The cost of owning a home in B.C. will continue to fall, according to the latest affordability index by RBC Economics.
The proportion of pre-tax income required to purchase a detached bungalow has fallen to 66% of household income, down from 69.7% in the third quarter of 2008.
The total income required for a standard two-storey home has fallen to 73.7% from 77.7% in the third quarter and 80.9% in the second quarter of 2008.
The cost of owning a townhouse fell slightly to 52.5% of pre-tax household income from 53.8% in the third quarter. To own a condominium requires about 36.7% of income from 38.7% in the third quarter of 2008.
The average value of a home in B.C. has fallen 12% in the past year and 13.9% in Greater Vancouver, according to the B.C. Real Estate Association.
Despite the declines, Vancouver remains one of the most expensive cities in the country to own a home and housing costs remain well above historical averages.
Back in the second quarter of 2007, it cost 68% of household income to own a two-storey home, 65% to own a detached bungalow, 48% to own a townhouse and 34% to own a condo.
Robert Hogue, a senior economist at RBC, said with the ratio of sales to new listings remaining at historical lows, an enormous imbalance between housing demand and supply in B.C. will likely result in further corrections in prices in the months ahead.