A significant portion of Canadians looking to become homeowners are delaying their plans, opting to wait for potential interest rate decreases, according to a recent survey.
The Bank of Montreal reports that 72 percent of those aspiring to purchase a home intend to postpone their plans until borrowing costs become more favorable. This marks a four percent uptick from last year's figures.
Although there are expectations for interest rate reductions in the latter part of the year, Robert Kavcic, senior economist at BMO Capital Markets, suggests that rates still have a considerable distance to go before reaching levels that would restore affordability to previous standards.
Conducted by Ipsos between February 28 and March 18, the survey indicates that 85 percent of respondents feel they are making tangible financial strides towards their first home. However, financial worries persist among this group, with concerns ranging from unexpected expenses to environmental factors like wildfires, alongside the overall high expenses associated with homeownership.
Despite these apprehensions, Hassan Pirnia from BMO highlights the determination of many young Canadians to pursue homeownership despite economic and market uncertainties. He notes that a significant number are gearing up to take the plunge into the real estate market for the first time.
As prospective buyers weigh their options and monitor interest rate movements, the housing market remains dynamic, reflecting the evolving financial landscape and the aspirations of Canadians looking to establish roots in their own homes.
