Average Calgary house price drops by $45,000:

But as of Tuesday the Calgary Real Estate Board website was showing that the average sale price of a single-family home in the city had dropped by more than $45,000 from that record high to $460,089.

The median sale price in the last 30 days is $417,500 -- a drop of $21,500 from the high of $439,000 recorded in June.

The Calgary real estate market has recently been experiencing a period of price adjustment due to the rapid rise in prices earlier in the year, said Annie Tsok, a realtor with Re/Max Real Estate Central. However, the higher-end products in hot neighbourhoods, particularly in inner-city areas, have not been affected, she said.

"What I've found now is that it's more of a buyer's market with a lot more choices for people," said Tsok. "The selection of product out there is more than double the product a year ago."


http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=2b96a99f-18f1-4ff6-922e-30b102f49238&k=60738

the re market is made up of the following

1...First time buyers

1a....buyers

2...sellers

3...lenders

4...builders

5...brokers

6...appraisers

7...marketing companys (realtors )

When number 1 does not want to play in their games other players can not players (2 to 7) alone for long time.

Lot of people are already living paycheck to paycheck.

if your mortgage on an average single family home..goes up 1% that will cost you $5,000 yearly or
$416 monthly..and if they go up 2% $10,000 yearly or $832 monthly

over the course of the next 2 years
thousands of mortgages will come due..and rates are no longer at 4%
so will rates of 7-8%..so whats gonna happen to these people

Historically, ROI have hovered around over 10%. What did people do then? Homes were still being sold & resold. I know of a few people who had few properties (not just one) and were locked at 18%....and they felt they had a good deal compared to some who were paying 22%. And they say they saved money inspite of paying high ROI since the rents were comparatively higher then.

In India, the current rate is 11.5% and properties are more expensive than here (in terms of price to earnings ratio). I wonder, how do people sustain there?

Whatever happens, the bottom line is majority loves to own their own roof over their heads and something that they can call their own and pass on to their kids.

And by the way, I don't hear too much against buying from anyone else on this forum.

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

Average price moved from 500K to 458K in just 3 months.
http://www.creb.com/

Even the herald says that house prices have dropped 10% ($50,000) over the past few months. But RE experts (realtors, bankers) still call for a 26% hike over januarys $432,877 to an expected $545,425 by 2007 year end then a further increase of 10.3% for 2008 to $599,000. well I guess we will need a strong nov-dec to see these prices and that is not going to happen. People are not able to sale at same price they bought it few months back.

If these RE experts are so unexpert (average local street man can predict better) that they can not use their common sense to predict data then why should I hire these few unexpert realtors/bankers (not all are like them)? They are big fish in that business.
Biggest Q why newspaper print their expert stupid comments?

Quote:

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Originally posted by rahul_singh23
if your mortgage on an average single family home..goes up 1% that will cost you $5,000 yearly or
$416 monthly..and if they go up 2% $10,000 yearly or $832 monthly

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Quote:

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Originally posted by rahul_singh23
over the course of the next 2 years
thousands of mortgages will come due..and rates are no longer at 4%
so will rates of 7-8%..so whats gonna happen to these people

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I sold my house in Calgary 2 years ago. I am really excited to see that Calgary housing market has lost over 11% in last few months. I am waiting for another 10% drop before jump in again.