Owning your own home became slightly more affordable in the third quarter of 2011 thanks to continuing low interest rates, according to RBC's latest study on housing affordability.

The affordability measure captures the proportion of pre-tax household income that would be needed to service the costs of owning a certain type of home. In the third quarter, that index fell for all categories of housing.

"Housing affordability levels are quite good in most parts of Canada and will pose little threat to overall housing demand," said Craig Wright, senior vice-president and chief economist. "The Vancouver-area market continues to be a major exception, with sky-high property values in upscale neighbourhoods making it both extremely unaffordable and the most at risk of a downward correction."

The uncertainty affecting the global economy, with Europe mired in a debt crisis, is helping to keep interest rates close to historic lows. Rates are unlikely to rise until the middle of next year, and even then only gradually, RBC said.

The cost of owning a detached bungalow dropped in most major cities in the third quarter, with the exception of Toronto and Calgary, which ticked higher.

Although overall affordability improved slightly in the three months to September, housing costs in Toronto, Montreal and Ottawa are also in an "uncomfortable" range.


"We expect to see further slowing in the pace of home price increases next year, as housing demand levels out," said Wright. "These factors will set the stage for a period of relative stability in affordability trends in Canada."

According to the index, the higher the reading, the less affordable it becomes to own a home.

For example, an affordability reading of 50% means that home-ownership costs, including mortgage payments, utilities and property taxes, take up 50% of a typical household's monthly pre-tax income.

The index in Vancouver stands at 90.6%, Toronto 52.1% and Montreal 40.9%.

 

http://cnews.canoe.ca/CNEWS/Canada/2011/11/25/19020391.html

 

 

 

 

 

 

 

 

 

 

Post CommentComments: 0Read Full Story
Categories: 204 Kincora Glen N.W. | 5 Copperpond Link S.E. | 5535 Forand Street S.W. Calgary ,AB. | Airdrie, Airdrie Real Estate | Albert Park, Calgary Real Estate | Alberta Travel Video | Backing onto Pond | Beltline, Calgary Real Estate | C-207, Calgary Real Estate | Calgary 2013 Real Estate | Calgary Affordable Homes | Calgary Alberta Tourism Tube | Calgary Community Link | Calgary Real Estate | Calgary Real Estate Channel | Canada Housing Sales | Canyon Meadows, Calgary Real Estate | Choosing Colors for your Rooms! | Coach Hill, Calgary Real Estate | Cochrane, Cochrane Real Estate | Community information | Condominium Building Continues in Calgary | Connaught, Calgary Real Estate | Continued Growth | Copperfield, Calgary Real Estate | Cougar Ridge, Calgary Real Estate | Country Hills Village, Calgary Real Estate | Evanston, Calgary Real Estate | Family Calgary Things To Do | Garrison Green | Garrison Green, Calgary Real Estate | Hamptons, Calgary Real Estate | http://youtu.be/vsyabPgsq5s | Huntington Hills, Calgary Real Estate | Kenton Ryan | Kenton Ryan Launching New You Tube Channel | Kincora Summit | Kincora, Calgary Real Estate | Lake Bonavista, Calgary Real Estate | Little Calgary | Lower Mount Royal, Calgary Real Estate | MacEwan Glen, Calgary Real Estate | Manchester, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | Midnapore, Calgary Real Estate | Millrise, Calgary Real Estate | Moving Brokers | New Brighton, Calgary Real Estate | New Schools Announced for Calgary | Ogden, Calgary Real Estate | RE/MAX Real Estate (Central) | Real Estate Internet Marketing | Resale Upswing! | Riverbend, Calgary Real Estate | Royal Oak, Calgary Real Estate | Shaganappi, Calgary Real Estate | Somerset, Calgary Real Estate | Strathmore, Strathmore Real Estate | Technology in Real Estate | Temple, Calgary Real Estate | Thinking of Moving to Alberta | Tuxedo, Calgary Real Estate | Valley Ridge, Calgary Real Estate | West Hillhurst, Calgary Real Estate | Woodbine 6 Bedroom Home in Cul-de-sac! | Woodlands, Calgary Real Estate | www.kentonryan.com

Kenton Ryan

Office: 403-216-1600

Fax: 403-476-0405

  looking at buying
  home
  past client
  Contact Me