Many Canadians who postponed a home purchase last year plan to return to searches this spring

When in 2022 interest rates reached their highest level in more than ten years, many Canadian homebuyers were forced to leave the market and postpone their purchase. However, a new report by Royal LePage shows that most of them are planning to return to the market as early as this spring.

According to the report, 24% of Canadians were planning to buy property in 2022, and 63% of them had to postpone these plans because of interest rate increases.

Today, 62% of those who postponed their searches are ready to return to the market, with 26% planning to do it this spring.

Another interesting finding is that mostly younger Canadians decided to push back their home purchase last year: respondents aged 18 to 34 accounted for about 67% of those who did it.

Although many Canadian homebuyers are ready to return to the real estate market, some are still waiting to see the central bank’s next step.

“As you know, eight times a year, the Bank of Canada reviews its key lending rate, and for eight meetings in a row, the Bank has aggressively raised rates in an attempt to restrain skyrocketing inflation. Last month, the BoC kept the rate unchanged and it became a crucial moment,” – Phil Soper, the president and CEO of Royal LePage, noted.

“The poll’s results provide the signal many Canadians were waiting for – an indication that it’s safe again to enter the real estate market and start looking for the family home they want.”

On March 8, the central bank kept its overnight rate at 4.50% for the first time in nine meetings.

Although it’s good news for homebuyers, the report shows that 36% of respondents who postponed their housing plans would like to see whether the Bank will follow the path of no changes for several months more.