 鲜花( 0)  鸡蛋( 0)
|
British Columbia's housing affordability notably improved but still has far to go, says RBC
: S; e3 ^: Q$ i. b# g* ` TORONTO, April 16 /CNW/ - British Columbia's housing markets are in the# U) r" _4 N2 {7 f# `
middle of a significant correction that is partly reversing the extensive7 D4 r+ v- B& w* }& l+ T0 Z# J: f
gains of recent years and which is helping restore affordability conditions,
! h6 Y3 [2 K& caccording to the latest housing report released today by RBC Economics.
$ i1 s, J* i0 S* h- v$ N "The province's housing markets remain under heavy downward pressure,"- [0 S0 S/ x" n o1 T% g
said Robert Hogue, senior economist, RBC. "While housing affordability is
* R% I; _5 X! D$ N- ^" Gimproving as the correction process runs its course. RBC's affordability
3 R6 R9 T4 [4 _ ~, u) x; Wmeasures for the province are still at levels far off historical averages."; H" H J/ Z1 Y4 s4 b: p
RBC notes that the sharp rise in unemployment since last summer is& J5 a$ w0 @' l+ k7 p9 V9 a n
worrying households in the province and weighing down demand for housing,
; X8 G' @9 Z% G" {8 {which runs well short of available supply. Such weak market conditions have
3 A% I0 A3 |! m+ Z$ b1 S2 B3 f+ d/ zsustained the declining trend in prices for both existing and new homes.
) h( f' Z: _ a6 _8 { The RBC Affordability measure for British Columbia, which captures the0 q. C5 ^, Y8 G( Q; @4 d: e
proportion of pre-tax household income needed to service the costs of owning a# ]) \, Y- s z2 @$ v3 T, P3 p
home, improved across all housing segments in the last quarter of 2008.5 `/ p/ T+ v% o2 [
Affordability of detached bungalows in the province moved to 66 per cent, the% x. D- A3 R( p4 a! k- \7 b& s2 D: `
standard townhouse to 52.5 per cent, the standard condo to 36.7 per cent, and$ q9 e `# {. _9 Y$ G( W. I- s
the standard two-story home to 73.7 per cent.3 D, a9 j9 r: E1 e, P7 D
According to the report, there are signs that the B.C. housing markets
+ W' u3 Y \3 Q4 H, o/ imay be stabilizing as sales of existing homes appear to have bottomed out in |. L- x2 C/ [+ y, @5 k6 {
the closing months of 2008 and the first two in 2009 - although at
" W" ^# o! N7 J" @historically depressed levels.0 ~% d* E# E7 q- G
Despite sharply declining house prices and lower mortgage rates, the cost$ b( h; R0 R- S6 P2 M
of homeownership in Vancouver is still the highest in the country. House
; J2 M& B! Z% k$ L9 Y5 n9 Q. ?3 Xprices continue to rapidly decline and pricing power remains firmly in the
3 L; f. B! j/ C N* Bhands of buyers with the sales-to-new listings ratio at historical lows. "This
* `6 `' J, _* V: ^enormous imbalance suggests that prices will likely further correct in the/ B( j' y2 ?- B+ d4 @
months ahead," added Hogue.% A, r5 g0 [/ q! b3 M0 m1 w% _2 b
RBC's Affordability measure for a detached bungalow for Canada's largest6 ]" t6 j h) U6 I1 ~' ?
cities is as follows: Vancouver 70.3 per cent, Toronto 51.3 per cent, Calgary
4 H7 Y1 f S, h! o& P: H# I42.7 per cent, Ottawa 42.7 and Montreal 39.4 per cent.
7 u. c& i8 ~7 t; h6 p The report also looked at mortgage carrying costs relative to incomes for; D0 s9 V( i1 d8 i0 v% N. j& [
a broader sampling of cities across the country, including Victoria. For these9 i+ v) M/ o7 R/ @' C
cities, RBC has used a narrower measure of housing affordability that only# @ q5 |9 H* m: C e2 Y
takes mortgage payments relative to income into account.6 x/ j3 n5 ~( e1 a, C
The Housing Affordability measure, which RBC has compiled since 1985, is
; B j- |: X a! g5 c4 t( Y; gbased on the costs of owning a detached bungalow, a reasonable property' q) Z9 }# P ~& H( W: w2 L0 ~
benchmark for the housing market. Alternative housing types are also presented
% P# x" p3 Q8 D- l- U! h/ _. ^& v% x+ Bincluding a standard two-storey home, a standard townhouse and a standard
$ u9 _- f+ Y. J$ g% d9 Scondominium. The higher the reading, the more costly it is to afford a home.
