13 November 2019

Houses and condos are still out of reach when it comes to average affordability in Toronto, just like detached homes in Vancouver. Nevertheless, condos in Vancouver have returned to their long-run affordability level, which is still too high in case of Vancouver.

The bank considers such improvements to be short-term. As mortgage rates have been falling this year, and home sales are growing now, the prices are outpacing income growth again.

According to the Canadian Real Estate Association, home sales were up by 15.5% in September, and the national average home price rose by 5.3% to $515,000, marking the largest price growth in several years.

“Increasing population growth in Canada’s largest markets combined with lower mortgage rates may limit the possibilities for home affordability improvements,” – Arseneau and Dahms noted.

If you are thinking to buy a property today is probably a very good time to do it! Please talk to your mortgage broker and see which mortgage option is the best for your current situation and budget.