Just over 80 per cent of Canadians believe housing values in their area will rise or remain the same over the next two years, says Re/Max’s new Canadian Homebuying Trends Survey. The survey also suggests the housing market will get a boost from experienced purchasers as 70 per cent of home sales in the next 24 months will be to repeat buyers.
Re/Max says second-time and multi-time buyers became a more important part of the market in the latter half of 2012.
“Between 2009 and 2011, first-time buyers were the engine driving housing activity, taking advantage of favourable conditions and a recovering economy,” stated Elton Ash, Re/Max of Western Canada regional executive vice president, in a press release.
“That changed in 2012, and even earlier in BC, as prices reached a breaking point. While equity-rich homeowners will be the driving force going forward nationally, we could see a resurgence of first-time buyers in British Columbia, as they take advantage of softer pricing,” he said.
The national survey was conducted among 1,109 prospective purchasers who intend to buy within the next two years. From consumer demographics to buyer intentions, the survey is intended to provide a snapshot of Canadian homebuyers. More key findings from the survey:
- Almost one in five purchasers is single
- About 30% of purchasers are first-time buyers
- Four out of 10 purchasers between the ages of 18 to 34 have a downpayment of 20% or more
- 37% of purchasers who own homes are expected to spend more than the value of their current properties, 23% indicated that they would spend an equivalent amount on the next buy and 43% intended to spend less on their new home
- 38% of purchasers indicated they would spend under $250,000 on their home, while 42% would spend between $250,000 and $500,000, 10% would spend between $500,000 and $1 million and one per cent intended to spend over $1 million
- According to the survey, second-time and multi-time buyers became a more important part of the market in the latter half of 2012
More of the findings from the survey are broken down in the below infographic.