Interest rate uncertainty and optimism that prices will drop are keeping potential buyers on the sidelines
Nationally, more than half of would-be first-time homebuyers are hesitant to pull the trigger on their dreams of homeownership. Ontarians and British Columbians are particularly predisposed to waiting: 61% of potential buyers in Ontario and 67% in BC said they’re hanging back. The proportion of hesitant buyers aligns closely with the percentage who believe prices could drop in the next 12 months – 58% of Ontarians are optimistic about lower prices, as are 68% of British Columbians.
Perhaps another factor in the delay for first-timers is the pressure to gather a larger down payment relative to the home’s value. While the tendency to put down more than 15% has been steadily on the rise for years, it has seen a sharp increase in the past 12 months. Now, almost half of new homeowners are putting down more than 15% of purchase price.
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