RBC Economics: Manitoba’s Housing Affordability Stays Relatively Stable
Tags: bungalow, economist, home affordability, household income, housing affordability, housing market, manitoba, owning a home, rbc, sales momentum, townhouse, typical household
Manitoba’s housing market remains relatively affordable despite a rise in homeownership costs for the first time since 2008, according to the latest quarterly housing report released on November 25th, 2009 by RBC Economics.
The report by RBC Economics noted that the expected resurgence in Manitoba’s economy, along with an upswing in job growth should help keep the demand for the housing market strong next year.
The RBC Affordability measure for Manitoba 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 34.8%; the standard townhouse moved up to 23%; the standard condo moved up to 20.5%; and the standard two storey home moved up to 37.5%.
Robert Hogue, senior economist at RBC noted in the report that home affordability in Manitoba became moderately worse; however the decline is relatively small in comparison to other provinces.
The housing market also appears to be fairly balanced and should be able to sustain solid sales momentum in the short term.
According to the Affordability reading, to own a standard condo, it will be 20.5%; this means it will cost 20.5% of a typical household’s monthly pre-tax income.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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