Sixty-four per cent of Canadians believe the perfect time to buy a home does not exist. That is the headline finding of RBC’s latest Home Ownership Poll, which the Financial Post said interviewed 1,753 people.
Ask what kind of market this is, and the answer gets murkier. Across the country, 36 per cent called it a seller’s market and 27 per cent a buyer’s market. Geography drives much of the gap. In Quebec, 57 per cent saw a seller’s market, and in Atlantic Canada the figure was 52 per cent. British Columbia and Ontario, where prices have slipped from a year ago, leaned the other way: 39 per cent and 38 per cent of respondents there saw a buyer’s market.
Buyers see a window
People who plan to buy within two years are more upbeat. Among them, 45 per cent said now is the right time, compared with 27 per cent of all respondents. Their main reasons were lower prices and lower interest rates.
They are not relaxed about it, though. Some 53 per cent of these prospective buyers expect prices to rise soon, and 49 per cent expect rates to climb this year.
First-time buyers were the most hopeful group. Nearly two-thirds said the federal First-Time Home Buyer GST/HST Rebate will let them buy sooner, and 52 per cent felt current conditions were finally giving them a way in.
Uncertainty and sacrifice
Hope sits alongside worry. Three-quarters of prospective buyers said economic uncertainty has made them more cautious, and 72 per cent named it as the biggest obstacle to buying. Two-thirds fear it will upset their plans.
“Rising costs and shifting economic conditions have made every step of the homebuying journey feel higher-stakes, and the pressure of whether to act is weighing on Canadians,” said Janet Boyle, senior vice-president of home equity finance at RBC.
Only 49 per cent of those planning to buy within two years feel confident making decisions in this market. Just 56 per cent say they have the information they need.
Brad Evjen, a senior mortgage specialist at RBC, said in the bank’s release that “many of my clients want to buy a home, but economic uncertainty is making it harder to feel confident about timing.”
Saving is getting harder too. Nearly three-quarters of those intending to buy within two years say rising prices are cutting into what they put away for a home. Since January, the share of prospective buyers putting off major purchases jumped to 69 per cent from 54 per cent. Those postponing vacations rose to 62 per cent from 55 per cent, and 60 per cent now say they are completely overhauling how they spend and save, up from 55 per cent. More than half, 53 per cent, are drawing on retirement savings for a down payment, up from 49 per cent in January.
The strain reaches beyond first-timers. Across all respondents, 78 per cent said owning a home takes more sacrifice than it did for earlier generations, and three-quarters expect most first-time buyers to face financial shock.
Homeowners facing renewal are no more settled. Only 44 per cent of those renewing within two years feel confident about mortgage decisions, and 18 per cent have not thought about what they could afford if rates rise. Even so, 65 per cent believe their household could absorb an increase.
Sources
- Two-thirds of Canadians say there’s no such thing as the perfect time to buy a house: poll
- Posthaste: Is now the right time to buy a home? Canadians are divided
