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Do you believe housing in your city is overvalued?


 


 
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Do you believe housing in your city is overvalued?

  1. As someone about to sell, I say of course it isn’t overvalued. ;-)

    • Enslaving a family to years of extra mortgage payments so that you can make a whopping profit on your house is morally wrong.

      • Then talk to the bankers.  They’re the ones who’ve created the mess that the whoe planet is only beginning to suffer from.  They’re not even CLOSE to being finished, either.

        • It’s not the banks. In Vancouver it’s buyers from China and other Asian countries who are willing to pay anything for a house they don’t even live in. They rent it out or their kids use it while at University. That’s what needs to change. The daughter of a friend was going to UBC and has changed university because it was all Asian students who keep to their own group and don’t speak to local students. She’s gone on to UVic. Pretty sad.

          • Well, as the world’s economy grinds to a halt over the next year or two, you may wish to revisit that thought that “it’s not the banks” after checking your bank balance.

            I find it hard to understand why so few people can see what’s staring them right in the eye and screaming at the top of its voice?

            Not to say that your idea that foreign ownership is NOT a contributing factor, but it is a sub-factor at most.  Banks being able to create money out of thin air has led to the devaluation by inflation of the currency for DECADES, and they’re nowhere near finished!

            In 1968, a brand new Camaro cost $3,500.00 with all the gadgets.

            More than 40 years of advances in manufacturing, materials, composites, fuel efficiency, assembly line productivity, robots, reduction in workforce and much more have all contributed to the reduction in cost of the vehicle in question.

            So why is TODAY’S Camaro $55,000.00?  It’s made faster, with less materials, and better pretty much all around…but why is it so much more expensive?

            The answer is the same as why it used to cost $1.00 for two liters of milk 10 years ago, and today it costs $5.50.

            The “cost” has gone down, but the value of the dollar is dropped significantly faster than the myriad of advancements have been able to account for.  The only way that the value of the dollar can go down is when more of it is “created”, which then “devalues” the currency, making it “hold less value.”

            That said, I see a $60,000.00 house from 1967 currently valued at $130,000.00 or so in my area, while the same size house/lot in Toronto would be upwards of $600,000, and the same size house/lot in Vancouver would be even more ridiculous than that, I’m told.

            There is a certain amount of “local effects” on house/land prices, but the main factor that nobody EVER considers is the fact that the dollar is LOSING VALUE as it is inflated…and there is a reason that NOBODY is ever taught about such things:  Problem.  Reaction.  Solution.

            It’s a deliberately designed problem.  Before the problem was rolled out, the solution had already been designed as well, by the same people who engineered the problem itself.

            When we finally have had enough, we will demand action.  Most people will be woefully or wilfully ignorant that the problem was created specifically for this moment, when we “demand action” to fix it.

            The “solution” will be revealed…we’ll give up national sovereignty or basic human rights, or allow some foreign bank to take over sections of our government or land…but be abslutely certain:  There WILL be a “solution” just waiting to be released (it’s already done!), and it will be rolled out with great fanfare as “the solution to everything wrong in the world today”…and it will be far, far worse for everyone over the long haul than the original problem could ever have dreamed of being.

            Just wait.  You’ll see for yourself soon enough.

          • Alcan thanks you for your business.

      • So, it’s morally virtuous for me to take a huge loss after sacrificing 5 years of weekends and tens of of thousands of dollars slowly restoring a neglected drug house to a comfortable and beautiful home, all the while living in it? Nice to know.

        • Nobody said anything about a loss. Your time is worth something, for sure.

          A modest profit is reasonable to expect. It’s these people that make six figure profits on houses that they barely improved that kill me.

          The Real Estate people are the greediest of them all. “Let’s test the market at…” they say. House flippers are just as bad.

        • totally agree with you, we have sunk over 100 grand into our neglected home and spend many many week-ends and holidays repairing and improving it… and now, of course,  we love and treasure it…. and IF and WHEN we decide to sell you bet your bunnies we will ask for the highest price possible

      • No it’s not. The seller will get no less and no more than potential buyers are willing to pay.  No one is putting a gun to their heads. You also have no way of knowing if they are going to be making a whopping profit.

        Further, If a family is going to enslaved by a mortgage, they buy a more affordable home or rented until they could afford one.

        Taking on debt that you cannot afford to payoff without sacrificing your family is morally wrong.

      • Nonsense. That family is not forced to buy this person’s house or any other. They can live where they can afford to live. Rental or purchase. Just as with my parents, they can rent until they have saved enough to buy, or not, and just keep renting. Keep your socialist morality and apply it to your own property. Also, it is hardly “enslaving”. Don’t diminish slavery by applying it in such a cavalier and inappropriate way.

