Author: RBC Economics: Saskatchewan Helps Improve Affordability
According to the latest housing report released by RBC Economics shows that the rebound in Saskatchewan’s housing resale market has slowed down since 2009, which has in turn limited price increases and improved affordability in the province in the 4th quarter of 2009.
RBC Housing Affordability measure captures the proportion of pre-tax household income that is needed to service the costs of owning a home.
The RBC Affordability measures for Saskatchewan has declined across all housing types in the 4th quarter of 2009; this means that affordability have improved.
Robert Hogue, senior economist at RBC noted that the resale activity in the Saskatchewan market has cooled in recent months, as more properties have been put up for sale which has resulted in more balanced market conditions and smaller price gains.
The detached bungalow benchmark reach 0.7% higher, making it 40.8 %; the standard townhouse rose by 0.1% to 32.7%; the standard condominium rose by 1.1% to 27.3% and the standard two storey home increased by 0.8% to 43.7%.
The RBC Housing Affordability measure has been compiled since 1985.
With concerns to the RBC Housing Affordability measure, the higher the measure, the more difficult it is to owning a home. In other words, the higher the measure, the more of your pre-tax household income is necessary to own that housing type.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
