Access to property: more affordable than ever

Accès à la propriété: plus abordable que jamais

THREE-RIVERS — According to the Desjardins affordability Index, more than ever, it is easy to become an owner in Three Rivers, and this, despite the entry into force of the rules more stringent mortgage in Canada on the 1st of January and the rise in interest rates.

It is only in the agglomeration), the financial ability of households to acquire a residence is not only improved, but the average selling price has decreased at the same time.

“In the census metropolitan area (CMA) Trois-Rivières, it is easier for the households to have access to the property as it was in the course of the last 20 years,” observes the economist of Desjardins, Chantal Routhier.

The Desjardins affordability Index is calculated as the ratio between the average disposable income of households and the income required to get a mortgage on a residence, at an average price (the income qualification). And the income qualification is calculated based on the costs of owning a home (mortgage charges, property taxes and utility costs).

Thus, in Three Rivers, this index is passed to 183,2 at 187,7 between the last quarter of 2017 and the first quarter of 2018. For the same period, the average household income after tax increased by 58 230 $ 59 367 $ while the average sales price decreased by 158 282 $ 155 054 $. Result? A decrease in carrying costs, which stood at 12 970 $ during the first three months of 2018, up from 13 032 for the last three months of 2017.

At the canadian level, the financial ability of households to acquire a residence has increased because the average selling price decreased 5.5 % compared to the previous quarter. Yet the Index remains below its historic average, which means that it was more difficult to gain access to the property during the first quarter of 2018 than what has been observed on average over the past 20 years.

In Quebec, the Index has contracted since the costs of property ownership have risen more quickly than after-tax income of households. Except for Montreal, all the other CMAS in québec have seen their access to the property will increase, and this, mainly due to the decrease in average selling price.

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