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Study finds real estate market downturn helping home affordability in B.C. |
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Tuesday, 09 December 2008 |
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B.C.'s real estate market correction is improving home affordability in the province, according to a new RBC Economics study. The proportion of pre-tax household income needed to service the costs of owning a home has fallen for all housing types in the third quarter. According to the study, owning a standard two-storey home requires 77.7% of a household's income. That's down from 80.9% in the second quarter. Costs of owning a detached bungalow fell to 69.7% from 73%; the costs for a standard townhouse fell to 53.8% of household income from 55.8%; and the cost for owning a standard condo fell to 38.7% from 40.8% of household income. But housing in Vancouver remains among Canada's most expensive. In the third quarter, prices are roughly double the national average for most housing types. Home ownership income requirements are still high. A minimum qualifying income of $150,000 is needed to own a two-storey home; $135,000 is required for a detached bungalow. Given these high requirements, the study said most families in Vancouver are effectively shut out from owning a home and must instead look to the condominium market.
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