OTTAWA — Parliament’s budget officer says the national median home price in February was more than 50 per cent higher than two years ago.
A new report says the median home price peaked at $839,600 in February 2022, up 52% from $551,100 in February 2020.
Since then, however, prices have fallen seven percent to $777,200 in August.
Using a methodology developed by the IMF that examines household borrowing capacity and affordability in selected Canadian cities, the PBO says the average home price in August was 67% higher than what is considered affordable .
Budget officer Yves Giroux attributes the widening gap between the average house price and what the average household can afford to higher mortgage rates.
According to the scenarios constructed by the PBO, house prices will decline by 12 to 23 percent by the end of the year from the peak reached earlier this year.
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