Housing affordability is expected to improve in most Canadian provinces in 2008, but Saskatchewan is not among them according to the most recent Housing Affordability study just released by RBC Economics.
Following a year of record deterioration in housing affordability, the possibility of declining interest rates is the only hope which could move Saskatchewan into “stable” territory where the percentage of income used to service homeownership costs is concerned.
Recent reports released by RBC during 2007 characterized house prices in Saskatchewan as “considerably out of whack with the underlying fundamentals.” Apparently, the “fundamentals” are less important than we might have thought. RBC is predicting some fairly significant price growth for this area in 2008.
“In 2008, we expect softer, but still elevated conditions. Price gains should moderate from the 30% range down to somewhere in the 15% range. Unlike every other province where housing starts are expected to decline and affordability conditions to improve, Saskatchewan should actually see a modest increase in housing starts and only stabilization in affordability rather than an outright improvement.”
Read the most recent RBC Housing Affordability study here
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