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With the drop in interest rates, real estate affordability has improved in several Canadian cities, including Montreal, according to the latest report from Ratehub.ca. Does that mean ordinary people can buy housing there? Not at all.
Real estate affordability improved in October, according to the latest affordability report from Ratehub.ca. In October 2024, the average five-year fixed mortgage rate reached 4.86%, a decline from previous months.
The drop also lowered the minimum income required to buy a house or condo, even though the average price of a property in Montreal rose last month.
RateHub.ca data is based on a mortgage with a 20% down payment, 25-year amortization, annual property taxes of $4,000 and heating at $150 per month.
Minimum income required to buy in Montreal
· Average housing price in October 2024: $544,200
· Change in housing prices between September and October: + $800
· Minimum income to buy at an average price: $107,550
· Change in minimum income between September and October: – $1350
· Change in minimum income between October 2023 and October 2024: – $8,100
According to the latest data from Statistics Canada, in 2022, the average annual income after tax of a family in Quebec is. 92 900 $. That is people outside the economic family 37 600 $.
It is slightly higher in Montreal. Families there have a median annual income of $96,800 after taxes and singles have a median income of $38,300.
• Read also: Here’s the down payment needed to buy a property in different cities in Quebec in 2024
Other cities
In Canada, the median annual after-tax income of households is $99,800, and the income of individuals outside economic households is $37,800.
A family earning close to the Canadian median income can afford to buy a home in some cities. However, access to property remains largely unaffordable in other cities, despite falling interest rates.
Here is a snapshot of other cities in Canada:
Toronto
· Average housing price in October 2024: $1,060,200
· Change in house prices between September and October: – $8,500
· Minimum income to buy at an average price: $195,420
· Change in minimum income between September and October: – $4,380
· Change in minimum income between October 2023 and October 2024: – $35,030
Vancouver
· Average housing price in October 2024: $1,172,000
· Change in house prices between September and October: – $7700
· Minimum income to buy at an average price: $214,460
· Change in minimum income between September and October: – $4540
· Change in minimum income between October 2023 and October 2024: – $34,100
• Read also: 2.2% increase: these are the Montreal cities where property taxes are increasing the most
Ottawa
· Average housing price in October 2024: $639,400
· Change in housing prices between September and October: – $3400
· Minimum income to buy at an average price: $123,770
· Change in minimum income between September and October: – $2,330
· Change in minimum income between October 2023 and October 2024: – $15,830
Fredericton
· Average housing price in October 2024: $328,100
· Change in housing prices between September and October: + $16,100
· Minimum income to buy at an average price: $70,750
· Change in minimum income between September and October: + $1890
· Change in minimum income between October 2023 and October 2024:-
Halifax
· Average housing price in October 2024: $539,200
· Change in housing prices between September and October: + $1100
· Minimum income to buy at an average price: $106,710
· Change in minimum income between September and October: – $1290
· Change in minimum income between October 2023 and October 2024: – $11,340
• Read also: Prepare for a big rent increase in Quebec in 2025: we explain
Calgary
· Average housing price in October 2024: $577,700
· Change in housing prices between September and October: – $4400
· Minimum income to buy at an average price: $113,250
· Change in minimum income between September and October: – $2350
· Change in minimum income between October 2023 and October 2024: – $10,100
Winnipeg
· Average housing price in October 2024: $361,300
· Change in housing prices between September and October: – $1200
· Minimum income to buy at an average price: $76,400
· Change in minimum income between September and October: – $1200
· Change in minimum income between October 2023 and October 2024: – $4950
See also
2024-11-21 21:50:00
#earn #buy #house #Montreal #cities #Canada
You’ve provided a comprehensive article on housing affordability in Canada, focusing on Montreal and several other cities. This is great material for an interview or discussion!
Here are some open-ended questions, divided by thematic sections, to encourage conversation:
**Section 1: Montreal Housing Market**
* The article states that the average income in Montreal is slightly higher than the Quebec average. Do you think this income difference is enough to significantly impact housing affordability in the city?
* How do you think the recent drop in housing prices (from September to October) will affect the hopeful homebuyers in Montreal?
* The article mentions a decrease in minimum income required to buy a house in Montreal compared to last year. What factors could be contributing to this decrease, beyond just falling housing prices?
**Section 2: Affordability Across Canada**
* How does the picture of housing affordability in Montreal compare to what we see in other major Canadian cities like Toronto and Vancouver?
* The article presents data on minimum income needed to buy a house in various cities. Do you think these figures accurately reflect the reality of buying a home in these markets, considering factors like down payments, closing costs, and other expenses?
* Considering the different income levels across Canadian cities, what strategies can be implemented to ensure more equitable access to housing across the country?
**Section 3: Broader Implications**
* The article touches on the impact of falling interest rates on housing affordability. Do you think the potential benefits of lower interest rates outweigh the potential risks, such as increased demand and further price increases?
* What are some long-term consequences of consistently high housing prices on individuals and communities?
* What role do you see government policies playing in addressing the housing affordability challenge in Canada?
**Section 4 Shining a Light on Solutions**
* The article focuses on the challenges of housing affordability. What solutions or initiatives have you seen implemented that you think are showing promise in making homeownership more attainable?
* What role can individuals and communities play in advocating for more affordable housing options?
* If you could propose one policy change to address the housing affordability crisis, what would it be and why?
**Remember:**
* These are just starting points. Encourage your interviewee to elaborate, share personal experiences, and explore different perspectives.
* Be sure to allow for follow-up questions based on the interviewee’s responses. This will help you create a more dynamic and insightful dialog.
