Home affordability improves,
but recovery threatens trend
Financial Post
Published: Wednesday, September 09, 2009
OTTAWA -- Owning a home in Canada is getting more affordable but that trend could soon end as the real estate market continues to recover, according to a report Wednesday by RBC Economics.
RBC said costs related to home ownership eased in the second quarter of 2009 for the fifth-straight three-month period, with "modest improvement" seen across the country.
"Following the biggest quarterly improvements on record in the first quarter and continued improvement in the second quarter, the national home affordability level has been restored to pre-housing boom levels," said Robert Hogue, RBC senior economist said Wednesday.
"However, the recuperative phase of the affordability cycle seems to be drawing to a close with housing prices firming up in many parts of the country and mortgage rates no longer trending downward."
RBC measures affordability by the proportion of pre-tax household income needed to service the costs of owning a home.
"The levelling off of home affordability is not expected to stop the impressive resurgence in the housing market," Hogue said. "Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country."
Canwest News Service
but recovery threatens trend
Financial Post
Published: Wednesday, September 09, 2009
OTTAWA -- Owning a home in Canada is getting more affordable but that trend could soon end as the real estate market continues to recover, according to a report Wednesday by RBC Economics.
RBC said costs related to home ownership eased in the second quarter of 2009 for the fifth-straight three-month period, with "modest improvement" seen across the country.
"Following the biggest quarterly improvements on record in the first quarter and continued improvement in the second quarter, the national home affordability level has been restored to pre-housing boom levels," said Robert Hogue, RBC senior economist said Wednesday.
"However, the recuperative phase of the affordability cycle seems to be drawing to a close with housing prices firming up in many parts of the country and mortgage rates no longer trending downward."
RBC measures affordability by the proportion of pre-tax household income needed to service the costs of owning a home.
"The levelling off of home affordability is not expected to stop the impressive resurgence in the housing market," Hogue said. "Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country."
Canwest News Service
