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T H E C A N A D I A N
HOME INSPECTOR
IN THE NEWS
A growing majority of Canadians do not intend
to buy a house in the next two years, even with
mortgage rates near record lows, according to
a Royal Bank of Canada RY-T survey released
on Thursday.
In RBC’s annual poll of Canadian homeown-
ers, 73 per cent of respondents said they are
unlikely to buy within the next two years, an
increase of 2 per cent over the previous year’s
survey.
However, 46 per cent of those polled expected
mortgage rates to stay at ultra-low levels next
year, up sharply from 30 per cent in 2011. The
poll also found that nearly 60 per cent felt this
year was a good time to buy a house, compared
to 41 per cent that felt 2013 would be better.
“Canadians still feel confident about real estate
but are a little uncertain about where the mar-
ket is heading and when it makes sense to
buy,” said Marcia Moffat, head of home equity
financing at RBC.
Ms. Moffat added that considerations such as
affordability may be keeping potential home
buyers on the sidelines.
Canadian policymakers and economists have
fretted about rising housing prices as house-
hold debt levels have soared. The ratio of debt
to personal disposable income hit a record
151.9 per cent last year.
The market has been sustained by ultra-low
interest rates since the financial crisis began in
2008. The Bank of Canada is widely expected
to keep its main policy rate at the current 1 per
cent until the third quarter of 2013 as global
economic growth remains subdued.
Earlier this week, Bank of Canada Governor
Mark Carney warned that household spending
relies too much on low borrowing rates and the
high value of homes, which prompted traders to
increase bets on a rate hike in late 2012.
Recent industry data showed overall home
prices rose just 0.1 per cent in January from
December, but were up 6.5 per cent from a year
earlier.
In the RBC poll, 68 per cent of homeowners said
the value of their home had increased in the last
two years, but only 47 per cent expected prices
to be higher a year from now.
The poll was conducted by Ipsos Reid between
January 24 and 30.
Despite Low Rates, Many Canadians Holding Off
Home Purchases: Survey
Jon Cook |
Globe & Mail
| April 5, 2012
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