Highlights from across Canada:

- British Columbia: Homeownership became even more expensive in B.C.,

as strong home price momentum continued in the first quarter. Housing

affordability measures have now returned close to the all-time highs

reached in early-2008. This trend represents a risk that could weigh

heavily on the province's housing market in the near term.

- Alberta: Affordability measures eased in the first quarter, as

Alberta was the only province to show a decline in the costs

associated with owning a home. Housing price increases in the

province were fairly modest over the past year, which has kept home

ownership relatively affordable. RBC affordability measures are at or

below the long-term averages.

- Saskatchewan: Housing prices picked up in the province in early 2010,

causing home affordability measures to rise significantly in the

first quarter. This is a change from previous quarters, which showed

an improvement in affordability. Despite this increase, affordability

measures still remain well below the all-time peak levels reached in

early-2008.

- Manitoba: Prices for most housing types surged ahead in the first

quarter of 2010, pushing affordability measures above the long-term

average for the province despite a slower pace of resale activity.

Affordability in the province has reached a point where an additional

decline in home affordability may temper housing demand.

- Quebec: Quebec's housing market rally continued in the first quarter

of the year, with record-levels of buying activity and rising

property values. This escalation in home prices, while more moderate

than in the previous two quarters, weakened affordability in the

province. All affordability measures now exceed their long-term

average, which may soon slow housing demand in the province.

- Atlantic Canada: Resale activity on the East Coast remained solid,

with an increase in sales met by a rise in the supply of available

homes. These broadly balanced conditions have limited the pace of

price increases in the region. Overall housing affordability in

Atlantic Canada continues to be among the most attractive in the

country, with measures still below long-term averages.

The full RBC Housing Affordability report is available online, at www.rbc.com/economics/market/pdf/house.pdf

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