Vancouver real estate: Prospects of buying a home at 'full-blown crisis levels,' report says
Those hoping to buy a home in Vancouver are facing a more challenging time than ever before, a new report from the Royal Bank of Canada suggests.
The report, released Tuesday, outlines home affordability across the country. With high interest rates, RBC says the fourth quarter of 2023 saw the "toughest time ever to afford a home."
In Vancouver, that affordability problem was even more pronounced.
"The prospects for buying a home have long been challenging in the area," RBC's report says. "They’re now at full-blown crisis levels. It’s never been as expensive to own a home anywhere, anytime in Canada as it was in Vancouver in the fourth quarter."
According to RBC, 106.4 per cent of a median income was needed to cover ownership costs at the end of 2023, which the financial institution says "means that only a select few high-income earners can afford to buy—or that considerable wealth must be amassed (or received) to put down towards a purchase."
"This significantly narrows the potential pool of buyers in the market, keeping activity soft and prices flat recently," RBC's report says. "We see little change from this in the months ahead."
For those thinking of buying a home in Victoria, the situation wasn't much better as "extreme unaffordability pressures got even worse" at the end of last year, the report says.
But in that city, new listings are trending above pre-pandemic levels, which means prices may be on a "slight downward trajectory in the near term," according to RBC.
BC United used the report to slam the provincial government on social media saying that "under David Eby's NDP, B.C.'s housing crisis is simply getting worse."
But on Wednesday, Minster of Housing Ravi Kahlon said RBC's report "highlights what we already know," saying interest rates, global inflation and "decades of no investment in affordable housing" are to blame.
Kahlon said the NDP government is addressing the affordability crisis by increasing housing near transit hubs and improving density.
"If we could flip a switch and address all the housing crises overnight, we certainly would. But we know that addressing housing takes time and it requires real reforms to ensure that we can get housing built in a quick way," he said. "The biggest challenge we have right now is interest
CTVNews.ca Top Stories
'The root cause': Canada outlines national action plan to fight auto theft
The federal government is launching what it calls its 'national action plan' to combat auto thefts, which will include stronger penalties for thieves, and increased information sharing between police agencies, government officials and border enforcement.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
Prosecution rests in Donald Trump’s hush money case. The defence now gets its turn to call witnesses
Michael Cohen testified Monday that he stole tens of thousands of dollars from his ex-boss Donald Trump’s company, an admission defence lawyers hope to use to undermine Cohen’s credibility.
Red Lobster probes 'endless shrimp' losses after bankruptcy filing
U.S.-based restaurant chain Red Lobster has filed for Chapter 11 bankruptcy protection in a Florida court after securing $100 million in financing commitments from its existing lenders, the company said on Sunday.
'Next man up': Canucks coach, teammates bracing for Game 7 without Brock Boeser
Questions about how the team is going to handle the absence of star winger Brock Boeser from a do-or-die game seven dominated pre-game interviews with the Vancouver Canucks coach and players Monday morning.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
U.S. Supreme Court rejects appeal from former Guantanamo detainee Omar Khadr
The U.S. Supreme Court on Monday rejected an appeal by a Canadian-born former Guantanamo detainee who was seeking to wipe away his war crimes convictions, including for killing a U.S. soldier in Afghanistan.
Woman, 35, in critical condition after her truck collided with a Via Rail train near Montreal
A 35-year-old woman is in critical condition after the pick-up truck she was driving was struck by a Via Rail passenger train Monday morning in Quebec's Monteregie region.