Housing prices

Discussing this house price increases over the past several years gets some people, who own houses, especially in the lower mainland, very excited. 

One friend, in the lower mainland came out above the mark, he sold his home in Coquitlam for $1.13 million ( a 65 year old home, no basement, very dated) then moved to Langley into a newer home twice as large and was able to put $200,000 into the bank. The further from the ocean, the cheaper the homes. 

Other home owners look at their assessments and think, golly, we are millionaires! These million dollar figures are only relevant if you sell, as my friend did, then move to somewhere cheaper. If you are not selling then you can enjoy higher taxes and higher insurance premiums on your new assessment. If you do intend to sell, then you have better have your game plan in order or you could be holding a new mortgage or be forced to rent for awhile.

In Kelowna there is very little inventory since most people are cautious about getting into this situation. If you do the math then none of this rise in prices makes any sense. Along with the rise in prices, did wages and earnings increase each year by the same percentage as the homes did? Be careful what you ask for and brag about. 

Thanks, another possible millionaire in Kelowna, I don’t know and I don’t care the ice will melt soon and where is your mortgage and can you handle an increase in interest rates? Good luck to you all.

Jorgen Hansen