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Housing affordability in Canada just saw the biggest improvement in almost 4 years – Global News

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Stable interest rates and a continued cooling in home prices helped give housing affordability in Canada its biggest jump in almost four years in the first quarter of 2023, according to a new report.

On Thursday afternoon, National Bank of Canada released its quarterly housing affordability monitor, which it tracks through mortgage payments as a percentage of income (MPPI).

Mortgage payments as a percentage of income reached 60.9 per cent in the quarter, down 3.2 percentage points from the previous period and down 5.4 percentage points from recent highs. Q1’s affordability boost was the best improvement in the last 15 quarters tracked by National Bank.

Affordability was better for the second quarter in a row in Canada, according to the report. Each of the 10 markets monitored by National Bank showed improvement, the first time that’s happened in two and a half years.

National Bank noted that while there has been improvement in MPPI, it remains elevated, and has not retrenched the massive rise in unaffordability observed during the COVID-19 pandemic.



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Canadians looking to enter the housing market in a major urban centre now need to save an average of just over $50,000, which National Bank estimates requires 73 months of saving. The historic average since 2000 is 40.5 months of saving.

The bank cited a continuing price decline in the first quarter as helping Canadians better afford their homes. National Bank said median home prices were down for a third consecutive quarter, marking an overall decline of 7.3 per cent, which the bank called “the biggest drawdown in a generation.”

Vancouver, Toronto, and Hamilton, Ont., saw the biggest price declines and, by extension, the best improvements in affordability in the quarter. Despite the improvements, MPPI in Toronto (82.8 per cent) and Vancouver (94.9 per cent) are still well above the national baseline and the cities’ historical averages.

At the same time as the housing correction was proceeding, the Bank of Canada announced a conditional pause on interest rate hikes in the quarter, providing some relief to mortgage rates.

National Bank says that its benchmark five-year fixed rate mortgage used to calculate affordability declined 14 basis points.

Looking ahead to the rest of the current quarter, National Bank expects Canadians will continue to see relief on the interest rate side of the equation, though home prices and sales activity are beginning to tick up as buyers move off the sidelines.

The report’s authors said they have doubts about whether the price rise will be sustained, however, given the Bank of Canada policy rate’s current “restrictive” levels following a series of rate hikes in the last year.

Median household incomes were also up 1.3 per cent quarter-to-quarter, National Bank said, helping to improve the overall affordability picture for Canadians.

To learn more about how you can break into Canada’s housing market, check out Global News’ Home School series here.



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RCMP arrest second suspect in deadly shooting east of Calgary

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EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.

Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.

Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.

Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.

Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.

RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.

Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.

“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.

But officers had been investigating other cases when they found Strawberry.

“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.

While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Metro Vancouver’s HandyDART strike continues after talks break with no deal

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.

Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”

However, he says the union negotiators didn’t get an offer that they could recommend to the membership.

McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”

About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.

McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.

He says it’s unclear when the talks will resume, but he hopes next week at the latest.

The employer, Transdev, didn’t reply to an interview request before publication.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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