More than one-in-three Canadians are prepared to fight it out to secure a home.
According to the latest BMO Home Buying Report, 34 per cent of Canadians say they are willing to enter a bidding war when it comes time to buy property, an increase of six points, or 21 per cent, from a year ago.
The survey, conducted by Pollara on behalf of BMO, revealed that appetite for competitive bids is highest in Toronto at 44 per cent, and in Vancouver at 41 per cent.
Looking at the provincial picture, would-be buyers in the Prairies and British Columbia are most willing to compete on the price of a home — 38 per cent in both regions.
The survey also found that current homeowners visited an average of 9.5 homes before buying. While 49 per cent of buyers were successful on their first bid, the figure dropped to 42 per cent among those who bought in the past five years — including 32 per cent in Vancouver and 24 per cent in Toronto.
According to BMO, average home prices across Canada continue to rise and the average sale price currently sits at just over $400,000.
“Calgary’s market continues to see the strongest fundamentals; Vancouver has rebounded from a soft patch; while Toronto’s market remains relatively balanced overall, though the condo market is more amply supplied,” said senior BMO economist Robert Kavcic.
“Overall, sales are expected to hold relatively steady in the year ahead, with price growth in the low single-digit range, below the rate of income growth,” Kavcic said.
The survey results are based on random online interviews with 2,007 Canadians between January 24th and February 3rd. Of those, 1,051 were prospective homebuyers and the remainder were current homeowners.