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anything's price is decided by supply and demand. it is true that a lot of people is coming into Alberta, so people will just assume the demand will keep up. however they misunderstanded a key factor. in the housing market, actually in any market, the demand is not simply how many people want something. it is how many people want and actually afford of wanting those things. 9 L+ V+ |; ^& ^
also let's look at the supply side, in Alberta is it because we short of space to build home or we just short of people to build it. obviously there will be long long long time before we Albertan actually run out of space, with more and more people coming in, there will be more and more people building houses, so the supply side will catch up.
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having said so, will the housing price crashes? maybe not until the speculator runs out of money, that could be a while too. however since the current housing market is supported mainly by speculator, when they run out of money, the price will fall just as quick as it runs up. ' V% B9 S6 b9 B+ R
! G$ A8 g- x/ h, }) X' c, csome will say, those big investors have a lot of money in their pocket, but those big investor's are also smart people, you can't count on them to be there to support the housing price when there is any sign of weakness. as the inflation pressure building up, the loan interest rate will eventually keep going up for the bank to fight the inflation, thus further reduce the people's affordability, thus reduce the demand side.
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" H; A+ K- b. M2 P& T9 T b8 Greal estate is very high risk investment, I wish everyone who is doing so fully understand the risk it involves. a lot of people say some guy makes a lot of money in a few months. true if you make it right (just as any investment). keep in mind playing in the real estate game is like playing high margin account. you are utilizing very high leverage, and the higher the leverage the higher the risk thus higher the rewards, and selling a house is not like selling a stock in the stock market, it has very little liqudility, thus at the time it falls, it will be very very difficult to close your "account" `9 s$ h) @9 D8 d M( l u; W" A
7 f- v! }- q, f! F$ m3 H8 V" S2 U9 ^just my personal opinion. & C. q) i* Z _$ y% h. o$ J
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Thanks for reading |
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