Quote:
Originally Posted by Shazam
My first house was $195K in 2002. Monthly payment: $880. Mind you, my first mortgage was extra-special so for parts of it I was paying 0.75% interest.
That same house is now $395K. Monthly payment: $1730
(down payment of $30K)
House prices are sticky (they're not fungible commodities trading on a liquid market) and housing demand is inelastic (people need shelter to not die) so rises in interest rates will not be enough to lower house prices materially.
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$880 in today's dollars is $1,187.46. A pretty big difference from $1,700.
That being said, your neighbourhood may have improved substantially. As a city in Canada grows, the inner city neighbourhoods tend to become more expensive over time, as they mature and the city around them grows.