 鲜花( 0)  鸡蛋( 0)
|
British Columbia's housing affordability notably improved but still has far to go, says RBC ! h' }. A' j! |$ \
TORONTO, April 16 /CNW/ - British Columbia's housing markets are in the6 q3 w b; R) z8 v+ ` o( D) Y
middle of a significant correction that is partly reversing the extensive
i7 h! {4 e" h2 y! V4 [gains of recent years and which is helping restore affordability conditions,
8 P. y; R/ {0 P. Y, naccording to the latest housing report released today by RBC Economics.
$ z6 d. b6 o8 u "The province's housing markets remain under heavy downward pressure,"
W% M. Z. l/ @1 Ysaid Robert Hogue, senior economist, RBC. "While housing affordability is
% o9 a6 ?9 y- l# W6 G8 i( vimproving as the correction process runs its course. RBC's affordability
/ q0 T" ^* ^; D% U t2 M- h' Rmeasures for the province are still at levels far off historical averages."
( H( Q5 \1 W: Z' ?# c L RBC notes that the sharp rise in unemployment since last summer is& a. m# u& U, S3 C/ n" c
worrying households in the province and weighing down demand for housing,9 h e. P7 i# D: `" K
which runs well short of available supply. Such weak market conditions have
, E* R2 u* J- ?2 I6 @3 j7 a: Esustained the declining trend in prices for both existing and new homes.$ B8 o" m9 T! T
The RBC Affordability measure for British Columbia, which captures the
' F9 G' _3 v4 {proportion of pre-tax household income needed to service the costs of owning a
3 v+ d& X7 r" ^9 mhome, improved across all housing segments in the last quarter of 2008.; _! c. A5 y- ?/ y
Affordability of detached bungalows in the province moved to 66 per cent, the6 K8 p) F! H7 H0 t4 [
standard townhouse to 52.5 per cent, the standard condo to 36.7 per cent, and0 l- m9 E- n6 Q, _, r% M
the standard two-story home to 73.7 per cent.
; J+ _# s7 U$ @& ?4 U |; u According to the report, there are signs that the B.C. housing markets$ x( L+ n5 o! N# o$ [) { j& F+ p6 b2 ]
may be stabilizing as sales of existing homes appear to have bottomed out in2 G5 i6 t2 P, E8 M# R
the closing months of 2008 and the first two in 2009 - although at
" t6 |9 g5 V5 t- ~; f& u; nhistorically depressed levels.
0 \9 l% s/ c$ ]5 \ Despite sharply declining house prices and lower mortgage rates, the cost
; o+ G! t7 Y8 h! i: U- b8 I5 X, ?of homeownership in Vancouver is still the highest in the country. House
) g% m4 a4 P2 i+ r! d0 \& Y9 u/ M' H+ Fprices continue to rapidly decline and pricing power remains firmly in the; h7 ?7 b- Y4 ~) T3 B' _( _
hands of buyers with the sales-to-new listings ratio at historical lows. "This' i6 H$ |6 o- ~8 W
enormous imbalance suggests that prices will likely further correct in the) T: J/ J) f0 s
months ahead," added Hogue.8 z$ [+ S0 ^; L
RBC's Affordability measure for a detached bungalow for Canada's largest
3 P% l8 C" R$ @# ]: h+ `0 Pcities is as follows: Vancouver 70.3 per cent, Toronto 51.3 per cent, Calgary. a7 b6 ?; B; g8 {+ D0 r8 l" q' a
42.7 per cent, Ottawa 42.7 and Montreal 39.4 per cent.' j6 J1 x1 G2 }7 M7 f1 W( L. X
The report also looked at mortgage carrying costs relative to incomes for7 K- d5 L& \* ~5 P/ R
a broader sampling of cities across the country, including Victoria. For these _5 _! }2 s e
cities, RBC has used a narrower measure of housing affordability that only
# X# A2 {/ e3 `3 v* ctakes mortgage payments relative to income into account.9 g& e) k+ S# `
The Housing Affordability measure, which RBC has compiled since 1985, is
4 R2 S9 E7 m: P- u p7 K0 Wbased on the costs of owning a detached bungalow, a reasonable property
. G7 K8 Z' p5 {5 I% t. y9 F) Fbenchmark for the housing market. Alternative housing types are also presented# Y5 g7 H' U5 c. H
including a standard two-storey home, a standard townhouse and a standard' x+ @8 i( Q# j- Q4 J) W6 _
condominium. The higher the reading, the more costly it is to afford a home. z5 U7 _) ^/ Y( s
For example, an Affordability reading of 50 per cent means that homeownership( z7 J* c& t P0 n- _1 s
