Canadians aren’t keen on the prospects of buying a home, according to a mortgage industry report. Mortgage Pros Canada (MPC), a trade association representing mortgage brokers, released its Semi-Annual State of The Mortgage Market. One of the key data points is a consumer survey used to gauge the public’s sentiment on the market. They found that most Canadians feel it’s the wrong time to buy a home. It didn’t matter if the respondents were homeowners, Boomers, or renters — most agreed it was a bad time to buy.
Most Canadians Feel It’s A Bad Time To Buy A Home Right Now
According to the agency’s survey, most Canadians think it’s a “bad time to buy” a home — a first in years. When asked if it was a good or bad time to buy, the majority (71%) felt it would be bad to purchase now. Another 23% felt neutral about the market, and only 6% said it was a “good time” to buy. It was a multi-year high for those who thought it was bad and a multi-year low for those who thought it was good.
Canadians Think It’s A Bad Time To Buy Real Estate
Canadian survey respondents were asked if it was a good or bad time to buy a home now? Survey conducted between Jan 26 and Feb 7, 2022.
Source: Mortgage Pros Canada; Better Dwelling.
Even Homeowners Feel It’s A Bad Time To Buy In This Market
Sure, 79% of non-owners would say it’s a bad time to buy, they’re just jealous of your sweet pad, right? Nope, most homeowners (67%) feel it’s a bad time to buy as well. Only 7% of homeowners felt it was a good time to buy, with the remainder neutral. This was a trend across all provinces, and it wasn’t always this way.
If you’re watching investors, one key demographic in recent years is turning — Boomers. About 74% of those aged 55 or older felt it was a bad time to buy. The demographic has been making headlines by leveraging their home equity windfall into retirement income. With only 7% saying it’s a good time to buy, market sentiment isn’t exactly booming right now.
Most Canadians Say It’s A Bad Time To Buy, But Prices Will Rise…
Most Canadians expect home prices to rise next year. When asked about price expectations, 82% said they see higher prices. Of those respondents, 26% said prices would rise dramatically. Only 17% expect prices to fall, with just 1% of those saying they would fall dramatically. It’s hard to tell if this is bullish or not.
Most Canadians think it’s a bad time to buy a home, but most see prices continuing to rise. Sometimes dramatically. It’s a contrary take from households, since it’s a good time if you see home prices rising in the future. It feels a little frothy to say it’s a bad time to buy, but home prices will rise. It’s just what they do, must be the mindset — even if it’s the wrong time to purchase. Maybe there’s just a superstition about buying in a year with so many twos.