Housing Market

[mosquito]

Well with all the money being printed by the bank of Canada to cover the LIEbral's debt you can expect prices on hard commodities (house, property....) to continue up, inflation will go with it up and then interest rates up. By end of summer a .5% or more increase would be the minimum I would expect.

OK... 1.2M at 2.1% $25,200 in interest a year
800,000 at 5% is $40,000 in interest a year and at 2.1% $16,800
400,000 at 10% is $40,000 too in interest a year

A family making say $100,000, 45% to taxes, so $55K essentials/discretionary, food and utilities atleast $3k so 36K for the year... down to $19K left.... or about $1,500 per month for mortgage etc. ..... NEGATIVE income just paying the interest. It won't work unless the house is about $800,000 and that means a longer commute, which will drive those houses up and you can see what a 5% interest rate would do to that $800,000.

Depending on what you put down, how well you budgeted and stuck to it.... but what a house of cards!

[JBen]

“House poor” Sawbill.
Way too many things that should be factored in. At its simplest, think about the 24 most recent threads. Everything is either directly related (cause/effect), or related ( one ripples ). Lifestyle and discretionary spending, and more.

Depending on what’s being examined, housing affordability is trending down in the US. Going the opposite direction here.

“ It also shows that the majority of urban areas have experienced statistically significant decreases in their rate of housing cost burden among homeowners over that period, and that on a net basis most urban areas had lower levels of housing cost burden in 2017 than they did in 2009, consistent with the national trends described above”

https://www.federalreserve.gov/econr...e-20190927.htm

So what gives?