Affordability and space limitations
continue to impact purchase decisions as only 14% of Canadians
polled would consider buying a home in a major metropolitan
area
TORONTO, Jan. 11, 2021 /CNW/ - Canadians' belief in the
strength of the real estate market held steady in December, despite
concerns around the overall economy, according to the RBC Home
Buying Sentiment Poll. High home values also continued to drive
potential homebuyers outside of major metropolitan areas in search
of affordability and larger properties.
The poll, which provides updates on current perceptions and
sentiments related to the Canadian housing market, found that only
18% of Canadians polled stated the overall economy is strong, yet
45% believed in the strength of the housing market. Even though the
vast majority of respondents were concerned about the financial
impacts of COVID-19 (78%), less than half of respondents polled
were concerned about the impact the second wave of the pandemic
will have on the real estate market (43%). Moreover, only 19%
believe the pandemic has weakened competition within the real
estate market and made it easier to buy a home.
The research also found that the majority of Canadians aspire to
purchase a new home with their spouse or partner (56%) at some
point and would ideally look to buy a detached home (51%). In fact,
interest in the detached segment far outpaced all other housing
types, with condominiums coming in at a distant second place (18%).
Nearly two-in-five respondents who said they are looking to buy a
home in the next two years stated they are currently looking to
upsize (38%). When asked, Canadians said they were most interested
in purchasing property in the suburbs or a commuter city (38%),
followed by rural areas (26%). Only 14% of respondents reported
they would look to purchase a home in a major metropolitan
area.
More than half of respondents also said that home values in
their area were unaffordable (59%). With an average Canada-wide budget of $445,237, which falls below the average
nationwide home price value1, almost half of respondents
polled stated that if they wanted to buy or own a larger home, they
would likely have to move out of the city they're currently living
in (45%).
"High home values continue to drive many Canadians further
outside of major city centres, both in search of affordability and
more space," said Amit Sahasrabudhe,
Vice-President, Home Equity Financing, Products and Acquisitions,
RBC. "Many Canadians continue to be financially resilient in the
face of the pandemic, and this has carried over into the real
estate market. Seen as a pillar of stability, Canadians continue to
view home ownership as a worthwhile pursuit and are willing to
shift their priorities in order to find affordable property within
their budget."
When asked, 80% of Canadians polled believe that home ownership
is a good investment. While the majority of respondents agreed we
are currently in the worst period of the crisis or that it has yet
to come (79%), over half stated that home values will only go up in
the immediate future (52%). In fact, 60% of respondents believe
that home values in their area are overpriced and 56% say
affordability will only worsen in the near
future.
_______________________
|
1 According to CREA, the benchmark
composite price for a home in Canada in October 2020 was
$643,000.
|
Despite concerns around the economy and rising home values,
Canadians polled largely said they continue to be on solid
financial footing. The majority of respondents polled did not
believe they were in a worse financial position in December
compared to prior to the pandemic (59%). While over half of
respondents have changed their spending and savings habits as a
result of COVID-19 (55%), 85% stated they are currently able to pay
their bills. Overall, 47% of Canadians polled do not believe the
pandemic has made it harder to save money and 54% are confident
that better times are not too far off.
"Despite the pandemic, Canadians continue to remain optimistic
when it comes to the future and their finances," concluded
Sahasrabudhe. "Many Canadians remain confident in their ability to
save and continue to aspire to make their dream of owning a home a
reality."
According to Sahasrabudhe, there are a number of resources
Canadians should leverage to help them find the home that's right
for them and their budget:
- RBC's True House Affordability tool provides a personalized
estimate on how much potential home buyers can afford, while RBC's
Home Value Estimator helps determine the estimated value of your
current home.
- RBC Homebuyer Advantage is a one-stop resource with
step-by-step guides, tools, calculators and special offers to help
Canadians every step of the home-buying experience.
- RBC's Neighbourhood Explorer can help you quickly narrow down
your search to find the best areas to live that are most suited to
your lifestyle.
- RBC Mortgage Specialists are available by phone to help home
buyers through the
process.
