Most prospective buyers remain confident despite a volatile housing market
Canadian’s sentiments towards residential property ownership remain optimistic despite formidable market challenges in 2023, with even a persistent housing supply crisis and an elevated-rate landscape not proving to be a deterrent for most, according to a recent RE/MAX Canada study.
RE/MAX found that 73% of Canadians are still confident that homeownership is one of the optimal investments that any consumer can make. The study further found that prospective home buyers can be expected to prioritize acquiring primary residences with rental potential as a strategic measure to offset mortgage expenses.
This will be an especially crucial revenue stream as RE/MAX is anticipating a modest 0.5% increase in the average residential price in Canada, with the majority of markets projected to experience growth rates ranging from 2% to 7.5%.
RE/MAX Canada president Christopher Alexander said that real estate will continue to endure as a pillar of financial stability for many households.
“It’s been a challenging year for Canadian homebuyers and sellers, who have been feeling the effects of a severe housing shortage and the high cost of living, but much like Canada’s housing market, Canadians have stayed resilient,” Alexander said. “Historically, real estate has given owners excellent returns and strong financial security – and that hasn’t changed.”
A majority of Canadians remain sceptical about their prospects of entering into home ownership despite the noticeable decline in home prices over the past year, according to a new Ipsos poll conducted for Global News.https://t.co/Fp8HA7rnBW
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 7, 2023
What markets will particularly benefit from the trend?
Agents affiliated with RE/MAX across various regions said that prospective home buyers now tend to prioritize primary residential properties with rental potential.
Aiming to maximize returns on investment to counteract the escalating cost of living, RE/MAX said that this is likely to exert significant influence in real estate market dynamics this year.
“Amid ongoing economic pressures and rising interest rates, affordability and the cost of living continue to be top liveability considerations for potential homebuyers in Western Canada,” RE/MAX said. “This has led to an increase in demand from first-time homebuyers for primary properties that also have the capacity to provide them with rental income, in places such as Victoria, BC; Vancouver, BC; Edmonton, AB; Nanaimo, BC; and Saskatoon, SK.”
Ontario is likely to exhibit similar trends, with an added emphasis on crucial amenities.
“Despite cost of living becoming a more prominent consideration for homebuyers and sellers, additional emerging liveability trends in Ontario include the desire for greater access to public transportation and green space, as well as proximity to preferred schools,” RE/MAX said.
“These factors are leading many Canadians to become resourceful and focus their home-buying search on properties that can accommodate additional tenants, as a means to offset mortgage costs and ongoing affordability challenges.”
