Quote:
Originally Posted by Fighting Banana Slug
While the prices have outpaced income, that isn't the entire story. Still need to factor in interest rates and fiscal policies. A bit of an apples to oranges situation, but I do stand by the assertion that likely every generation post WW2 have felt the same way as you.
Here is a link to an article that I found interesting. I don't totally agree with the sustainability of interest rates, but it is a very important factor that seems to be missing from much of this analysis.
http://business.financialpost.com/pe...n-30-years-ago |
This article was from over 2 years ago. Since then housing prices have increased dramatically. Up about 60-70% in Toronto. If we could somehow rewind housing prices by 2 years without devastating the economy, I'd be more inclined to agree with you.
The article also uses 1985 as a reference point. 1985 was at the very lowest point of our last housing crash, and a point where the government was purposely making it difficult to borrow capital. So basically, 2 years ago things were very comparable to one of the most historically difficult times to buy housing in Canada's history.
Now that prices have risen another 60-70% where's the comparable? It doesn't exist. This is a situation that has no comparables in Canadian history. The younger generation is faced with a situation without any comparable. Let that sink in.