Homeownership costs are quickly approaching all-time highs thanks in part to higher mortgage rates in the second quarter, according to RBC Economics Research.
In a report released Monday morning, RBC said affordability measures in B.C. rose between 1.1% and 2.5% during the second quarter compared with the first, representing some of the most significant affordability deterioration across the country.
That means demand for housing in the months ahead will likely diminish, RBC said.
“While we generally dismiss talk of a Canadian housing bubble, the high-flying Vancouver market is probably the closest area to one in the country with very poor affordability likely playing a role in the steep drop in the resale market since the start of the year,” said RBC senior economist Robert Hogue. “Nonetheless, even though the Vancouver market is clearly vulnerable to a price correction, this does not imply that a collapse is imminent because existing and new home supply is well contained at this point.”
RBC’s housing affordability measure rose across all housing types in the second quarter…
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Posted by: Business in Vancouver
Date: September 27, 2010