Friday, September 01, 2006

When will the bubble burst?

In the East there is no housing bubble so the Toronto Star reports this story this way;

In the west there is a growing housing bubble in Edmonton and Calgary so the same TD report is viewed this way;

"If prices continue to rise at a close to 40% rate, affordability will quickly become a problem and fear of being priced out of the market may encourage hasty decisions," the study said.

"However, if the market becomes more balanced, the rate of price growth will eventually slow ... and we would argue that a price correction is not warranted."

Meanwhile, explosive price growth in Edmonton also prompted TD to pay close attention to that city.

"The message is the same as for Calgary," the report said.

"Much of the strength is supported by economic fundamentals, but prices cannot go up at this pace indefinitely. If the pace doesn't soften, a bubble could form." Housing bubble watch

When will this bubble burst? Not soon enough.

Homeless folks in Alberta are having a hard time finding affordable housing, as are workers in the Tar Sands and even the average university student looking for a place to rent. All the result of a speculative market in real estate. How about Price and Rent Controls along with subsidisation of low cost housing. Nope ain't gonna happen in I'm Alright Jack I Got Mine Alberta.

Of course our Glorious Leader only discovered the crisis this summer.

EDMONTON - Premier Ralph Klein says he only realized earlier this year that Alberta was experiencing a major boom and that his government lacked a proper plan to address problems such as a labour shortage, housing crisis and increased demand for schools and hospital The opposition was right

And his rivals for the Leaderhsip of the Party of Calgary have no solutions either.

Long school bus rides or schools in disrepair. Lack of hospital beds and emergency rooms in crisis. Traffic in gridlock and roads still needing building, despite all those cones already diverting traffic. Affordable housing impossible to find for the hard-working sorts we want to attract here and if an individual scores some modest digs they cost an arm and a leg. We have a provincial government with no idea where it's going except to prattle on about the free market. The wannabes wanting to lead the next Alberta administration look like a dog's breakfast with little nutrition on offer.Prosperity carries heavy cost

Also See:

Ralph Klein



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