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Housing affordability sees modest deterioration in Q2, 2013 nationally and at home: RBC

A recently released “Housing Trends and Affordability” study conducted by RBC Economics says, the “recent upswing in the Canadian housing market brought with it some mild erosion in housing affordability in the second quarter of 2013.” According to the report, tightening supply and demand conditions led to a modest increase in prices over the quarter, nationally.


Closer to home, RBC had this to say about housing affordability in Saskatchewan.


Housing affordability in Saskatchewan in the second quarter of 2013 continued to display the seesaw pattern that has been characteristic of that market in recent years. RBC’s measures for single-family homes rose modestly in the latest period (by 0.9 percentage points for bungalows and 0.5 percentage points for two-storey homes), largely offsetting declines in the first quarter, while the measure for condominium apartments inched lower (by 0.3 percentage points) and further reversed increases that occurred in late 2012. Alternating increases and declines from quarter to quarter generated a fairly flat trend in affordability since 2009, thereby maintaining affordability levels close to historical averages in the province. With little affordability pressure restraining them, Saskatchewan homebuyers sprung into action in the second quarter, boosting home resales by nearly 14% relative to the first quarter. Notable gains were registered in both Saskatoon and Regina. The province’s strong labour market and population growth should continue to support housing demand in the short term.


Download and read the entire RBC Housing Trends and Affordability report.


Read also: Housing market not the most affordable - Star Phoenix


I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call of email me.


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Norm Fisher
Royal LePage Saskatoon Real Estate

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