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More Canadians Move Toward Home Ownership
Three in 10 Canadians plan to buy a house in the next two years, the most since 1997, a Royal Bank of Canada survey released Wednesday showed. Of those, a growing number - 10 per cent - expect to buy a home in the next six months, according to RBC Royal Bank's 12th Annual Homeownership Survey. Almost half of those who expect to purchase within the next two years are now renting. The age group most likely to move will be people between 25 and 34 years old.
Low interest rates and easy credit have prompted a flurry of activity in the Canadian housing market, even as prices for homes have rocketed higher. Prices surged 9 per cent in 2003 and 2004, though Royal LePage Real Estate Services Ltd. predicts the pace will slow to 4.5 per cent this year.
"The move towards home ownership continues for Canadians," said Clayton Van Esch, RBC's senior manager of mortgages in a release. "Low mortgage rates, flexible payment plans, and continued affordability are all part of the reason why so many people are poised to purchase over the next two years."
Among provinces, 17 per cent of Albertans said they are "very likely" to buy a home in the next two years. However, the greatest increase in home-buying intentions was in Ontario, where the percentage of people likely to buy a house grew three points to 14 per cent. Quebec has the fewest potential homebuyers, the survey said.
"Based on what we've learned, there is tremendous intensity to purchase homes and to purchase them this year while mortgage rates remain low," Mr. Van Esch said.
Borrowing costs aren't expected to rise for at least several more months. The Bank of Canada on Tuesday left its overnight lending rate unchanged at 2.5 per cent, though it signaled rates will have to rise eventually.
The housing industry is a key part of the Canadian economy, with existing homes, home-building, buying, renovation and mortgage expenditures comprising an estimated record $1.7-trillion in 2004, RBC said.
The survey of 2,001 adult Canadians was conducted for RBC between Jan. 18 and 24/05 by Ipso Reid.
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Copyright ©2007 Peter Kunz. All rights reserved. |
Royal LePage Partners Realty is an independently owned and operated brokerage. |
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