Housing Affordability Mixed Across Canada

An international housing affordability survey says house prices are severely unaffordable. The Demographia International Housing Affordability survey rates the affordability of 100 urban property markets in New Zealand, Australia, Canada, the United States, the United Kingdom and Ireland.

But RBC Economist said: "Canada's housing affordability improved slightly in the third quarter of 2005 due to faster income growth in tightening labour markets, and slower house price increases, according to the latest Housing Affordability Index". "Housing affordability across Canada improved with income gains and cooling price pressures easing homeownership costs," said Derek Holt, assistant chief economist, RBC. "Even with interest rates going up, housing markets will remain healthy going into 2006."