House Price Assessment – Update
Published on September 29, 2022
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This report provides an update of PBO’s assessment of house prices relative to a household’s capacity to borrow and pay for the purchase of a house in selected Canadian cities. In addition, to gauge the potential downward adjustment in house prices in 2022, we consider scenarios based on assumed increases in mortgage rates and household debt service ratios.
Communications
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The gap between the national average house price and what an average household could afford has increased from 45% in December 2021 to 67% in August 2022, a jump of 22 percentage points in just eight months. This increase is attributable to higher mortgage rates, which have lowered household borrowing capacity.
Yves
Giroux
Parliamentary Budget Officer
Parliamentary Budget Officer