One of the by-products of a relatively quiet residential real estate market is affordability.
The economics unit at RBC Royal Bank regularly produces what it calls the affordability index – a measure of how easy or difficult it is for the average income earner to buy the average home in their community.
The latest update shows a significant disparity across the country, but the Saskatchewan market is one of the more affordable. For example, it takes more than 60 per cent of the average income in Victoria and more than 80 per cent in Vancouver to buy an average house. Compare that to Saskatchewan where it takes 30 per cent of the average pay package to buy an average house in Regina and 33 per cent in Saskatoon.
These markets have been relatively flat for a couple years now and the bank says we should expect some changes later this year as inventories are absorbed and, even though it remains a buyers’ market, any movement we have been seeing on prices has been upward.