25 may 2010

“Yes, home ownership became more expensive, but the affordability level is still high,” – said Robert Hogue, RBC senior economist.

“We believe the affordability level will decrease in 2010-2011, but it can be limited, because the balanced supply and demand conditions will cool the housing market,” he noted.

The RBC report’s forecast is: the cost of owning a home will rise even more.

The main reason is the interest rates rise in the second half of this year and in 2011.

Housing affordability measures in Canada will hardly exceed the peak levels of 2008.

Home affordability level decreased almost across all provinces, especially in B.C., Saskatchewan and Manitoba.

The more moderate decline was shown in Quebec, Ontario and Atlantic Canada.

Alberta became the only province which showed a drop in the ownership costs.