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.” Read More…
Its funny because i got a call the other day from my bank about a generous mortgage rate to buy my first home. I turned them down because i didn’t think homes were affordable just yet.
@Carl, the reason depends on if you plan on staying put for at least 5 years. If you are then its more cost effective to own a home then to rent.
Why do people need to by houses when rent is so much cheaper?
My fear of buying and then renting them out is that i don’t feel we are out of the crisis and i could lose everything. I am staying out of this volatile market.
I live here in Vancouver and its not kidding about the crazy costs for homes. Even the cost of apartments is way high.
It pays to live in Alberta where costs are very low to own a home.
The real estate market has been improving over the downfall of the 2008 era. By 2012 things will be back to normal and worth buying again.
What’s most scary is that there are still many who are underwater where they are paying more to keep their home than its actually worth.
That is the real problem.