There have been moderate changes in Manitoba’s housing affordability over the second quarter. It suggests that it is at a turning point, according to the latest housing report which was released on September 9th by RBC Economics.
Senior Economist at RBC, Robert Hogue noted that the resale activity ramped up in the spring and summer, while property prices maintained a steady upward trend. It is anticipated that affordability will be levelling off in Manitoba.
Housing affordability in Manitoba has improved across in three out of the four classes last quarter. The benchmark detached bungalow moved down to 34.4%, the standard townhouse went down to 22.8% and the standard condo went down to 20.1%. The only increase, as mentioned is in the standard two-storey home, which rose to 37.2%.
The report looked at mortgage carrying costs, which is relative for a broader sampling of cities across the country. This includes Winnipeg in the sampling. For these cities, RBC has used a narrower measure of housing affordability that only takes payments relative to income into account.
Housing affordability includes the cost of mortgage payments, utilities and property taxes. If the affordability reading is 50%, it means that it will take up to 50% of a typical household’s monthly pre-tax income.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
