A new publication report by RBC says the housing affordability situation in Canada has never been worse and Victorians are being hit where it hurts – their wallets.
Interest rates continue to rise as the Bank of Canada battles inflation, but that means home ownership costs are through the roof.
Since March, as prices have risen, RBC says their ‘capability forecast’ has reached 62.7%. which is the worst it has ever been.
In every home ownership market across Canada that RBC monitors, prices have increased.
The bank predicts that the bottom of the capacity crisis appears to be imminent. The drop in prices should be widespread in BC and will help markets stabilize.
According to RBC, prices should fall by 14% nationwide at the peak of next spring.
“To qualify for an affordable home, buyers in Victoria must have at least six pre-tax incomes,” RBC said in a news release.
In fairness, Victorians need to earn at least $216,000 before tax each year to qualify for a mortgage on a standard home. .
“Buying a house in this country has never been so cheap,” said the banker.
Home sales have fallen 43% in BC due to the worst-case scenario affecting the market.
Looking ahead, RBC sees the end in sight, but we are not there yet.
“We can’t reverse climate change quickly. It will take a lot of time for the market to absorb the rise in mortgage rates,” said RBC.
“We expect the market to drop in the spring.”