3 ms·

Hmmm, I wish that were true. It seems like it would be, but my (Canadian) province’s two major cities are showing how glacially slow the market is reacting to a

Hmmm, I wish that were true. It seems like it would be, but my (Canadian) province’s two major cities are showing how glacially slow the market is reacting to an oversupply. Cheap interest rates mean that for a lot of builders who overbuilt, it’s cheaper to pay the 2-3% interest for the year than to lower prices 10-20%. Our prices went up like a rocket around 2006-2008, and are very very gradually dropping back down. There was, of course, no significant salary increase in the same time period, or since then, so entering the housing market for first time buyers has been much more very difficult than it was in the past.

dantheman 7y ago
Most markets take awhile to sort out the proper price. The proper price is not based on any one commodity, it can be seen as an optimization problem. As the price goes down certain other industries can move in, and then the price will stabalize or even begin to increase again. This is how neighborhoods go from expensive -> cheaper -> gentrification -> expensive.
asdfasgasdgasdg 7y ago
Which cities are these? It's (I think) pretty well known that housing prices are a little sticky. Even if the market reacts to changes in supply and demand, nobody wise says it reacts instantly. But, I think there's also a chance you've been misled as to exactly how much oversupply there is.
- tonyarkles 7y ago
  Saskatoon (worse) and Regina (not as bad). For a long read about Saskatoon, see https://jbuc61.wordpress.com/ https://jbuc61.wordpress.com/ We recently moved from Saskatoon to Regina, and our family sold the Saskatoon house. We priced it slightly below market and it sold in 3 days, but there were many similar houses that had been on the market for months. The buyer tried to flip it (it needed love for sure); I'd guess $15-20k worth of supplies plus his own labour. It sat on the market for a long time, and ultimately sold for only $40k more than he paid us for it.

dantheman 7y ago

Most markets take awhile to sort out the proper price. The proper price is not based on any one commodity, it can be seen as an optimization problem. As the price goes down certain other industries can move in, and then the price will stabalize or even begin to increase again. This is how neighborhoods go from expensive -> cheaper -> gentrification -> expensive.

asdfasgasdgasdg 7y ago

Which cities are these? It's (I think) pretty well known that housing prices are a little sticky. Even if the market reacts to changes in supply and demand, nobody wise says it reacts instantly. But, I think there's also a chance you've been misled as to exactly how much oversupply there is.

tonyarkles 7y ago
Saskatoon (worse) and Regina (not as bad). For a long read about Saskatoon, see https://jbuc61.wordpress.com/ https://jbuc61.wordpress.com/ We recently moved from Saskatoon to Regina, and our family sold the Saskatoon house. We priced it slightly below market and it sold in 3 days, but there were many similar houses that had been on the market for months. The buyer tried to flip it (it needed love for sure); I'd guess $15-20k worth of supplies plus his own labour. It sat on the market for a long time, and ultimately sold for only $40k more than he paid us for it.