How long it's going to last is anybody's guess - but for now, Calgary is the most affordable city in Canada in which to buy a home, says a report.
More than that, Alberta is the most affordable province, says the most recent housing affordability report issued by RBC for the second quarter of this year.
"In Calgary, it is the most affordable it has been in six years," says Bill McFarlane, Calgary-based RBC sales manager for Prairie builder markets.
For the average two-storey home in the city, the portion of a family's pre-tax income required to cover monthly mortgage payments, property taxes and utilities is 38.5 per cent. Provincially, it costs 36.4 per cent.
"Compare that with places like Toronto, where it takes 61.4 per cent - and Vancouver, where it's more than 95 per cent of household income, and you can see how well off we are," says McFarlane.
Closer to home, Edmonton sits at 39.1 per cent.
Affordability was helped by a weaker than expected rebound in resale activity, he says.
"After posting two successive increases, resale activity edged down in the April-June period," says McFarlane. "This had the effect of keeping price pressures at bay."
Among the provinces, the next closest to Alberta in terms of affordability was the Atlantic region at 38.5 per cent.
Ontario sat at 48.6 per cent and B.C. was 76.6 per cent.
The benefits to the Calgary market of such "attractive affordability have nonetheless been slow in coming," says the report. "Homebuyer demand has been stuck in low gear up to this point, with existing home sales. new home construction and home prices continuing to exhibit flat month-to-month trends."
But with industry players and watchers all expecting an upward blip in business, those benefits are likely to improve.
"Going forward, attractive affordability, robust growth, and rising employment and migration will act to improve confidence in the market," says McFarlane.
mhope@calgaryherald.com
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