Saying Canadians are confident in the real estate market is a bit of an undersell, according to a big bank. RBC shared the results of its Spring Housing Poll this week. The findings were… nothing short of exuberant. The survey found most Canadians only see home prices rising soon. Most households now only believe a minority of the population will be able to buy going forward.
Most Canadians Think Home Prices Only Go Up
Canadian real estate prices only go up — at least that’s what the vast majority of Canadians think. The survey found 61% of Canadians agree home values will only go up in the immediate future. In BC and Ontario, that expectation was even higher at 72% and 70% of respondents, respectively.
Young Canadians Giving Up On Homeownership
More than a third of Canadians under 40 have given up on homeownership, according to the survey. RBC found 36% of respondents agree they’ve given up on ownership. In Western Canada, including BC, this number jumps to 41% of survey respondents. Ontario wasn’t far behind, with 39% of people
Canadians Think The Majority of Households Will Be Priced Out of The Market
Most Canadians think the majority of households will be priced out of the market for the next decade. RBC found 62% of households across the country agreed the majority of people are priced out. The number was higher in BC and Ontario, where 71% of people agree.
Over A Third Think Canadian Home Prices Will Fall
While the vast majority think prices will rise, over a third see home prices falling soon. RBC found 41% of people agree that waiting until next year for prices to fall makes sense. In BC and Ontario, the rates were 45% and 42%, respectively. Yes, that’s more than 100% of people that think prices only go up and will fall over the next year. That means some people are simultaneously holding onto contrary beliefs.
The survey results tell us a lot about the emotional state of buyers, but it applies mostly to sales. Canada Mortgage Pros’ recently found their own survey linked only buying intention to reality. When buyer sentiment is high, higher home sales typically follow. This makes sense, since you need to know you’re going to want to buy a home. Price growth however, did not have a link. In many cases home price sentiment was most positive, right before price growth dropped. This also makes sense, since price expectation is often backward-looking.
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