Author: PJ Taylor Photo
Homeownership costs have increased slightly in Canada across all housing segments in the closing months of 2009, according to the latest housing report released today by RBC Economics.
It can be expected that real estate markets in British Columbia and Ontario should see a further boost in demand prior to the introduction of the harmonized sales tax (HST) on July 1ST, 2010. This will increase the transaction costs associated with a home purchase.
According to the report, the federal government’s recent announcements in respect to the mortgage market is aimed to prevent a bubble from forming in Canada, and it could possible reduce demand when the new rules take effect in April.
With the anticipated rise in interest rates, it indicates that affordability is likely to increase. However, we have to remember that the interest rates are only returning to normal levels, which is a sign that the economy is performing much better, and returning to what it was before the recession.
RBC Housing affordability measure is based on the cost of owning a home. The higher the reading, the more it will cost to own a home.
Although the increase was only slight, it still means that more of your pre-tax income will be needed to own a home.
No investment comes cheap, and a house is among the biggest investments you will make in your life.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