+ N- x. J7 T( O l+ R) EFor example, an Affordability reading of 50 per cent means that homeownership
' D j# ^1 ]! S6 l7 \costs, including mortgage payments, utilities and property taxes, take up 50% o( ^3 Y+ Q% O! D
per cent of a typical household's monthly pre-tax income.5 p3 `8 k0 W$ }7 i5 U
0 k: l+ |* c- e7 x <<
! w: G. E: I( S. b Highlights from across Canada:; }+ x! S3 ? P4 T1 l! v! \
( F* ?+ M* ]* A! S
- Alberta: Since last fall, the declining Alberta economy has) F" D7 V/ j8 ]
intensified the downdraft on the province's housing markets, causing
+ C5 \: l% F3 F* E: R/ E* c& X" F home resales to drop to a 12-year low at the end of 2008 and rebound
`, i' A) W4 b3 _3 K only modestly since. Affordability has been on an improving track9 d1 Q6 V. {. B, l- G/ Z
since about the middle of 2007.3 G/ P, e+ H! h0 k4 Z$ N, z
- Saskatchewan: Market activity has cooled considerably from the
8 i8 ]3 V5 G9 m2 r5 v5 Q frenzied pace from 2006 to early 2008 and prices have begun to& [, {& w H" w0 j0 t8 J9 ]# T3 j
decline. Nonetheless, economic and demographic fundamentals are still
, [6 D0 w: W3 j* H largely supportive of the housing market and overshadow extremely
Q3 u0 X5 ~6 h; Z6 J% C1 F8 ` poor affordability levels.1 [% R" I1 ~- ?( d3 n2 N
- Manitoba: Manitoba's housing markets have fared much better than the$ O# W, q+ Y3 p( A6 s8 \4 \
vast majority in Canada: resale activity has slowed moderately and
; W/ {7 O! F8 }9 ]; O$ o+ e- {# r prices have either held their own or edged down just slightly.! o4 V8 f* c3 n
Affordability has been kept out of the danger zone, helping to
4 r# j; O; T1 B, G* J% K minimize any downside risks.- o5 |7 }' @% h, R* {8 P' P
- Ontario: With the recession pounding many communities, housing market' B$ F6 P" W/ \/ }
conditions have deteriorated considerably. However, the impact is3 B! C! C! l7 z$ g# f
unlikely to develop into an all-out rout similar to that of the early
9 m& n' r* B/ `( Q! l+ Y 1990s. Affordability, while still causing some stress, is quickly
& k; K) \3 z# \2 y* J$ e being restored to levels closer to long-term averages.) X/ j! G K# a: m- x
- Quebec: The province's housing markets have been among the last in
; z. W' t2 O: `$ | Canada to yield to the weakening trend. The main sign of cooling thus9 ^2 p. d8 n* k! {
far has been a drop in resale activity, as prices have held up- ~% z' f8 N6 t
reasonably well. Some of the persisting market strength can be) Y5 k% n, e# U( S
ascribed to sensible affordability levels, which had eroded only
, x$ T5 n4 v) ^1 e& m modestly in recent years., F1 f$ H- N1 r. O, D1 R- K; Z. i; Q
- Atlantic region: Markets have largely remained stable against the/ L; @% {: y- X! j
general housing downturn, with St. John's becoming the housing hot# R0 \5 D6 G& q: G. N0 Y, e
spot in Canada and Halifax and Saint John maintaining steady upward
4 ^! o! O" S+ Z' T. h price momentum. The region is benefiting from improving affordability4 G3 z9 w H* y: g+ U
following two years of deterioration." f+ u4 m1 _! u
>> |
|