Home-Buying Intentions Rebound From Last year As More Canadians are Likely To Buy a Home in Next Two Years
Toronto, ON – Opportunity awaits as two in three (65%) Canadians believe the current real-estate market in Canada is a buyer’s market, according to the 16th Annual RBC/Ipsos Reid Housing Poll. Nearly three in ten (27%) say they’re ‘likely’ (9% very/18% somewhat) to purchase a home within the next two years’, up 4 points from last year and the largest single-year increase since 2001. The proportion that says they’re ‘very likely’ to purchase a home is up from 7% last year to 9% this year. But Canadians are split on whether buying conditions will change to be more favourable within the next year, such that it makes more sense to wait until next year (52%) or buy now (48%).
- Albertans (35%) are most inclined to say they’re at least somewhat likely buy a home within the next two years, followed by those living in Ontario (30%), British Columbia (26%), Saskatchewan and Manitoba (25%), Atlantic Canada (25%), and Quebec (22%).
- British Columbians (78%) are the most likely to believe that it’s a buyer’s market right now, followed by those living in Ontario (73%), Alberta (72%), Atlantic Canada (58%) and Quebec (52%). Only one in three (34%) in Saskatchewan and Manitoba believe the same.
The increase in likely home-buying intentions appears to be led by the under 35 segment of the population, as 48% say they’re at least ‘somewhat likely’ (18% very/29% somewhat) to purchase a home in the next two years, up 12 points from last year. Renters also see an opportunity to enter the real-estate market, as four in ten (38%) say they’re at least ‘somewhat likely’ (11% very/26% somewhat) to purchase in the next two years.
Overall, most (83%) Canadians are still convinced that buying a house or condominium is a ‘good’ (34% very/48% somewhat) investment. While this proportion is down 3 points from last year and 8 points from its high of two years ago, it is still well above its low (72%) of 1999.
Among those individuals who say they’re at least somewhat likely to buy a home within the next two years, three in ten (28%) say that favourable housing prices are among their reasons for purchasing. A majority (54%) of Canadians believe that housing prices will continue to drop next year (up from 23% last year), compared to 25% who think they will be higher (down from 56%), or 21% who believe that prices will be the same at this time next year (unchanged).
One in ten (14%) homeowners believe their home has lost value within the last two years, but a majority (54%) of these individuals believe the value of their home will recover within 3-5 years, while others believe it will be a shorter time-frame (30%), longer (11%), or never (6%).
Among those individuals who are not likely to purchase a home within the next two years, most (60%) say they’ve already got a home, but few cite job anxiety (8%) or general concern for current economic conditions (6%) as the reason they’re not likely to purchase a home. Three percent (3%) are waiting for prices to stabilize or decrease further.
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