According to the latest Housing Trends and Affordability Report from RBC Economics, a decline in mortgage rates throughout the second quarter of 2014 led to an increase in housing affordability across the country. Thanks to an uptick in May and June, Canadian home resales rose by a seasonally adjusted 9.4 per cent in Q2, marking the strongest quarterly gain in almost four years.

“It was more affordable to own a home in virtually all provincial and major local markets across Canada in Q2, and in the face of solid price gains no less,” says Craig Wright, senior vice-president and chief economist, RBC. “We had anticipated a rebound in activity from earlier this year when the harsher than normal winter weather took hold, but the biggest drop in fixed mortgage rates in almost four years and resulting improvement in affordability also gave the Canadian housing market a boost of extra energy.”

In fact, before adjusting for seasonal factors, Q2 represented the second-best quarter for resales on record. The second quarter also saw an 8-per-cent rise in new listings, following declines in the three quarters prior.

However, while low interest rates have contributed to more affordable housing for Canadians, the report says that current levels are not sustainable. As the Bank of Canada tightens its policies in 2015, rising rates are expected to erode national housing affordability.

Report highlights indicate that condominiums in B.C. reached their most affordable levels since 2009.