RBC Affordability Index September 2010
| 27 September 2010
This is by far the most valuable report in the industry. Affordabilty is the long term driver of values. Home prices go up and down based on this figure. A rise in affordablilty will put downward pressure on prices or an upward pressure on income. Low affordability means homes are generally undervalued.
Particular interest to me comes in three sections: what happened nationally, what happened provincially and what happened locally. For me that means Canada, Alberta and Calgary. You will see that in Alberta and Calgary housing actually became more affordable unlike most of the country. Vancouver and Toronto look very high and I think we will see significant corrections there.
Here is a link to the actual report: http://www.rbc.com/economics/market/pdf/house.pdf
What is happening in your local market?
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