Majority of new homebuyers (69%) concerned about inflated purchase prices - Three-quarters (74%) of new homebuyers are likely to hire an appraiser to obtain an independent market value
OTTAWA, April 29, 2015 /CNW/ - Seven in ten (69%) Canadians who are planning to buy a new home within the next year are concerned to some extent (54%) or to a great extent (15%) that they will be paying a purchase price higher than the actual market value. Seven percent (7%) of Canadians plan to purchase a home or property in the next year. These are among the findings of a national survey conducted by Ipsos-Reid on behalf of the Appraisal Institute of Canada (AIC).
Thirty per cent (30%) of respondents who are not planning to purchase a property within the next year indicate that the fear of paying a higher price than the market value has influenced their decision to purchase a home to a great extent (12%) or some extent (18%). Interestingly, 34% of Canadians are not influenced at all by the fear of paying a higher purchase price in the next year.
"Canadians who are buying a home are generally making the most significant investment of their lifetime. In a "hot market" – particularly when there are multiple offers – purchase prices can be inflated. In those cases, the buyer is essentially being asked to pay more than the true value of the property. This has potential implications for the buyer should they choose to sell this property in the future; or the lenders who provide mortgage financing," states Keith Lancastle, CEO of the Appraisal Institute of Canada (AIC).
By taking the step to engage a designated appraiser, Canadians can mitigate the risk of paying an inflated purchase price by obtaining an objective, impartial and unbiased opinion of value for a property. Then they can confidently say that have all the information they need to make one of the important investment decisions of their lifetime.
"As we saw in the global financial crisis, over-inflated real estate prices had a significant impact on the economy in a number of countries. It has been shown to affect the stability of a country's lending system, the real estate market, and - most importantly - consumers. The sound regulatory system and market valuation fundamentals within Canada's real estate sector were the reasons that Canada fared better than so many other countries," said AIC President Scott Wilson.
Almost three-quarters (74%) of respondents who are planning on buying a property soon are somewhat likely (44%) or very likely (30%) to hire a real estate appraiser if they were to buy or sell a property in the future.
In 2014, AIC Members (AACI™, CRA™, and Candidate Members) provided valuations for clients worth more than $750 billion – $386.96 billion in residential property and $336.2 billion in commercial property.
For more information, go to www.AICanada.ca .
Research Methodology
These are some of the findings of an Ipsos Reid poll conducted between February 11 to 16, 2015 on behalf of the Appraisal Institute of Canada. For this survey, a sample of 1,005 Canadians from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/ - 3.5 percentage points, 19 times out of 20, had all Canadian adults been polled. The credibility interval will be wider among subsets of the 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 AIC
The Appraisal Institute of Canada (AIC) is a leading real property valuation association with over 5,000 members across Canada and around the world. Established in 1938, AIC works collaboratively with its 10 provincial affiliated associations to grant the distinguished Accredited Appraiser Canadian Institute (AACI™) and Canadian Residential Appraiser (CRA™) designations. AIC is a self-regulating organization that is guided by AIC's Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) and Code of Conduct to ensure the integrity of the profession and the protection of public interest. AIC Designated Members are highly qualified, respected professionals who undertake comprehensive curriculum, experience and examination requirements. They are committed to continuing professional development to maintain the highest level of competency within the evolving marketplace. Our members provide unbiased professional services on all types of properties within their areas of competence. For more information, go to www.AICanada.ca.
SOURCE Appraisal Institute of Canada
For further information: Sheila Roy, Director, Marketing and Communications, 613.234.6533 x 224, 613.863.0127, [email protected]
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