Thinking of buying a house or condo?
According to a new National Bank of Canada data report, the affordability of the housing market in Montreal has “deteriorated for the sixth consecutive quarter to reach its worst level since the first quarter of 1991.”
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The new report says prospective Montreal condo owners now need a minimum household salary of $78,182 to be able to put a down payment on the average Montreal condo — priced at an average of $383,384.
The National Bank of Canada has priced the average “non-condo residence” in Montreal at $553,095. To afford a house, buyers need an average household income of $112,220 and about 51 months (4 years) worth of savings.
On an annual basis, home prices in Montreal went up 17.5% in the past year. This, in combination with higher interest rates, resulted in the fastest annual deterioration in affordability since 1981. Despite the massive price hike, Montreal still finds itself below the national average for homes in Canada.
While it’s certainly not good news, it gets much worse in other parts of the country. While people need to save for 51 months to buy a home in Montreal, they need to save for 363 months in Toronto and a whopping 452 months in Vancouver.