British Columbia Resale Market Value Increase Due to Improved Housing Affordability
Tags: british columbia, bungalow, declines, household income, housing affordability, housing market, mortgage payments, owning a home, property taxes, proportion, rbc, resale market value, second quarter, townhouse, typical household
The rally seen in British Columbia’s (B.C.) resale housing market this spring and summer reflects the significant decline in the costs of owning a home in B.C., according to the latest housing report released by RBC Economics on Sept. 9th.
There have been cumulative declines in homeownership costs over the past 5 quarters have been the highest since 1991, helping it bring life to B.C.’s resale housing market notes Robert Hogue, a senior economist at RBC.
The RBC Affordability measure for British Columbia shows the proportion of pre-tax household income that is needed to service the costs of owning a home. These are homeownerships costs, which include mortgage payments, utilities and property taxes.
In the second quarter of 2009, homeownership costs of detached bungalows in B.C. declined to 58.4%, the standard townhouse went down to 45.6%, the standard condo went down to 32.7% and the standard two-storey home went down to 64.4%.
We see that in Vancouver, resale activity surged through the spring and summer. Sales of existing homes more than tripled by the end of July, after we saw it reach its lowest levels at the end of 2008.
RBC Affordability measure for a detached bungalow in Vancouver is at 63.4%.
As a reminder, RBC Affordability helps determine the cost of homeownership of a typical household’s monthly pre-tax income.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
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