British Columbia posted the largest increase in homeownership costs in Canada for the third quarter. It is likely that these costs will remain above the long term average according to the latest housing report which was released on November 25th 2009 by RBC Economics.
Robert Hogue, senior economist at RBC noted that all provinces and major markets experiences diminished home affordability during the third quarter, with British Columbia leading the way with the largest rise across all housing types.
The RBC Affordability measure for British Columbia captures the proportion of pre-tax household income that is needed to service the costs of owning a home, rose across all four housing classes in the third quarter of 2009.
What this means I that the higher the measure, the more expensive it is to afford a home.
Affordability of the benchmark detached bungalow moved up to 60.8%; the standard townhouse moved up 47.7%; the standard condo moved up to 34.0%; and the standard two storey home moved up to 67.6%.
According to the report, the Vancouver housing market continued its great rebound.
According to the Affordability reading, to own a standard condo, it will cost 34% of a typical household’s monthly pre-tax income.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
