Some relief is in sight for buyers into the Edmonton market. We are still having stellar appreciation with price growth slowing only slightly to 21.6% from 28.9%. Genworth Financial estimates that the average new home price in Edmonton will reach $388,694 in 2007.
They also predict a 5% increase in 2008 and 4% annually to 2011.
Let`s do the Math
So if your house is valued at the average price now
$388,694 and it increases 5% in 2008 = $408,128.70
Then 4% every year to 2011 compounding of course
2009 at 4% = $424,453.84
2010 at 4% = $441,431.99
2011 at 4% = $459,089.26
At the end of 2011 your house would be worth $459,089.26 a $70,000 dollar increase
$48 per day.
$2 per hour
$0.03 per minute
I made $.66 just writing this post. Now that is passive income.
To be honest I think housing prices will do much much better than 4% a year. That seems incredibly conservative for this market.
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