Vancouver remains one of the most expensive cities to buy a house in Canada, but it has become slightly less unaffordable since prices hit their peak in June, according to Ratehub.ca data released Nov. 16.
In June, the average home price in Vancouver was $1,235,900, but by October, the average was $1,148,900, representing a drop of $87,000 or 7%.
“It's looking like peak unaffordability occurred in June, where home prices were still quite elevated and had not come down yet, but interest rates had gone up close to where they are today,” Laird said.
“And with each passing month with rates not moving too much and home prices coming down, things are getting just slightly more affordable than they have been.”
According to the report, Vancouver homebuyers now need an annual income of $220,700 to afford a home, on average. This is $3,150 less than when prices hit their peak. Ratehub calculated this by taking into account price changes, mortgage rates and stress tests.
For those in Victoria, average home prices declined $38,500 with homebuyers needing an average income of $178,890.