1 May 2014
Desjardins’ Affordability index is calculated with the help of determining the ratio between average household income and the income necessary for getting a mortgage loan on an average-priced house in a certain city.
The report says Toronto and Vancouver remain the least affordable markets: the average house prices here are $547,340 and $801,554 respectively. And due to extremely low interest rates, real estate prices across Canada keep rising.
“Mortgage rates decline restrained any cooling of market activity. Home prices keep growing across Canada, especially due to large increases in certain cities,” – the report said. “Price growth in Vancouver and Toronto has exceeded 8% for a year already, causing the similar trend in other regions. Meanwhile, Montreal shows stability and sets the pace for the provincial average numbers.”