Home ownership in Canada became more expensive for the second straight quarter, but recent global market and economic turmoil could actually help keep a lid on expenses by keeping interest rates low, RBC Economics reported yesterday.
During the second quarter of 2011, the proportion of pre-tax income required to service the costs of owning a home increased for all types of houses measured in RBC’s housing affordability index. But that trend may turn around going forward, said Craig Wright, RBC’s senior vice-president and chief economist.
“Renewed turmoil in global financial markets has caused heightened uncertainty with respect to the pace of global growth and we need to factor this into our outlook for the Canadian housing market,” he said “However, this volatility might have a silver lining. Housing affordability in Canada may not deteriorate as quickly or by as much as we previously expected.”