  2. Too many people, too few houses. And too many people willing to sign their life away to buy a house.

  3. As a Winnipegger, I am often shocked by the over-inflated housing prices in other markets like Vancouver and Toronto. A house that sells for half a mill in Vancouver, can be found here for about $160K. I think that’s why our real estate market is still thriving and quite stable. Something’s got to give in the other provinces that charge a king’s ransom for often, a tiny shack. Truly unbelievable what some people are willing to pay for a sub-par home, ultimately strapping themselves to years of unnecessary debt. If people keep willingly continue to buy these over-priced properties, the prices will only continue to soar.

    • as a former Winnipegger – be careful what you wish for:  I was in Vancouver at the start of all this and couldn’t qualify with a $50,000 down payment – and ended up paying high rent with no choice while working towards a qualify Mtg. job as a single parent (during the 11 and 7% interest periods) – My downpayment was eaten by rent and still the prices of homes went up because of flippers, Immigration, collective investment groups and so – on.  If the bank had let me, I’d be more than a millionaire today for how many rentals I was ‘flipped out of at my own moving expense because they sold’.    So I decided to move to a less costly housing community but alas there where no jobs there.
      the Hong Kong boom created initially $500,000 homes from $135,000 homes and the people who sold felt rich and paid elsewhere.  And the Realtors and developers kept pitching to the Pacific Rim market as they called it and look where it is now – horribly inflated concrete but the Chinese still think it is reasonable and they got all those social benefits as well, as did the Sieks with their collective buying power for farms and mega housing etc.
      As a former realtor in Sk. I could not see this going on forever but it has for 20 years:  I sometimes scroll the mls in different cities I’ve lived in – there aren’t many reasonably priced homes except in areas that have no employment. (try Terrace Bay for instance).
      Your province has already made a recovery – just watch what happens when immigration
      (and believe me they can afford to pay anything for the most part, particularly the Chinese)
      chooses to live in Wpg. despite the cold.  You have great universities, culture, housing, hopsitals etc.
      If they choose to buy out Winnipeg – those with homes can afford to relocate with the money but never to locate back to Winnipeg again because of inflated prices.  Just look what happened to Saskatchewan which was so reasonable, I myself lost $170,000 actual equity in my lovely home in order to move and find work:   The Albertans bought off the web in 2007 multiple listings all over the province for the same price and more they got for one house in AB and then there was a housing shortage and prices went up so the average worker there could not afford a home nor renters who’s buildings where being torn down for new condo sales.  Other than the Fort Mac oil commuters and the trades…….and the developers and realtors, no one else really had the money it took or the jobs to sustain themselves except the falsely created no down payment and 3% variable mtg. rates created even more buying power to keep one in debt…….(as a realtor there I could never sell a beach cottage for a mtg. but now those 10,000 shacks or lots sell over $200,000 with a mtg. at good value).
      and that is still going on;  It is how the Conservative gov. gets their economy stimulous.

      but believe me – they have gone through this created ‘boom’ and stimulous and are into their second global recession……..remember this all started in the global trade deals……..days.    1990……..yep, 20 years ago and of course it is going to hit the so-called world class cities first by masses of immigration buying up property and then expanding to other desirable areas.  This whole 20 year wave changed the face of our now unaffordable health care, EI, education systems etc.  Take a look!   So what are the Fed’s doing – they are saying we have a job shortage of skilled workers which is not true……….and immigration calls again for the future.  It is their stimulous.  Don’t forget too that the Canadian rules allow pensions too for immigrants after little contributions……why Harper is looking at a big change in that —-

      Oh it is far reaching and insidious and these are the people you vote for to look after our economy.  And don’t forget CMHC A BIG MONEY MAKER FOR GOV. AS IS EI.  THE EXTRA PROFITS – BILLIONS ARE TRANSFERRED OUT AND THEY KEEP RASING THE FEES.  IT IS CMHC AND INDIVIDUAL BANKS THAT CONTROL REGIONAL DIFFERENCES FOR LENDING PRACTICES.  Before you move – always look at the lending practices of the Region……..you may be surprised that is is easy or difficult depending where you are going.

    • So it’s like buying a BRAND NAMES than a NO NAME brand, drinking at the bar than at home….make sense !

