Home ownership costs continuing to climb despite slowing activity: RBC

Ottawa Citizen- The cost of owning a home in Canada rose for the fourth consecutive quarter despite the slowdown in the resale market, according to a housing report released Monday by RBC Economics Research.

"Higher mortgage rates in tandem with a further appreciation in home prices boosted the monthly costs associated with carrying a mortgage on a typical home," said RBC senior economist Robert Hogue. "This extended the deteriorating trend in affordability since the middle of last year."

But despite the downturn, he said affordability remained "within a safe range…”

Home ownership costs continuing to climb despite slowing activity: RBC

New rules crimp home buying power

The Globe and Mail- The GTA’s new homes market has reached a significant milestone. Anyone with a family income of less than $100,000 a year and a down payment of 10 per cent or less doesn’t have a snowball’s chance in July of qualifying for a mortgage on any condo with a price tag greater than $410,000 or a detached home costing more than $450,00.

To put this into perspective, at the end of March, the last month for which up-to-date figures are available, the average new GTA condo sold for $420,097 and the average new home cost $490, 395. Nor can would-be home buyers find much relief in the resale market. The average price for homes sold in April through the multiple listing service was $437,087.

Nor do the months ahead hold any hope of relief. With increases in interest rates forecast and with house prices certain to continue to rise as long as demand outstrips supply, and other factors such as the harmonized sales tax, ever larger municipal development charges plus rising land and construction costs are factored in, the cut-off point for family incomes needed to qualify for mortgages is certain to rise…

New rules crimp home buying power – The Globe and Mail

New-home prices rising in Canada, but relatively slowly

Vancouver Sun- The latest data shows a steady rise in prices for new homes in Canada, though lacking the dramatic kind of gains being seen in the resale market.

Statistics Canada’s new-home price index, released Thursday, rose 0.4 per cent in January from the month before, the same growth rate for the third consecutive month. It also marked the seventh straight monthly increase.

Home prices were up 0.1 per cent on an annual basis in January, compared with a 0.9 per cent decline in December 2009.

"This was the first year-over-year increase since December 2008, mostly as a result of price decreases in Western Canada that were less pronounced this January than in previous months," Statistics Canada said in the report…

New-home prices rising in Canada, but relatively slowly

Recovery to accelerate, Bank of Canada says

The Globe and Mail- …The central bank also appeared to express confidence that the country’s hot housing market will even out before a bubble forms, as some economists have warned would happen if rock-bottom borrowing costs continue to help monthly sales smash records. In October, Mr. Carney attributed much of the buying spree in the resale market to people who had put off purchases during the recession, largely echoing that view Thursday.

“Following a period of vigorous growth, housing investment is projected to slow through 2010 as pent-up demand subsides and affordability declines,” the central bank said…

Recovery to accelerate, Bank of Canada says – The Globe and Mail

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