Vancouver Real Estate: bubble or no bubble?

[trilinearmipmap]

Two relatives are buying into the hot lower mainland real estate market. To me it brings back memories of Nortel 5 or 6 years ago. Just wanted to post a poll to see what people think.

[AndyL]

Big bubble, literally - Everyone knows vancouver is going to slide into the ocean once the big one hits... Calgary will soon be oceanfront property

[Willow]

the prices has gone consistently higher and higher every year. my house has gone up 40% in the last few years. i would consider purchasing real estate in vancouver a good investment, with the olympics coming soon they are investing a lot of money on new business and amenities in the city.

[Samw]

Some articles on Real Estate bubble:

Spike in housing prices raises risk of bubble
http://www.canada.com/vancouversun/n...806871&k=42447

Housing bubble warning for hot Vancouver market
http://www.cbc.ca/bc/story/bc_housin...e20060404.html

Booms, Busts, and Where Opportunities Occur
http://finance.yahoo.com/columnist/a...ichricher/3413

Japanese Housing bubble pops and prices slide for 17 straight years losing about 80%
http://www.investmentu.com/IUEL/2005/20050328.html

Other Bubbles to remember:
http://www.businessweek.com/2000/00_17/b3678084.htm
On Jan 3, 2000, CMGI closed at $163.22. Today, CMGI is $1.48.

[aquanot]

It's largely due to the hype created by the media looking for or creating a story which is fueled by gready people in the ''unrealestate ''business and ''investors''. It's kind of funny how the media doesn't do a story on what a rippoff it is. I know a builder that makes 200 thou. from a single house .I was even shown the paper work to prove it. I think I'll wait for the 50% off sale when interest rates go up a few % only problem is if it happens , I'll be out off a job.

[EmilyB]

Not just Alberta is boasting at least a ten year economic boom...

[Bartman]

It's the buyers' fault here. Developers from Toronto and elsewhere are bringing their projects here to sell because they can't sell in their own market. West Coasters seem to be buying anything. People are lining up to spend $200K-$600K in the new Woodwards building and it's in the middle of the poorest postal code in Canada. It can't continue. The lunatics have to run out of money eventually.

[Willow]

Actually, I think there is no shortage of such people.
- Xtasia.

[StirCrazy]

I have 3 Friends that are in the real estate business here, and my mom manages two offices in Alberta, they have all been looking at this and they say the bubble will not pop, you might see a plateau in about 4 to 6 years but not a drop, now like anything there are things that could happen that would change this so like the stock market it is always a gamble. one thing going for us is the government knows the average Canadian family has 60 to 80% of there after tax income tied up in there house so they will not let interest rates go to high like in the late 70's.

Steve

[wetcoast]

I am in the process of getting ready to move back to the West Coast from Winnipeg Manitoba. I left in 2001 for a job out here, and the winters have started to get to me. Since then I have been able to purchase a house (100k) and live very comfortably in a mid 80s job. I have just started to look and find that housing is 3-4x the amount I Currently pay and wonder how are everyone else doing it and getting by? I am out of debt, with the exception of the mortgage, and don't understand people are to keep ends meet, let alone purchase aquarium related stuff, let alone raise a child like I am thinking about in the near future..

If I was to purchase a house at $300,000 (it would be something meager and a fixer upper no doubt I would assume) - at a 25 year term, that would equal out to about 1850 as a mortgage payment at current 5% rates. Thats 500 dollars per month towards my principal and 1250 on interest alone!

While I do not want to rent, I see no other choice - I will be throwing my money away at interest all together, when I could potentially invest that money and hope to get a return on it.

What is the average income that someone requires to actually live now?

Confused, about trying to make potential ends meet.