Housing Affordability Worsened Overall in 2018 Q4: National Bank Quarterly Report

February 6, 2019 • Financial, Real Estate

The latest quarterly report from the National Bank Housing Affordability Monitor shows that housing affordability deteriorated in the final three months of 2018.

National Bank Deputy Chief Economist Matthieu Arseneau and Economist Kyle Dahms compiled the Teranet-National Bank House Price Index data from 2018 Q4 to look at both condo and non-condo affordability across Canada.

Highlights include:

  • Canadian housing affordability deteriorated for a fourteenth consecutive quarter in Q4 2018, posting the largest one quarter deterioration in over a year.
  • The mortgage payment on a representative home as a percentage of income (MPPI) rose 1.4 points after a 0.3-point rise in Q3. Seasonally adjusted home prices increased 0.9% in Q4 from Q3.
  • The worst deteriorations in affordability in Q4 were in Victoria (+4.0 points), Toronto (+3.0 points) and Vancouver (+2.2 points). The only markets showing an improvement were Calgary (−0.3 points) and Edmonton (-0.1 points). Countrywide, affordability worsened in both the condo segment (+1.0 point) and the non-condo (+1.8 point) portion.

View full analysis and the report from the Housing Affordability Monitor here: https://housepriceindex.ca/wp-content/uploads/2019/02/NBFM-Housing-Affordability-Monitor-Q4_2018-Eng.pdf

Commercial Solutions Blog