Quote:
Originally Posted by Hemi-Cuda
They've been saying that for the last 10 years. Vancouver/Toronto show no signs of slowing down, and as more people are priced out of those markets more will start looking towards Alberta. IMO I think the era of finding a detached house of any size for under $500k is gone for good in Calgary
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Interest rates have also been at historical lows for the last 14 years. If they go up (which they basically have to at this point), housing prices are most likely going to respond. A 1M mortgage at 2.5% is the same payment as a $770K mortgage at 5%. And even 5% is low historically. At 6-6.5% (basically where were were pre-2008), that payment gets you about $650-700K.
I imagine governments will do everything they can to not raise the rates that much (if only for their own debt obligations), but then we'll likely just see higher inflation which also devalues the asset.