Majority of Canadians Say Buy Now,
Don't Wait to Purchase a Home
But Canadians are no more likely to say they're going to buy a home in this year's survey than last year's survey. Eight percent (8%) say they're `very likely' to purchase a home in the next two years, while 19% are `somewhat likely' - the aggregate of 27% is down 2 points from last year. Three quarters (73%) of Canadians are `not likely' (45% not at all/28% not very likely) to purchase a home in the next two years, up 2 points. Regionally, those in British Columbia (34%) have the highest level of intent to consider buying a home in the next two years, followed by those living in Alberta (31%), Saskatchewan and Manitoba (27%), Atlantic Canada (27%), Ontario (26%) and Quebec (23%).
Despite a modest softening of purchase intentions, most (88%) Canadians continue to believe that buying a house or condominium is currently a `good' investment (39% very/49% somewhat). Few (12%) Canadians believe it is not (2% not at all/10% not very good). In fact, two in three (68%) homeowners indicate that the market value of their home has increased in the last two years, compared to just one in ten (10%) who think it has decreased and two in ten (22%) who believe there has been no change in its value. Three quarters (74%) `agree' (24% strongly/50% somewhat) that their family is `well-positioned to weather a potential downturn in home prices'.
After believing for nearly half a decade that the housing market was a buyer's market, Canadian sentiment has shifted towards more mixed feelings about the market. Nearly four in ten (38%, down 2 points) believe the market is currently a buyer's market - a market where buyers have the advantage because the number of houses available exceeds the number of buyers - however, this varies greatly across the country. Albertans (55%) are most likely to think it's a buyer's market, followed by those living in Atlantic Canada (52%), British Columbia (45%), Quebec (35%), Ontario (34%), and Manitoba and Saskatchewan (16%). Conversely, nearly three in ten (27%, up 7 points) think the market is currently a seller's market - where sellers have the advantage because the number of buyers exceeds the number of homes available. One in three (36%, down 4 points) believe it is a balanced market.
Less than half (47%) of all Canadians believe housing prices will be higher at this time next year (down 5 points), while nearly a quarter (23%, up 2 points) expect prices to drop and three in ten (30%, up 3 points) predict no overall change. Residents of Alberta are most likely to predict higher housing prices (53%), followed by those in Quebec (49%), Atlantic Canada (49%), British Columbia (46%), Ontario (45%), and Manitoba and Saskatchewan (42%). When it comes to mortgage rates, four in ten (41%) think they'll rise (down a dramatic 19 points), while just one in ten (13%) predict they'll drop (up 3 points). A plurality (46%, up 16 points) thinks that rates will hold the line.
Among those Canadians who say they're at least somewhat likely to purchase a home in the next two years, concern has been expressed in a number of areas. Nearly a quarter say they are concerned about home prices increasing (23%), while others are concerned about mortgage rates increasing (22%), their current level of debt (20%), qualifying for a mortgage (19%) or having a good down payment (16%).
These are some of the findings of the RBC's 19th Annual Homeownership Poll conducted by Ipsos Reid between January 24 - 30, 2012. The annual online survey tracks Canadians attitudes and behaviours around home buying and homeownership. The results are based on a sample where quota sampling and weighting are employed to balance demographics and ensure that the sample's composition reflects that of the actual Canadian population according to Census data. Quota samples with weighting from the Ipsos online panel provide results that are intended to approximate a probability sample. An unweighted probability sample of 2,006 adult Canadians, with 100% response rate would have an estimated margin of error of 1772 percentage points, 19 times out of 20. The margin of error will be larger within regions and for other sub-groupings of the survey population.
For more information on this news release, please contact:
Sean Simpson
Associate Vice President
Ipsos Reid
Public Affairs
416.572.4474
[email protected]
About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit www.ipsos.ca.
About Ipsos
Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world's third largest market research company.
With offices in 84 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.
Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.
Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,363 billion (1.897 billion USD) in 2011.
Visit www.ipsos-na.com to learn more about Ipsos' offerings and capabilities.
