The European sovereign-debt crisis in the past several months has provided some benefits to the Canadian housing market in the form of lower interest rates, according to RBC’s Housing Trends and Affordability report out today.
Fixed mortgage rates (on a five-year, posted basis) eased to 5.3% in the Q3 of 2011 from an average of 5.6% in Q2 of this year, which ran ran counter to expectations of generally rising interest rates earlier this summer.
Below is the excerpt regarding Calgary:
The good news is that the Calgary market regained some momentum in the third quarter after somewhat of a lull in the second quarter. Both home resales and prices picked up again for most housing categories in the area. The Calgary market has been invigorated by strengthening local employment where more than 25,000 net new jobs (a 3.7% increase) have been created so far this year.
The flipside of renewed momentum, however, has been an erosion of affordability. The RBC affordability measures deteriorated for most housing types in the third quarter, rising between 0.2 and 0.5 percentage points. Two-storey homes were an exception, as the measure edged lower by 0.3 percentage points. Despite the modest deterioration that took place in the latest period, affordability remains quite attractive in Calgary, ranking at some of the better levels among Canada’s largest cities.
You can read the entire report here