Canadian Housing Affordability Sees Tenth Consecutive Quarterly Gain
Canada's housing market continues to trend towards better affordability, according to a report from National Bank of Canada Capital Markets. The bank's August Housing Affordability Monitor found that home affordability improved in the second quarter (April 1 to June 30) of this year.
This marks the 10th consecutive quarter-over-quarter improvement for affordability in Canada's real estate market. Reduced mortgage costs and a 2.1 per cent drop in seasonally adjusted home prices over the first quarter contributed to the improvement, despite a seven basis point rise in interest rates.
The report also noted that median household income increased by 0.7 per cent, offsetting the rise in interest rates. As a result, the mortgage payment as a percentage of income fell to 51.1 per cent, the lowest level for this metric in four years.
Among the 10 markets tracked by National Bank, six saw improved affordability in the second quarter, with Vancouver and Toronto leading the way. Calgary ranked fourth, while Edmonton was among the four markets that saw a decrease in affordability.