Canadians earning average incomes may struggle to afford homes in the country’s urban centres, but new research from Zoocasa is highlighting real estate markets where homes are within reach.
However, the findings suggest buyers could find luck outside major cities like Toronto, Vancouver and Ottawa.
WHERE ARE HOMES MOST AFFORDABLE?
Saint John, N.B., stood out as a city with the greatest home affordability, according to Zoocasa.
At $79,000, the median income was lower in the Atlantic Canadian city compared with the other listed markets, but the average price of a home in Saint John was listed as $291,000 – far below the maximum home price threshold of $365,165 for median income earners.
Regina also stood out in terms of affordability.
At just under $111,000, the Saskatchewan capital had the largest gap between the average price of a home and the affordable range for a median income earner. Those earners could pay up to $429,457 for a home in Regina, where the average home price was $318,700.
Winnipeg, Saskatoon, Edmonton, Quebec City and the province of Prince Edward Island also had average home prices within the affordability range for a median income earner.
WHERE ARE HOMES LEAST AFFORDABLE?
The average home was priced at more than $1 million in Vancouver and Toronto, meaning “it is likely no surprise” that people earning median incomes in those cities would find it hard to afford a home at the average price, Zoocasa said.
People in cities with the highest median incomes would also find it difficult to buy a home, the research showed.
Ottawa had the highest median income at $106,240, but “a home in the city at the current average price may still be out of reach,” the research noted, with the average home listed $160,000 higher than the maximum median earners could afford.
Victoria and Calgary, cities with the second and third highest median incomes, also showed average home prices that were too expensive for those earners.
METHODOLOGY
Median household incomes were sourced from Statistics Canada.
The maximum affordability of median income households was calculated by finding the monthly earnings of the median income and then using the Scotiabank “What Can I Afford Calculator,” assuming an interest rate of 5.04 per cent and an amortization period of 25 years.
Average home prices were sources from the Canadian Real Estate Association.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
