Home affordability in Quebec improved in the second quarter, which helped the housing market get on the right path in the province, according to the latest housing report released by RBC Economics on September 9th.
The affordability has opened the doors to buyers, with sales of existing homes in Quebec rebounding strongly. Sales of existing homes have risen more than 40% from the low seen in mid winter; the improved market has helped prices rise.
RBC Affordability measure for Quebec has improved in all four housing classes once again in the second quarter of 2009. Affordability of the benchmark detached bungalow went down to 32.4%; the standard townhouse went down to 27.7%; the standard condo went down to 27.2%; and the standard two-storey home went down to 38.7%.
In the Montreal area, the housing market activity appears to be running smoothly as well, with the resurgence in resales since the spring.
RBC`s Affordability measures decreased by 3.3 percentage points to 5.1 percentage points.
Hogue explained that Montreal`s year long improvement in affordability has been low-key in comparison to other areas. The tighter market conditions making prices stable, and the decline in mortgage rates of the past, affordability is unlikely to be restored this much again.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
