Home ownership becomes more expensive in third quarter: RBC says

The Canadian Press ~ The News
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TORONTO - The cost of homeownership in Canada became more expensive in the third quarter, according to a report by RBC Economics Research.
The bank says this hasn't happened since the spring of 2008 and was due to a slight rise in mortgage rates and higher property values.
The RBC index measures the proportion of pre-tax household income needed to service the costs of owning a home.
During the third quarter, the benchmark detached bungalow moved up by one per cent to 40.2 per cent and the standard townhouse rose by 0.7 per cent to 32.3 per cent.
The standard condo climbed by 0.5 per cent up to 27.6 per cent and a standard two-storey home increased 1.2 per cent to 45.8 per cent.
RBC says housing demand has outgrown supply, leading to a more competitive market and widespread increases in home values.
"With such strong momentum in the housing market and the cyclical low in mortgage rates behind us, it seems unlikely that affordability will improve in the near future," said RBC senior economist Robert Hogue.
"The housing market still faces obstacles, as mortgages have become more difficult to handle for many Canadians amid challenging labour conditions. This is likely to persist until the economic recovery is well established and job creation is sustained next year."

Organizations: RBC

Geographic location: TORONTO, Canada

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