Posts Tagged ‘alberta’

Housing affordability in Alberta improves, bucks national trend

Monday, March 15th, 2010

Construction of new homes in Auburn Bay S.W.on Monday, January 11.

 

Construction of new homes in Auburn Bay S.W.on Monday, January 11.

Photograph by: Archive, Calgary Herald

CALGARY – Housing affordability improved in Alberta in the fourth
quarter of last year amid slower economic recovery, compared with other
regions across the country, according to the latest housing report
released today by RBC Economics.

“The downturn in the housing market has created a large surplus of
homes available for sale. This has held back the pace of price
increases in the province since the market rebound took effect,” said
Robert Hogue, senior economist, RBC. “This subdued pace has kept
Alberta’s affordability in check.”

The RBC Affordability measures for Alberta, which capture the
proportion of pre-tax household income needed to service the costs of
owning a home, declined across all housing types in the fourth quarter
of 2009. The measure for the detached bungalow benchmark moved down to
33.7 per cent (a drop of 0.4 percentage points over the previous
quarter), the standard townhouse to 25.8 per cent (down 0.4 percentage
points), the standard condominium to 22.5 per cent (down 0.1 percentage
point) and the standard two-story home to 37.9 per cent (down 0.2
percentage points).

The Calgary housing market continues to be attractive with
affordability measures at or below long-term averages, said RBC. The
strong rebound in resale activity slowed last summer and has reversed
since the fall. However, the tight availability of homes for sale in
Calgary has continued to provide a slight advantage to sellers, moving
housing prices in a slight upward trend, said the report.

“With the exception of townhouses, price gains in the Calgary market
have still been relatively modest and below the highs seen in 2007,”
added Hogue.

mtoneguzzi@theherald.canwest.com

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