There was a strong message from the Royal Bank of Canada (RBC) as it released an analysis of current trends in the housing sector.
According to its assessment, single detached homes in both the Vancouver and Toronto markets will soon be considered as part of the ‘luxury housing segment’ – and will only be available to wealthy households.
As part of its most recent RBC housing affordability analysis, the company has suggested that trends were wide apart during last year’s fourth quarter. That’s because nationally, affordability slipped slightly by 0.6 per cent to stand at 46.7 per cent. This was driven by significant price gains across Toronto and Vancouver.
According to its analysis, a single detached home in Vancouver is already beyond the reach of most families: and Toronto conditions are increasingly similar.
As it stands, the condo market in both Toronto and Vancouver remains relatively affordable for first-time buyers: however, that is likely to change if the existing trend continues as the segment became increasingly unaffordable during the last quarter.
This is all in significant contrast to opposing regions of the country: for example, affordability in the Atlantic region actually improved across several markets, while in Alberta affordability was flat.