With home sales in major cities such as Metro Vancouver way down, a new poll has asked Canadians whether they are waiting to buy a home – and why.
More than half (56%) of respondents polled by Ipsos for the annual RBC Home Ownership Poll said they thought it would be better to wait a year or more before buying a home.
Of those, 54% say it is because they expect home prices to fall over the next year –
a number that rises to 68% of British Columbians waiting to buy. In addition, 47% of Canadians waiting to buy cite uncertainty in the market as their reason.
Some 44% of poll respondents who are waiting to buy a home say they would potentially wait for two years or longer. This figure rises among 18-34-year-olds to 55%.
However, despite the wait-and-see approach, the Canadians polled largely have faith in real estate as a good investment and a better financial decision than renting. Just over eight out of 10 Canadians said a home or condominium purchase is still a good investment, while two-thirds (66%) of Canadians said they feel it makes more sense to buy than rent.
The poll also found that Canadians are well positioned to handle a potential downturn in housing prices (71%) or an increase in interest rates (63%).
And although many Canadians are waiting to buy a home until they see where the market goes, more than half of first-time homebuyer respondents (56%) said they may buy sooner than later because of fears of future interest rate hikes.
The poll also looked at other homebuyer trends, and found that buying a home with a partner or spouse has been steadily declining (42% versus 49% in 2017), while purchasing a home alone is increasing (32% versus 29% in 2017).
Nicole Wells, vice-president of Home Equity Financing at RBC, said, ”We’re seeing a fundamental contrast in who's at the buying table. There is a surge in confident, in-control solo home buyers and, on the polar opposite end, those who are saying they can't do it alone and need the assistance of family."
Glacier Media Real Estate
