Quote:
Originally Posted by The Yen Man
I don't see Calgary's current housing market being in any sort of bubble, to be honest. Right now, house prices relative to average income in Calgary is still pretty good. Could there be a slight correction to curb the recent spike? Sure, but I think you'll be sorely disappointed if you're waiting for some sort of bubble to burst before diving into the market.
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A $600k place with 20% down at a 2.49% rate has a monthly payment of $1,891. An $800k place has a payment of $2,521. Obviously, you have taxes and other expenses on top.
However, as long as the rates along this kind of borrowing, prices will stay somewhat high. There is always someone willing to spend what they can. If it only costs about $300/month to borrow another $100k, and that's what gets you the place you really want, many people will pay it. $800k sounds like an astronomical amount of money, but when you break down payments, for a two income house, it's really not that much compared to what most people are paying for rent in most parts of North America.