RBC has released its latest Canadian Housing Trends and Affordability Report, offering a snapshot of housing affordability trends across the country. All major and some not-so-major markets are mentioned, and the report makes key mention of the Toronto market as a whole.
Toronto property values have increased by double-digit numbers year over year, and despite worries about the boom in condo construction even condo prices increased by 4.4 per cent year over year.
Craig Wright, the chief economist for RBC, said that, “The Toronto-area housing market featured an apparently insatiable appetite of buyers who are willing to pay ever-rising prices. Home resales blasted through the previous threshold (95,160 units in 2007) to set a new record of 101,850 units last year, up 9.3 per cent from 2014. Continued low interest rates and a solid job market helped maintain a positive environment for homebuyers.”
Wright continued, “A major side effect of the intense heat in the Toronto-area market is the rapid deterioration in affordability, particularly for single-detached homes. RBC’s aggregate affordability measure rose steadily in 2015 to 60.6 per cent in the fourth quarter, a level unseen since 1990.”