Your #1 Source of Montreal Real Estate News

Zoocasa Housing Sentiments And Trends Report – 2018

How do Canadians feel about home ownership and real estate investments?

0 124

Zoocasa’s 2018 Housing Trends Report looks at aspirations and obstacles surrounding homeownership, amidst rising property prices and interest rates.

The survey garnered responses from 1,431 Canadian respondents in March 2018.

Most Canadians See Home Ownership as a Key Accomplishment

Canadian millennials view home ownership as an important rite of passage.

  • 86% of respondents feel that buying a home is a significant life milestone
  • Baby boomers feel the strongest about this issue, at 90%
  • 85% of Gen-Xers share this sentiment
  • 84% of Millennials feel the same

More than half of the respondents thought that homeownership should be accomplished by one’s late twenties or mid 30s. 65% of respondents believed one should own a property by 35 years old.

Zoocasa Housing Sentiments And Trends Report - 2018
Source: Zoocasa

 

Although home ownership is perceived as a significant step, most Canadians would not prioritize it over other key milestones.

  • Only 19% claimed they would delay having a baby if they did not own their own home.
  • Only 13% would delay marriage until achieving home ownership
  • Only 9% would wait until they owned a home before expanding their family with more than one child
  • Only 6% would delay an engagement while waiting to purchase a home

When compared to other life milestones:

  • 46% feel that buying a home is more stressful than marriage
  • 19% feel that buying a home is more stressful than having a baby
  • 30% feel that buying a home is more stressful than saving for retirement

Rising Prices is Still the Biggest Obstacle

The majority of respondents cited affordability as the biggest barrier to homeownership.

42% of Canadians surveyed saw increased prices as their main obstacle. This figure is 12% less than in 2017 – perhaps a reflection of cooling market conditions in Toronto and Vancouver?

Zoocasa Housing Sentiments And Trends Report - 2018
Source: Zoocasa

 

Renting vs Buying: Canadian Sentiments

33% of surveyed Canadians who were currently renting would prefer to own a home, but are still saving for a downpayment. 26% would prefer to own, but cannot afford the mortgage. 26% would rather own, but cannot afford the downpayment. In total, 58% would prefer homeownership over being a tenant.

The rest (42%) preferred to rent, citing reasons such as:

  • Renting is cheaper
  • Renting requires less commitment
  • Buying real estate is complex
  • Prefer not to own

Renters in Quebec seem to have it the easiest when it comes to saving for a downpayment. Only 10% of Quebecers cited  the inability to save as a reason to continue renting.

Zoocasa Housing Sentiments And Trends Report - 2018

Zoocasa Housing Sentiments And Trends Report - 2018
Source: Zoocasa

What do Canadians Think About Rising Interest Rates?

The Bank of Canada has increased its overnight lending rates three times this year, from 0.75% to 1.25%.

The benchmark rate is used to stress-test mortgage borrowers, for which a rise in the benchmark rate will directly affect buyers trying to attain homeownership.

Zoocasa set out to determine the extent to which buyers have been dissuaded by rising interest rates.

According to the survey results:

  • 40% did not feel the effect of rising interest rates
  • 22% wanted to delay homeownership due to rising rates
  • 18% felt that rising rates had pushed home ownership out of reach
  • 13% wished they bought a property sooner
  • 10% were not aware of the interest rate increases
  • 9% were dissuaded from buying a home due to the rate hikes

 

Zoocasa Housing Sentiments And Trends Report - 2018
Source: Zoocasa

Do Canadians Think Real Estate is a Good Investment? 

The final section of the survey looks at sentiments towards real estate as a financial investment strategy.

Due to real estate’s appreciation rates over the past 10 years, most Canadians view real estate as a profitable investment strategy. In fact, 61% viewed real estate as a better investment than stocks and bonds.

Of all respondents:

  • 8% already own an investment property:
  • 57% own at least 1 property
  • 23% own 2 properties
  • 20% own more than 2 properties

Detached homes were the most popular real estate investment, followed closely by condos. 5% owned a vacation home.

Of all the generational cohorts, Baby Boomers were most likely to own a rental property at 15%. Millennials were the least likely at 4%.

Zoocasa Housing Sentiments And Trends Report - 2018

Zoocasa Housing Sentiments And Trends Report - 2018
Source: Zoocasa

 

A note on Methodology

Zoocasa’s report was based on an online survey with a sample size of 1,431 respondents living in Canada. The estimated margin of error is +/- 2.6 percentage points, 19 times out of 20.

About Zoocasa

Zoocasa is a data-driven real estate company that combines advanced online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Search tools on www.zoocasa.com include the ability to filter by home type, find properties with basement apartments, and see listings within school boundaries by school ratings.

View the full report here.


This article, Zoocasa Housing Sentiments And Trends Report – 2018, appeared first on Shupilov News.

Want to stay informed on the latest real estate news?

Subscribe to get the latest news delivered straight to your inbox every week

Leave A Reply

Your email address will not be published.