The current situation in the Canadian housing market has both buyers and sellers stepping to the sidelines. But underneath all of the recent shuffling there still seems to be a firm, foundational desire to own a home.
The annual affordability survey conducted by RE/MAX suggests rising interest rates have become a significant, growing concern for those looking to get in to the housing market. Twenty-four percent of respondents cite rising rates as a barrier to entry, up 6% from the last survey. Closely related to interest rates, 24% say “market volatility” is keeping them out.
The survey suggests, though, that the biggest barrier to entry remains high prices. Forty-three percent pointed to high cost, an increase of just 1% from last year.
Other key factors:
35% - higher cost of living
24% - a shortfall in salary.
But the survey also suggests Canadians remain determined to have their own home with 68% saying they are willing to make at least one sacrifice in order to realize that ambition. Of those, 64% say they are prepared to relocate to get a home they can afford. Half of those people, though, are not prepared to move more than 100 kilometres from their current location. (RE/MAX speculates that this may be related to the decline in “work from home” opportunities.)
Other common sacrifices:
56% - adjusting the type of home they would purchase
29% - co-ownership with family or friends
27% - renting a portion of their home to generate income