The vast majority of Canadians aspiring to purchase a house say they are going to push their plans to subsequent yr or later to attend for rates of interest to drop, a brand new survey exhibits.
Financial institution of Montreal says 72 per cent of respondents hoping to purchase a house will wait till borrowing prices fall — a rise of 4 per cent in contrast with final yr.
Whereas rate of interest cuts are anticipated within the second half of the yr, BMO Capital Markets senior economist Robert Kavcic says it’s nonetheless a good distance for charges to be low sufficient to revive affordability to current norms.
The survey, carried out by Ipsos from Feb. 28 to March 18, exhibits 85 per cent of respondents say they’re making actual monetary progress towards shopping for their first residence however face monetary anxiousness.
Among the many high considerations are sudden bills, local weather issues corresponding to wildfires and the excessive prices of homeownership.
BMO’s Hassan Pirnia says regardless of the financial and market challenges, many younger Canadians are making ready to embark on their homebuying journey and enter the actual property marketplace for the primary time.
This report by The Canadian Press was first revealed April 29, 2024.
