Buyers putting deposits down before seeing the house

This in from the Canadian National Post. It is hard to tell if this is happening in an isolated area or if it still exists throughout other cities in Canada. "Consumers in Alberta are now putting down deposits on housing lots without knowing what the final price for the finished home will be, in the latest example of the desperation for housing in the province."

"That's how people are securing housing now," said Mr. Klassen, adding the situation is being driven by demand for housing as opposed to greed from builders. He added it's the only way builders can agree to sell a home because their costs are rising so quickly.

"The influx of out-of-province workers into Calgary, flush with cash from jobs connected to the energy sector, has created a surge in demand for homes. The Calgary real estate board said last month existing home prices were up more than 37% from a year ago."

"New-home prices are rising quickly in the province, up about 30% in Calgary in the past year. Canada Mortgage and Housing Corp. said this month Alberta is one of the few provinces in the country where new construction activity will rise this year from 2005."

The article also reports that the unsold inventory lasts for 16 days on average. Normal inventory levels are 60 to 120 days.