Years ago, when I did not yet look at real estate as an investment, a home was something I needed for my family and for my kids. I could afford given my budget and income. Market price does not effect as I am buying home for my family as long term.
So, if you do need a family home now, if you can afford it, and if it looks like you will stay in the home for quite some time, go and buy one.
And there is certainly a lot of choice and some very motivated sellers.

...... BY Calgary Real Estate Board.

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Yrs ago was good deal. how many CREB people are buying in this market?

This is new emotional market agenda by our banks/mortgage broker/realtor/Real Estate Board and experts. Why do these people not tell the truth (Foreclosure is the future) and educate people than emotional brainwash:

Foreclosure is the future:

• It’s not a right time to buy at least first time buyer and hold on money tight. Try to put money in insured investment
• Try to focus on job and cut the spending as much as possible
• Credit market is not good and getting worse
• People are loosing jobs
• Oil price is going down (can be good and bad news)
• Most of the people are living on paycheck to paycheck with lower interest rates so they can not afford those houses for long as house ATM is not working.
• A lot of new homeowners can not sell/refinance as prices are going down.
• Homeless people are also waiting for price down as they are not workless but only homeless (in Calgary).
• Herd (people) is so over-news with bad news
• People will be so scared for so long that they can not invest in good stocks/investments and can not see lowest price possible for some good deals. Same hold good for cars if you really-really need not want.

People are waking up it seems...

http://www.greaterfool.ca/2008/10/27/painfully-obvious/


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POL-CAN:
Went to an open house a few weeks ago… Fully detached house in the Bloor/Dovercourt area of Toronto…. Complete reno plus addition, 3 bedroom, 4 bath…

Listed at 725 K… A couple of weeks later down to 699 K… A few weeks later (last week) it is at 599 k and still there…..

Houses are falling in price… The longer you wait the more you will save…. 25 % off peak by spring is looking like a sure bet as we are down almost 15 % already….

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905 GenXerGurl:

I’m with you TO girl. I have to say it is such a relief to see housing prices starting to come down. Here is a summary of our experiences…

We bought a townhouse in Brampton in 2004 for ~200K.
We are both professionals with advanced degrees and couldn’t believe that this is really all we could comfortably afford with our plans to raise a family. We looked around at some of the people in the larger detached homes and could see they make less than we do! I am sure most of them could not afford to buy their own home at today’s prices with the incomes they bring in! What happened?!

Also, those really nice neighbourhoods, like in South Mississauga, it was mystifying to us who has been buying all the homes at the prices they have - tiny, run down old 2 bedroom bungalows for 500K (NOT kidding)- nice neighbourhoods, good schools, but STILL!

We realized one day that our combined income of 140K put us in the top ~10% of family income groups. When I learned that, I just about had a heart attack. How could it possibly be then, that we could really only afford this little townhouse in Brampton? What about the other 90% of the population- they don’t seem to live in small townhomes in Brampton.

We figured we could never really afford a comfortable home like our parents had. It all just made no sense…. We decided we had just been steamrolled by the baby boomers and decided to go into real estate investing as a way to finally purchase a nice home in a nice neighbourhood. (Hey, if you can’t beat ‘em, join ‘em, right?). THEN we came across Garth’s book, thank goodness.

So, we will wait for our next home purchase. It would have been great to sell and rent, but with we have to think of the distress 2 moves would cause our children. Who knows, we may even have to take a loss on this home by the time we sell it!!

It is really sad though, many of my GenX and GenY friends bought in the last two years. Similar incomes, most spent ~450K, Yikes! AND they got TOWNhouses! I pray they don’t get sick, lose a job or have to sell for some reason. It is also sad, our parents would never dreamed of spending so much of their income for a house.
#23 jazzguy on 10.27.08 at 10:30 pm It will take double digit prime rates and some spectacular but necessary failures to restore confidence in the monetary system, and get rid off malinvestment. A massive inflation is very possible. Politically, it might be the only option for some countries, i.e the USA. People are lousy at predicting bottoms, but how’s 2014-2017 sound? In the meantime, keep solace that during the great depression, 70% of people were still employed. As we’re entering the “Greater depression”, maybe that figure will be similar. This credit binge took years to build up. It will not end so simply.

