Global Courant 2023-04-11 22:47:33
As the spring home buying season has just begun, Canadians are experiencing mixed feelings in the housing market, with some optimistic compared to the previous year, while others remain uncertain amid a looming recession.
According to a online RBC survey which surveyed 2,756 Canadians between Jan. 10 and Jan. 23, 40 percent of respondents say they expect to pay less for a home now compared to a year ago.
However, 75 percent of respondents are concerned about a possible recession and 26 percent say they are considering putting off their plans to buy a home because of the uncertainty.
In addition, there are feelings of overall uncertainty for some Canadians when it comes to understanding and benefiting from the housing market, with 25 percent of Canadians surveyed saying they are unsure about the state of the market we are in and 18 percent saying they not knowing if now is a good time to buy a home.
Despite this, 31 percent of Canadians said they are likely to act more quickly, believing there is generally little time to buy homes at lower prices, and 42 percent say there is no spike in house prices. once they start to rise again.
In terms of the state of what was once considered a seller’s market, there was a big drop in confidence compared to last year, with just 37 percent saying it’s better to be a seller than a buyer right now, compared to 71 percent in 2022.
PRE-FIRST TIME HOME BUYERS FEEL THE MOST OPTIMISTIC
Amid the uncertainty, there is still optimism, particularly among pre-first home buyers, i.e. those looking to buy their first home within the next two years.
The poll found that 73 percent of pre-first-time buyers would still view buying a house or apartment as a good investment, and 78 percent said they are currently in a better position to buy a home compared to previous years.
Of this group, 65 percent are optimistic about the housing market in the coming year, compared to 31 percent of all respondents. More than 50 percent of those starting to think about buying also believe that homes will become affordable in the near future, compared to 24 percent of all respondents.
MORE CANADIANS CHOOSE TO HELP FAMILY MEMBERS WITH SHELTER THAN MONEY
The survey found that many Canadians are also concerned about the state of their finances, which is likely leading them to change the way they help their family members financially.
Only 22 percent said they would give an immediate family member or their child money for a new house, up from 26 percent in 2022. Nearly half, 47 percent, said they would rather help their family or children save for a house by putting them at to let them live instead of providing financial support.
However, for those who are willing or able to help a family member financially, they say they would offer more than ever before. On average, these Canadians said they would give $68,000 to a family member in need, up from $57,918 in 2022.
METHODOLOGY:
This online survey, conducted by the Royal Bank of Canada, collected responses from 2,756 Canadians between January 10 and 23 using Army’s online panel, LEO. Leger’s online panel has approximately 400,000 members nationwide and a retention rate of 90 percent. No margin of error can be associated with this non-probability sample from the web panel, but a probability sample of the same size would yield a margin of error of ±1.9 percent, 19 times out of 20, Leger says.