The Globe and Mail reports in its Wednesday edition that affordability may be improving but home ownership in Toronto and Vancouver is still an "impossible obstacle" for most potential buyers, Royal Bank of Canada warns.
The Globe's Michael Babad writes that indeed, "affordability is still dreadful in Vancouver, Toronto and Victoria," RBC senior economist Robert Hogue said in a study being released today.
"Minor signs of strain are apparent in Montreal and Ottawa, but conditions are normal in all other markets we track."
RBC's affordability measure improved in the first three months of the year for the second straight quarter as prices eased modestly in Western and parts of Atlantic Canada, and incomes rose.
This, of course, is what B.C., Ontario and federal policy makers had aimed for with tax and other measures, notably mortgage-qualification stress tests, designed to cool frothy markets and head off severe debt troubles.
Be that as it may, Vancouver and Toronto are still out of reach.
"Only one in eight families earns the income necessary to manage ownership costs in the Vancouver area, and one in five families in both the Toronto area and Victoria," Mr. Hogue said.
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