Vancouver home prices and the income required to purchase a home saw significant drops between June and July of this year.
The information comes from Ratehub.ca, which published its latest affordability report today.
Ratehub attributes the drop in values to rate cuts by the Bank of Canada.
Despite the drop in home prices and income required to buy a home in Vancouver, the average home price in Metro Vancouver is still absurdly high, as is the income necessary to enter the real estate market.
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Ratehub says that the Bank of Canada “chopped the benchmark interest rate from 5% to 4.5%.”
Affordability has improved in all 13 markets that Ratehub’s report analyzed.
Ratehub says average Vancouver home prices dropped from $1,207,100 to $1,197,700 between June and July 2024, a drop of $9,400. In the same period, the income required to buy a home in Vancouver fell from $231,700 to $226,680, a drop of $5,020. This is based on a mortgage with a 20% down payment, 25-year amortization, $4,000 annual property taxes and $150 monthly heating.
According to job site talent.com, the average income in Vancouver is around $70,095 per year. ZipRecruiter suggests it’s slightly lower than that, at $69,512. Even with two people in a household making that much, it still falls well below what Ratehub states is the income you need to get a mortgage to buy a home in Vancouver.
“While it wasn’t apparent in the July housing data from across Canada, the stage is increasingly being set for the return of a more active housing market,” Canadian Real Estate Association Chair James Mabey said.
“At this point, many markets have a healthier amount of choice for buyers than has been the case in recent years, but the days of the slower and more relaxed house hunting experience may be somewhat numbered.”
Looking at these numbers, is owning a home more within reach for you? Let us know in the comments.