RBC survey points to home buying slowing down

A new RBC study indicates a potential shift in the Canadian home buying landscape. According to RBC Royal Bank's 15th Annual Homeownership Survey, significantly fewer Canadians intend to buy a home within the next two years.

Overall intentions to purchase a home have dropped by five percentage points to 23 per cent. The intensity to buy has also decreased with those very likely to buy slipping from nine per cent in 2007 to seven per cent in 2008, the lowest level since the survey was started 15 years ago.

However, the number of Canadians who would buy now, rather than wait until next year is still strong at 52 per cent. This has dropped from 58 per cent in 2007, suggesting a potential slowdown in the housing market. While the majority of Canadians (85 per cent) continue to believe purchasing a home is a good investment, the number is down from 90 per cent in 2007. But much stronger than it was 10 years ago (76 per cent), the survey says.

“Considering the flurry of activity we’ve seen over the last few years, this year’s results definitely signal a change,” says Catherine Adams, RBC Royal Bank vice-president. “While those very likely to buy a home might be at its lowest level in over a decade, we need to keep in mind that the overwhelming majority of Canadians still believe purchasing a home is a good investment. Canadians continue to be generally very optimistic about our housing market and it’s merely the degree of optimism which is down from last year.”


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM