TORONTO - Home ownership became more affordable in Canada in the third quarter despite a broad spike in home prices, according to the latest survey by RBC Economics.
The bank says that was because of rising household incomes, low and steady interest rates and cheaper utility costs in many parts of the country.
RBC says resales rose for the eighth time in the past nine months in October, primarily due to robust activity in hot markets in Calgary, Toronto and Vancouver.
That is in contrast to balanced or soft conditions elsewhere in the country despite signs of strengthening activity in the third quarter.
RBC says this split resale picture shows up in price trends as well, with prices in Calgary, Toronto and Vancouver appreciating much faster than other local markets.
The report also suggests declines in fixed mortgage rates earlier this year were a key reason for such strength in the housing market since spring.
