« What is a Home Buyer Rebate? | Main | Toronto Real Estate Market Slips »

Homes more affordable for now

Home ownership became more affordable for the average Canadian in the last quarter of 2010, with the most significant improvement in Alberta, says the Royal Bank. The bank's housing affordability measure shows costs associated with owning a home in comparison to income slightly declined in the last three months of last year.

That's mostly because mortgage costs were slightly lower and house prices rose only minimally, while in some markets prices even dropped.

RBC said affordability improved the most for detached bungalows, falling 0.8 percentage points to 39.9 per cent of pre-tax household income.

The respite is likely to be short-lived, however, the Royal Bank says in its latest housing report.

It notes that recently financially institutions raised posted mortgage rates by a quarter-point to 5.44 per cent, in the case of a five-year fixed term, and that the Bank of Canada is expected to start hiking short-term rates later this spring.

But the bank stresses that while it will become harder to buy a home as rates rise, the impact on affordability will only increase moderately.

First, interest rates are expected to appreciate slowly, and their impact is being offset by rising incomes and job creation growth.

In the last three months of 2010, affordability improved the most in Alberta, due to falling home prices.

The bank said home prices inched higher in most of the country in the last quarter, with the exception of Alberta and condominium segments in British Columbia and Saskatchewan.

The Toronto market sustained a rebound in the latter part of last year, with affordability improving except for the two-storey home category.

See the full RBC affordability report »

February 24, 2011 in Housing Affordability | Permalink


TrackBack URL for this entry:

Listed below are links to weblogs that reference Homes more affordable for now:


It is really good to hear that home is affordable now,we all know that real estate are really expensive and sometimes you can't even reach your dream house,well this one inspired me and thank for other info.

Posted by: Outi Kulmala | Jun 29, 2012 4:46:10 AM

thanks for sharing information about conveyancing lawyer northern beaches

Posted by: Daniel Hirsch | Apr 16, 2012 6:38:12 AM

some great tips for about real estate- nice to have some good news for a change!

Posted by: directorycube | Apr 3, 2012 7:38:28 AM

If you can, ask your conveyancing solicitor to email any documents to you rather than post them to save time and help to speed up your sale or purchase.

Posted by: Conveyancing in manchester | Oct 14, 2011 1:39:29 PM

When selling a property, have readily to hand any appropriate documentation that your conveyancing solicitors may require. These can include FENSA documents for new windows and doors and CORGI or similar documents for any new gas appliances.

Posted by: Conveyancing in leeds | Oct 14, 2011 1:36:44 PM

The comments to this entry are closed.


Thank you for visiting!