Quote:
Originally Posted by AFireInside
I would have guessed the household income to be around 80 - 85 k so I'm not surprised by the 77k number. Unfortunately there is information posted here that says it's 77k, your estimate of 50k/yr for a new grad is based on nothing..
50K a year for a brand new graduate is not THAAAAT common . I myself have been out for a couple years and do quite well, however when I first got out I was working for about 35 k/yr.. Several of my friends who graduated at the same time (with a range of degrees) were all in the same boat....
I don't think the housing market will completely crash, but I do think that the prices will decline.
If the interest rates hit 6-8% in the next couple years housing prices will have to come down there is no way around it. There are people who have mortgages at 2.5% when they have to renew and it's at 6% they are likely in a lot of trouble don't kid yourself.
Will this happen for sure? Who really knows...
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35k a year is a reality, especially in today's economy. I was lucky to get 50 starting out after university and then get bumped up substantially after a year, but all at the cost of having to live in Edmonton. LOL
I suppose one thing that is evident is the paradigm shift that has occurred these past 15 years, where more households are dual income families. Think of the 50s,60s,70s,80s where most households were single incomes. Housing was more affordable. You can infer why.
When my dad's family came over here in the 50's, they bought in the sunnyside kensington area for tens of thousands of dollars. It only took 50 years for infills to take over and million dollar homes to spring up.
(inflation coupled with gentrification)