It is easier to buy a home in Saskatchewan than it has been in quite a while.
Every three months, RBC Royal Bank issues what it calls its Housing
Affordability Index. It’s a formula for determining how easy or hard it is for the average person to buy a home in their local market.
On a national level, it has never been worse. The markets in Toronto and Vancouver, but especially Vancouver, are so distorted that it takes virtually 100 per cent of the average income to service mortgage payments.
Given that banks don’t generally like to exceed their 30 per cent rule, the situation puts home ownership out of reach of the average person in Vancouver.
It is a much different story in Saskatchewan. The bank looks at the two major cities and both are in the 30 per cent threshold range, making us among the most affordable in the nation.
Slow job creation in Saskatoon has softened the market. Even so, the index sits at 32.5 per cent. In Regina the index sat at 29.5 per cent in the third quarter of last year and demand is rising.