Monday, June 18, 2007

A view from a few years ago

"Buyers must be well prepared to compete in robust market, according to Royal LePage report
Extreme home buying activity in Edmonton during the first three months of 200x exhausted inventory, produced multiple offer situations and pressured average property prices higher in first quarter 200x over first quarter 200x-1."

"Low unemployment, low rental vacancy rates and strong consumer confidence have been fundamental factors fuelling big ticket purchases in the city," said Ken Shearer, broker/owner, Royal LePage Noralta Real Estate Inc

Does it sound all like 2006? No, x in the above paragraph is not 6, but 2. Yes, in 2002, the real estate story was still the same. It's always a good time to buy a home if you make a living by selling homes. Has anyone ever met a realtor who has advised anyone to not buy property in general (not a specific property, but generally)?

It's amusing to read this press release from 2002. And see how far we have come along in the long 5 years. But those were the dark ages of the world. Before Oil Sands were discovered by the 'investors' and Edmonton had become pretty again, after a long autumn and harsh winter that lasted over 20 years.

Not to cause any intentional grief to the bulls, I wonder if we'll ever go back to those days again?
Will a housing bull market of around 10 years not see a bear market again? Prices will merely stop accelerating and then resume their climb to infinity. I guess not.

As inventory climbs unabatedly in both Calgary and Edmonton, it looks quite likely that the long summer of real estate boom is now cooling off. And autumn in once again knocking on the doors. We'll find out in the next couple of months if we have passed the peak or there's more craziness left.
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