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:
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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