Ability to afford a home declines in Canada - Woodmar.ca

Ability to afford a home declines in Canada

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Ability to afford a home declines in Canada

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Desjardins Economic Studies have released their most recent Desjardins Affordability Index (DAI).

The DAI is calculated by dividing the average household disposable income and the income required to obtain a mortgage on a home at the average price.

In Canada, the financial capacity of households to acquire property deteriorated in the first quarter of 2017 compared to the previous quarter.

The attached PDF covers specific details about the DAI in communities across the country.

Highlights

In Ontario household financial capacity to buy a property weakened the most. The DAI contracted in the majority of markets during the first quarter of 2017. The largest decreases were seen in Windsor and in Kitchener-Cambridge-Waterloo.

Ontario

Windsor:   – 11.9

Kitchener-Cambridge-Waterloo:  – 9.4

Toronto:    – 7.2

Hamilton:  – 7.1

London:   – 6.6

St. Catharines–Niagara:    -6.2

In Calgary, access to property dwindled due to lower household after-tax income. In contrast, the index improved in Vancouver, as the average sales prices slipped 2.4%.

Alberta

Calgary:  -2.2

Edmonton:  +2.7

British Columbia

Vancouver:  +2.3

Manitoba

Winnipeg:   – 2.4

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