In the 18th Annual RBC Homeownership Study, RBC found that 90% of Canadians are confident about real estate in Canada as an investment, while 85% feel that they are doing a good or excellent job paying down their mortgage. 73% of Canadians believe that they or their family are well positioned to weather a housing drop.
Marcia Moffat, RBC head of home equity financing noted that Canadians believe in the long term benefits of owning a home, which includes the value it can provide, both personally and as a long term investment.
In last year’s survey, we saw that people were looking to buy ahead of the rising costs; this year marks a return to more normal levels of purchase intentions and recent housing data, which reflects a more balanced market.
What were the other findings of the RBC Poll?
Interest in purchasing a home over the next 2 years has declined slightly, however it remains high overall, as 29% of respondents have said that they are likely they will buy. This may be down 2 points compared to 2010; it is still higher than any other year since 2006.
Compared to last year, 55% of Canadian’s, a drop of 12% have said that it is better to buy now than wait. Among those who are likely to buy, 57% are looking to make a purchase within 18 – 24 months while almost 24% are planning to buy in the next year.
It was found that 40% of Canadians feel that the current housing market is balanced equally between buyers and sellers, which is a rise in 5 points over 2010. Homebuyers list rising home prices as their number 1 concern about purchasing a home, followed by mortgage rates.
The housing market has balanced out compared to last year, and homeowners are not feeling as worried when it comes to maintaining their home.
I found that in the last year, homeowners were worried about keeping up with their housing payments, especially with employment all over the place. Confidence is high when it comes to housing payments, 69% have said that the value of their home has increased in the last two years, which is a rise of 5 points over the last year.
Ontario leads the country in the current housing market, as balanced. The majority of Ontarians have said that they are not likely to buy a home in the next two years, which is a rise in 6 points over 2010.
If you are interested in purchasing a home, or even discussing your current options, consider visiting the new RBC Advice Centre. The RBC Advice Centre is an online resource that gives Canadians access to advice about all aspects of their finances, which includes homeownership goals, whether it is buying their first home, planning their next move or even managing their current home financing.
How do you feel about purchasing a home in the current housing market?