Photo: Sharon Drummond/Flickr
Looks like house hunters have had to throw out their budgets and reassess their wants when stepping into the hot Canadian real estate market.
According to the Fall Home-Buying Report from the Bank of Montreal (BMO) and survey specialists Pollara, a significant amount of Canadians have had to readjust their expectations.
About 43 per cent of homebuyers now expect to spend 21 per cent more on a new home — an increase of $83,556 — from when they first started looking.
The majority (86 per cent) of those surveyed said prices have risen since they first started their hunt. Just over half (56 per cent), were able to squirrel away enough for the down payment of the pricier home.
Among the big cities, Torontonians were in for the biggest sticker shock. The majority of respondents (57 per cent) increased their budget since they first started looking.
Price expectations weren’t the only things to change. The majority (or 55 per cent) of potential home-buyers had to consider additional property types or eliminate their first choice after starting their search. Detached houses and condos started off as the most popular housing options, but as the hunt began, many buyers changed preferences to semi-detached homes. Cost and availability were the chief reasons for the switch.
Want to see how the shifts played out within the different regions and major cities of Canada? Check out the interactive infographic below: