6 April 2018

RBC says home prices in Toronto and Vancouver are still too high in comparison to other regions of Canada.

Moreover, the bank pointed to Vancouver’s 1.8% increase in its housing affordability measure and called the current market conditions the worst in the history of Canada.

“The main problem for local homebuyers is that they are facing now the worst affordability levels ever seen in Canada.”

RBC names the Prairies and Atlantic Canada as “broadly affordable,” while Montreal’s previous reputation of an affordable market is becoming weaker.

“The activity growth caused prices increase and gradual erosion of affordability, although it’s not an issue to worry about so far,” – RBC said about the Montreal and Ottawa markets. “This tendency is damaging its reputation of an affordable market, especially in the segment of detached homes.”