National and Regional Data Tables
Question
|
Total
|
British
Columbia
|
Alberta
|
Prairies
|
Ontario
|
Quebec
|
Atlantic
Canada
|
I think that the
economy is strong. (Agree)
|
18%
|
18%
|
8%
|
10%
|
21%
|
22%
|
18%
|
I think that the
housing market is strong. (Agree)
|
45%
|
44%
|
32%
|
42%
|
50%
|
46%
|
41%
|
I am concerned about
the financial impacts of COVID-19. (Agree)
|
78%
|
77%
|
88%
|
80%
|
80%
|
68%
|
81%
|
I am concerned about
the impact that the second wave of the pandemic will have
on the housing market. (Agree)
|
43%
|
45%
|
45%
|
43%
|
44%
|
38%
|
40%
|
I believe that
COVID-19 has weakened competition in the real estate market and
made it easier to buy a home. (Agree)
|
19%
|
21%
|
36%
|
19%
|
18%
|
12%
|
22%
|
When purchasing a new
home, who do you think you would buy it with? (With my
spouse or partner)
|
56%
|
58%
|
58%
|
52%
|
57%
|
53%
|
58%
|
If you were to
purchase a new home now, which property type would you most
realistically purchase? (Detached)
|
51%
|
35%
|
57%
|
41%
|
52%
|
56%
|
61%
|
If you were to
purchase a new home now, which property type would you most
realistically purchase? (Condominium)
|
18%
|
30%
|
8%
|
15%
|
18%
|
17%
|
13%
|
If you were to
purchase a new home now, which property type would you most
realistically purchase? (Semi-Detached)
|
6%
|
4%
|
6%
|
9%
|
5%
|
8%
|
10%
|
If you were to
purchase a new home now, which property type would you most
realistically purchase? (Townhouse)
|
9%
|
15%
|
7%
|
7%
|
9%
|
10%
|
2%
|
If you were to
purchase a new home, where would you look to buy your new
place? (Major metropolitan area)
|
14%
|
25%
|
15%
|
14%
|
13%
|
11%
|
8%
|
If you were to
purchase a new home, where would you look to buy your new
place? (Suburbs + Exurbs)
|
38%
|
30%
|
39%
|
32%
|
39%
|
42%
|
36%
|
If you were to
purchase a new home, where would you look to buy your new
place? (Rural area)
|
26%
|
22%
|
20%
|
30%
|
25%
|
25%
|
43%
|
If you were to
purchase a new home, where would you look to buy your new
place? (City not near major metropolitan area)
|
15%
|
12%
|
14%
|
14%
|
15%
|
19%
|
10%
|
House prices in my
area are unaffordable. (Agree)
|
59%
|
78%
|
37%
|
36%
|
71%
|
49%
|
42%
|
If you were to
purchase a new home, realistically, what would your budget be?
(Average)
|
$445,237
|
$654,795
|
$394,026
|
$307,454
|
$561,112
|
$274,782
|
$209,103
|
If I want to own a
home/larger home, I likely will have to move out of the city
I'm
living in now. (Agree)
|
45%
|
59%
|
32%
|
39%
|
51%
|
39%
|
26%
|
I believe that home
ownership is a good investment. (Agree)
|
80%
|
82%
|
79%
|
87%
|
78%
|
79%
|
81%
|
When it comes to
COVID-19, I believe that we are in the worst period of the
crisis
now or I believe that the worst period of the crisis has yet to
come.
|
79%
|
83%
|
85%
|
81%
|
75%
|
82%
|
66%
|
I believe that home
values will only go up in the immediate future. (Agree)
|
52%
|
60%
|
37%
|
36%
|
56%
|
55%
|
48%
|
The housing market in
my area is overpriced. (Agree)
|
60%
|
80%
|
41%
|
46%
|
67%
|
51%
|
58%
|
I believe that home
price affordability will worsen in the near future.
(Agree)
|
56%
|
56%
|
49%
|
43%
|
63%
|
51%
|
58%
|
I am concerned about
interest rates in the coming year. (Agree)
|
45%
|
43%
|
47%
|
48%
|
48%
|
40%
|
46%
|
I am in a worse
financial position than I was in prior to the pandemic.
(Disagree)
|
59%
|
50%
|
50%
|
48%
|
55%
|
78%
|
56%
|
The pandemic has not
changed my spending or saving habits. (Disagree)
|
55%
|
54%
|
59%
|
60%
|
58%
|
46%
|
54%
|
I am currently able
to pay my bills. (Agree)
|
85%
|
82%
|
81%
|
86%
|
83%
|
92%
|
84%
|
The pandemic has made
it harder for me to save money. (Disagree)
|
47%
|
48%
|
38%
|
49%
|
41%
|
65%
|
36%
|
I am confident that
better times are not too far off. (Agree)
|
54%
|
51%
|
47%
|
44%
|
52%
|
63%
|
60%
|
About the RBC Home Buying Sentiment Poll
The RBC Home
Buying Sentiment Poll was completed between December 2 to 10, 2020, polling 1,066 respondents
using Leger's online panel. The margin of error for this sample was
±3.0%, 19 times out of 20.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 86,000+ employees who
leverage their imaginations and insights to bring our vision,
values and strategy to life so we can help our clients thrive and
communities prosper. As Canada's
biggest bank, and one of the largest in the world based on market
capitalization, we have a diversified business model with a
focus on innovation and providing exceptional experiences to our 17
million clients in Canada, the
U.S. and 34 other countries. Learn more at rbc.com.‎
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
SOURCE RBC