Canadian House Prices

[spazzdla]

It would seem interest rates will just continue to go lower.  I doubt we will ever see 5% again as long as the CAD exists.  It just is not possible  it would decimate the ecom.

I am wondering when it only costs .5% for a loan what do you think the average house price will be?

Do you think the avg price will hit 1 mill with in the next 10 years?

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[Elwar]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

[spazzdla]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

We are so dependent on the housing "market".. it would annihilate our ecom.  I would even say if the housing goes below a 3% return a year things will get really bad.

[arbitrage001]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

We are so dependent on the housing "market".. it would annihilate our ecom.  I would even say if the housing goes below a 3% return a year things will get really bad.

A country wealth is build by service and production, not inflated asset.

[spazzdla]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

We are so dependent on the housing "market".. it would annihilate our ecom.  I would even say if the housing goes below a 3% return a year things will get really bad.

A country wealth is build by service and production, not inflated asset.

Suppose to be.. alas ours is currently not.

[Elwar]

Exact same thing happened in the US from 2005 to 2009. Prices did not continue to go up.

How many years have Canada's housing boom been going on?

[spazzdla]

Exact same thing happened in the US from 2005 to 2009. Prices did not continue to go up.

How many years have Canada's housing boom been going on?

10-15...

[Vod]

In Alberta, house prices have gone through the roof since there is oil money everywhere.

With oil prices so low a lot of layoffs are happening.  This should cause the housing bubble to burst.

[aigeezer]

In Alberta, house prices have gone through the roof since there is oil money everywhere.

With oil prices so low a lot of layoffs are happening.  This should cause the housing bubble to burst.

Agreed. Also, the Lower Mainland and Toronto have been in bubble-mode for a long while, and perhaps may always be so. The rest of Canada - not so much.

Geezer tip: If you're willing to move, you can turn a bubble-market house into a life of luxury in another part of the country. It's a one-way trip though, for the foreseeable future.

Also - if you are youngish - understand inflation. Houses that my parents bought and sold for about $5k are on the market for about $500k. Houses that I bought and sold for about $50k are on the market for about $1m. Look at markets as fluid, not as fixed points.

It is still a crap-shoot so relax and enjoy life, but don't whine "ain't it awful" - that's just your starting point.       

[Shattered]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

Im sorry, but are you claiming Reagan made the US economy better?
Im just trying to make sure my eyes are reading that correctly...

[freedomno1]

In Alberta, house prices have gone through the roof since there is oil money everywhere.

With oil prices so low a lot of layoffs are happening.  This should cause the housing bubble to burst.

Yep Calgary prices in particular should be going down quite a bit, went up a bit for a while after the floods though with some people moving away from riverside real estate to higher ground lol.

[Elwar]

If you get a leader in there that wants to bring value back to the CAD, they will raise interest rates.

Reagan did this in the early 80s raising interest to almost 20%. It brought a shock to the economy at first but ended with a better economy overall.

Im sorry, but are you claiming Reagan made the US economy better?
Im just trying to make sure my eyes are reading that correctly...

I guess not so much better as the second half of the 80s the economy did fairly well. His first years brought on a lot of economic insanity and I believe a lot of it has to do with trying to get the dollar back after the Carter years. I am not a big fan of Reagan's huge deficit spending though.