RBC Housing affordability forecast for 2008

A new report released by the Royal Bank of Canada informs us: in 2007 home ownership became less affordable nation wide, but prices stayed fairly stable in the Quebec market.

Quebec - affordability still manageable

“The nationwide deterioration in affordability conditions hit every province last year. The hit to Quebec, however, was much more muted.
A generally balanced market has helped keep affordability conditions generally in check. House prices continue to modestly outpace income gains but the gap between the two measures is expected to narrow this year as price growth moderates to the 5% range in 2008. Housing starts have been running at elevated levels (close to 49,000 units) in each of the last three years.
New home construction is expected to slow modestly in 2008 (46,000 units) and more significantly by 2009 (40,000 units) as housing markets shift into slower gear.”

• Download the full Pdf report here
  
• More on this report at the Montreal gazette website

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