Housing Affordability Index shows Calgary is a buyers’ market
Posted Jun 22, 2015 7:19 am MDT, Last Updated Jun 22, 2015 at 7:20 am MDT
It’s a good time to buy a home in Calgary, if you’re sure of your income.
That’s the message from an RBC economist, after the latest Housing Affordability Index was issued.
The index measures the percentage of pre-tax income it takes to own a home.
In Calgary, the index dropped between 0.6 percent and 1.5 percent depending on the type of home; meaning a two story home cost about 32.6 per cent of an average Calgarian’s gross income in the first quarter of the year, down from 34.1 per cent from the previous quarter.
RBC Chief Economist Craig Wright says it’s all about black gold.
“Obviously the shock we’ve seen in oil prices, and alongside of that, the weakness in the housing market contributes to softer prices, so, prices fell relative to income levels. That drove much of the improvement,” he said.
While house prices are down, Wright points out most people aren’t looking to buy because of the uncertainty of the economy, making it a buyers’ market.