House Price Crash (Really?)

Well, I hate to be a harbinger of good news…but since the rest of the world seems to believe that the sky is falling, I feel it’s my duty to be a voice of reason in the wilderness.  

It’s true.  We’re probably now officially in a recession.  The world is in turmoil, oil is at a 3 year low (gasp!), stocks have taken a beating (good time to buy?) and house prices have collapsed – or have they?

Check out this little tidbit from today’s CAAMP stats:

Residential Average Price by Market 2004–2009




Market

2004

2005

2006

2007

2008*

%
Alberta
Edmonton
$179,610

$193,934

$250,915

$338,636

$335,000

-1
Calgary
$222,860

$250,832

$346,675

$414,066

$410,000

-1

Source: RE/Max December 2008

Doesn’t look like the end of the world as we know it.  Let’s put it another way…if you looked at your RRSP statements and they looked like this, how would you feel?

Hang in there folks…it’s always worst just before it gets better.  If you happen to be future-minded and want to talk to someone about an investment property or some financial strategies, give us a shout – we’d be happy to point you in the right direction.