Calgary sees big increase in income needed to buy a home | Daily Hive

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The change in income needed to afford a home in Calgary continued to spike last year, eventually reaching $120,450 in December, according to data from ratehub.ca.

That number is an increase of $14,770 from what it was to start 2023 at $105,680.

It also means that, among major cities surveyed, Calgary had the second-highest increase that year.

Data in its report also shows that home prices in Calgary increased by $44,600 over the course of 2023 to an average of $554,500.

The numbers are based on a mortgage with a 20% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating.

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“This was a terrible year for home affordability in Canada,” James Laird, co-CEO of ratehub.ca, said in a statement.

“Mortgage rates went up, driving the stress test higher and homes were more expensive in seven out of 10 cities,” James Laird, co-CEO of ratehub.ca, said in a statement.

Buying conditions deteriorated in each of the 10 major Canadian cities studied.

So what’s in store for 2024? It’ll depend on the rate direction.

“Borrowers have been waiting with bated breath to see if mortgage rate relief is on the horizon in 2024,” reads the ratehub.ca report.

The company said that commentary in the Bank of Canada’s December announcement indicated that slowing inflation had given the central bank room to hold rates for the near future.

Economists are also optimistic that rate cuts could be in store as early as the spring.

“However, fears are growing that inflation progress may be short-lived; the latest CPI numbers for December revealed year-over-year headline growth of 3.4%, with the core measures hitting 3.6 and 3.7%,” the report reads.

“That’s injected fresh unease into markets, as central banks may need to stick to their ‘higher for longer’ stance.”

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