Quote:
Originally Posted by kevman
I think wages might be catching up to house prices?
I'm waiting for the 2011 census results but as of 2009 the average Calgary "Couple" family was taking home $95,630/year. link I used "Couple" vs. "Lone" because they're more likely to be in the market for a single family home instead of a condo? Anyway, factoring in a few years of inflation it's probably not out of the question that the average family in the market for a house in Calgary is earning more than $100k/year today. (ie, 2 earners @ $24/hour each) $100k/year will qualify you for an average home in Calgary so homes are rather affordable today.
Is it that simple? Nope. I also reckon prices will continue to "fall" when you factor in inflation but maybe not in terms of absolute value?? |
Using that income for a couple, (work out to 7969/month gross), $450 per month in other debt payments, $200 property tax, $100 heat, and 3.5% interest rate and 30 year amortization, CMHC's affordability calculator indicates that a mortgage of $502,658 would be fine. So if the average calgary couple can more than afford the average Calgary house prices are probably not too bad.
Obviously the other numbers are just estimates, but I tried to make them reasonable ($450/mo in other debts, etc).