RBC Housing Trends and Affordability | August 2011
Below is an excerpt from The Royal Bank of Canada's (RBC) Housing Trends and Affordability for August 2011.
"Elevated home values appreciated ever more in British Columbia in the second quarter of this year, making it even harder for the provincial households to own a home. Hefty price gains for bungalows, in particular, contributed to a significant loss of affordability in the province. The RBC Affordability Measures for British Columbia rose between 1.0 and 5.7 percentage points in the quarter, representing the steepest increases among the provinces. The measures for all housing types are now either at or very close to their worst levels on record. Such poor affordability almost entirely reflects the sky-high market valuations in the Vancouver area. Elsewhere in the province, home prices are taking a much lesser toll on homebuyers' budget. We expect that poor affordability will weigh on housing demand by B.C. households and pressure prices down next year."
To read the entire report, click here.