Atlantic Canada continues to have the most affordable housing markets in Canada, after experiencing relatively modest increases in homeownership costs during the 3rd quarter noted the latest quarterly housing report released on November 25th, 2009 by RBC Economics.
The RBC Affordability measure for Atlantic Canada 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 31.2%; the standard townhouse moved up to 26.7%; the standard condo moved up to 24.6%; and the standard two storey home moved up to 35.9%.
Robert Hogue, senior economist at RBC noted in the RBC Economics Report that despise rising for the first time in a year, Atlantic Canada’s homeownership costs showed among the smallest increases among all of the provinces.
The past few months we have seen steady but moderate gains in property values, which have worked to limit declines in affordability.
As housing becomes less affordable, we should see the market cool down in a few months.
According to the Affordability reading, to own a standard condo, it will be 24.6%; this means it will cost 24.6% of a typical household’s monthly pre-tax income.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
