A significant portion is willing to exceed asking prices by $50,000 and higher
Amid sustained housing price growth, nearly one-third of Canadians (32%) have said that they would gladly plunge into the morass of bidding wars if it means securing their desired homes, according to a new survey commissioned on behalf of TD Bank Group.
This was particularly apparent among young adults aged under 35, of which around 51% are willing to offer above the listing price. By comparison, the share was 31% among those in the 35-54 age range, and only 18% among those 55 and older.
As to how high Canadians are willing to go when it comes to bidding wars, around 19% said that they would exceed the asking price by up to $50,000, while 13% would push their offers even higher by $50,000 to $100,000 over the asking price.
Read more: Poll: Canadians’ opinions toward home price movements vary significantly
“There’s no question that the price of home ownership is much more than your down payment and monthly mortgage payments,” said Jared Jarman, associate vice president of specialized advice at TD. “In today’s competitive environment, buyers need to ensure they’re keeping a close eye on their budget, building in some wiggle room so that they know they’re able to cover expected and unforeseen costs.”
The desperation is stemming from the fact that, for 57% of Canadians, finding a home within budget will be the biggest challenge to their purchase plans within the next year.
“We know Canadians have had to deal with incredibly unprecedented circumstances this past year, including unemployment and other financial challenges for many,” Jarman said.
