Fraser Valley/Vancouver (Huffington Post) – It’s become a national pastime to fret about the expense of buying a home in certain Canadian cities.
But there are a few cities where buying one won’t quite break the bank, as it will in other places.
It’s the second time this year that the website, which offers rental listings in various cities, has published a graphic about how much income you need to make in order to buy a home in the Great White North.
But this time, Rentseeker has changed how it arrived at its conclusions. So the numbers look a little different.
The last graphic, released in February, used data from the Canada Mortgage Housing Corporation (CMHC) around the median cost of housing in a number of cities.
This time, it combined CMHC data with numbers from the Canadian Real Estate Association (CREA).
The incomes listed on the graphic are based on a 25-year mortgage fixed at an interest rate of 2.5 per cent for five years. It also takes into account a 20 per cent down payment, as well as heating costs and property taxes.
Predictably, the most expensive place to buy on Rentseeker’s infographic is Vancouver, where you need a household income of $120,297 to afford the average home price of $909,293.
A change in home values is most obvious in Alberta, where the province-wide average dropped from $398,000 to $384,381.
Drops were also apparent in Edmonton and Calgary. The average price of a home in Cowtown has fallen from $493,744 to $462,666.
But that has also meant the city has become more affordable. Earlier this year, you would have needed a household income of $87,761 to buy a home there; now, you just need $65,420, according to Rentseeker.
That, of course, has much to do with the price of oil, a commodity on which Alberta’s economy depends. WTI Crude Oil, for example, has fallen from over $70 a barrel last year to $41.75 last month.
Newfoundland and Labrador, also an oil-driven economy, has likewise seen the average home price fall from $279,000 in February to $258,459 in Rentseeker’s latest graphic.
You now only need a household income of $46,268 to afford an average-priced home in its capital of St. John’s, compared to $59,454 in February.
Rentseeker’s last infographic was helpful at showing people where you could afford a home.
The new one shows there are a few more places where one can do that.