Housing Affordability In Canada Is Actually Improving
Housing affordability in Canada is actually improving. for the first time in three years. For the first time since 2015 “the National Bank of Canada’s home affordability measure fell 0.2 points in the fourth quarter of 2017, meaning that an average mortgage on a representative home was slightly cheaper than it was a quarter earlier.”
This was due to two main factors, lower home prices and slower sales in Toronto over the last six months and a booming job market.
Rising housing prices have also led to rising interest rates with mortgage rates havem risen about 0.58 percentage points since the middle of 2017.
Vancouver is another story altogether. The real estate market having somewhat recovered somewhat from the 2016 foreign buyers tax implementation, has the new provincial budget tabled this week aims to fix this by increasing the foreign buyers’ tax to 20 per cent from 15 per cent, and creating a speculators’ tax on properties owned by people who don’t live in British Columbia, assessed at two per cent of the home’s value.
All I know is that people shopping in our Montreal market can’t complain in terms of price and product when they compare things to Toronto or Vancouver, check out this fixer upper in Toronto for 750,000$