes is a few % increase in prime and the market will flood with forclosures/sales. It's not going to crash like it is in some parts of the US right now but it IS coming. Two houses on our street have been listed for over 30 days, so depends how long you have to sell as well.

Khyron

[Volinder D]

Re: Housing Market

Agreed, if you are desperate and in serious debt, sell your investment property, if you can wait, I would highly recommend it. Market has lots of properties right now, and prices have come down a bit. That being said, things will probably go back up in fall. Of course my guess is as good as anyone elses.

[timdog]

Re: Housing Market

Me and BoraMK4 were talking the other day about Edmonton.
Even if you live in Calgary, you should look into investment properties in Edmonton. That place is starting to boom but still much cheaper than Calgary right now. Find a place that already has tenants and you're good to go.
we were looking at some condos that were more than decent, for like 130 - 150 G's.

[timdog]

Re: Housing Market

I know that was sorta changing the subject, but still perhaps could be a consideration....

[forreal]

Re: Housing Market

Agreed, if you are desperate and in serious debt, sell your investment property, if you can wait, I would highly recommend it. Market has lots of properties right now, and prices have come down a bit. That being said, things will probably go back up in fall. Of course my guess is as good as anyone elses.

Damn this is really hard decision. Like I can get by with keeping the property but its making things tight. I talked to my realtor and hes also suggesting that I wait till like next May-June. I guess ill just wait a bit and see how things go.

Those were all very good points everyone made, I really apperciate it. thanks guys

[forreal]

Re: Housing Market

Me and BoraMK4 were talking the other day about Edmonton.
Even if you live in Calgary, you should look into investment properties in Edmonton. That place is starting to boom but still much cheaper than Calgary right now. Find a place that already has tenants and you're good to go.
we were looking at some condos that were more than decent, for like 130 - 150 G's.

Yeah thats what I also heard that its the right time to buy property up there.

[liquid]

Re: Housing Market

Interesting read......

http://www.sprott.com/pdf/marketsataglance/08-2006.pdf

Granted this is based on the US, but the Cdn market tends to somewhat mirror our Southern Neighbour. I don't think our fall will be anywhere near as drastic and I do believe we are in for a "softer landing", but things will come back to earth.

To much short term debt floating around, where people are getting away with interest only mortgages and so forth. All this has to come to pass sooner or later.

[R-Audi]

Re: Housing Market

Interesting read......

http://www.sprott.com/pdf/marketsataglance/08-2006.pdf

Granted this is based on the US, but the Cdn market tends to somewhat mirror our Southern Neighbour. I don't think our fall will be anywhere near as drastic and I do believe we are in for a "softer landing", but things will come back to earth.

To much short term debt floating around, where people are getting away with interest only mortgages and so forth. All this has to come to pass sooner or later.

I agree that MOST Cdn markets will follow the US... but Calgary is not the typical market.. as long as Oill doesnt completely plummit (south of $40/bbl) we wont see much of a change. Sure housing wont rise as fast as it has.. but I dont see it going down.

[Khyron]

Re: Housing Market

Don't forget that CY is not strictly oil and gas. A lot of the boom is from housing itself. Once that slows down, the demand for framers/contractors/labourers goes down, they stop spending or leave which drops the market. But agreed it won't be as severe as auto maker cities or forestry.

Khyron

[R-Audi]

Re: Housing Market

While not strictly O&G, it is the main reason for the boom in Alberta. Without O&G we wouldnt be where we are today..