How do you determine if housing is overvalued?
Everyone goes on about how RE is in a bubble/overpriced/people are extending themselves too much etc..
But I rarely see people says "Anything over X is too much"
I'll give you an example:
I just bought a house in the suburbs of Calgary.
Price per square foot: 237
Mortgage amount to income: 4.25
Age: 24
It's a new home, which will be completed in October.
Did I make a mistake? Did I pay too much? Will the price drop 20,000 in the next 2 years?
Go!
But I rarely see people says "Anything over X is too much"
I'll give you an example:
I just bought a house in the suburbs of Calgary.
Price per square foot: 237
Mortgage amount to income: 4.25
Age: 24
It's a new home, which will be completed in October.
Did I make a mistake? Did I pay too much? Will the price drop 20,000 in the next 2 years?
Go!