Modest Ottawa Example – “I bought my house 18 years ago and paid $178,00 – now I am being told it it worth $375,000. This is crazy. My old job is only paying $3,000 a year more.”

“I bought my house 18 years ago and paid $178,000 – now I am being told it it worth $375,000. This is crazy. My wage has only gone up because I switched jobs. My old job is only paying $3,000 a year more. The only way I will realize a profit is if I sell and purchase a home outside the Ottawa market – hmm I still need to work. The house price is more driven by the cost of land so when we looked around for a smaller home – the price difference would only cover the cost of moving – no more. The only one who gained was the bank – we have paid them a lot of interest over the years.”
DeborahS, comment at cbc.ca 12 Aug 2011 9:26am

This Ottawa example is extremely modest by Vancouver standards. That’s an annual compound growth rate of just 4.5%, but still more than twice the Canadian inflation rate over the same period (1993-2011 CPI averaged about 2%). -ed.

4 responses to “Modest Ottawa Example – “I bought my house 18 years ago and paid $178,00 – now I am being told it it worth $375,000. This is crazy. My old job is only paying $3,000 a year more.”

  1. CanuckDownUnder

    What industry is this person in? That’s a big wage decrease in real terms.

    I caught the weekend property report and saw that a house in Sydney that last sold 16 years ago for $300,000 sold for $815,000, which works out at an increase of 6.45% per annum. Inflation in Australia has averaged 2.7% per annum over than time.

  2. We purchased our home about 7 years ago. Approx 204K, very affordable with our income Now prices have dropped a bit, to about 350K. Our wages have not increased that much. But houses are still selling although slower. Fortunately we have been very aggressive in paying it off. Only another couple of years to go.

  3. Some areas in BC have longer term cagrs close to or below this. One is finding one needn’t traverse the Great Divide to find examples below the stratosphere.

  4. his home has appreciated annually about 4% a year. he thinks that’s crazy?
    so if his wages did not go up for 18 years then he expects house prices to stay the same for 18 years? c’mon…

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