Alberta has had a long string of improvements in housing affordability which ended in the third quarter as homeownership cost deteriorated for the first time since the winter of 207 according to the latest housing report released on November 25th, 2009 by RBC Economics.
The RBC Affordability measure for Alberta captures the proportion of pre-tax household income needed to service the costs of owning a home rose across all four housing classes in the third quarter of 2009.
Affordability of the benchmark detached bungalow moved up to 34.4%; the standard townhouse moved up to 25.9%; the standard condo moved up to 22.4%; and the standard two storey home moved up to 37.9%.
The Calgary housing market is showing signs of improvement with resale activity rebounding from a 14 year low reached earlier this year, according to the RBC report.
The RBC Affordability measure for Calgary rose between 0.3 and 2.0% in the third quarter of 2009.
Senior economist at RBC noted that home affordability might have deteriorated, however it still compares favourably to long term averages.
Activity in the housing market has picked up considerably in the province since winter of 2008, with prices stabilizing and gaining in some areas.
According to the Affordability reading, to own a standard condo, it will be 24.4%; this means it will cost 24.4% of a typical household’s monthly pre-tax income.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
