Quote:
Originally Posted by pepper24
The main reason is that interest rates are still at or near record lows.
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After reading this I thought it'd be interesting to put a graph together that looks at housing as a function of monthly payments instead of median or average price. Unfortuantly I can't share this for I haven't figured out a good way to upload my graph somewhere while I'm at work...
However the highlights are:
June 2007 (Peak)
Median - $439,000
Interest Rate - 6.51%
Monthly Payment - $2,796
January 2008 (Thread creation leading to fotze's bubble balls)
Median - $410,000
Interest Rate - 6.8%
Monthly Payment - $2,680
December 2010 (Lowest since April 2006)
Median $389,000
Interest Rate - 4.7%
Monthly Payment - $2,086
That means house prices are down a whopping 25% as a function of monthly payments since the peak and a slightly better 22% from the start of this thread.
Fine Print
Median house prices from dailystats.ca.
Interest rate from BOC average Canadian mortgage.
Monthly payment based on a mortgage payable monthly over a 25 year ammorization with 5% down.
I'm aware that 0 down/40 year mortgages made homes appear cheaper at the height of the boom but for comparison sake I wanted to look at what a house would have cost using a more conventional term.