House Affordability Easily Determined Nowadays
In light of Vancouver and Toronto's rising home prices, the National Bank had identified several areas where housing affordability has improved. The bank said Calgary, Montreal and Ottawa-Gatineau are three of the top ten places with affordable homes, according to a recent report from CBC.ca.
The bank measured affordability as the percentage of household income needed for mortgage payments each month on a median priced home in a given area. The bank determined the baseline as a 25 year amortization on the home for a five year term.
According to the study authors, National Bank economists Matthieu Arseneau and Kyle Dahms, "Montreal homes have become the most affordable in a decade." They also confirmed that despite the oil depression felt throughout Calgary, the percentage of income needed for monthly mortgage payments are at an all time low. Ottawa-Gatineau for its part, had its first quarter drop at 0.5 percentage points from the close of 2015.
Overall though, the income requirement had risen by 0.1 percentage points to 31 percent for the first quarter of 2016. This was on top of the 0.8 percentage points increased from the last quarter of 2015.
Another avenue to determine home values have been introduced into the market. The Globe and Mail had launched its Real Estate hub and House Price Data Centre, according to a report from The Globe and Mail.
The hub provides information on housing trends, mortgage developments as well as market news. Its House Price Data Center allows homeowners to see first-hand national and city level home prices for 11 major metropolitan areas of Canada
According to The Globe's Editor-in-Chief David Walmsley, "We all know that real estate is something of a national obsession, which is why we have launched this hub. Whether you are in the market for a new home or simply want to have the most up-to-date details about your current neighborhood, the information contained in this hub is an unparalleled resource to help you stay ahead and make the right investments."