A recent CIBC poll sheds light on the current state of the Canadian housing market for potential and existing homeowners. Here's a breakdown of the key findings:
For Renters
- 76% of Canadians who don't own property believe entering the housing market is out of reach. This highlights the affordability challenges faced by many Canadians.
- Despite the hurdles, 56% of non-homeowners still aspire to owning a home someday. This indicates a persistent desire for homeownership despite the difficulties.
- Only 28% of those aiming for homeownership are currently saving for a down payment. This suggests affordability may be hindering their ability to save.
Overpriced Markets
- Unaffordable housing markets (70%) are the primary barrier to homeownership for non-owners. This aligns with the overall sentiment of high property prices.
- Difficulty saving for a down payment (63%) is another significant challenge. This reinforces the financial strain potential buyers face.
Expert Advice Sought Amidst Uncertainty
- Carissa Lucreziano, a CIBC vice-president, acknowledges the nationwide affordability issue and the need for guidance. This highlights the importance of professional advice in navigating the complex market.
- Nearly 80% of those surveyed expressed a desire for guidance in navigating the housing market. This demonstrates a willingness to seek help in achieving homeownership goals.
Existing Homeowners Adapting to Manage Costs
Variable-rate mortgage holders are taking action to manage payments
- 51% report cutting back on everyday expenses.
- 21% prioritize faster mortgage payments through lump sums.
Fixed-rate mortgage holders are preparing for upcoming renewals
- 45% anticipate reducing daily expenses.
- 34% plan to shop around for the best rates.
Alternative Strategies
- The survey found that 48% of Canadians are open to moving outside major cities for better affordability. This suggests a willingness to explore alternative locations for homeownership.
- 26% are considering co-ownership with friends to make homeownership more accessible. This points towards potential creative solutions for entering the market.
The CIBC poll offers valuable insights into the current state of the Canadian housing market. While affordability remains a major concern, the survey also highlights the enduring desire for homeownership and the various strategies Canadians are considering to navigate this challenging landscape.
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