Quote:
Originally Posted by Architype
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It's interesting - a similar pattern is emerging in my own hometown (saint john NB), though the absolute value of home prices there are still lagging behind those in SJ (NL).
it's a bit of a two edged sword (and the following applies to both cities):
the up side is obvious.
the down side may take a little longer to materialize...housing prices will eventually plateau and drop like everywhere else (though to be fair, both cities are somewhat insulated from what is starting to happen in the rest of the country by virtue of their energy sector / related projects). . . the problem with skyrocketing housing prices and the mad dash to build / buy before prices "get any higher" is that the average person starts to spread themselves very thin in terms of their ability to pay for those houses. . .true, interest rates are still obscenely low in the grand scheme of things, but if we do hit a recession - and that's WHEN, not IF - things could change rapidly... (the prime lending rate topped 20% briefly in the early 1980's....think about that for a second). . .
the second problem (in both cities) is what happens to the working poor? effectively, they will be displaced and concentrated in specific areas of the city (and with all of the social problems that follow this) unless forward thought is given to mixed housing projects. . .
http://leinstercourt.ca/about_saint_...ithousing.html is an example of one of the projects trying to address this in SJ/NB.....i'm unsure of what kinds of similar projects are going on (or are already up and running) in SJ/NL. . .
anyway - it is pleasant to see those kinds of positive numbers & hopefully we'll see more long term positive than negative effects...