How much income is required to buy an average home?

Hello…this is Bo Kauffmann of Remax in Winnipeg, with your real estate news for…  Saturday, April 22nd, 2023…

 

Today is National Jelly Bean Day and International Earth Day

 

According to a new RateHub research, Canadians will need an annual income of $217,000 in Toronto to finance an average home.  That’s a lot of jelly beans

 

Even though the city's average home price has dropped by more than $200,000, the income required is actually 6,250 more than was required a year ago.

 

According to RateHub co-CEO James Laird, Canadians now need to earn more money to buy a home due to rising interest rates and a 7.54 percent stress test rate.

 

According to the survey, homebuyers in nine of ten Canadian cities must earn between $5,650 and $21,360 more in annual income than they did last year in order to afford a home.  The only city where you can buy a home with less income than a year ago is Hamilton ONT, which requires nearly 5K LESS in annual income than a year ago.  Reason is that Hamiltons average home dropped around 20% in value, which more than makes up for the rise in interest rates.

 

Lets take a look at some of the cities in this report

 

The average Vancouver home dropped by $119,600 March over March, but the income required rose by 21K  to   221,220/year. 

 

Calgary got the double whammy.  House prices went UP 5,600 on average  (the only city with an increase in property values).  Add the higher interest rates, and required income went from $91  to $110,000/year

 

The only 2 cities in the report with home values below $400K where Edmonton and Winnipeg.

In Edmonton, you need an annual income of just shy of $82K, while in Winnipeg, $75,650 is enough to buy an ‘average home’..

 

Thinking of buying?  Call me right now to set up a free home buyer consultation, either in person or via zoom.   204-333-2202

 

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