Nearly all of Canadians aspiring to purchase a house say they’ll push their plans to subsequent yr or later to attend for rates of interest to drop, a brand new survey reveals.
Financial institution of Montreal says 72% of respondents hoping to purchase a house will wait till borrowing prices fall — a rise of 4% in contrast with final yr.
The Financial institution of Canada is broadly anticipated to start reducing its key lending charge within the second half of the yr. BMO Capital Markets senior economist Robert Kavcic stated this could pull some demand off the sidelines and agency up the housing market.
“However charges have an extended solution to fall nonetheless earlier than affordability is restored to latest norms,” he stated in a launch on Monday.
Different monetary considerations resembling inflation and the excessive price of residing are additionally holding many again from shopping for houses this yr, the BMO survey urged.
The survey of two,500 respondents was carried out by Ipsos from Feb. 28 to March 18.
Whereas 62% of respondents consider proudly owning a house is considered one of their greatest aspirations in life, greater than half suppose it’s unattainable amid the monetary strains and financial situations.
The survey additionally reveals 85% of respondents say they’re making actual monetary progress towards shopping for their first dwelling however face monetary nervousness. Among the many prime considerations have been sudden bills, local weather issues resembling wildfires and the excessive prices of homeownership.
Regardless of the financial and market challenges, many younger Canadians are making ready to embark on their homebuying journey and enter the true property marketplace for the primary time, stated Hassan Pirnia, BMO’s head of private lending and residential financing.
This report by The Canadian Press was first revealed April 29, 2024.
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