Regina, Saskatoon among most affordable cities for first-time home buyers

A new report out of Alberta has found that Saskatchewan’s two largest cities are among the most affordable in Canada for first-time home buyers.

Edmonton Homes compared and ranked the most-populated cities across Canada by average annual income compared to house prices, property tax and electricity bills.

Regina is considered the second-most affordable with a score of 56.6 out of 70.

The research found that just over two per cent of the city’s $106,340 median salary is spent on electricity bills while the wage equals 37.4 per cent of the average house price of over $284,000.

Saskatoon was third with an affordability score of 56.1.

According to the report, electricity bills take up 2.11 per cent of residents’ median income of $102,830.

The income equates to 36.75 per cent of the average home price in Saskatoon of $279,800.

Mortgage broker Carrie Cardinal said the reason why the two cities are affordable for first-time home buyers is because of the prices.

“You can buy a benchmark house for just over $300,000, which is the lowest among the prairies,” she said. “They don’t necessarily have to go into a condo, where you may have to in other markets. You can buy a semi-detached or even a single family home.”

She added that the low unemployment rates in the province help make the two cities affordable.

“Although our interest rates are high, we are in the high four percentage with our housing prices being around that $310,000 for a benchmark,” Cardinal said.

She also said a first-time home buyer can go in with a five per cent downpayment and get a mortgage payment that is affordable.

Cardinal added a payment could go for more than $1,700.

She explained why Regina and Saskatoon are becoming attractive for first-time home buyers.

“(It’s) really desirable to raise a family and become a homeowner. Our house prices year over year remain steady for good long-term investments and I think that attracts people to stay in the province and to buy property here and to build a life and a family,” Cardinal said.

The city in first place in the rankings was St. John’s, N.L., which had an affordability score of 58.8 out of 70.