It Wont End Well

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It’s hard to blame consumers for taking on huge mortgages when banks are offering five-year rates as low as 2.99 per cent. “Low interest rates are like a drug,” says TD Economics chief economist Craig Alexander. “The low interest rates are encouraging people to buy houses and take on debt. When they’re unhooked from that drug, they’re going to have to be unhooked very gradually because going cold turkey is going to hurt them.”

Madani thinks the Canadian housing market has already hit a wall. “Overconfidence is what’s driving the market. It’s been fuelled by cheap credit. That just can’t keep going on forever,” he says. “I think it’s going to end badly.”

“The thing with household debt is it’s not a problem until it’s a problem. But when it becomes a problem, it’s usually a really big problem.” - Its time to panic about the Canadian housing market - Macleans

Cheap addictive credit combined with endless pump and dump spinning from the housing industry and put in print by the bought and paid for MSM has put far too many Canadians into the debt danger zone.

It should have ended in 2008. No way it ends well.
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I know a few people in Calgary and greater Edmonton who are already in serious negative equity and unable to sell, which likely explains why there is just a 6 month plus supply of used housing on the Calgary market, believe me, these people would sell in a heartbeat if there were any chance of getting out of their mortgages without experiencing a serious financial loss. - Only 1300 sales in January and a massive inventory

Edmonton has an inventory of about about 7,500 housing units and saw only 880 sales last month for a gut wrenching 8 plus months inventory of used homes for sale. ereb.com/News&Events/LatestMarketStatistics
The Edmonton inventory glut is so bad that the realtors no longer record what seems to be a credible number, which is why I used Polaris.
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CRASH Dead Ahead !!

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Macrobusiness: Canadian bubble goes mainstream - Saskatoonhousingbubble

Can it get any clearer than that.
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So Who Has The Biggest Bubble Of Them All

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Click on the Taranet image to enlarge
Well its not Vancouver and its not Toronto. Hands down and no doubt about it, its Calgary and its Edmonton. In 2000 an averaged priced home cost $140,000 in Calgary, in Edmonton about $120,000, fast forward to 2007 and a Calgary home cost $505,000 and in Edmonton $451,000 for an increase of approx 275%. The big smoke and the silly wet coast cant hold a candle to those price gains.

If it weren't for 3% mortgages and the easy credit given to saliva drooling window lickers this province would be Phoenix north already.
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Condo Prices Collapse--$32,000 Salary Gets You In

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And so it begins.

Selling for $120,000 (still $60,000 to much), the stonecreek condos at Cochrane are sitting unwanted and unloved, if you make $16/hr, it gets you in the front door of a brand new 2 bedroom wooden crap box in the sky at a price thats 70% below an averaged priced metropolitan Calgary condominium.
$120,000 Cochrane 2 bedroom condo
$120,000 Saddleridge condos
$129,000 Bridgeland condos

Putting somebody that makes just $16/hr into $120,000 of debt is insane, this is a definite abuse of our monetary system and its abuse of the individual buyer who likely doesnt understand what hes signing.
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Here It Comes

“Canada’s high house prices in relation to incomes, combined with record household debt levels and overinvestment in residential construction, combined with a slowdown in demand, will cause a severe correction in the real estate market. This time it is not different. It never is.” - Canada's housing bubble: This time is not different

Canadas real estate bubble will blow exactly the same way as every other real estate bubble has blown before it. There was never any doubt about it.

If you took a realtors advice and bought Alberta real estate since 2007 you've already been crushed. Next up to be crushed, buyers that bought in 2006. Never happen you say. But it will.

Every bubble always unwinds to where it all began. Always.
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Geeky Looking Ain't He

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Maybe the title is to strong, perhaps 'would you like ketchup with your fries' would have been more fitting.

Lets not kid ourselves here folks, Edmontons real estate scene is reaching a state of desperation, sales are extremely low, prices are way, way down and people that need to list their homes and sell cant due to fact that they have negative equity in their homes and would need to cut a sizable cheque of 15-20% of the sold price ($100,000 on the average priced home) to close a sale, tens of thousands of Edmontonians owe more on their mortgage than their house can be sold for and unless a greater fool can be found that throws them a lifeline, they will very soon drown financially.

But one Edmonton realtor sees things completely different, despite January and February sales to date being near decade lows he had this to say in his comment section of the - edmontonrealestateBOG

Your experience is very similar to mine right now. if you really look at the 300 – 400k there are not alot of great properties and if something comes up it gets snapped up. I haven’t seen a January move this fast since January 2006 and I am hoping this is temporary and that the inventory rate can balance things out shortly.

The hypocrisy in his comment is astounding, first off, sales are excessively low historically and are nearing the lowest totals seen in 12 years, and secondly, since when did a realtor on commission want to see fewer homes being sold?

Like I said, Edmontons real estate is in wickedly bad shape and the desperation from the real estate industry is beginning to stink.

You can get a 5 year mortgage at near 3% with little or a declared income with virtually no credit check, yet these Bozos cant sell dick shit in Edmonton.
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Where Is He Now ?

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I haven't a clue. Do you ? But I'm sure hes living the high life at the expense of his kool-aid gulping IQ challenged REIN members. Man o man, did he pull you suckers in. It damn near makes me laugh.

All aboard Alberta's real estate express

And You cant stop stupid.

Seven busloads of real estate investors swooped through St. Albert Friday to check out the city that recently ranked seventh in the country as a place to invest.

The above Sheeple all lost money. Big money.
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Clowns

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