TORONTO, March 9 /CNW/ - 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 www.rbcadvicecentre.com 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 to 17, 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.
For further information:
Matt Gierasimczuk, RBC Communications, (416) 974-2124
Elyse Lalonde, RBC Media Relations, (416) 974-8810