Monday, July 9, 2007

Nearly 9 in 10 Albertans say their home is overpriced....

as per this survey.
Of course, the current lot of homeowners is ignorant and does not realize the oil mines on which they are all sitting. Perhaps, they did not know about this around two years ago when speculators entered the market and caused an almost doubling of prices.
And for those counting on the rapid clearing of the inventory, here's something to seriously ponder over: about 83% of current renters, despite being aware of possible rent increases, will want to wait for prices to soften.

From the survey:

"In fact, Albertans have an extremely negative outlook on their housing market, which has skyrocketed in recent months. Nearly nine-in-ten from Alberta (88%) think homes in their neighbourhood are overpriced, and a similar number of Alberta homeowners (89%) say they could not afford a down payment on their home as presently valued. Four-in-five Albertans who rent their homes (83%) also say they will wait for a more favourable market before buying a home."

This could also be a contrarian signal-when everyone sees potential declines, the prices may not decline. Or Alberta market has become so blatantly overpriced that rent increase fears or being priced out concerns no longer matter.

We are indeed entering very interesting times.
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