But during this time, property prices continue to rise in the metropolis, which contributes to the deterioration of access to property. According to the Canadian Real Estate Association (CREA), the average home price was $534,300 in May 2024, up from $531,300 the previous month
Almost all Canadian markets are suffering from this increase, which means that almost everywhere in the country, the total salary necessary for a household to buy a property is increasing, particularly in Calgary and Ottawa. The only exceptions: Toronto ($215,920) and Halifax ($111,890), where the required income fell by $1,250 and $2,070 respectively.
SEE ALSO | Reduction in the key rate: should you fix your mortgage rate or not?
“While interest rates have remained relatively stable month over month, the increase in housing values has been enough for affordability to deteriorate in […] 11 [des 13] cities [observées]”, commented Philippe Simard, mortgage director in Quebec at RateHub.ca, in a press release released Wednesday.
Now that the Bank of Canada has lowered its key rate by a quarter of a percentage point, which will have a slight impact on the interest rates offered to buyers, can Montrealers expect to have more ease in access the real estate market?
“Many real estate boards have indicated that they expect housing market activity to improve once the rate reductions begin to take effect,” analyzes Philippe Simard, who warns that prices could rise again this summer, if not in the fall, especially in the event of further reductions in the key rate.
“This phenomenon has already occurred during previous rate reduction cycles,” says the mortgage manager.
The Canadian housing market was still slow in May, as sales and prices of existing properties declined and listings increased. The trend occurred both over the past month and compared to May 2023, but could begin to reverse after the Bank of Canada made its first interest rate cut in four years, a already warned the ACI on Monday.
The income required to buy housing in Canada in May 2024
Montreal
- Average housing price: $534,300 ($531,300 in April 2024)
- Required income: $111,010 ($110,550 in April 2024)
Toronto
- Average housing price: $1,117,400 ($1,123,300 in April 2024)
- Required income: $215,920 ($217,170 in April 2024)
Vancouver
- Average housing price: $1,212,000 ($1,206,500 in April 2024)
- Required income: $232,950 ($232,150 in April 2024)
Victoria
- Average housing price: $874,300 ($860,700 in April 2024)
- Required income: $172,180 ($170,950 in April 2024)
Calgary
- Average housing price: $587,100 ($580,900 in April 2024)
- Required income: $120,520 ($119,500 in April 2024)
Halifax
- Average housing price: $539,200 ($550,200 in April 2024)
- Required income: $111,890 ($113,960 in April 2024)
Ottawa
- Average housing price: $651,300 ($644,800 in April 2024)
- Required income: $132,060 ($131,000 in April 2024)
Edmonton
- Average housing price: $392,700 ($388,500 in April 2024)
- Required income: $85,540 ($84,850 in April 2024)
Winnipeg
- Average housing price: $358,300 ($356,900 in April 2024)
- Required income: $79,350 ($79,150 in April 2024)
Hamilton
- Average housing price: $868,300 ($868,300 in April 2024)
- Required income: $171,100 ($169,550 in April 2024)
Fredericton
- Average housing price: $304,500 ($301,400 in April 2024)
- Required income: $69,660 ($69,150 in April 2024)
Saint Jean
- Average housing price: $340,900 ($338,400 in April 2024)
- Required income: $76,210 ($75,820 in April 2024)
Regina
- Average housing price: $320,000 ($318,500 in April 2024)
- Required income: $72,450 ($72,240 in April 2024)
The data is based on a mortgage with a 20% down payment, an amortization over 25 years, annual property taxes of $4,000 and monthly heating of $150. Mortgage rates are the average of five-year fixed rates from the big five banks in April 2024 and May 2024. Average home prices are derived from CREA’s Home Price Index (MLS®).
Source: RateHub.ca
