QFREB:Have Québec Properties Really Become Unaffordable?

NO - Contrary to what one might think nowadays, residential properties have not become unaffordable for first-time buyers if we consider the mortgage carrying cost that Quebecers were willing to accept in the past to become homeowners. In 2011, the mortgage carrying cost was 21 per cent, which corresponds exactly to its historical average.

Many people believe that the dramatic increase in property prices in Québec in recent years has made residential real estate unaffordable for first-time buyers (the average price of single-family homes increased from $110,849 in 2000 to $247,054 in 2011, a 123 per cent increase). However, household incomes have also increased over the years and historically-low borrowing costs have helped to significantly reduce the financial outlay required to purchase a property.

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Marlene Ofter

Marlene Ofter

Certified Real Estate Broker
CENTURY 21 Max-Immo
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