The latest Quarterly Housing Trends and Affordability report from RBC Royal Bank of Canada says that overall, home affordability across Canada deteriorated in the second quarter of 2011 but local markets like that in Toronto remain strong.
According to the report, “Existing home sales eased in the second quarter in Ontario, but sellers remained in the driver’s seat in many local markets, including the Toronto area. Despite the return to a deteriorating trend this year, the evidence mostly suggests that affordability is not being overly strained at this point in Ontario.”
The report also says that slightly higher prices aren’t deterring buyers: “Home sales in the Toronto-area market maintained a fairly brisk pace in the second quarter, if slightly slower than that which marked the opening months of this year. Perhaps more importantly, however, was the fact that the availability of homes for sale continued to be somewhat tight, lending a strong hand to sellers in the price-setting prices. Tight market conditions set the stage for multiple offers and bidding contents, and this resulted in higher prices for sellers. So far this year, Toronto-area homebuyers remained motivated despite loss of affordability.”