As housing affordability increases, we are reminded that the real value of something is what people will pay for it...
HOUSING TRENDS AND AFFORDABILITY
November 2014: Housing affordability predominantly improved
across Canada in the third quarter of 2014
Despite generally increasing home prices, home ownership became more affordable
in most of Canada (albeit slightly so) in the third quarter of 2014.
Carrying the costs of ownership became a little lighter for the majority of
housing types thanks to small reductions in utility costs in many parts of the
country, low and steady interest rates, and broadly rising household income.
Even markets such as Toronto, where affordability eroded persistently in the
past four years, saw some relief. The same could not be said for Canada’s
other currently ‘hot’ markets, Vancouver and Calgary, however—although in
the case of Calgary, housing affordability remains quite attractive. At the national
level, RBC’s affordability measures eased in two of three housing categories:
decreasing by 0.2 percentage points to 47.8% for two storey homes and
0.3 percentage points to 27.1% for condominium apartments, and inching
higher by 0.1 percentage point to 42.6% for detached bungalows (a decrease
represents an improvement in affordability).
And another thing to keep in mind about rising house prices: the cost of a 2x4 ain't gettin' cheaper!