Quote:
Originally Posted by fundmark19
I don't think housing prices are going to come down unless oil does to. There is still to much money in this city. But if rates do increase I see them around 6 percent then it will make owning a rental property that much easier because people always need a place to live and they won't be able to qualify for a mortgage.
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With all the money in this city it's strange how houses are still overpriced. Like I stated earlier, a house should be about 3 times your income, this is not the case here in Calgary, and a study on affordability was done recently and Calgary was considered to be quite unaffordable.
It's all going to depend on rates. People will still qualify for a mortgage, a smaller one. If people are selling and need to sell they will have to lower their prices.
I completely disagree that interest rates are going to stop at 6% but who knows for sure.. The historical average is something like 8%. This is part of the problem right now. There are a lot of people out there who've purchased in the last couple years who have not seen an interest rate higher than 6%. It happens, and it likely will happen again (obviously not tomorrow or anything) but I think it will gradually get there..
Also even at 6% there are going to be a lot of people up for renewal of their mortgage, that was at 3%, that's a significant increase.. I don't know, real estate is hard to predict, I don't see a complete meltdown, but it doesn't look good to me.