First National Financial LP®

Residential Mortgage Commentary - Home ownership on hold

  • First National Financial LP

Uncertainty begets hesitancy and that is painfully true in the housing market right now.  Two of Canada’s big realtors are out with surveys that suggest the desire for home ownership remains strong, but it will a dream deferred for many buyers.

For its Fall Outlook RE/MAX quizzed its agents and brokers along with a sample of Canadians.  Between those two groups the company is forecasting further 2.2% drop in prices by the end of this year.  The survey also suggests 44% of Canadians have decided to postpone a home purchase for the foreseeable future.

The company points to rising interest rates as the key reason for delay, although 41% of the respondents indicate an impeding recession is holding them back from either buying or selling.  Thirty-four percent say they have no intention of holding off.

RE/MAX also recognizes that a lack of homes for sale is a weight on the market.  But it cites interest rates as the chief cause for a slowdown.

The Fall forecast from Royal LePage largely agrees with its corporate competitor, with some variation in the numbers.

Royal LePage did not offer a forecast on pricing, instead focusing solely on buying plans.  Its survey suggests 19% of Canadians are putting their purchasing plans on hold.  That number jumps to almost 30% among Canadians aged 18 to 34.

Of those who have delayed the purchase, 40% say they still plan to buy, just at a later date.  However, 60% say they have put their home buying plans on hold indefinitely.