Quote:
Originally Posted by Tapioca
Since everyone who doesn't own that coveted detached house is hoping for a crash, let's think of "what if".
Let's say the prices of detached houses in East Vancouver/Burnaby fell to 3 times the median family income. This would mean the average home should sell for 400-500K.
Who here has 100-150k sitting in the bank? Who's actually ready to put down that 20% and can service the payments?
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There are a ton of people waiting in the wings with those kinds of down payments, or with selling what they have under them. I made that alone from selling my condo i owned for a year and a half.
That kind of correction won't happen without an interest rate increase of minimum 2.5-3.5% plus a mass exodus of people.
i bought in 07 a 650k house at about 6.5% in Vancouver, sure i was eating rice and ketchup for 6 months, but i managed.
Credit is cheap and not going anywhere for the forseeable future
a 10-20% correction would allow a shit ton of ppl waiting on the sidelines at current interest rates to jump into the market.