Quote:
Originally Posted by oilers_fan
One recent article suggested house prices in Canada are set to double in the next 20 years. That obviously means getting into something is still very important, but even in 20 years, who is going to pay 300+ for a 400 sq/ft apartment?
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Doubling in 20 years is like 3.55% annual growth which falls right into the Bank of Canada's target inflation rate. House prices doubling in 20 years is nothing new. House prices doubling in 2 years isn't neccessarily either (although it's usually followed by a major correction where houses lose a big chunk of that gain), it's just that the numbers involved today are much more staggering than they used to be.
I stayed with a family in France in 1995 and they had a half duplex with a tiny half yard and the house maybe had 1000 sq feet on 3 levels and one full bathroom in some burb that was like a 40 minute train ride from Paris. That place in 1995 was worth around $350k U.S. So outside of Canada people have been paying big money for a place to live for a lot of years.