  4. It sickens me to read, “Home owners will be happy that the value of their homes are rising.”
    I have lived in my home for 45 years. Its assessment has gone up from $35,000 to almost $1,400,000. The house is small, and worth very little. Why should I have to move? I have deferred taxes for years, but my children want to live here. They are emotionally tied to this place, as they should be. A person’s home should NOT be treated as a commodity. 
    Tax those who use property as an investment, not those who use it as their home. Perhaps that will free other homes for people to own and live in.
    Who cares if the prices go down? That’s what needs to happen. 

    • You have lived in your home for 45 years….your children want to live there….how old are your children?  I am sorry but if my “little $35,000.00 home” was valued at 1.4 million dollars and I was ????? retired??? …..I think I would sell my house and go somewhere cheap to live.  The kids are obviously grown up.  You could visit them or afford to pay for them to visit you.

  5. Look back decades, and you will see house prices are low relative to incomes. Everybody wants something for nothing.

    • tell that to someone with a college and university degree and excellent experience that has seen her income halved then halved again!  over the last 20 years.  Obviously you are a well connected man and an investor.

  6. Our political leaders have tried very hard to keep the bubble inflated. What will they do to keep the Asian buyers coming in 2012 and beyond?

    • Due to the “bubble” in China and the government there actually doing something about it they will just stop arriving.  They are very a leveraged group.

  7. Here in Calgary the house prices are rediculous!!!!!!! In Bowness a house that’s 75 years old and still has cloth wiring goes for $ $320.000.00!!!!! ANYone who would buy this house probably needs another 100 grand to bring it up to code… and which young couple can afford that mortgage??? unless mom and dad help out of course….   

    • Now then to be fair, Bowness is considered inner city and the prices are high due to the short commute to downtown.  You are also getting a lot that is 120 X 50 with mature trees.  I am not sure what house you looked at but the one I saw that was valued by the city for $320K was 1,300 square feet, had all new windows and a complete reno 15 years ago…including new electric.  It was 55 years old and had a pristine yard.  As for your mortgage payment, you would likely pay a little more than what I did when I bought a house in 1990 for 100K but had to pay an interest rate of 12%.

      • this house is located on 70th and 40th…. 2 almost dead trees, lawn not cared for, roof in need of replacement, …. the inside is basically rotten and is maybe 950 SF,  current owner smokes ( has lived there for the past 16 years) and as you can imagine, the ceilings and walls are gross…. it’s waiting for the wrecking ball as the lot is indeed bigger and has room for a bigger house…. but by no means worth that kind of money!!!!  if you buy this lot, by the time you have another house build on it, it would be over 1/2 million….. and yes, bowness is gorgeous, love the neighbourhood and people… but not for that kind of $$$$$$

        • Have you checked out Montgomery? 
          What you might want to look into is buying a place that has a suite in the basement that you can rent out to help you pay your mortgage.

        • By the time you have another house built on it, you’ve built a brand new duplex and are selling both sides for 1/2 a million each.

          Double your money in the span of 2 years or so? Yes please.

  8. Too much expensive housing being built, putting middle and lower income residents out of the market, both rental and ownership.

  9. We soild our house in Saskatoon last year and purchased our current home in Winnipeg. Not only do we think that homes in Winnipeg are affordable but there is a great supply of little starter homes as well as luxury accomodations. Further, Winnipeg understands how to  move people and snow. Hats of to this city for its bus service (complete with heated bus shelters) and road cleaning plan.

    • Winnipeg has always had wonderful snow removal – great to know it still does.  I remember a little front loader used to go after the plough and do the drives too as a prevention to heart attacks during certain heavy snow falls.  Exept for weather extremes and elephant sized
      mosquitos it is a wonderful city no matter what others might say.  I was sorry when my ex made me move.

  10. My answer is a bit of “it depends”.  Housing prices in Toronto are too high if you’re looking across the board, but my own place is worth less than $250,000, and while that may be a little overvalued for what I have, I hardly think it’s unsustainable.   Then again, I know people who don’t have much more than me (square footage, amenities and the like) who’s places are closer to $400,000 in the part of the city where they live, and that doesn’t seem sustainable to me.  So, overvalued sure, but not “unsustainable” across the board in my city, I don’t think.

    That sounds a bit like “everyone else’s house is overvalued, but my valuation is about right” and there’s probably some of that in my thinking, but I still think that my impression is largely accurate.

  11. I recently sold my house and I’m now renting. I work in the financial services industry and I believe we about to see a down turn in housing prices. Don’t know when… but when it does… I’ll think about buying back in! I purchased a new home north of Toronto about 10 years previous… after interest on my mortgage payment, taxes, upkeep, repair, additional work(finished basement and added to deck) I figure I didn’t really get any further ahead financially! And that’s in a good market! 

