In the latest report by RBC Economics Research, we found that affordability had increased across the country.
For the province of Alberta, this is no exception.
Affordability has increased, however you can take one positive fact from all of this, and that is the reason for affordability to have increased is due to the increased activity in the housing market.
We have seen in the past few months housing activity begin to reach levels of 2008, with the average price increasing steadily.
Sales have been good, however listings have been down.
With less inventory, we are faced with buyers have to deal with what they can find on the market, which results in multiple offers being made on a single property.
You know what that means; yes it is a bidding war.
With a bidding war, we have the price being raised upward, having the average price being pushed along higher as well.
This was the main contributing factor to the increase in affordability. Now what does an increase in affordability mean for you?
This is simple, an increase in affordability means that for you to live in a standard housing type, it will take more of your pre-tax income to cover homeownership costs.
Affordability should stay at this level, as prices are not meant to increase further in the coming months.
For current buyers, although affordability has increased, it is still within levels that should not hinder you from purchasing your home.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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