Paul Martin's Business Update - September 3rd, 2014

This province’s housing market enjoyed what the economists at RBC Royal Bank are calling a ‘convincing snapback’ in the second quarter of this year. But, despite the activity, housing remains within reach.

The quarterly affordability index report – a measure of incomes compared to housing costs to determine how much of the average pay check is taken up in home purchases – actually improved in the quarter.

It jumped 1.3 per cent in favor of buyers in the second quarter, according to the bank, which noted that the re-sale market turned significantly. After a tough winter cut into the volume of homes changing hands, the second quarter was a catch up period which the bank says could see Saskatchewan hit the all-time record on re-sales set a couple years back.

The big difference, according to the bank, was Saskatoon. It calls the Bridge City’s residential market as ‘flying high since 2011.’

Even so it took less than 40 per cent of the average income to buy either a two-storey or bungalow, a far cry from the 81 percent needed in Vancouver.

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