As the housing market continues to experience fluctuations, a new RBC poll reveals that many Canadians are considering their options cautiously.
While some respondents are feeling uncertain about the state of the market, others are optimistic about the possibility of buying a home.
Uncertainty around the housing market
The poll found that 40 per cent of respondents expect to pay less for a home now than they would have a year ago. Additionally, 25 per cent of respondents are unsure about the current state of the housing market, and 18 per cent are uncertain whether now is a good time to buy a new home.
“There has been a big shift in Canadians’ sentiment around the housing market, including an increase in uncertainty around where the market is today,” says Nick Palucci, senior director, home equity financing, RBC.
“But spring is typically a busy home buying season, and many potential home buyers may be seeing a window of opportunity opening for them.”
Optimism among aspiring first time homebuyers
Despite the uncertainty, the poll also found a wave of optimism among pre-first time homebuyers. RBC defines a pre-first time homebuyer as someone looking to purchase their first home in the next two years.
An overwhelming majority believe that buying a house or condo is a good investment, and 78 per cent think they will be in a better position to buy a home in the coming years.
Additionally, 68 per cent of pre-first time home buyers believe that lower home prices will allow them to buy a home despite higher interest rates.
Worries about the future
The poll also revealed that many Canadians are worried about their financial future. Three-quarters of respondents expressed concerns about a potential recession, with 26 per cent stating that they may delay purchasing a home due to this possibility.
Additionally, more than half of respondents are concerned that their financial position may deteriorate in the next year. These concerns could be contributing to the cautious approach many Canadians are taking to the housing market.
Financial concerns impacting support for family
More than half (53 per cent) of respondents are worried about their financial position deteriorating over the next year, contributing to why only 22 per cent would give an immediate family member or child money for a new home, down from 26 per cent in 2022.
Nearly half prefer to help family or children save money by letting them live with them rather than helping them financially.
Those willing to provide financial support say they would give more than ever ($68,000 compared to $57,918 last year).
