The Canadian Press - ONLINE EDITION

Bank's annual survey of house buying intentions has biggest drop in 20 years

  • Print

TORONTO - The number of Canadians expecting to buy a home within two years has dropped dramatically even though overall confidence in real estate remains strong, according to an annual survey published Tuesday by Royal Bank of Canada.

The poll found 15 per cent of those surveyed said they were likely to buy in the next two years, a drop from 27 per cent of respondents in last year's survey.

The 12 percentage point drop is the biggest recorded by the poll, now in its 20th year.

Still, an overwhelming majority of those polled (84 per cent) felt real estate remained as a sound investment, while 52 per cent said now is a good time to get into the market.

"The more cautious mood this year is not surprising and is consistent with broader economic and industry forecasts," said Sean Amato-Gauci, RBC senior vice-president of Home Equity Financing with RBC.

"An unseasonably warm spring, low rates and anticipation of mortgage rule changes may have led many Canadians to move forward their home purchases in the first half of 2012," he added.

Nearly half of those surveyed (49 per cent) said they expected mortgage rates to be same this time next year, while 43 per cent said they believe home prices will continue to climb.

Among those who said they intended to buy, 40 per cent said they would be signing a mortgage for the first time.

"Our findings suggest confidence in the housing market is still high and young Canadians are the bright spot as they look to buy their first home and seek the advice to do it right," said Amato-Gauci in a release.

RBC (TSX:RY) says that three-quarters of respondents said changes in government mortgage rules will impact or delay prospective home buyers but other survey findings suggest this may be more of a perception than reality.

Of the respondents who said they were prospective buyers, 59 per cent said a required downpayment of at least five per cent would have little or no impact and 56 per cent said there was a minimal impact from a shortened maximum amortization period (reduced to 25 years last year, down from 30 years).

The survey, was conducted online for RBC by Ipsos Reid from Jan. 31 to Feb. 8, is based on a randomly selected sample of 3,005 Canadian adults. It's considered accurate within three percentage points, 19 times out of 20, although regional breakdowns are less reliable because of smaller sample sizes.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Family of Matias De Antonio speaks outside Law Courts

View more like this

Photo Store Gallery

  • BORIS MINKEVICH / WINNIPEG FREE PRESS  070527 The 21st Annual Teddy Bears' Picnic at Assiniboine Park. The Orlan Ukrainian Dancers perform on stage.
  • A young gosling prepares to eat dandelions on King Edward St Thursday morning-See Bryksa 30 Day goose challenge- Day 17- bonus - May 24, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google