(Source: Edmonton Sun)
Housing in Calgary and Edmonton is more affordable than last year according, to the latest RBC Economics report that looks at housing prices and affordability across the country.
Affordability in Canada improved in the fourth quarter of 2008 due to reduced demand, which reduced prices, but primarily because of historically low mortgage rates due to the Bank of Canada slashing its overnight rate from 4.5% to 0.5% in just over a year.
The RBC Affordability measure captures the proportion of pre-tax household income needed to service the costs of owning a home, including the cost of mortgage payments (principal and interest), property taxes and utilities on a detached bungalow, a standard two-storey home, a standard town house and a standard condo (excluding maintenance fees).
The higher the measure, the more difficult it is to afford a house.
Read Myke Thomas’ full article “Alberta housing affordability improves: report” in the Edmonton Sun (June 12, 2009).