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Gord In Vancouver:

Here in Vancouver, many of us were brainwashed, by the media and business people, into thinking that 2010 would shield us from economic doom and gloom. Other factors used by market bulls were Asian immigration, our mild climate, and growth limits imposed by the ocean and mountains.

Reality is settling in and the bloodshed is now just starting to appear
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http://www.reportonbusiness.com/servlet/story/RTGAM.20081028.whousingmerrill1028/BNStory/Business/?page=rss&id=RTGAM.20081028.whousingmerrill1028

Housing market ‘alarms' Merrill
Article Comments (164) LORI MCLEOD

Globe and Mail Update

October 28, 2008 at 2:15 PM EDT

Merrill Lynch & Co. economists are becoming more “alarmed” about the Canadian housing market every day as their data suggest it is tracking the United States with a two-year lag.

Falling prices, overbuilding and too much unsold inventory in Canada are creating a trend similar to that in the United States a couple of years ago, Merrill economists David Wolf and Carolyn Kwan said in a research note Tuesday.

“Though the consensus does seem to be gravitating towards our view of a sustained downturn in the Canadian housing market, we still do not sense any particular alarm in either the policy-making or forecasting community. We ourselves are getting more alarmed by the day,” Mr. Wolf and Ms. Kwan said in their report.

Many other economists believe Canada is in for a moderate downturn next year, but is differentiated from the U.S. experience by more prudent lending practices for both home buyers and developers..................................

Rahul

It is great to see that finally after your 2.5 years tirade, people are finally waking up.

How I wish you could motivate the country to do better in so many things instead of just talking about real estate - you have the magical power you know!

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Chandresh

Advice is free – lessons I charge for!!

Thanks Chandresh,

I think all the problems start when common sense dies and greed/ media/experts/newspaper/govt. data/jealous (neighbor driving new car) takes over mind.

Unfortunately too many people are spending 65%+ of income on housing, not just in Vancouver and Calgary but all over Canada/US. Too many people have dream homes, people work the grind for 40 years just to pay off their dream home and forget to live, too common if you ask me.

It makes it harder for the people with some common sense to get ahead, not impossible though. I know a lot of people can’t afford a $170 season’s skiing pass for their kids because of their housing expense to income ratio. Now how ludicrous is that?

I see it's a financial slavery not life.

I am my wife are investing in very selective stocks for long term these days. When good stocks are also at bottom price and there is fear in herds that is time to buy. It holds good for everything including RE.

Quote:

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Originally posted by chandresh

Rahul

It is great to see that finally after your 2.5 years tirade, people are finally waking up.

How I wish you could motivate the country to do better in so many things instead of just talking about real estate - you have the magical power you know!

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Quote:

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Originally posted by rahul_singh23

Thanks Chandresh,

Unfortunately too many people are spending 65%+ of income on housing, not just in Vancouver and Calgary but all over Canada/US. Too many people have dream homes, people work the grind for 40 years just to pay off their dream home and forget to live, too common if you ask me.

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Chandresh

Advice is free – lessons I charge for!!

Problem is not only years but 65% of after tax income towards home for long time. Where do they have money for RRSP, RESP, credit card, regular saving, rainy days, vacation, car and the last but not least food, clothes.

May be I don’t understand how can 35% after tax money fulfill other family needs (or want) except home.

Agree with Cittesh quote " WITHIN MEANS and good deal".

Quote:

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Originally posted by chandresh

Quote:

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Originally posted by rahul_singh23

Thanks Chandresh,

Unfortunately too many people are spending 65%+ of income on housing, not just in Vancouver and Calgary but all over Canada/US. Too many people have dream homes, people work the grind for 40 years just to pay off their dream home and forget to live, too common if you ask me.

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If you really feel that they are paying off that amount to get their dreams fulfilled and are ready to work the gring for 40 years - i would say - hats of to them. I have been dreaming for lot many (much smaller) pleasures but do not have the guts to spend small amounts for fulfilling those dreams due to so many other pressures in life!

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