[ Source: CTV News. Read complete article ]
Tuesday’s announcement comes as fewer Canadians are contemplating buying a home in the next two years, finds a study conducted for the Royal Bank.
“Overall intentions to purchase a home have dropped by five percentage points to 23 per cent,” said a news release issued Tuesday.
“The intensity to buy has also decreased with those very likely to buy slipping from nine per cent in 2007 to seven per cent in 2008, the lowest level since the survey was started 15 years ago.”
However, Royal Bank’s vice-president, Home Equity Financing Catherine Adams said Canadians still strongly believe that home ownership is a good investment. “It’s merely the degree of optimism which is down from last year,” she said.
Some findings:
- Percentage of those who would buy now rather than wait until next year: 58 per cent, down 6 points from 2007
- Percentage of those who expect housing prices to rise: 56 per cent, down 3 points from 2007
- Percentage who think mortgage rates will be higher: 46, up 3 points
- Percentage who think mortgage rates will be lower: 23 per cent, up 7 points
Fixed-rate mortgages are the preferred choice for both potential buyers and current homeowners.
Adams said the average mortgage amount left to pay is unchanged from 2007, and the intended down payment amount has rise this year.
Those factors “further suggest we continue to have a healthy housing market,” added Ms. Adams, with no evidence of a U.S.-style housing crunch developing here.
Across Canada, purchasing intentions are down, with the exception of Quebec. Alberta’s market, which has been red-hot, shows signs of cooling. The percentage of Albertans who are very likely to purchase a home has fallen by four points from 2007.
The polling firm Ipsos Reid conducted the study for RBC. The online survey had a sample size of 3,023 adults. Results are considered accurate within plus or minus 1.8 percentage points, 19 times out of 20.
In late January, RBC released a study suggesting home affordability would improve in 2008.
Posted by: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 
This Mortgage fiasco is out of control and our gov’t better do something serious to help people out or the housing market will crush this economy….