{"id":21775,"date":"2023-05-04T11:11:00","date_gmt":"2023-05-04T18:11:00","guid":{"rendered":"https:\/\/www.roryc.ca\/blog\/?p=21775"},"modified":"2023-05-04T12:04:21","modified_gmt":"2023-05-04T19:04:21","slug":"decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2023\/05\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\/","title":{"rendered":"Decreasing Average Home Prices, Increasing in Income Needed to Buy A Home in Canada"},"content":{"rendered":"<p style=\"text-align: justify;\">Vancouver residents now need an additional $21,360 in annual income to afford an average home, an increase of almost 10%, according to Ratehub.ca.<\/p>\n<p style=\"text-align: justify;\">The City of Vancouver saw the biggest increase of income needed out of all 10 Canadian cities profiled between March 2022 and March 2023.<\/p>\n<p style=\"text-align: justify;\">Though home prices have fallen year over year, nine out of 10 Canadian cities saw the average annual income required to buy a home rise. According to Ratehub.ca., this is a trend that is \u201cexpected to worsen given tightening sellers\u2019 market conditions.\u201d<\/p>\n<p style=\"text-align: justify;\">The average home price declined in Vancouver by $119,600 between March 2022 and March 2023. In Victoria, prices declined by $84,800 within the same period.<\/p>\n<p style=\"text-align: justify;\">\u201cDespite those significant average home price drops, it still requires more income, as opposed to last year, to qualify for that average home price,\u201d James Laird, co-CEO of Ratehub.ca and president of mortgage lender CanWise, told Glacier Media.<\/p>\n<p style=\"text-align: justify;\">\u201cThat&#8217;s because rates have gone up by so much that not only have the expected savings from a reduced home price been erased, but it&#8217;s actually harder to qualify.\u201d<\/p>\n<p style=\"text-align: justify;\">A five-year fixed rate mortgage with 20% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating was came in at 3.14% across Canada in March 2022, according to Ratehub.ca. The mortgage stress test rate was 5.25% at the time.<\/p>\n<p style=\"text-align: justify;\">One year later, a mortgage with the same parameters sat at 5.54% with a stress test rate of 7.54%.<br \/>\nFurther compounding the issue is low housing supply across BC, according to Laird.<\/p>\n<p style=\"text-align: justify;\">\u201cWe&#8217;re not building enough new homes in Victoria and Vancouver or across the country. And then the other thing we&#8217;re seeing this year is there&#8217;s not a lot of listings, a lot of homeowners are choosing to rent out their property as opposed to selling at these reduced prices. So, the listings have been slow this spring,\u201d he said, adding that with low supplies, comes higher prices.<\/p>\n<p style=\"text-align: justify;\">Contrary to Vancouver and Victoria, Calgary saw prices increase between March 2022 and March 2023. The average home price went up by $5,600 with annual income needed to buy increasing by $18,820, according to Ratehub.ca.<\/p>\n<p style=\"text-align: justify;\">The only city that did not report an increase in annual income needed to afford the average home was Hamilton, Ont. The required annual income fell by $4,460 between March 2022 and March 2023.<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/biv.com\/article\/2023\/04\/vancouver-tops-charts-annual-income-needed-afford-home-canada\" target=\"_blank\" rel=\"noopener\">Vancouver Tops Charts for Annual Income Needed to Afford A Home in Canada<\/a> by Claire Wilson | BIV<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vancouver residents now need an additional $21,360 in annual income to afford an average home, an increase of almost 10%, according to Ratehub.ca. The City of Vancouver saw the biggest &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2023\/05\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-21775","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Decreasing Average Home Prices, Increasing in Income Needed to Buy A Home in Canada &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2023\/05\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Decreasing Average Home Prices, Increasing in Income Needed to Buy A Home in Canada &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Vancouver residents now need an additional $21,360 in annual income to afford an average home, an increase of almost 10%, according to Ratehub.ca. The City of Vancouver saw the biggest &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Decreasing Average Home Prices, Increasing in Income Needed to Buy A Home in Canada\",\"datePublished\":\"2023-05-04T18:11:00+00:00\",\"dateModified\":\"2023-05-04T19:04:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/\"},\"wordCount\":407,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Market Updates\"],\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2023\\\/05\\\/decreasing-average-home-prices-increasing-in-income-needed-to-buy-a-home-in-canada\\\/\",\"name\":\"Decreasing Average Home Prices, Increasing in Income Needed to Buy A Home in Canada &#8226; 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