Comments on: The sky is not falling nor are St. John’s housing prices

By: Darryl

Darryl — Fri, 06 Mar 2009 12:50:17 +0000

I got an answer to you renting question, if they did go up, a lot of people would be homeless, remember peoples income did not rise 25% in the past year, but once it does, ya i can see renting rates go up. Also the majority of renters are students and there cash supply is usually limited by the student loans they get.

By: Stephen Winters

Stephen Winters — Fri, 06 Mar 2009 12:21:51 +0000

I concur. This seems to be general “chit chat” in the public. However I can’t see the prices dropping. Maintaining their current level.
Another question, why haven’t monthly rents increased yet? Vacancy rates are at all time lows (under 1 percent I believe) With lots of people “holding out” they need places to stay, wouldn’t that make it a good time to buy a 2-apt home? And then put more pressure on 2-apt homes creating more demand? Sounds like a circle effect happening.

By: Darryl

Darryl — Fri, 06 Mar 2009 12:03:46 +0000

That begs the question, what will happen now when their is a good chance that buying will slow down significantly especially with knew housing construction? I know many people in the city and not many are in a financial position to pay $1000 mortgage or they are not willing too. Either way it does not look good for housing prices. But I think the next six months will tell which direction the housing market will go. I for one am looking but holding out for better deals. I will not buy a house 225,000 when just 2 years ago it was worth 135,000. Still with the amount of land in the tri-city region, I can’t bring myself to buy a 50-100 lot for $60000+. My opinion it is not worth it.

By: Stephen Winters

Stephen Winters — Fri, 06 Mar 2009 11:47:26 +0000

The 25% in my opinion was from a lot of hype from the public and news media. We had a lot of talks of future development from oil projects and EVERYONE jumped on the bandwagon….locally and from afar. Pure supply and demand rules kicked in then. There was a lot of investments properties purchased from out west and they treated it just like a stock – buy on rumor, sell on news. Who’s at fault – Realtors? Builders? Media? Investors? Local Purchasers? Vendors? The finger can be pointed at all with valid reasons I think.

By: Darryl

Darryl — Fri, 06 Mar 2009 02:55:34 +0000

I agree fully with your last paragraph except the 25% housing increase. There is still nothing in my mind or in the City to justify a 25% increase in housing in one year. Know ones income jumped 25% last year other then the nurses. Just like the big spike we had last with oil, stocks, and housing prices so they fall once again. The numbers just don’t add up to maintain such high prices in homes with the state of the global economy.