REPORT: HOUSING AFFORDABILITY IN TORONTO HITS RECORD LOW
Sep 29, 2017
By Bob Komsic
Housing affordability in Canada hit the worst level in 27 years in the second quarter of this year, according to a just released report from the Royal Bank.
RBC Economics says its affordability measure for the country deteriorated for the eighth straight quarter.
The hardest hit region was Toronto, where affordability fell the most compared to the year before and hit the worst level ever measured in the city.
RBC’s report says the province’s measures to cool down the real estate market did not have an immediate impact but says ”the good news is that some relief in on the way. Recent downward pressure on prices is poised to lower ownership costs in the period ahead. The bad news, unfortunately, is that rising interest rates will take some of that relief away.”
The bank says rising rates will further weight on Canadians’ ability to afford a place.
After interest rate hikes in June and September, RBC experts believe the Bank of Canada will raise its key rate one more time before year’s end and three times next year.