Ontario housing activity to be restrained: report
TORONTO - The cost of home ownership in Ontario fell in the last quarter, but a report from RBC Economics says the pace of deterioration has slowed.
The bank's affordability report, which gauges how much pretax income it takes to own a home, found condos the cheapest at 29 per cent.
A standard townhouse took 32 per cent of pre-tax income, a detached bungalow 39 per cent and a standard two-storey home took 44 per cent.
The report says a weaker economy, slower job growth and lower income gains should restrain housing activity in the province this year.
But the report adds that Ontario should start to see affordability improve through lower mortgage rates and softer price gains.
RBC Economics says housing starts are expected to remain elevated this year, but decline from 2007 levels.