Calgary real estate prices hit record highs in June and yet remains the most affordable major market in Canada outside of centres in the Atlantic region according to TD’s latest Quaterly Regional Housing Report.
The housing affordability index, which is calculated by mortgage payments on an averaged priced home as a percentage of average household income, is currently 10% below its 2008 peak.
TD cities Toronto as an example:
“Decent affordability in Calgary relative to the rest of
Canada largely reflects higher median incomes. For
example, the median home price in Calgary is $450,000
versus $470,000 in Toronto. Yet the median income in
Calgary is roughly $40,000 higher than it is in Toronto.”
Calgary’s price-to-income ratio for 2014(F) is 3.6 compared to Edmonton’s 3.9, Saskatoon 4.1, Toronto’s 6.6, and Vancouver’s 10.7 (Page 23 of report)
Calgary remains in a solid position for more than its higher incomes and comparatively affordable housing. TD states that Calgary’s past housing correction has left the market with less froth than other Canadian cities and as such, prices are “anticipated to grow at a decent 3% pace.”
You can download the entire housing report here