Despite the economy, Canadians are holding on to the housing dream.
Canadians are clinging to their dream of owning a home despite the economic conditions that are making it difficult to achieve.
RBC’s spring home ownership poll shows 67 per cent of respondents say they want to buy a home, up from 62 per cent last year, while 32 per cent expect to purchase a house or condo within the next two years.
The survey also said about 80 per cent view a home purchase as one of the biggest financial milestones in their lives, and 62 per cent said homeownership is essential for their future.
The online survey, which polled 1,719 Canadians between January 7th and January 25th using Leger’s online panel, shows four in five believe purchasing a home is one of life’s biggest financial milestones, while 73 per cent view it as a sign of financial independence.
Among the first-time buyers planning to purchase a home in the next two years, 62 per cent feel closer to their goal, while 71 per cent have savings in place, with an average of $110,339 saved.
However, buyers are concerned about whether it’s the right time to make a purchase and about making the wrong decision.
RBC senior mortgage specialist Brad Evjen says there’s a lot of cautious optimism and while you can’t time the market, you can make educated decisions. That means considering cash flow, debt management strategies and future goals when buying a home.
Many first-time homebuyers anticipate making sacrifices in order to save money. The report said 46 per cent expect to live with their parents longer, 42 per cent are delaying having children and 64 per cent say they need a side hustle or second job to afford a home.
The report said mortgage renewals also remain top of mind for homeowners.
It said 59 per cent of homeowners surveyed are worried about covering the rising expenses of home ownership, while 39 per cent are worried about making the wrong decision when renewing their mortgage. That number is even higher for homeowners who are renewing their mortgage within the next two years, at 58 per cent.
Online surveys cannot be assigned a margin of error because they do not randomly sample the population. However, the report said a probability sample of 1,719 respondents would have a margin of error of ±2.4 per cent, 19 times out of 20.
Canadians still aspire to homeownership and the perception of financial independence that comes with it. What’s changed is that many buyers’ mindsets have shifted from the fear of missing out to concern about making the right move at the right time.
Canada’s housing market has slowed in recent months, with home sales in February falling 1.3 per cent year over year, while prices fell 4.8 per cent, according to the Canadian Real Estate Association’s data.
Homes in Ontario and British Columbia experienced the steepest decline in prices, 7.9 per cent and 6.7 per cent month over month, respectively as prospective homebuyers are waiting out price declines before entering the housing market.
Canadians remain divided on the housing market despite the drop in prices. RBC said 33 per cent still view current housing conditions as a sellers’ market, compared to 27 per cent who consider it a buyers’ market.
Key Characteristics of Canadian First-Time Buyers:
- Age: While historically younger, the median age has crept up, reaching 40 in some provinces like Ontario.
- Financial Struggles: Many require significant assistance, with family help contributing over $100,000 to down payments in expensive markets like B.C. and Ontario.
- Delayed Milestones: To manage costs, 42% of prospective buyers are delaying having children, 46% are living with parents longer, and 64% need a side job.
- Typical Buyer Profile: More likely to be single, millennial, and often female-led.
- Location Trends: Despite high costs, first-time buyers tend to buy in urban areas.
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