Thursday, March 29, 2007

Going Condo Crazy... Edmonton with around 75 % jump in prices over last year. Wow!
Even Saskatoon is up by around 43%. Calgarians must be feeling pretty bad for seeing gains barely half of those in Edmonton.
I don't think anyone bullish on Alberta's real estate is any mood of throwing the towel in just yet.
And while everyone is waiting that there will be some impact of the turmoil down in the US on Canadian psyche, I guess Canadians genuinely think that we are different.
Especially in Alberta with recently rebounded oil prices.
As I've harped on numerous occasions in the past, this is all out momentum play. Condos are flipper favorite and 75% jump in condo prices in Edmonton is a testament to that. If the average Condo in Edmonton goes up by another 50%, we'll be at $350k. Who will be able to afford a condo then? Perhaps the army of those holding $10-$20 jobs that are so plentiful here being lured into 70 year mortgages.
Questions such as affordability, lax lending standards, rental value, risks etc do not have any meaning in this market. Yet.
There is perhaps more room for further price escalation and there is a mood for further inflating the prices, despite the inevitable consequences.
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