RBC survey shows home-buying intentions are returning to pre-pandemic numbers

It looks like home-buying attitudes are changing again in Canada as people are heading towards the post-pandemic mindset. The recent survey by RBC shows that purchase intent is already back to what we saw in January 2020: 23% of respondents say they will probably buy a home during the next two years. Last year, it was 30%, while in 2020 – 22%.

The report says the need for larger properties is already not a number one factor, with 59% of respondents saying location is more important than purchasing a bigger home. Only 25% noted they are ready to live further from the city’s usual amenities in order to afford a larger property. In case of those who rent, 27% now feel less pressure to purchase than amid the peak of the pandemic.

“Although there is still a high level of activity in the real estate market, our research shows that the wave of Canadians willing to buy a home during the previous two years has declined and we’re moving towards the pre-pandemic levels,” – noted Andrea Metrick from RBC. “Amid growing prices and the competitiveness of the market, Canadians may be taking more time to save before entering the market.”

According to the survey, 60% of respondents worry about interest rate increases this year, while 47% say they and/or their family are ready to withstand a potential hike. At the same time, 22% of respondents with a mortgage haven’t thought what they could afford in case rates start going up.

In terms of growing inflation, 48% of respondents are concerned about the influence it will have on their ability to buy real estate, and 54% worry that it will have an impact on their ability to cover the homeownership costs.