RE/MAX Ranks Regina Real Estate on Affordability Scale
Regina real estate prices have been on a steady incline, but despite the increase in prices, the city’s housing market ranked #1 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report.
Factors contributing to Regina real estate prices
Regina real estate prices are beginning to rise, experiencing a 0.66-per-cent decrease from 2018 to 2019, but are expecting a one to two-per-cent increase expected this year (source: 2020 Housing Market Outlook Report). Despite the price fluctuation, Regina has been named Canada’s most-affordable housing market, according to the new RE/MAX Housing Affordability Report.
In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most-populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Regina real estate came in at #1 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home is Vancouver (#16).
RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.
Regina real estate is currently seen as undervalued, with a total average sale price of $301,473. First-time home buyers are typically looking for single-detached homes as their property of choice.
Given the undervaluation of the market in Regina, co-ownership with friends and family has not been typical, nor has buyers bring priced out of the market as most prices are affordable. Although the home prices in Regina have been affordable over the past 7 years, first time home buyers who are facing difficulty entering the market attribute the stress test as the main factor standing in their way.
Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most-populous cities.
In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around home ownership, barriers to owning a home, financial factors impacting home ownership, and what could potentially improve housing affordability.
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