Because housing is an extremely important part of the economy and usually signals its health. Rising prices means rising wealth, equity that is transformed into new purchases. New housing starts means new construction, new infrastructure, new furniture, fees for real estate agents, lawyers, etc.... That is one of reasons interest rates remain so low. The fact that they are still so slow and office and residential RE is still declining is a serious sign of a weak economy.
And 100,000 is not rich. Maybe in the 1970s. Look at what entry level salaries are for US law firms or google for 22 year old engineers. 100,000 is an ok entry level salary for the best and brightest.
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Originally Posted by 1overcosc
That's a good thing though, it keeps housing affordable in Ottawa. How the hell is $1 million dollar home prices good for anyone??? I've never understood why the media treats slow-rising home prices as some sort of disaster. Falling is bad for existing owners, but stagnant/slowly rising home prices are best for all involved.
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