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Old 09-25-2009, 04:41 PM
Tightwod Tightwod is offline
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Join Date: Jun 2009
Location: Whitby
Posts: 40
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Bubble?? Overpriced, yes.

When incomes go up more than inflation and interest rates are at historic lows it creates demand. When rates increase affordability goes down, when income decreases affordability goes down. It is inevitable to me that rates will go up. demand will go down and house prices will come down.

What I can't figure out is how anyone new to the housing market can afford a home at these prices, let alone in Vancouver & Toronto etc.

I blame the baby boomers for all our inflated prices. As these guys age (even more than they are now, ha ha) they will exit the larger family dwellings they are in now and move to smaller bungalows, retirment buildings condos and rural towns or cottages. I think in the future 10-15 years you will see a large drop in value of mid sized family homes.

It sucks but but really this generation dictates the economy! They are the consumers of today!

The bigger question is, what do we do about it?? You have to live somewhere. So for those that have more equity in their homes, they should sell and do what?? Rent, buy a smaller place so that when it does go down you won't lose as much $?

Maybe..... I need to start developing some really nice retirement communities?? Who's with me?

Last edited by Tightwod; 09-25-2009 at 04:44 PM.
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