 鲜花( 0)  鸡蛋( 0)
|
New Home Pricing Outpaced Resale in 20072 M8 z2 A7 A4 F9 A" s2 I7 y
According to an article in the Financial Post yesterday housing affordability is expected to improve in 2008. The article points out that new home prices increased by 21.5% in Edmonton in 2007 but ignored the fact that resale home prices were only up 9%. We pointed out a few months ago that the gap in pricing between new and resale has gotten quite large here in Edmonton, how much larger can it get? Not much if they keep building so many new homes!
! ?5 U/ |; X+ P
* S4 _# c1 w, JAlso interesting, new home prices only went up 6% in Calgary in 2007. What's up with that? Is it that they inflated there first, so they are slowing down first? Or are we inflating more than Calgary?6 k4 Y0 F1 U k6 a9 k8 s4 F6 r
0 x6 B# _! ~# |! ?- D. r
Anyway, back to the article... , F! O6 h* h# Y& k
. J/ i/ T- S ]; P0 f |/ {9 v
"The market has a way of cooling itself. Alberta had just got so expensive that people stopped moving there. Eventually supply catches up to demand, and that's what happened in Calgary," said Michael Gregory, senior economist at BMO Capital.
- B! U/ C; O% i$ U) _/ ]- Y/ J
5 Z# e' f# M# M9 f$ uRishi Sondhi, economist at RBC Capital Markets said housing should become more affordable as house price gains ease and interest rates fall, with the Bank of Canada expected to cut interest rates again in March following a 25 basis point cut to 4% in January. 3 f& S& L! m0 T8 M
2 g! k& G6 P: b9 T* C& E% ~2 s
Some economists expect rates to reach as low as 3% by mid-year.
/ X* e/ w6 Y9 x/ [; J
/ U' C# W& b* U7 ISo price gains are slowing....and interest rates are lowering. With all the inventory to choose from in Edmonton this could be a great summer for buyers! |
|
狗仔卡
发表于 2008-2-13 08:12
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
显身卡
楼主
