First-time buyers are feeling more confident about the housing market and are ready to jump in, according to the 21st annual home ownership poll by RBC.
With the peak buying and selling spring market just around the corner, there has been a significant increase in the number of young Canadians who feel housing is a good investment: Some 86 per cent of respondents aged 25 to 34 see owning a house as a good investment, up from 78 per cent in 2013.
Where a year ago, just 25 per cent of young people surveyed said they intended to buy, that number jumped to 41 per cent this year, the survey found.
The findings reflect the improving economy and job market as well as the fact that more young buyers have focused on cutting debt and saving more money so they are ready to start house-hunting armed with a decent down payment, said Erica Nielsen, vice president of home equity finance for RBC.
Most respondents, some 62 per cent, intend to buy a house with their spouse or partner. But almost one third, 28 per cent, of the 2,591 Canadians surveyed in February say they intend to buy on their own.
Ontario, Quebec and the Prairies saw the biggest surge in home-buying interest over last year: In Ontario, 24 per cent said they have intentions to buy this year, up from just 14 per cent in 2013.
In Alberta, 28 per cent said they hope to buy this year, up from 22 per cent in 2013, likely in reaction to house prices that have been climbing significantly in Calgary and Edmonton in particular.
Atlantic Canada and the Prairies also saw some increase in buyer intentions.
“Confidence in these areas indicates that Canadians are more mindful of their finances than in 2013, which directly impacts the ability to afford home ownership. Among those likely to buy a home within the next two years, four in ten will be first-time homebuyers,” the survey notes.
Source: The Toronto Star