Quote:
Originally Posted by Mr.C
A 10-20% correction would bring the market back to what it was in 2015; nothing affordable by any means.
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Doesn't mean there aren't people who can afford property at this price point at current interest rates.
A 10-20% reduction in a 500k condo to say 420k goes a long way for people shopping at this price segment.
It's the low cost of credit propping prices up.
500K at 6.5% 25yrs 5yr term 3400$ a month
500k at 2.2% 25yrs 5yr term 2200$ a month
750k at 2.2% 25yrs 5yr term 3400$ a month
What I could afford in 2007 500k at 6.5%, vs now is a 750k mortgage at 2.2%, not including any gains in personal wealth ability to put a larger down payment, cap gains i've made in the past 9yrs, or ability to afford more by making more on an annual basis