Quote:
Originally Posted by Shawnski
Start with this one. Chart 9 shows Western Canadian housing prices since 1980 while Chart 10 shows Eastern Canadian housing prices since 1980.
Edmonton and Calgary took a MASSIVE hit from 1980-1985, losing ~40% of their value over that time, which was by far the most of any major centers in Canada. Eastern Canada came through pretty much unscathed.
If that were today, it would be like you having a $400K mortgage on a house worth $240K.... with no light at the end of the tunnel.
Dig deeper and wake up. The NEP was the catalyst in killing the Alberta economy in those years. |
Hmm..check the interest rates in Canada at the during that time frame. Interest rates caused by Reaganomics. People's houses dropped in value because people couldn't afford the new rates being charged for their mortgages. People walked out of their houses causing the housing industry to slump which caused lower housing prices. Its a bit like the ARM's in the US today. If there is a glut of real estate on the market, the price of real estate goes down.