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People delay finding houses for sale in Canada: want price drop

The Canadian people are not finding houses for sale in Canada with enthusiasm like they used to.

Something has changed and that is evident when looking at the yearly RBC Home Ownership Poll. The Poll showed that only a quarter of Canadians are planning on finding houses for sale in the next two years. This is down from almost 30% in 2016 – a big drop.

Something has changed and that is evident when looking at the yearly RBC Home Ownership Poll. The Poll showed that only a quarter of Canadians are planning on finding houses for sale in the next two years. This is down from almost 30% in 2016 – a big drop.

Average prices of homes in Canada have significantly increased. It is now an average of $520,000, which makes it a 3.5% increase from the year before (according to the Canadian Real Estate Association – CREA).

A lot of people still believe that finding a house for sale in Canada is a good idea but a lot of people are still dubious about the idea of investment. What a lot of purchasers are waiting to do is hoping that prices will go down so that they get better deals.

The Vice-President of Home Equity Financing at RBC, Nicole Wells, said: ““For many Canadians, buying a home is a financial and personal milestone – often the biggest investment one will make.

“In today’s market, the best advice is to start with understanding exactly how much you can afford and focus on your wants and needs ahead of starting the house hunt.

“This will help set expectations and get you started on finding the home that fits your budget and lifestyle.”

In the Poll conducted by the RBC, they found five reasons why people delay searching for houses for sale in Canada, because:

  • They believe prices will fall (58%)
  • There’s uncertainty about the economy (51%)
  • They’re concerned about affordability (38%)

Many people are also worried about the cost of living and running a home for them and their family. It is an expensive duty that requires commitment and dedication – big responsibilities for many people to cope with.

About 65% of people believe that they could withstand a drop in the housing market, which is down from 73% the year before. Meanwhile, 57% of people think that they could put up with a rise in interest rates, compare to 63% in 2016.

One-third of people said that they would panic and not be happy if mortgage payments increased by 10% or more.

CIBC’s Home Buying and Selling Poll proposed insight into homeowners’ choices in properties, whether they want to cash their home in or delay buying another one in due time.

Approximately 62% of respondents in the Poll said that they were hesitant to sell because of the cost of buying another house. Houses for sale in Canada are evidently not cheap. Many people are predicting that house prices will drop in five years, which may be why people are holding off for the time being.

The Poll collated the responses from 3,034 randomly selected Canadian people, so it is very reliable and accurate in its results.

The former leader of Ontario’s Progressive Conservative Party, Tim Hudak, said: “If the government gets too heavy handed in intervening in the market, they could capsize the market altogether.

“Ultimately, the way we ensure that home ownership stays within the grasp of Millennials and newcomers is to increase the amount of listings in the marketplace.”

He said that affordable prices are on the way, but people are getting a little impatient so they should maybe try to be quicker than planned at making these changes.

Written by Gemma Smith

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