In spite of the fact that the average selling price of a Saskatoon home has risen over 50 percent in the past five years, Saskatoon remains one of the most affordable housing markets in the world, according to a recent study conducted by Pavletich Properties Ltd. and published in the Demographia International Housing Affordability Survey for 2007.
The survey measures median incomes for each market and compares them against housing prices to arrive at “median multiple.”The survey considers a home “affordable” if it costs less than three times a household’s gross income.
Saskatoon tied for 15th place with six American markets including Pittsburgh, Pennsylvania, and Syracuse, New York.
Topping the list of the “world’s most affordable” was Regina, our neighbour to the south which was tied for first place with Fort Wayne, Indiana. Quebec City and Winnipeg were the only other Canadian cities that were marginally more affordable than Saskatoon. Ottawa, Oshua, and London also made the list of “affordable” places to buy a home, but just barely. Houses in Ottawa are 2.9 times the median income for the area while Oshua and London command prices which are 3 times the median income.
Houses in Montreal, St. Catherines, Edmonton and Halifax make the “moderately unaffordable” list.
Toronto and Calgary were classified as “seriously unaffordable.”
Vancouver and Victoria were rated as “severely unaffordable.” Vancouver came in as 13th in the world for “most unaffordable.” Expect to pay 7.7 times the median income in the area for a typical house.
According to the survey, Los Angeles-Orange County, California is the world’s most expensive market. Typical houses cost 11.1 times the median income for the area.
I’m always happy to answer your Saskatoon real estate questions.
Royal LePage Vidorra