OTTAWA—Despite ongoing concerns about household debt, home ownership is becoming more affordable in Canada, not less, says new research by the Royal Bank.
RBC’s latest report says home affordability actually improved in the final months of 2011 for the second consecutive quarter, thanks to softening house prices and income gains.
Owning a home in Canada now takes up as much of pre-tax income as it did a year ago, even though household indebtedness has continued to rise and is now at a record high 153 per cent of disposable income.
Ownership even became more affordable in the ultra-expensive Vancouver market, although it remains the dearest place in Canada to own a home.
“The improvement in affordability was modest for the most part, but still significant enough to dial back the deterioration that impacted the market in spring last year,” said RBC chief economist Craig Wright in a release issued Wednesday morning.
“At this point, housing in Canada is essentially as affordable as it was a year ago, and only slightly less affordable on average than it has been over the long term.”
The study shows affordability rates vary widely depending on the market. Vancouver’s rate is down by 4.6 points to 86 per cent, by far the least affordable market in Canada. Next highest is Toronto at 52.2 per cent.
Other ratings were Ottawa (40.9), Montreal (40.1) Calgary (36.7) and Edmonton (32.8).
RBC defines affordability as the proportion of pre-tax household income needed to service the costs of owning as specific type of home. A ranking of 50 per cent means that a household was spending half its pre-tax income on mortgage, utilities and property taxes.
March 7, 2012 08:03:00
Julian Beltrame
The Canadian Press
About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
No comments:
Post a Comment