Upsurge in Household Income Eases Calgary Housing Affordability
Overall Affordability in Canadian Housing Market Down
A recent report by Desjardins Group Economic Studies reveals a decline in the overall housing market affordability in Canada compared to its average level in the last 25 years.
According to the report, the decline in housing market affordability is attributable to the surge in prices of homes for sale in Canada, surpassing household income during the third quarter, coupled with slight increase in mortgage rates.
However, the same report shows that the sharp increase in average household income in Calgary real estate makes buying a house easier in this city. Although the Affordability Index by Desjardins is slightly below historical average in the Calgary housing market, buying of homes for sale in Calgary is easier since the average household income now exceeds $110,000. This is a big boost in Calgary real estate, despite rising prices in overall Canadian housing market.
Most markets in Ontario are also affordable, except Toronto where the average price of homes for sale is $527,821. Per the Desjardins report, the overall historical high prices of houses for sale in Canada may eventually tend to cool buyer enthusiasm. However, the Canadian housing market activity is expected to stabilize soon.
Posted by Ross PAVL on