Housing affordability improves in GTA for first time in over 2 years

Housing affordability has improved for the first time in the GTA in more than two years thanks to a drop in detached home prices, according to a report by RBC researchers.

The report says that affordability in the region improved by 2.3 percentage points in the fourth quarter of 2017, while nationally the measure eased by only 0.2 points.

"It's been long overdue," says senior econominst Robert Hogue.

He says they expect affordability to improve some more early this year, but the trend is not expected to last long.

"Our view is that housing prices in the Toronto area will bottom some time this spring."

He says that rising interest rates will put upward pressure on home ownership costs.