“You’re gorgeous, baby, you’re sophisticated, you live well…Vancouver is Manhattan with mountains. It’s a liquid city, a tomorrow city, equal parts India, China, England, France and the Pacific Northwest. It’s the cool North American sibling.” - The New York Times



OTTAWA -- Owning a home in Canada became more affordable in recent months, according to the Royal Bank of Canada.

RBC Economics Research released a report Monday saying the proportion of pre-tax household income it takes to own a home declined in the third quarter of 2010 after a full year of deteriorating home-ownership affordability. Lower home prices and mortgage rates were the reasons for the recent improvement.

"The improvement in affordability during the third quarter has relieved some of the stress that had been mounting in Canada's housing market over the past year," said Robert Hogue, senior economist for RBC. "After appreciating rapidly during the strong rebound in resale activity last year and early this year, national home prices recently came off the burner and retreated modestly as market conditions cooled considerably through the spring and summer."

RBC said it took 40.4 per cent of household income, on average across the country, to own a bungalow between July and September. That was 2.4 percentage points lower than the second quarter.

The cost for owning a standard two-storey home fell 2.5 points to 46.3 per cent on income, and the affordability rate for condominiums was down 1.4 points to 27.8 per cent.

Looking at the percentage of household income needed to own bungalows in major markets across the country, it was 68.8 per cent in Vancouver, 47.2 per cent in Toronto, 41.7 per cent in Montreal, 38.2 per cent in Ottawa, 37.1 per cent in Calgary and 32.7 per cent in Edmonton.

Postmedia News

Read more: http://www.canada.com/business/Owning+home+becoming+more+affordable+Canada/3899091/story.html#ixzz16hL0VjDY
No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Please note, your email will not be shown publicly
Your Email (will not be published): *
Comment: *
Please type the text as it appears above:
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.