Calgary’s resale prices are supported by good valuations (following
the 2008 correction) and strong job growth, according to BMO’s special report released today entitled, Canadian Housing Market: Calming Not Crashing.
Calgary’s price-to-median family income ratio in Q1 this year was 3.9, well below the national average of 4.8 and less than half of Vancouver’s 8.1.
When it came to mortgage payments as a percentage of median family income, Calgary was at 21% compared to Vancouver’s 48%, and Toronto’s 37%. The lowest percentage was found in Saskatoon at 17%. (There’s a lot of asterisks in charts 2 through 4 in the report, so read them all to see how everything was calculated)
The report notes that Calgary’s upward trend should continue, as Alberta is expected to lead the nation’s economic performance next year.
While the Canadian housing market is calming, BMO states that high-priced Vancouver and Toronto remain vulnerable to a material correction in the event of a shock to income or interest rates.
To download the 8-page report, click here