It was more affordable to own a home in virtually all provincial and major local markets across
In May and June,
The RBC report indicates that sellers also came out from the sidelines with a surge in new listings by 8.0 per cent in the second quarter, following three consecutive quarterly declines. Greater supply of homes for sale helped to unclog markets such as
The report says that
We remain of the view that any rise rates will be gradual and unlikely to unhinge either overall affordability levels or the market we expect a cooling in activity, not a crash,' added Wright.
The RBC housing affordability measure captures the proportion of pre-tax household income that would be needed to service the costs of owning a specified category of home at current market values (a fall in the measure represents an improvement in affordability).
During the second quarter of 2014, affordability measures at the national level fell by 0.9 percentage points to 48.0 per cent for two-storey homes, by 0.6 percentage points to 42.5 per cent for detached bungalows and by 0.4 percentage points to 27.4 per cent for condominium apartments.
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