Comments on: Variable Rates are still the flavour of the day http://www.gregwilliamson.ca/blog/2008/01/10/variable-rates-are-still-the-flavour-of-the-day/ Canadian and Alberta Real Estate and Mortgage Market Information with a slant toward positive comments in light of all the negative information out there Wed, 08 Sep 2010 19:24:07 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Greg http://www.gregwilliamson.ca/blog/2008/01/10/variable-rates-are-still-the-flavour-of-the-day/comment-page-1/#comment-59 Greg Tue, 11 Mar 2008 16:02:31 +0000 http://www.oneyellowdoor.com/blog/?p=33#comment-59 Sorry it took so long for me to respond, I am just learning about blogging and did not even know there was a comment. To answer your question, my opinion is that falling interest rates will largely have little effect on Real estate prices. Real estate prices are mainly a function of supply/demand and other market factors such as interest rates have minimal effect other then to say that it helps boost demand, which in Calgary would be real nice. Our primary concern in Calgary is this year we currently have double the amount of listings, and 40% less sales year over year. Adding to this we currently have an absorption rate of around 5 months. The absorption rate over 3.5 months means 100% of the time in the past house prices will drop. Calgary real estate board suggests that a normal absorption rate is 2.0 to 3.5. Bottom line, we need more sales. Sorry it took so long for me to respond, I am just learning about blogging and did not even know there was a comment.

To answer your question, my opinion is that falling interest rates will largely have little effect on Real estate prices.

Real estate prices are mainly a function of supply/demand and other market factors such as interest rates have minimal effect other then to say that it helps boost demand, which in Calgary would be real nice.

Our primary concern in Calgary is this year we currently have double the amount of listings, and 40% less sales year over year. Adding to this we currently have an absorption rate of around 5 months. The absorption rate over 3.5 months means 100% of the time in the past house prices will drop. Calgary real estate board suggests that a normal absorption rate is 2.0 to 3.5.

Bottom line, we need more sales.

]]> By: Joe Finley http://www.gregwilliamson.ca/blog/2008/01/10/variable-rates-are-still-the-flavour-of-the-day/comment-page-1/#comment-36 Joe Finley Tue, 15 Jan 2008 20:19:22 +0000 http://www.oneyellowdoor.com/blog/?p=33#comment-36 If interest rates fall this coming year how would that effect real estate prices in a market like calgary that has recently experienced a period durastic increased inflation? Will calgary see another housing boom? How will lower interest rates effect the current credit crunch? Thank you, Joe If interest rates fall this coming year how would that effect real estate prices in a market like calgary that has recently experienced a period durastic increased inflation? Will calgary see another housing boom?

How will lower interest rates effect the current credit crunch?

Thank you,

Joe

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