Although Edmonton may be one of only a handful of Canadian cities experiencing rising house prices, the income required to purchase a home has fallen.
A new report from Ratehub.ca calculated the minimum annual income required to buy an average home in some of Canada’s major cities based on July and August 2024 real estate data.
The report details how changing mortgage rates, stress test rates, and real estate prices impact the income required to buy a home.
In July, the average home price in Edmonton was $399,700. The following month, it rose by $500 to $400,200, Ratehub’s data shows.
However, while the price of a home has risen in Edmonton, the income required to purchase one fell by more than $700 last month, from $85,560 to $84,850.
“As interest rates start to lower across Canada, so too are the affordability hurdles facing home buyers,” Ratehub said.
“The effects of the first two borrowing rate cuts from the Bank of Canada — implemented in June and July — made it slightly easier to purchase a home in most of the nation’s housing markets.”
Ratehub noted that the average five-year fixed mortgage rate dropped to 5.16%, compared to 5.29% in July, and the mortgage stress test lowered to 7.16%.
Ratehub
Winnipeg, Montreal, Regina, and St. John’s were the only other cities that experienced rising house prices this summer.
Toronto led the way in terms of improved affordability, with $4,850 less in income required to purchase the average home compared to July.
Victoria also experienced a big improvement in affordability. The average home price dropped by $5,900 to $866,700, and borrowers needed $2,780 less income to qualify for a mortgage.