  12. we have lived in this city,,,,since the 70ies…the house bought for $68,000….would sell now for $1.2 million…..one year ago …it was around $800,000….we grow blue berrys apples etc in the yard…but if it was to be sold….the buyer will have it flattened and build a house that covers most of the quarter acre and then have the rest covered in paving stones………some leave a bit for grass………..no trees…but the property would then be worth 2 million……………..no wonder young people cant stay in Richmond …but old people cant stay here either because the senior facilities are being filled with non english speaking seniors……so you would have no contemporaries to spend your final years with,

    • if you don’t choose to leave the increased value of your wonderful Richmond property to your children  – and fact is fact about Sr. facilities and concrete……..(in more places than just Richmond) – you can move to the interior right now where house prices are falling dramatically and still have your green space;  if you sit here on our deflated property values long enough you will see them go up again at inflated prices because of millionaire investors
      (but there are no ‘real’ jobs here) and when you retire – ohmg – you have to spend over 3500 a month to get into any Sr. residence and the gov. ones are getting deplorable with long waiting lists all across the country.  As Canadians we have very little choice left in our retirement years unless we have money.  Canada is long gone especially in areas like you live in that started the immigration boom 20 years ago to Pacific Rim and the community the Alex Frazer bridge connects:    And yet your bc gov is lauding more immigration (yep it gets votes) – to more skilled workers? while we suffer low wages as a norm and paid into social benefit programmes for years……….that now the immigrants are totally entitled to – be it care homes, health care, education and so on………..and our resources are sadly depleted and now like mr. Harper announced…….he’s going to take away more badly needed social security like Pension top ups which still keep the average single female in poverty as totally inadequate to meet shelter needs:   – why because of inflated home prices, and rentals.  And thus as a single female who raised her family well, I can’t afford to look after herself or have a  ‘life’ just existence in my retirement years and isolated from my contemporaries too because of my financial situation.  I rue the day I am forced into a retirement home – scared as hell…with no family near by.  I may have to learn to speak more languages…to communicate…and be social?

  13. we need to hold our governments more accountable and transparent and work towards change back to a comfort level we had not more than 20 years ago.  Our little Canada has joined the rest of the topsey turvey world of global economy, interest investments, private co’s running gov.  and self-serving interests while our gov. pretends to govern for ‘best’ economy??????????? and attracts more immigration to inflate more prices while those of us who grew our country can’t afford for the most part to live here anymore re wages and inflation.

    we reflect what we reap in voter apathy and think we can do nothing to change it?  It takes time but look what Layton did…………..he got interest going again – and so did the 1% movement which press and gov. played down………..
    it may take many years to unravel what was started in the 90’s with free trade dependency badly written, and global situations……..but if we HOUND OUR MLAS AND MP’S AND BE PERSISTENT..e mail and letters cost nothing……….maybe some gov. will start to be accountable and work for the best interests of long term Canadians;  Our Natives are making in-roads, why not us.

  14. Hate to say it, living on the Island of Montreal, but I believe that the housing market is hyper-inflated all over the Country, not just here. Can you spell “S-p-e-c-u-l-a-t-o-r-s”? It’s not about “people”, it’s not about you and me,
    it’s about $$$$$$$$. Land grabs, fueled by cash-strapped Municipal governments having found the goose that
    lays the golden eggs – numbered companies building bigger boxes where apartments used to be, renaming them in the kinder sounding “condominuums”, flipping properties like nobody’s business, shabbily constructed, as fast as they can get the construction companies, and their sub-contractors, to build them. Yes, you buy your Condo rather than rent it – sounds smart enough if you are in the high-end market and planning it as your final destination, but you also buy all of the attendant problems that ever existed in apartment buildings. A condo is still just another fancy apartment. Welcome to the vertical world, may you rest in peace. We no longer live in a world of “morals”, we
    live in a world of opportunism: the dog that chases the cat that eats the rat that eats the mice that eats the garbage.
    Infested with cockroaches. They live with you and shall inherit the world we leave behind.

    • my goodness….. didn’t you take your positive pill today???? you sound totally depressed and deprived!!!!! it’s an easy solution…. don’t buy but rent… so you don’t have the property taxes, the maintenance, the problems with repairs, looking for good tradesmen that don’t rip you of and do a decent job… etc…. it’s endless… doesn’t matter if it’s montreal or calgary… luckily we don’t have rats! the 4 footed ones that is…. 

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