Tag Archives: house prices

Is Alberta now a buying opportunity?

The oil market has had an effect on house prices in Alberta.  Now with prices lower than they were a year ago does Alberta pose a good buying opportunity for real estate investors?

Don Pittis over at CBC says maybe not yet.

According to long time investment adviser and real estate guru Hilliard MacBeth, the bargain hunting in Alberta has already started.

“I’ve heard of lots of people who say, ‘The prices are down. I’m going to jump in,'” said MacBeth, Edmonton-based author of When the Bubble Bursts.

In fact, some of the people he advises have already identified a buying opportunity and jumped into the market, at least on behalf of their kids, who they are helping out in the role of bank of mom and dad.

“I would have counselled them against it,” said MacBeth by phone as he put on his ski boots in the Lake Louise parking lot. “I would have said, ‘Wait,’ because we’re early days yet.”

It’s more exciting to buy when prices are rising, so maybe try the Fraser Valley instead, where prices are up 27% over a year ago and they don’t have high paying oil jobs to lose.

“One of the things that was supporting Alberta home prices was the fact that our incomes were 40 to 50 per cent higher than the rest of Canada, and that’s changing very rapidly,” said MacBeth.

But property owners and prospective buyers elsewhere would be wise to watch and see if, indeed, the plunge is nipped in the bud by bargain hunters or whether prices continue to fall for a while yet.

Read the full article here.

Friday Free-for-all! March 24th 2016

It’s the end of another glorious work week and that means it’s time for another glorious Friday Free-for-all!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Where politicians fear success
Best neighborhoods
Smart or lucky?
Foreign money problem
Squamish?
Cracks in the market?

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

No sign of bubble bursting

This Vancouver Sun article used to have the headline “Vancouver housing market in bubble, new house price index claims.

That version of the article apparently included the following:

“While foreign investors are no doubt playing some role, we think this explanation is overblown. Low interest rates and self-fulfilling expectations of higher prices continue to inflate actual prices independently of fundamentals,” reads a press release from the creators of the index.

“Over the longer-term, we still believe that these housing markets will experience major price reversals.”

But that has since been updated to “Vancouver’s ‘housing bubble’ shows no sign of bursting” and we’re having a hard time finding the above quote. The article now says:

According to Davidoff, it is impossible to judge Vancouver’s real estate market on the same bases as that in other cities. In the Prairies and the U.S. Midwest, where space is plentiful, the value of a home is essentially what it costs to build. Vancouver, on the other hand, is almost out of new land to build on. “The house, that means, is worth whatever people are willing to pay,” he said.

We can’t quite put our finger on it, but it feels like there’s been a subtle shift in the tone of this article.

Read whatever the article currently says here.

FFFA! income, rates & debt people

It’s that time of the week again!

Let’s get to our regular Friday Free-for-all post, this is our traditional end of the week news roundup and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

BC income growth worst in Canada
Why rate cut may not drop mortgages
Bankers keep filling the punchbowl
The Okanagon oil link
The British Columbia oil link
Recession? Again?!
Owners ask for reduced valuations

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Prices up, incomes down

Pete McMartin is on a roll over at the Vancouver Sun with a series of articles that looks at actual data on the Vancouver economy and housing.

The most recent article looks at local income levels.

Vancouver stands out as an unusual case around North America: Our house prices rose as our incomes fell.

But those high house prices, and our utter preoccupation with them, have become a distraction to a greater problem, and they are only a part of Vancouver’s economic malady. At any rate, those high housing prices are largely beyond the jurisdictional abilities of Metro Vancouver’s municipal governments to have any real effect on them. Meaningful change — in immigration numbers, for example — would reside with the federal and provincial governments, but not at the municipal level.

No, the persistent, year-over-year problem has been in income decline, and this has been a long time coming.

“This is not a new story,” said Tsur Somerville, director of the University of B.C. school of urban economics and real estate. “We have lagged behind the other major metropolitan cities since the 1980s, and even before the period of rising home prices.”

Read the full article here.