With home prices and interest rates on the rise, a majority of Canadians say now is not a good time to enter the housing market, according to a new poll.
Only 29% of respondents think now is a good time to buy a house, a steep decline from 50% of respondents who thought the same last year, according to a new survey from Mortgage Professionals Canada. The survey collected data from more than 2,000 Canadians.
Despite souring sentiment, most Canadians expect home prices will continue to rise in coming months. Fifty-six per cent (56%) of respondents said they expect an increase of any magnitude, while 26% said they expected home prices to jump significantly.
The data also showed Canadians gave an average score of 7.1 out of 10 on whether owning real estate was a good long-term investment.
In the latest Canadian Real Estate Association data, benchmark home prices posted a record month-over-month increase of 3.5% in February. Prices were up nearly 30% on an annualized basis.
The poll also found that, as home prices rose, buyers increased the size of their down payments. The survey showed people paid an average of $647,036 for a home over the past two years, and their average down payment was $297,467, or 46% of the purchase price. In the previous survey, down payments averaged a third of the home price.
The report said that, for the most part, buyers down payments came from personal savings. Only 16.7% relied on a financial gift or loan from family members.