Signs that the Canadian housing market might be cooling are coming too late for many prospective homebuyers, as their ability to save for a home is dampened by inflation and rising interest rates limit their ability to catch up the high home prices marked by the COVID-19 pandemic.
The first quarter of 2022 saw the worst decline in housing affordability nationwide in 27 years, according to a report released Wednesday from National Bank of Canada, with rising mortgage rates pegged as a key factor sidelining would-be buyers.
For Global News’ Sticker Shock series helping Canadians navigate rampant inflation, we spoke to experts and homebuyers exasperated by the eroding housing affordability in the country and broke down how some might be able to make the purchase work. More: Inflation calculator — How do rising prices affect your personal finances?
Shelter, or housing-related costs, was one of the biggest factors driving up the annual rate of inflation to a decades-high 6.8 per cent last month, according to Statistics Canada.