For those eyeing the real estate markets in Victoria and Vancouver, here’s some promising news: both cities have landed in the top three markets with improved affordability, thanks to declining home prices – down $5,900 in Victoria and $1,800 in Vancouver. Toronto topped the list.
That said, the average home prices are still absurdly high, and the income needed to enter the real estate market remains out of step with average BC residents’ income.
Ratehub attributes this dip in home values to recent rate cuts by the Bank of Canada. According to their latest affordability report, released today, the data points to a slight easing in the cost of homeownership.
In Vancouver, the average home price dropped from $1,197,700 to $1,195,500 between July and August 2024, a decrease of $2,200.
Additionally, the income required to purchase a home in the city fell from $226,680 to $224,000, a reduction of $2,680.
These calculations are based on a 20% down payment, a 25-year amortization, $4,000 in annual property taxes, and $150 in monthly heating costs.
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Victoria, known for its slightly more affordable market, saw similar improvements.
The income needed to buy a home decreased by $2,780, dropping from $169,200 in July to $166,420 in August. The average home price also fell, landing at $866,700 in August – a $5,900 decrease from July’s price of $872,600.
However, despite these price drops, affording a home in Vancouver remains a challenge for many. According to job site talent.com, the average yearly income in Vancouver is around $70,095, and $58,369 in Victoria, while ZipRecruiter suggests it’s slightly lower at $69,512 and $54,007, respectively.
Even with two earners in a household at these income levels, the total still falls far short of what Ratehub says is required to qualify for a mortgage in these BC cities.
What do you think? Are homes becoming more attainable, or is affordability still out of reach for most?
Let us know in the comments!