rose 46 basis points, it said. But the average household income only rose 0.8 per cent. That pushed the mortgage payment as a percentage of income, or MPPI, 4.9 points higher, compared to 2.2 points higher in the last quarter of 2021.Article content
Housing affordability has been declining steadily, the bank said, and over the past 12 months, has slumped at a rate not seen in 40 years. That comes as high home prices collide with rising interest rates, which have pushedup to levels not seen in years. To complicate things, the Bank of Canada is widely expected to raise interest rates by another 50 basis points this morning, which will further impact mortgage payments and lead to more cooling in the housing market.
Buyers have begun to pull back from the market as interest rates rise. The average price of a home decreased in April to $746,000 from $796,000 in March, according to the . Sales have also started to fall, decreasing 2.6 per cent in April from March and 25.7 per cent from last year, CREA said. National Bank expects the market will continue cooling as the central bank keeps hiking rates.Article content
“Headwinds will continue to blow against Canada’s real estate market in the months ahead with the Bank of Canada pursuing its monetary policy normalization process through higher policy rates and quantitative tightening,” it said.Victoria, B.C.Months to save for down payment: 356TorontoMonths to save for down payment: 336Advertisement 6Average home price: $1,331,177, up five per cent since Q4 of 2021Mortgage payment as percentage of income: 81.
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