Higher home prices caused affordability to deteriorate slightly across Canada over the first quarter of 2012, according to the Royal Bank’s most recent study. Characterizing the change as “mild,” RBC notes that their measures still stand “slightly above historical averages…” with the recognition that massive “regional divergences persist."
Saskatchewan was the only province to buck the trend showing modest affordability improvements in all housing categories measured to mark the third consecutive quarterly improvement.
According to the report, “This latest easing in the measures brought affordability levels even closer to long-term averages in Saskatchewan, which implies that any undue stress being exerted on provincial homebuyers is dissipating. Very strong market activity since the fall of last year seems to corroborate this. Home resales have surged to record-high levels in the first quarter of this year in Saskatchewan. Rapid economic growth will continue to support the province’s housing market in 2012.”
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