Affordability Update
Further to the comments on Tuesday....one issue that came up in the CMHC presentation was the fact that housing is, as anyone living here knows, becoming less and less affordable.
However, having owned property in 1990, it doesn't necessarily seem that way.....in 1990, the interest rates were around 13% which meant that to borrow $100,000, the buyer was paying approximately $1127. Today the interest rates are much lower leading to payments of $670 (or less) for $100,000....the prices are definitely a lot higher but fortunately the cost to borrow is a lot lower....
Experts I have spoken to think interest rates will be low for a long time and are unlikely to see the highs we have had in the past.
