Say housing market is more balanced
An overwhelming majority of Canadians (90%) are confident about real estate in Canada as an investment and 85% feel that they are doing a good or excellent job of paying down their mortgage, according to the 18th Annual RBC Homeownership Study. Almost three-quarters of Canadians (73%) believe that they or their family are well-positioned to weather a housing drop.
“Canadians believe in the long-term benefits of owning a home including the value it can provide, both personally and as a long term investment,” said Marcia Moffat, RBC head of home equity financing. “Last year’s survey showed that people were looking to buy ahead of rising costs. This year marks a return to more normal levels of purchase intentions and recent housing data reflects this move to a more balanced market.”
Interest in purchasing a home over the next two years has declined slightly but remains high overall, as 29% say it’s likely they will buy. This is down two points from 2010 yet higher than any other year since 2006. Compared to last year, fewer Canadians are saying it’s better to buy now (55%, a drop of 12 points) than wait (45%, up 12 points). Among those likely to buy, over half (57%) are looking to buy within 18 to 24 months while almost one-quarter (24%) are planning to buy in the next year.
The poll found that 40% of Canadians feel the current housing market is balanced equally between buyers and sellers, a rise of five points over 2010. Homebuyers list rising home prices (26%) as their number one concern about purchasing a home followed by rising mortgage rates (22%).
“There’s a lot more to owning a home than just the price, as taxes, fees and repairs can quickly add up. Online tools and calculators along with the advice of a mortgage advisor can help you be prepared for these costs while also looking at which payment features fit your financial plan,” added Moffat.
Confidence is high when it comes to housing payments, as with 69% saying that the value of their home has increased in the last two years, a rise of five points over last year.
Ontario leads the country in seeing the current housing market as balanced (46%). The majority of Ontarians (72%) say they are not likely to buy a home in the next two years, a rise of six points over 2010. Those intending to buy a home are looking longer term, with four-fifths (80%) planning to purchase in the next one to two years, the highest rate in the country.
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