A new Housing Trends and Affordability report from RBC says that, as a result of higher home prices and interest rates, housing affordability in Canada continued to erode across most markets in the second quarter of 2012.
The report wasn’t all negative though.
Thanks to a significant drop in prices for electricity and natural gas, Alberta has solidified its position as one of the most affordable housing markets in the country.
“Usually changes in utilities don’t do much to affordability and, in that particular case, the swing was substantial in the second quarter,” said RBC economist Robert Hogue in an article on HuffPost.
Alberta home resales went up 18 per cent year-over-year and were the best Alberta has seen in five years, and Montreal also enjoyed improved affordability in the second quarter, prompting resales to rise 8.6 per cent.
Vancouver continued to be the least affordable market in Canada. The costs associated with owning a detached bungalow at market prices rose 2.2 points to 91 per cent of annual income. Meanwhile, the Toronto index deteriorated by 0.9 percentage points to 54.5 per cent based on $113,700 in annual income.