Twenty-six per cent of single Canadians are considering purchasing a home on their own, with Atlantic Canada leading the pack at 34 per cent
Fifty-two per cent of single Canadians said economic uncertainty and expensive home prices are the biggest factors impacting their decision not to purchase a home on their own
TORONTO and KELOWNA, BC, Feb 5, 2019 /CNW/ - As Canadians' household debt ratio creeps higher across the country, single Canadians who are interested in buying a home on their own (26 per cent), seem to be on a different path. According to a recent RE/MAX survey conducted by Leger, almost half of respondents (43 per cent) have less than $5,000 in debt, casting doubt on claims that debt is impacting their decision to purchase a home.
For more than half of single Canadians, the decision not to purchase is driven by economic uncertainty and high home prices (52 per cent). Meanwhile, 81 per cent of singles who want to purchase a home say that they have the ability to do so and finance a property on their own. More than one-third (37 per cent) of single buyers will use a loan or mortgage, and 35 per cent have the savings available to make the down payment.
"It's concerning to see qualified buyers showing hesitancy toward home ownership. Price and economic factors aside, the additional unnecessary layers of government intervention have left many feeling pushed out of the market, or uncertain of it," says Christopher Alexander, Executive Vice President, RE/MAX of Ontario-Atlantic Canada. "However, despite these factors, it's important to remember that buying Canadian real estate is still one of the safest and most reliable financial investments one can make."
Single Canadians who want to buy a home are in agreement, with 38 per cent saying it is a good investment, which is especially the case for those living in urban areas (51 per cent). The second most-common reason for single Canadians wanting to purchase a home is to have more flexibility in their living space (27 per cent).
"Purchasing a property alone often reaps great long-term benefits from an investment perspective," says Elton Ash, Executive Vice President, RE/MAX of Western Canada. "There is a great opportunity for asset growth, particularly as home prices continue to increase in cities like Toronto and Vancouver, pushing the average sales price up in all surrounding regions as well."
Key findings from the 2019 RE/MAX Single Buyer Omnibus Survey
Canadian single buyers are more interested in purchasing single-detached homes (12 per cent), than any other type of property.
Men are twice as likely as women to say that they are considering purchasing a home on their own (37 per cent versus 17 per cent).
Single Canadians living in urban areas are more hesitant than single Canadians living in suburban areas to invest due to high home costs (48 per cent versus 43 per cent).
About Leger Leger is the largest Canadian-owned full-service market research firm. An online survey of 590 Canadians who are single, divorced, widowed or separated, was completed between January 11-14, 2019, using Leger's online panel. LegerWeb. Leger's online panel has more than 400,000 members nationally and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 4.0%, 19 times out of 20.
About the RE/MAX Network RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 120,000 agents provide RE/MAX a global reach of more than 100 countries and territories. RE/MAX is Canada's leading real estate organization with more than 20,000 Sales Associates and over 900 independently-owned and operated offices nationwide. RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a subsidiary of RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised millions of dollars for Children's Miracle Network Hospitals® and other charities. For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.
Forward looking statements This report includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX and Motto Mortgage brands, (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent SEC filings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.