These are the Canadian cities where homes have become more affordable since 2022
BNN Bloomberg
Homes were slightly more affordable in May than they were a year ago, according to new data from Ratehub.ca, though researchers warn the phenomenon may be short-lived.
Ratehub.ca looked at the average home prices in major Canadian cities in May 2023 and May 2022 and calculated the average annual income needed to buy a home. Affordability improved in eight out of the 10 cities included in the research.
The report said the trend was a consequence of the Bank of Canada’s steep series of interest rate increases over the last year. That policy cycle has led to soaring mortgage rates and an elevated stress test used to qualify for a mortgage, now in a range of 7.39 per cent, up from 6.77 per cent last May.
“Combined with softer home prices in most markets across Canada, the overall affordability picture has actually improved,” the report said.
