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Old Posted Jun 30, 2011, 5:33 PM
Doug Doug is offline
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Join Date: Jul 2001
Posts: 8,806
Quote:
Originally Posted by Brandon716 View Post
I suppose the bubble would be centered around Vancouver? Prices there are absolutely outrageous.

As far as the condo market, it *is* a housing market, just a different form factor. It won't change a thing, condo prices are too high in Vancouver and even other cities like Calgary or Toronto. Toronto's condo prices have become much higher in the past 10 years that I've visited the city, way above and beyond inflation. You could find starter condos for less than $200,000 (decent sized) back in 2001/2002 in a 15 floor setting (maybe not at 20 or 30 floors, with a better view and more space), today you have to pay double to get a decent condo many times. $300-500,000 is the norm for condos that were $170-300k 10 years ago.

But in Vancouver the issue is just compounded many times over.
The condo market is always more volatile as it is more challenging to manage inventory due to:

1) Longer lead times
2) Higher minimum order quantities (unlike detached housing, condos are difficult to build in quantities of 1)
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