Carrying Costs for Calgary Houses – Highest Since the 1980’s January 27, 2008Posted by DustinRJay in carrying costs.
Tags: appreciation, boom, bust, calgary house prices, correction, crash, interest rates, rally
Here is a summary of conclusions that I have made regarding the graph below:
Historical annual carrying costs above ~$17,500 in 2007 dollars appear to be unsustainable
Recessions often follow peaks in the housing cycle (as is currently being exhibited in the United States)
Upward trending house prices from 1997 to 2005 is rational due to decreasing interest rates
It is unlikely for there to be interest rate relief in the magnitude necessary to bring carrying costs into sustainable territory
Interest rates are still relatively low in a historic sense