Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (46785)	6/10/2011 6:31:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70282

Home ownership harder in first-quarter as prices rise, mortgage rates flat: RBC capress New homes for sale are shown in Oakville, Ont., on April 14, 2009. THE CANADIAN PRESS/Nathan Denette The Canadian Press, On Friday May 20, 2011, 8:32 am EDT By The Canadian Press TORONTO - Home ownership became less affordable during the first quarter, especially in Vancouver where it took nearly three-quarters of family income to pay for mortgages, property taxes and utilities, according to an RBC Economics report. RBC said that while a detached bungalow in Vancouver ate up an average 72.1 per cent of income, up 3.4 percentage points, while costs in other major Canadian cities were also on the rise. In Toronto, housing expenses ate up an average of 47.5 per cent of income (up 0.8 of a percentage point), while in Montreal it was 43.1 per cent (up two percentage points), and Calgary devoured 35.9 per cent of income (up 0.9 of a percentage point). Other key cities like Ottawa expenses took 39 per cent of income (up 0.4 of a percentage point) and in Edmonton it was 31.5 per cent (up 0.5 of a percentage point). The bank's affordability scale, which measures the proportion of pre-tax household income needed to pay mortgages, finds that all three major housing types were less affordable in the first quarter. The amount of income taken up by housing costs on a detached bungalow rose 0.7 of a percentage point to 40.5 per cent. The figures for a standard two-storey home and a condominium both rose 0.2 of a percentage point to 46.2 and 27.7 per cent, respectively. The association said national sales activity in each of the first three months of 2011 ran close to five- and 10-year monthly averages. However, home prices were up about eight per cent from the year earlier. That followed an easing of the burden in the second half of 2010, largely due to falling long-term mortgage rates. Home ownership costs could continue to rise as the Bank of Canada is expected to soon resume raising short-term interest rates, but expected growth in household incomes will likely soften the blow, said senior economist Robert Hogue. “Interest rates will likely soon start to rise again, leading to a period of steady increases in homeownership costs. This, in turn, will contribute to a flattening in Canadian housing demand going forward,” said Hogue. “We could experience some turbulence this spring and summer, given that new tighter mortgage lending rules in March and April likely shifted home buying activity to earlier in the year.” Home owners in British Columbia, where sales of multi-million dollar homes are surging, particularly in Vancouver. Quebecers also saw noticeable rises in home ownership costs. The picture was mixed in other parts of the country, with Ontario, Alberta and Saskatchewan seeing ups and downs, depending on the housing type. “Despite the latest erosion in affordability, provincial levels generally continue to stand near their long-term averages, suggesting that owning a home remains affordable or, at worst, slightly unaffordable across Canada – with Vancouver being a notable exception,” Hogue said. ca.finance.yahoo.com