Comments on: A Tale of Two Markets http://calgaryrealestatemarketblog.wordpress.com/2008/08/23/a-tale-of-two-markets/ Quantitative analysis of the Calgary real estate market. Thu, 17 Dec 2009 07:25:08 +0000 http://wordpress.com/ hourly 1 By: RJT http://calgaryrealestatemarketblog.wordpress.com/2008/08/23/a-tale-of-two-markets/#comment-403 RJT Mon, 25 Aug 2008 15:11:01 +0000 http://calgaryrealestatemarketblog.wordpress.com/?p=181#comment-403 I think you're right the condos will be the most overbuilt. However, the vast majority of middle class purchases depended on capital appreciation from their condo or starter home to buy the "median priced" Calgary home. If condo prices tank, it is likely that that prices will have to drop on SFHs in order for "move-up" buyers to purchase. House prices are a pyramid on the way up, and I don't think it's fair to say that prices for sfh's and condos are unrelated. I agree that the relationship is not linear, but it clearly exists. Show me a market contracting in the US where condo prices are dropping but SFHs are going up. I think you’re right the condos will be the most overbuilt.

However, the vast majority of middle class purchases depended on capital appreciation from their condo or starter home to buy the “median priced” Calgary home. If condo prices tank, it is likely that that prices will have to drop on SFHs in order for “move-up” buyers to purchase.

House prices are a pyramid on the way up, and I don’t think it’s fair to say that prices for sfh’s and condos are unrelated. I agree that the relationship is not linear, but it clearly exists.

Show me a market contracting in the US where condo prices are dropping but SFHs are going up.

]]> By: Harry P. Ness http://calgaryrealestatemarketblog.wordpress.com/2008/08/23/a-tale-of-two-markets/#comment-400 Harry P. Ness Sun, 24 Aug 2008 14:52:25 +0000 http://calgaryrealestatemarketblog.wordpress.com/?p=181#comment-400 Sounds to me like MFH's are going to be in the doghouse for a long time yet, and SFH's may or may not follow. As MFH's become cheaper and cheaper, it is only logical that many buyers will choose them over SFH's unless SFH's become cheap enough to lure buyers away from cheap MFH's. Sounds to me like MFH’s are going to be in the doghouse for a long time yet, and SFH’s may or may not follow. As MFH’s become cheaper and cheaper, it is only logical that many buyers will choose them over SFH’s unless SFH’s become cheap enough to lure buyers away from cheap MFH’s.

]]> By: Chris http://calgaryrealestatemarketblog.wordpress.com/2008/08/23/a-tale-of-two-markets/#comment-397 Chris Sat, 23 Aug 2008 18:40:56 +0000 http://calgaryrealestatemarketblog.wordpress.com/?p=181#comment-397 Interesting stats. I think that in some of the other SFH metrics we've seen indications of more stability, or at least more predictability in terms of the future. Interesting stats. I think that in some of the other SFH metrics we’ve seen indications of more stability, or at least more predictability in terms of the future.

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