Homeownership is getting slightly cheaper in this country but Saskatchewan still offers the best opportunity to purchase a residence.
There are a couple factors pushing improved affordability. One is falling interest rates. Then there are some new mortgage rules to lengthen amortization which will lower payments. And finally, incomes are going up which gives buyers more purchasing power.
The latest affordability index report from RBC notes, though, improving incomes is likely temporary as unemployment rises with the slowing economy. Nonetheless, Regina continues to boast the best affordability of any major city in the country.
It takes only 27-percent of the average income to purchase the average home. In some cities, it takes more than 80-percent. But, the bank cautions, Regina’s market is red hot which will likely push prices higher in 2025 as inventory is low and the population is rising.
Saskatoon is not far behind with a 33-percent affordability index. But, again, the bank says tight supplies and strong demand from a growing population is going to put upward pressure on prices in the months ahead.
