Housing affordability at worst levels in 41 years, Bank of Canada index shows
Global News
The Bank of Canada's housing affordability index reached its worst levels in more than four decades last quarter as home prices rose alongside mortgage rates.
Housing affordability hit its worst level in more than four decades last quarter, according to the Bank of Canada, as housing prices and mortgage rates pushed higher.
The “significant deterioration” comes as Ottawa pushes a new housing strategy that looks to revamp war-time homebuilding efforts in a bid to restore affordability in the market.
The Bank of Canada’s housing affordability index tracks Canadians’ typical mortgage payments and utility costs as a proportion of their income. The central bank found that in the third quarter, the index reached its highest level — meaning the worst degree of affordability — since the second quarter of 1982.
BMO chief economist Doug Porter said in a note to clients on Wednesday morning that the growth in long-term interest rates over the summer and early fall compounded with a rise in home prices in the market, dealing a “double-whammy” to homeowners and prospective buyers.
A National Bank of Canada report from last month also pointed to a “significant deterioration” in housing affordability last quarter.
The bank’s housing affordability monitor released Nov. 1 noted that Q3 marked a step back from three consecutive quarters of improvement in the index, which erased nearly two-thirds of the gains seen in that time.
High demand from population growth and a “chronic lack of supply” in the housing market offset gains in household income last quarter, National Bank said.
On Tuesday, the federal government confirmed a Global News report that Ottawa plans to reintroduce a catalogue of pre-approved home plans for builders to rapidly expand the available housing stock in the country. It mimics a similar effort from Canada, post-Second World War, to scale up the number of homes available for returning veterans.
Toronto Police say five people have been injured and four of them have been arrested after a crash in Scarborough involving a stolen vehicle.
Parents in the Halifax area are voicing concerns as children have been finding drug paraphernalia in their neighbourhoods. In one case, a child was pricked by a discarded needle.
Voters in Nova Scotia are heading to the polls today as the province holds an election to determine if Tim Houston and the Progressive Conservatives will remain in power.
On Monday, Trump vowed to slap a 25 per cent tariff on all products coming from Canada and Mexico on his first day back in office.
'A cherished member of the theatre community, his presence brought joy, heart and depth to every role, and his artistic contributions — and big hugs — will be deeply missed'
An Ontario man was restrained with duct tape last week after allegedly trying to open the door of a plane mid-flight, called himself the “captain" and injuring a flight attendant.
Finance Minister Chrystia Freeland on Monday called on provinces to 'step up' and get on board with the Liberals' plan to grant a tax holiday on some items for two months.
As authorities investigate the deaths of six tourists in Laos, here's what Canadians need to know about recognizing and preventing methanol poisoning while travelling.
Danielle Smith said the Alberta government is looking for ways to encourage pipeline companies to boost capacity and increase Alberta's oil and gas export volumes to the U.S.
'She thinks she's playing Robin Hood, and in actuality, she's putting these fishermen in a worse-off situation than they currently are,' one licence-holder said.
The Women and Children’s Shelter of Barrie in Ontario say they expect to turn away 650 women and children this year for service. It's a problem seen across Canada.