Tuesday, July 04, 2006

Housing Prices Out Of This World

Well back to work after a nice long Canada Day weekend. I've recently been updated on my condo and it seems that it wont be ready until sometime in September. A far cry from the July 6th date they gave me originally but I wasnt expecting it to be a realistic date. All I expect is it to be done before the first snowflake hits the ground. This raises an important issue for me though. I had been given a rate of 5.07% interest for 5 years with my bank and I have yet to inform them of the delay. My worry is that I wont be able to hold onto this low rate with interest rates going for 5.40% as of yesterday.

Its a good thing I purchased when I did though, over the past couple of months housing prices have been increasing roughly $1300 per week which if I had waited any longer would have put me outta the housing market for a very long time. I saw on the news that in Red Deer, Alberta there are people living in camp grounds because they cant afford the rise in costs for apartment living or able to sustain the large monthly mortgage payments due to the ever rising cost to purchase a home. I'm not sure how these types of things work but something needs to be done. Its ridiculous to think that middle class citizens wont be able to afford a modest home anymore, perhaps a new class needs to be made. Instead of lower, middle and upper class it seems our system looks more like living in the dirt, lower, and upper class. Either way, this will only create more debt for the average Canadian citizen. Its bad enough that the average home carries around 7 credit cards, but to tack on unrealistic housing prices it looks to me like our generation will be working well into our 80's unless we are all happy raising families in 500 square foot condos. It may come down to that.

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