The income needed to by a house in Edmonton has gone down
It’s still relatively affordable to buy a house in Edmonton, in comparison to the rest of the country.
Alberta’s capital was one of nine cities surveyed in a report released by ratehub.ca that highlights the income needed for a mortgage. It is one of two cities where the wage is less than $100,000.
In Edmonton, you’ll need to earn $86,960 a year to buy a home. Among the cities taken into account, only Winnipeg came in lower at $80,020.
According to ratehub.ca, the decline indicates home values have dropped by a sufficient amount to offset the challenging borrowing environment.
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“Home values and the income required to purchase a home decreased in nine out of the 10 cities we looked at,” James Laird, co-CEO of ratehub.ca, said in a statement.
“Affordability improved for the second month in a row due to home values dropping and mortgage rates holding steady in November.”
The promise of lower mortgage rates awaits on the horizon and will further improve affordability for borrowers should they materialize, according to ratehub.ca.
The company said expectations for lower rates are strengthening, following rate holds from both the Bank of Canada and the US Federal Reserve this month.
The declining trend is expected to continue in December, with rates and home values dropping.
On the other side of the scale, Vancouver and Toronto remain Canada’s most expensive cities for housing, with incomes of $246,900 and $226,600 needed to afford a mortgage with 20% down, respectively.
Despite the high numbers, both of those are month-over-month decreases.
The study calculates the minimum annual income required to buy an average home in some of Canada’s major cities based on November 2023 and October 2023 real estate data.
It also factors in how changing mortgage rates, stress test rates and real estate prices are impacting the income needed to buy a home.
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