Quote:
Originally Posted by Clarkey
I think you can get credit for the amount you already paid when you buy your next property. They just charge CMHC on the mortgage difference. There's some stipulations.
|
Wouldnt that only be so you have a 'portable mortgage' ?
The argument here is that someone would hastily sell their home only after one, or two or three years of owning it, because they are predicting armageddon in the real estate market and will have to rent for a few years and wait it out until the market reaches bottom..... only to buy again once that has occurred.
In that case, that CMHC fee is a sunk cost.
And there is no guarantee the market will come down 20%
The way I see it, every MLX listing I see, I attach a price to it based on what I think it would sell for today.
So when the term '20% drop in prices' comes to mind, I am thinking "Can this price I have in mind on this home go down 20%?"
I am just not seeing it happen.
People forget the 60's, 70's, 80's and even part of the 90's were a different time.
There werent as many dual income households. The norm was usually a stay at home mom situation, or a mother that had a part time job to supplement income.
Today, it is the other way around, there are more women enrolled in post secondary education and the rise in the number of dual income households is astonishing.
Dual income households are going to increase the price of a home a household can afford to purchase, and the amount of debt it can service.
The big jump in prices was in my mind, a correction, to reflect an increase in purchasing power for a typical household in Calgary, plus the advent of 40 year mortgages, and the significant amount of in-migration this province was experiencing, hence the greater demand for homes.
The pendullem swung to far to the right in 2007 and now it has swung back. I just dont see it swinging further left to the point we see a drop of $80,000 on an average $400,000 single family home.
Just my 2 cents