Condos just became a lot more affordable for Calgarians, according to a new report released by RBC today. Just 19% of your income will allow you to afford a condo in Calgary, due largely in part to historically low mortgage rates and an increased condo supply.
“It was more affordable to own a home in virtually all provincial and major local markets across Canada in Q2, and in the face of solid price gains no less,” said RBC chief economist Craig Wright in a release.
“We remain of the view that any rise rates will be gradual and unlikely to unhinge either overall affordability levels or the market — we expect a cooling in activity, not a crash,” added Wright.
But this affordability trend is likely to shift later in the year, as rates are forecast to rise, this will erode affordability slightly. However, continued growth in household income is going to offset this potential shift, but conditions are likely to shift towards the seller again by the end of this year.
All in all, if you’re looking to buy a condo, now is a great time as market conditions favour the buyer and affordability is very positive. If you have questions about the market or this trend, please feel free to contact us.
