TORONTO — Canadians surveyed in a new poll appear to be conflicted about whether to buy a home this year, with a majority believing now is the right time to buy but more than 70 per cent saying they are unlikely to do so.
The Royal Bank’s annual home ownership survey found 59 per cent of respondents believe now is the time to get into the housing market, instead of waiting until next year.
That’s four percentage points higher than in last year’s poll.
But 73 per cent said they are unlikely to buy within the next two years, up two percentage points from last year.
The poll was done in late January, about the time Prime Minister Stephen Harper first indicated his government’s intention to reform Canada’s retirement system. There was also widespread concern about the Greek debt crisis at the time.
“I would say that people are pretty conflicted around home buying intentions,” said Marcia Moffat, head of home equity financing for RBC.
“Consumer sentiment is not all pointing in the same direction,” she said.
However, confidence in home ownership is on the rise, she added.
About 88 per cent said they believed a home is a good investment, up two percentage points from last year and 68 per cent said they thought the value of their home has risen in the past two years.
Most of the 2,006 Canadians surveyed also said they expect home prices to remain stable next year, in line with economist consensus.
“I think consumers recognize that mortgage rates are at historic lows so that would factor into people thinking that it makes sense to buy now.
“Some may have already recently bought and may not be in the market for another home, or maybe the available supply is not there in their community, or what they think is affordable and appealing to them.”