Time to buy? It just got easier to purchase a home in Edmonton
It’s becoming easier to purchase a home in Edmonton as house prices and the income needed to purchase one have fallen over the last month.
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 August and September 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.
Ratehub’s data shows that the average home price in Edmonton was $400,200 in August. The following month, it fell by $800 to $399,400.
The average income required to purchase a home also fell in Edmonton over the last month, dropping by $860 to $83,990.
“Those on the hunt for a home in September enjoyed a sweet spot in terms of affordability, as lower mortgage rates – combined with softening home prices and ample supply – took the pressure off buyers,” Ratehub said.
“Affordability conditions improved in 11 of 13 major housing markets across the nation, as a third Bank of Canada rate cut led to a month-over-month drop in borrowing costs.”
Ratehub noted that the average five-year fixed mortgage rate dropped to 5.04%, compared to 5.16% in August, and the mortgage stress test lowered to 7.04%.
Ratehub
Winnipeg, Montreal, Regina, and St. John’s were among just a handful of Canadian cities that experienced rising house prices this past month.
Vancouver led the way in terms of improved affordability, with $5,000 less in income required to purchase the average home compared to August.
Toronto also experienced a big improvement in affordability. The average home price dropped by $13,500 to $1,068,700, and borrowers needed $4,300 less income to qualify for a mortgage.