Eighteen months ago I posted “if inventory stays low, it will continue to put upward pressure on prices.”
Inventory has shrunk from 3500 to 2400 and the average price has increased from $468,000 to $548,000. Who do you listen to for advice about the housing market? I hope it isn’t bubble bloggers like Garth Turner who predicted “Real estate prices in Calgary, Edmonton, Fort Mac at 50% of 2006 levels.” (That would have resulted in an average price of $200,000). Garth now pretends he never predicted a crash. Or this guy from Garth Turner’s Greaterfool.ca on Sep 27, 2012:
“Calgary has peaked. Listings are ripening, prices are dropping. It’s obvious.”
For bad advice, you can’t get much worse than this advice from Andrew
“If you are thinking of buying in Calgary right now, don’t. Wait 9 to 12 months and then reconsider your options. By then you will see significantly lower prices. This will be the beginning of multi-year house price correction/crash…Wait at least 9 to 12 months and then reconsider your options. You will thank yourself.”
If you took his advice and waited for the “significantly lower prices,” your average Calgary house would cost you $88,000 more than in Sep 2012. But wait, Andrew wasn’t finished…
Garth owns real estate, yet he is telling you that house prices are about to enter a multi-year slide across Canada, including Caglary.
Andrew signs off with this gem…
Hi Bob, Garth’s message right. Your message wrong. Please listen.
On my blog, Andrew left this comment on April 23, 2013:
“Calgary real estate is trending down, and no matter how much fairy dust you sprinkle on it that’s where it’s going.”
Don’t let the greater fools scare you from making a wise choice for yourself. Equip yourself with all the relevant information and follow the trends. Better yet, read credible real estate blogs which will show you the trends before they actually start. Experience, integrity, and facts will always win out over scaremongering. A reader of Garth’s blog felt compelled to relate the following personal experience in Sep 2012:
We’ve been renting in Calgary since we moved back 2.5 years ago. Last weekend we made a lowball offer on a house in Willow Park that was on the market for several months and reduced from $575k to $499k. Thank goodness the negotiations did not go through – happily signed a lease for another year and continuing to diversify investments for the future…
I wonder if he’s still reading Garth’s blog, now that his rent has increased and the $499k house is now $599k. How many people have shortchanged themselves by following Garth Turner’s sketchy advice?