Homebuyers considering Halifax, Winnipeg or Saskatoon to be their next residence may not need to break the bank these days.
A new report by BMO Capital Markets has revealed houses in Halifax to be most affordable than other major Canadian cities, with Vancouver homes the least affordable.
Halifax’s price-to-income ratio is 3.1, while Vancouver’s is 8.5. Canada’s national average is 5.2.
Moreover, Winnipeg and Saskatoon are tied as the third most affordable cities in which to buy an existing home. Their average prices in Q4 of 2014 were only 3.3 times the median family income.
Winnipegs’ mortgage payments as a percentage of median family income is 18%, compared with Halifax at 16%, and both Saskatoon and Ottawa at 17%.
Winnipeg’s current price-to-income ratio may be a bit higher than 2001’s figure of 1.7, but BMO senior economist Sal Guatieri noted the housing market “was a screaming buy.”
"House prices three or even three and a half times income is not out of line with fair valuations. That's kind of where we're seeing U.S. house prices as well after they recovered," he said.
“It just shows that, again, we are a lot more balanced and insulated to some extent.”
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