The price of the average home in Vancouver has fallen by more than $100,000 over the last year, but thanks to soaring interest rates, the amount of money needed to afford such a home has risen, according to Ratehub.ca.
In a new study, the online mortgage brokerage and interest rate comparison website calculated the minimum annual income required to buy an average home in cities across Canada in March, and compared that data to the same calculation for March 2022.
“While home prices are down significantly in the majority of the cities we looked at, the income required to purchase a home still remains inflated due to higher mortgage and stress test rates,” said James Laird, the company’s co-CEO, in a news release Monday.
This dynamic is most extreme in Vancouver, where real estate prices have long been disconnected from local wages.
According to Ratehub.ca, the average home price in