Vancouver Real Estate in Not Very Affordable According to Latest RBC Report
Well suprise suprise!! In a housing affordability report released and titled "Housing affordability is forecast to improve in 2008" RBC has very little good news for us. The first words on the report state "Although the result is heavily skewed by western Canada’s housing costs, typical Canadians, on average, now have to give up a greater share of their income to afford home ownership than at any other point since the fourth quarter of 1990."
So its affordabilty is bad everywhere and we make the national averages look worse. They "expect the rate of resale house price appreciation to slow to about the 5-7% mark in 2008, with Saskatchewan likely to lead the pack again" I know a great REALTOR in Sasakatoon. Let me know if you are interested. Crazy bidding wars there last year for $250,000 houses. Let him know I sent you.
Skimming down to the British Columbia section of the report (nicely at the top of page 2).
"British Columbia — Stressed conditions to slow market The least affordable housing market in the country entered uncharted waters last year as affordability deteriorated to its highest level on record (we started tracking conditions in 1985). House prices have not accelerated as sharply during the current housing cycle as they have in neighbouring Alberta. Unlike Alberta, however, British Columbia's affordability levels were already sitting at stressed levels and so a pick-up in prices this cycle has added further strain to an alreadystretched market. We expect that affordability reached a peak stress point late last year and that modest improvements are in store for 2008. Slower demand, proxied by a downward trending sales-to-listing ratio, has already helped ease some of the upward pressure on prices. Price gains are on a moderating path, dropping from 18% in 2006 to 12% last year. We expect an even softer rate of 8% this year."
Hmmmm? It doesn't sound too peachy does it? Still 8% is not a bad gain. Did your stocks or mutual funds do 8% last year? The advice is the same I think you are looking to buy a home for yourself? Can you afford it now? Do you need to a new place for some reason (new job, new baby, new partner, etc)? If you can say yes and reasonalble expect to be able to stay in the home for 5-7 years then go for it. Call me up, I am here to help.
Speaking of affordable, I have to run off to an open house for an $18,200.00 condo downtown. I hope to write about it later. Its Friday and Fridays are supposed to be for fun.
Matthew Collinge: www.604homes.com - Royal LePage Westside
