Alberta’s Real Estate some of the most affordable in Canada

Articles No Comments

Here is a optimistic article from CTV for those looking to purchase a home. According to a new report by the RBC, the Housing Trends and Affordability Outlook, housing affordability in Alberta has been increasing. This is due to a small decrease in property values in the province (0.6 Р2.2 depending on home type and location) and strong wages.

Home buyers are firmly back in the driver’s seat in Alberta.

According to the Housing Trends and Affordability report by RBC Economics Research, housing affordability in the province improved in the third quarter of 2010 with home prices declining between 0.6 per cent and 2.2 percentage points depending on the housing type.

“Alberta’s housing market conditions remained quite weak in the third quarter and buyers have clearly emerged in the driver’s seat, causing home prices to decline and contributing to further improvement affordability,” said Robert Hogue, senior economist, RBC.

“Homeownership in the province is among the more affordable in Canada in absolute terms and relative to historical averages which bodes well for housing demand once the provincial job market improves.”

The report says Calgary’s weak housing demand mirrors the city’s sluggish job market, and the supply of homes for sale remains high, maintaining the downward pressure on property values.

Calgary home prices fell across all housing categories in the third quarter, contributing to further improvements in affordability. RBC’s affordability measures declined by 1.2 to 2.3 percentage points, representing the third consecutive drop for two-storey homes and condominiums.

“The good news is that the Calgary market is no longer running in reverse; however, the bad news is that it appears to be running in low gear,” added Hogue.

“Despite relatively affordable homeownership in Calgary, only modest improvements in home resales have recently occurred with levels moving up to those witnessed 10 years ago.”

The full RBC Housing Affordability report is available online.