Home ownership more affordable for the fifth straight quarter, says RBC

TORONTO - RBC Economics says home ownership in Canada became more affordable for the fifth straight quarter.

Senior RBC economist Robert Hogue says in a statement that home affordability level has now been restored to pre-housing boom levels. But Hogue adds the "recuperative phase of the affordability cycle seems to be drawing to a close."

He says housing prices are firming up in many parts of the country and mortgage rates no longer trending downward.

The RBC index examines the proportion of pre-tax household income needed to service the costs of owning a home.

During the second quarter, the index fell to 39.1 per cent for a detached bungalow, 31.5 per cent for a standard townhouse, 26.9 per cent for a standard condo and 44.4 per cent for a standard two-storey home.

Hogue says the levelling off of home affordability is "not expected to stop the impressive resurgence in the housing market."

"Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country."