The biggest cumulative drop in the history of the RBC affordability measures in
Alberta further deepened in the second quarter as the share of household income
taken up by the costs of owning a home in the province shrank by 0.2 to 0.5
percentage points depending on the housing type. The RBC measures are now
back to levels that prevailed at end of 2005-early 2006 and are below long-term
averages. The significant improvement since mid-2007 greatly reflected doubledigit
price declines since the market peak, which have amplified the effect of the
drop in mortgage rates. Buyers have strongly responded to the more palatable
ownership costs and have jumped back into the housing market in a big way since
the spring. Sales of existing homes in the province have soared by more than 60%
between April and July, fully retracing last year’s slide. Overall, property prices
have yet to firm, but tightening market conditions should set the stage for some
appreciation in the near future.
For more tips, updates and lists of homes for sale in the Medicine Hat, AB area go to www.MedicineHatHouses.com
Thanks to Mandy MacDonald (Mortgage Specialist) and RBC for providing this information.