Income boost helps some Canadians buy homes

Canadian households had more capacity to purchase property in the third quarter of 2015. That’s an improvement over the previous three months, says Desjardins.

After-tax income growth has grown faster than the average sales price of a home in much of the country, and mortgage rates were stable after declining in the second quarter of 2015. But the Desjardins Affordability Index (DAI) for Canada is still below its 25-year average — meaning homes are less affordable than in the past.

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Regional highlights

The DAI remained unchanged in Quebec in the third quarter of 2015, as households’ after-tax income growth was similar to the average property sales price’s advance. The index continues to evolve slightly below its historical average.

Average property prices in Ontario grew at a slower pace than households’ after-tax income, pushing up the DAI in the third quarter of 2015. Despite this slowdown, the market is still below its average for the past 25 years.

Access to ownership improved in Vancouver for the first time in a year, since the average property sales price declined and after-tax income advanced slightly. This market however is still the least affordable in Canada. The DAI in Calgary improved as well.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.