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Majority of Canadians confident about buying
a home, say housing market is more balanced: RBC Poll
TORONTO, March 9, 2011— An overwhelming
majority of Canadians (90 per cent) are confident about real
estate in Canada as an investment and 85 per cent feel that
they are doing a good or excellent job of paying down their
mortgage, according to the 18th Annual RBC Homeownership Study.
Almost three-quarters of Canadians (73 per cent) believe that
they or their family are well-positioned to weather a housing
drop.
"Canadians believe in the long-term benefits of owning
a home including the value it can provide, both personally
and as a long term investment," said Marcia Moffat, RBC
head of home equity financing. "Last year's survey showed
that people were looking to buy ahead of rising costs. This
year marks a return to more normal levels of purchase intentions
and recent housing data reflects this move to a more balanced
market."
Interest in purchasing a home over the next two years has
declined slightly but remains high overall, as 29
per cent say it's likely they will buy. This is down two
points from 2010 yet higher than any other year since 2006.
Compared to last year, fewer Canadians are saying it's better
to buy now (55
per cent, a drop of 12 points) than wait (45
per cent, up 12 points). Among those likely to buy, over
half (57 per cent) are looking to buy within 18 to 24 months
while almost one-quarter (24 per cent) are planning to buy
in the next year.
The poll found that 40
per cent of Canadians feel the current housing market
is balanced equally between buyers and sellers, a rise of
five points over 2010. Homebuyers list rising home prices
(26 per cent) as their number one concern about purchasing
a home followed by rising mortgage rates (22 per cent).
"There's a lot more to owning a home than just the price,
as taxes, fees and repairs can quickly add up. Online
tools and calculators along with the advice of a mortgage
advisor can help you be prepared for these costs while also
looking at which payment features fit your financial plan,"
added Moffat.
Confidence is high when it comes to housing payments, as
with 69
per cent saying that the value of their home has increased
in the last two years, a rise of five points over last year.
Highlights from across Canada:
- British Columbia:
Interest in buying a home has remained steady in B.C. with
29 per cent of residents likely to buy a home in the next
two years. B.C. leads the country in looking to buy a new
home (30 per cent) rather than resale (70 per cent) and
one third (34 per cent) of British Columbians are most concerned
with home prices increasing, the most in Canada.
- Alberta:
Interest in purchasing a home has declined in Alberta, with
one third (33 per cent) saying they are likely to buy in
the next two years, down two points from last year (35 per
cent). Alberta leads the country in seeing the housing market
shifting towards buyers, as 57 per cent say it's a buyers
market. Almost one third of home owners in the province
(32 per cent) say the value of their home as decreased in
the last two years, almost double any other province.
- Prairies:
Saskatchewan and Manitoba lead the country in believing
that it's a sellers market, over 23 per cent higher than
any other province. Purchase intentions have remained steady
in the Prairies, with 29 per cent indicating they are likely
to purchase a home in the next two years, up slightly from
2010 (28 per cent)
- Ontario:
Ontario leads the country in seeing the current housing
market as balanced (46 per cent). The majority of Ontarians
(72 per cent) say they are not likely to buy a home in the
next two years, a rise of six points over 2010. Those intending
to buy a home are looking longer term, with four-fifths
(80 per cent) planning to purchase in the next one to two
years, the highest rate in the country.
- Quebec:
Quebec leads Canada in planning to buy a bigger home (59
per cent) and feeling that the value of their home has increased
in the last two years (86 per cent). Three-quarters (76
per cent) of homebuyers in Quebec intend to buy in the next
one to two years.
- Atlantic
Canada: Almost three quarters of Atlantic Canadians
(74 per cent) think it makes more sense to buy now than
wait until next year, higher than any other province.
Interest in purchasing a home has declined over last year,
with 24 per cent saying it is likely they will buy in the
next two years, down two points from 2010.
Canadians can visit the new RBC
Advice Centre for advice on the costs associated with
purchasing a home. The RBC Advice Centre is an online resource
that gives Canadians access to advice about all aspects of
their finances including their homeownership goals - whether
they are buying their first home, planning their next move,
renovating or managing their current home financing. Advice
videos are updated regularly to reflect current housing trends
and to answer the questions that are top of mind with Canadian
homeowners. Interactive tools and calculators provide customized
information covering all facets of homeownership. With the
guidance of RBC mortgage specialists, Canadians have access
to free, no-obligation professional advice and personalized
one-on-one service about RBC mortgage products and services.
RBC is the largest residential mortgage lender in Canada.
As the country's number one source of financial advice on
homeownership, 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 18th
Annual Homeownership poll conducted by Ipsos Reid between
January 12 to17, 2011. The annual online survey tracks Canadians
attitudes and behaviours around homebuying and home ownership.
It is based on a randomly selected representative sample of
2,103 adult Canadians that was statistically weighted by region,
age and sex composition according to the 2006 Census data.
The results are considered accurate to within ±2.2
percentage points, 19 times out of 20, of what they would
have been had the entire adult Canadian population been polled.
The margin of error will be larger within regions and for
other sub-groupings of the survey population.
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Media contacts:
Matt Gierasimczuk,
RBC Royal Bank, 416-974-2124
Elyse Lalonde,
Media Relations, RBC, 416-974-8810
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