Fresh Stimulus Propels Emerging Markets to Fourth Week of Gains
Emerging-market currencies dipped Friday on dwindling optimism over Federal Reserve rate cuts, paring their fourth-straight week of gains.
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Emerging-market currencies dipped Friday on dwindling optimism over Federal Reserve rate cuts, paring their fourth-straight week of gains.
The owner of a historic office building in Manhattan’s Financial District has filed bankruptcy to sell the property, which has been subject to foreclosure and suffered from a lack of tenants due to the Covid-19 pandemic.
Deutsche Bank AG has entered a capital-relief deal with the European Investment Bank that allows the German lender to grant discounts on more than €600 million ($652 million) of green mortgages in its home market.
A unit of Abu Dhabi’s Mubadala Investment Co. said it anticipated a roughly $315 million credit hit related to loans issued to the now-insolvent Signa real estate conglomerate.
The Teranet-National Bank composite house price index which tracks home prices in 11 of Canada's largest cities remained stable from March to April.
Feb 29, 2016
By Greg Bonnell
It will take you more than six years to save for a five percent down payment on a median-priced home. And once you’ve reached that goal, carrying that median-priced home will consume 81 percent of your gross income.
In a word: unaffordable.
That’s the stark reality presented Monday in two reports on housing affordability in Canada.
Vancouver is far and away the most challenging real estate market in the country, but Toronto is no walk in the park either.
There, it will take you more than four and a half years to save for a five percent down payment on a median-priced home, and that home will eat up 61 percent of your gross family income.
The rule of thumb dictates that number should really be in the low- to mid-30s. Indeed, according to RBC, the housing markets in Vancouver and Toronto are “increasingly (dangerously) unaffordable.”
The startling numbers represent all property types grouped together. The stats become even more daunting when you’re talking single-family homes.
“Single-detached homes have long since slipped out of reach for the average local homebuyer (in Vancouver),” RBC notes in its fourth-quarter Housing Trends and Affordability report.
Carrying a median-priced, single-family detached home in the city would eat up 109 percent of a median-income household’s gross income.
“This implies that only a select few wealthy households can afford to own such properties at market prices.”
Carrying costs for the purposes of the RBC report include mortgage payments (principal and interest), property taxes and utilities.
In a separate report Monday, National Bank Financial also posted alarming housing affordability numbers for Vancouver and Toronto in the fourth quarter.
Using slightly different metrics to gauge affordability, National Bank also calculated how long it takes a median-income household to save for that five percent down payment on a median-priced home, based on a ten percent savings rate of gross income.
Vancouver and Toronto, unsurprisingly, led the pack at 73 and 56 months respectively. Across the country the numbers look like this:
Victoria: 58 months
Hamilton, Ont.: 40 months
Montreal: 33 months
Calgary: 32 months
Winnipeg: 28 months
Quebec City: 24 months
Condos, according to RBC, continue to be the most affordable option in Canada’s two hottest markets, consuming 44 percent of a median-income household’s gross income in Vancouver, and 37 percent in Toronto.
The time to save for a condo in those two markets (following the methodology laid out above)? National Bank Financial puts the figures at 39 months for Vancouver and 34 months for Toronto.
Outside of Toronto and Vancouver, RBC says affordability levels are either stable or improving.