December 8, 2008
Report: Canadian housing in downturn
Housing affordability is on a downturn in Canada, but the situation is not as dire as in the United States, a report by RBC Economics in Toronto said Monday.
Since 1985, RBC has published an affordability index in which the higher the number the more costly it is to own and maintain a home.
RBC senior economist Robert Hogue said factors plaguing the United States, such as the sub-prime mortgage crisis and bank instability, are less of an issue in Canada.
While the Canadian housing sector is entering a cyclical downturn, the risk of experiencing a U.S.-style meltdown is remote, Hogue said in the report.
Many of the factors that triggered the collapse in the United States are either absent or of much lower significance on this side of the border.