costs, including mortgage payments, utilities and property taxes, take up 50
# e1 Y: F* Q# Eper cent of a typical household's monthly pre-tax income.
( N# M; M7 j+ s. W4 _# c7 {/ L9 |! w8 X
<<9 [. Y" o+ L) y8 ]( G$ k
Highlights from across Canada:
1 S( X) I# R: G/ c4 J* X
3 n3 |* ]# K. ^: g6 f% e - Alberta: Since last fall, the declining Alberta economy has4 i1 [ p2 \1 l3 e& s; E+ L
intensified the downdraft on the province's housing markets, causing* r1 E9 [1 L# v4 F. z9 `1 Z' \5 T
home resales to drop to a 12-year low at the end of 2008 and rebound
$ O6 N; r, S' R" J4 P only modestly since. Affordability has been on an improving track
0 b& }. Z% M5 h$ k/ o3 G since about the middle of 2007.
, W' k8 m5 A; v) } X6 u7 c. Q# z - Saskatchewan: Market activity has cooled considerably from the0 ^: s3 ^2 U. T( C
frenzied pace from 2006 to early 2008 and prices have begun to! T2 |" s( G5 o/ I
decline. Nonetheless, economic and demographic fundamentals are still
( o* E1 r9 W6 I4 L$ _% F largely supportive of the housing market and overshadow extremely
% U4 w h" a$ B, A7 P poor affordability levels.
# o E! t' M2 C( Y( j$ u7 u - Manitoba: Manitoba's housing markets have fared much better than the' g2 F. h4 g Z2 J
vast majority in Canada: resale activity has slowed moderately and
# f) C) k1 q% H2 w: U& F8 { prices have either held their own or edged down just slightly., x8 e( g; V* K) j& u
Affordability has been kept out of the danger zone, helping to
1 z1 ?5 F- [$ N) d: q& q minimize any downside risks.6 U' e' x c: \8 g" g3 ]
- Ontario: With the recession pounding many communities, housing market
$ y. j7 L9 j* b7 O conditions have deteriorated considerably. However, the impact is% [8 G$ w! q V- {% s
unlikely to develop into an all-out rout similar to that of the early
6 K- K0 b9 e0 f# c- I8 `3 c8 t 1990s. Affordability, while still causing some stress, is quickly+ n9 ]4 v- [% L" m) H9 ]
being restored to levels closer to long-term averages.3 m' O' V2 \$ Z+ i- u' ]6 I
- Quebec: The province's housing markets have been among the last in1 T: k- @" d8 Y" F# _, J3 W8 z
Canada to yield to the weakening trend. The main sign of cooling thus
* C+ G5 H4 E' V; o* ~7 c* r far has been a drop in resale activity, as prices have held up
$ ~ _' J9 J' f: Y1 q reasonably well. Some of the persisting market strength can be' _: m" [( K( Z$ i- m5 G8 m" y
ascribed to sensible affordability levels, which had eroded only
3 Z, G( r2 D2 y- o7 X modestly in recent years.8 N, t# ?$ F6 F
- Atlantic region: Markets have largely remained stable against the
" [! t8 U4 W/ {( F3 x( v% [! I general housing downturn, with St. John's becoming the housing hot
+ A* m5 ]4 P1 d! L! M) k# W8 H. I' S spot in Canada and Halifax and Saint John maintaining steady upward0 ~2 O: [8 N: c4 D" n
price momentum. The region is benefiting from improving affordability
# r# @3 v" g* B: n% |% D following two years of deterioration.
* @% {& Q9 T2 W2 j5 w- B0 | >> |
|