Saving up for a home can take some time, and a new report may have you skipping that coffee or beer when you are out and about, with the income required to buy a home in Edmonton rising by just $50.
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 March and April 2024 real estate data.
The report details how changing mortgage rates, stress test rates, and real estate prices are impacting the income required to buy a home.
In March, Edmontonians hoping to buy a home needed to make $85,100 per year. That increased slightly in April to needing $85,150 in take-home pay.
Home prices in Edmonton also increased over the previous month (up $4,300) to $390,200.
“The two key variables that impact home affordability, home values and interest rates, moved in opposite directions. Interest rates are down and home values are up in 12 out of 13 cities we looked at,” said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
“The increase in home values was enough such that affordability worsened in 10 of 13 cities despite the rate drop.”
Our neighbours to the south in Calgary saw an even bigger increase in house costs (up $6,900), with the average income required to purchase a home in that city rising by $170.
Ratehub
Vancouver and Victoria ranked second and third for improved affordability, despite a slight increase in their respective home prices.
Halifax’s affordability took a nosedive from March to April, with the change in home price jumping by $17,800, resulting in the income required to buy a home rising by $2,200.
Ratehub added that it’s widely anticipated that home buyers will return to the market once the Bank of Canada starts cutting its trend-setting overnight lending rate, which could occur as early as its next announcement on June 5.