Canadians believe in the value of housing with 84 per cent identifying a house or a condominium as a good investment, according to the 22nd Annual RBC Home Ownership Poll. Intent to purchase remains strong with one-in-four Canadians (25 per cent) indicating plans to purchase a home within the next two years. Amongst these purchasers, four-in-ten (44 per cent) say they will be first-time buyers.
A first-time home purchase is not without obstacles or anxiety-inducing factors. Future buyers identify their personal financial situation as the primary reason for not entering the market earlier with ‘not enough of a down-payment’ topping the list (50 per cent). Other reasons for staying out of the market include income level (48 per cent), job security (29 per cent) and personal debt (27 per cent).
Given that purchase intentions in Canada are strong and a significant number of these purchasers will be first-time buyers, Trisha Fineza Forbes, senior manager, Home Equity Financing, RBC, offers the following advice:
“Look beyond rates and manage your mortgage. Anxiety is unavoidable when purchasing a home no matter which stage of life. The good news is that it can be lessened with strong advice and a detailed financial plan that looks at your needs and lifestyle, and not just the numbers,” said Fineza Forbes. “The future is within reach and a mortgage specialist will help you reach that possibility.”
Buying a home for the first time can lead to more than just jitters and - RBC has produced a series of “movie trailers” in different cinematic genres to dramatize the first-time home-buying process and provide advice and tips to help feel ready to make such a life-changing step. Today, RBC adds a “sci-fi” theme, to follow the success of the romantic comedy, drama, and horror trailers last year and introduces an online hub of homebuyer resources such as calculators, advice articles, and access to mortgage specialists.
Local trends differ from coast-to-coast
Across the country, nearly half (49 per cent) say it makes sense to buy now. This year’s consumer sentiment poll suggests the tide is turning in favour of buyers. Overall, 37 per cent of Canadians view the housing market as balanced. However, there was an uptick in respondents who feel the housing market is a buyers’ market (36 per cent, compared with 33 per cent last year), led by sentiment in Alberta (43 per cent, compared with 22 per cent a year ago) and in Quebec (50 per cent, up from 43 per cent a year ago). One-in-four respondents (28 per cent) describe the current market as a sellers’ market.
“Real estate is a local economics story with local trends that go beyond national averages. Canadians are closely watching the current economic environment and taking stock of their personal financial situation before making one of the biggest purchases of their lives,” said Fineza Forbes. “The survey results emphasize the importance of understanding the total cost of home ownership and finding a home buying plan that suits your needs.”
Regional highlights at a glance:
British Columbia: Home buying intent up in British Columbia
Alberta: Albertans expect home prices to fall, market favours buyers
Manitoba/Saskatchewan: Home purchase intent increases in the Prairies
Ontario: Half of home buyers in Ontario will be first-timers
Quebec: Rise in home buying intent amid buyer’s market in Quebec
Atlantic Canada: Home purchase interest and intent on the rise in Atlantic Canada
About the 22nd Annual Home Ownership Poll
RBC conducts consumer surveys as one way to provide insight to Canadians about the marketplace in which they live. These are some of the findings of the RBC's 22nd Annual Home Ownership poll conducted by Ipsos Reid from February 3 to February 14, 2015. The annual online survey tracks Canadians attitudes and behaviours around home buying and home ownership. The results are based on a sample where quota sampling and weighting are employed to balance demographics and ensure that the sample's composition reflects that of the actual Canadian population according to Census data. Quota samples with weighting from the Ipsos online panel provide results that are intended to approximate a probability sample. The precision of Ipsos online polls is measured using a credibility interval. In this case, with a sample of 2,000 Canadian adults, the poll is accurate to within ± 2 percentage points had all Canadian adults been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
About RBC Employee Mortgage Pricing
RBC is the largest residential mortgage lender in Canada. For a limited time, RBC is offering Canadians the same mortgage pricing as it offers its employees with RBC Employee Mortgage Pricing: a hassle-free great rate on four- and five-year fixed mortgages and unmatched financial advice and service for all home buying needs. Contact an RBC mortgage specialist today.
For more information:
Jill Anzarut, RBC Corporate Communications, 647-534-5118
Julie McCarthy, Blue Sky Communications, 416-929-8253