You may not need to give up your dream of having a home in one of the priciest cities of Canada. For the very first time in about 3 years, housing affordability in Canada is improving.
Home affordability by National Bank of Canada measure fell down by 0.2 points in 4th quarter of year 2017 which means that average mortgage on representative home was cheaper than as it was quarter earlier. A Real Estate Retirement Plan is available which is an Investment and Lifestyle Solution for Canadians.
Bank said on Thursday that this is the very first time that it has happened since 2nd quarter of 2015.
It is largely thanks to the 2 phenomena:
• Falling home price in Toronto area over past half year.
• Strong wages gain prompted by boom in job market over past year.
National Bank economists Kyle Dahms and Matthieu Arseneau said that countrywide 4th quarter wage has grown by 5.7% and it was the strongest growth in more than 3 years. You can also know about Real Estate that what You Need to Know Before Buying or Selling a Home in Canada.
National Bank economists say that this strong growth of wage is going to to keep affordability stable, because the other factors are pushing cost of housing towards upwards direction, rise in rate of interest led to the rise in mortgage rates.
Dahms and Arseneau said that rate of mortgage have risen by 0.58% points since middle of 2017.
They also wrote that the most expensive markets like Vancouver and Toronto are most sensitive markets to have hike in interest rates.
“In Toronto, rate rose combined with tax on foreign purchases that seems to have a suppressed demand. Interest prices were down in Q4 and continue to fall down in 2018.”