Vancouver Real Estate: bubble or no bubble?

[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