And according to CBC that makes you a part of a club. What does all this mean? Not much. After all, unless you're in the club, you're not in the know, so really, don't lose any sleep over this one. After all the death of the single income household happened sometime in the first half of the 21st century in Victoria. Right about the same time that housing prices for SFH crept, or leaped if you're hearing this from a Realtor, above the $400,000 mark.
I guess this adds fuel to the argument that rich Albertans and Ontarians--everyone knows Quebecers don't want to come here ;-)--are driving up our real estate prices. Next thing you know, Realtors will be blaming "those men" and saying that as long as they keep making men and not land, prices will continue to rise. (That sound you just heard was Ms. HHV slapping me).
The country's 1.2 million high-income earners — those among the top five per cent — were predominantly male (75 per cent), aged 45 to 64 (54 per cent) and married (78 per cent), Statistics Canada said.Almost half (46 per cent) of the top five per cent of tax filers lived in Ontario. About 18 per cent are in Quebec, followed by Alberta (15 per cent) and British Columbia (13 per cent).
$400,000K really is a magic mark. Let's say that the (generous) average household income is roughly $75K/year in Victoria right now. And that "average" household has $100,000 or 25% down payment saved up or equity in the condo they bought 4 years ago. That means they can "trade up" into an average SFH house priced at $400,000K, amortized over 25 years at 6% interest and still fall into the 30% of gross income figure that CMHC requires for mortgage insurance.
That $400K is this Bear's target for a downturn. I won't hold my breath, but that's the mark of sanity in my mind folks. And that number represents a 32% correction from August's prices. That's a big drop, but won't be breaking new ground in the land of modern real estate corrections. And to be buying in that kind of environment may prove to be more exclusive than the so-called 5% income club. And I won't be losing any sleep over that purchase.
Don't forget to keep posting in the What's happening on the Victoria RE market thread.