Two in 10 Canadians (16%) said they be more comfortable with the real estate market if the Bank of Canada cuts its lending rate by more than 100 basis points by the end of the year, according to a new survey conducted by Leger on behalf of RE/MAX Canada.
The survey, which polled 1,530 Canadians between Aug. 9-11, found that one-quarter of respondents (25%) were actively saving for a home purchase and were confident they will be able to buy soon. The survey found homebuying was a top three priority for 25% of Canadians, although that was also a much lower importance than day-to-day expenses such as utilities and food (58%) and travel (45%).
Among current homeowners 14% said they need to renew their mortgage soon and may need to sell their residence due to the current higher interest rate. Indeed, Canada’s housing market is proving onerous for many people – the survey found 28% of respondents claiming they are considering moving to another country and 25% said they are reconsidering whether to have children or start a family due to housing affordability challenges.
“Despite some consumer confidence starting to return to the market this season, the reality is Canadians are still grappling with some serious housing affordability challenges rooted in lack of supply,” said Christopher Alexander, President, RE/MAX Canada. “Yes, borrowing is becoming less expensive, but this won’t make housing affordable in the long run. Markets ebb and flow, and as buyers re-enter the market and absorb inventory, we’ll see more upward pressure on price. Ultimately, for the long-term health of Canada’s housing market, we need a national housing strategy developed in collaboration between all levels of government, that’s more strategic and visionary in how we can use existing lands and real estate to boost supply. In the meantime, buyers would be wise to work with an experienced real estate agent to help navigate those cyclical market ups and downs that often accompany this push and pull of supply and demand.”
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