Bravo festival condos vaughan. How much can I afford to buy a detached house? For friends who have just emigrated to Canada, buying a house must be a rigid demand, so even if they are abroad, they have been paying close attention to housing prices in major cities, especially Toronto and Vancouver.Please Visit: Bravo festival condos vaughan to Get Your VVIP Registration Today!
But in fact, according to a new study, even if house prices fall, incomes do not go up, coupled with the rising mortgage costs, both home buyers and homeowners will still feel that the housing burden is heavy.
According to the latest housing affordability report of the National Bank of Canada, housing affordability has deteriorated in 9 of the 10 major cities, while house prices in Vancouver and Toronto are so high that if income growth fails to keep pace, house prices are bound to fall.
According to the Huffington Post, data for the third quarter of this year show that housing affordability continues to deteriorate in nine of Canada’s 10 major cities, with the exception of a slight improvement in housing affordability in Winnipeg. Up to now, the housing affordability of most cities has been deteriorating for more than three years. House prices in Toronto and Vancouver have fallen, but housing affordability has not improved at all because of rising mortgage rates and falling wages.
Housing affordability in the third quarter of this year was the worst since 1990, the report said. Housing affordability was poor because central bank interest rates were in the double digits. Housing affordability deteriorated worst in Montreal and Ottawa in the third quarter of this year due to rising house prices (10 per cent in Ottawa and 8 per cent in Montreal) and rising mortgage rates.
In spite of this, housing prices in Montreal and Ottawa are still relatively cheapest of all cities in the country, with average monthly mortgage payments accounting for only 32.7% and 28.7% of household income, respectively, far lower than 68.2% and 80.8% in warm and warm places.
According to the Bank of China report, Vancouver families want to buy independent houses, and according to the traditional 20 per cent down payment, the household income is as high as 230000 8818 yuan, almost catching up with the annual income of 246000 of Vancouver’s top 1 per cent earners (2016 census data).
Families in Toronto have an annual income of 150000 9289 yuan before they can afford to buy a self-contained house. By contrast, Quebec City, the cheapest city in the country, can afford a detached house with an annual income of 51000.
Housing affordability in major cities across the country has declined every quarter over the past three years, and housing affordability in the two most expensive cities has reached its limit if interest rates continue to rise, according to the report. housing affordability is unlikely to continue to deteriorate indefinitely. In other words, if income growth is not enough to offset the heavy burden of raising interest rates, house prices will go down with it.
By contrast, housing affordability is unlikely to be affected by higher interest rates in cities where house prices are relatively cheap, the report said. Even if interest rates are raised, households in these cities have relatively much room for manoeuvre. As a result, it is estimated that housing affordability in these cities will continue to deteriorate in the coming quarters.
The central bank is expected to raise interest rates in the future. In the past year and a half, the central bank has raised interest rates five times, raising the key lending rate all the way from 0.5% to 1.75%. Experts generally believe that the central bank will continue to raise interest rates for at least the next six months.