Markets across the country are feeling the effects of increased buyer activity, with both prices and sales continually rising month-over-month. In April, Calgary’s benchmark price reached a new monthly record high, while Toronto and Vancouver markets have been experiencing modest price growth as well. With buyers coming out in full force, demand is far outweighing supply and it’s apparent that low inventory is a major issue for the country. But how is the current real estate climate affecting buyers’ outlooks? To find out, we surveyed over 1,200 Zoocasa readers on their housing preferences, real estate plans, and more.
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Canadians Overwhelmingly Value Homeownership
Despite affordability and inventory concerns, 76.1% of our respondents said owning their own home is important to them. Whether this is a reflection of soaring rental costs or long-held beliefs about the importance of owning property could be debated, but one thing that is clear is that buyers are facing obstacles achieving their homeownership goals. 36.2% of respondents strongly disagree that homeownership is within reach for most Canadians.
Buyer sentiment indicated that affordability is largely the reason behind this. The majority of respondents, 27.8% and 22.7%, said housing affordability in their desired location is either not at all affordable or not affordable, and 63.5% do not expect housing to become more affordable in the next year.
However, the forecast for buyers is not completely bleak. According to our survey, the Bank of Canada’s announcement to hold interest rates has had a positive impact on the majority of buyers and 67.4% of respondents said they plan to buy a home in the near future. In fact, though respondents feel housing is unaffordable in a broad sense, when it comes to themselves, sentiments are more positive; 63.8% of Zoocasa readers said they’re able to afford the average home in their area.
Detached Homes Most Sought After But Interest in Other Property Types Growing
The last time we surveyed Zoocasa readers in the fall of 2022, 61.8% of respondents were planning to buy a detached home, 16.4% were planning to buy a condo/apartment and 10.1% were planning to buy a townhouse. Eyes are still on detached homes with 55.9% of respondents interested in buying a detached property, but a larger percentage of respondents are looking at more affordable homes. 19.4% of buyers are looking to buy in the condo sector, and 13.6% of buyers are planning to buy a townhouse. Detached homes in the GTA showed the largest sales growth among property types in April 2023. Vancouver detached homes experienced the largest price increases last month among all property types, indicating it’s not just Zoocasa readers who are eyeing detached homes.
Location was considered the most important feature when buying a home, followed by the number of bedrooms, having a yard, and proximity to entertainment. Respondents were pretty split on whether they preferred the city or the suburbs, with 42% looking in the suburbs and 40.8% looking in urban areas.
Respondents also had varying reasons for buying a home, the most popular being wanting a bigger house, investment intentions, downsizing, and simply wanting a nicer home. So when will these prospective buyers enter the market? At 62.8%, most respondents are holding off a year or more before buying their next home, and 19.3% plan to enter the market within the next 7-12 months.
If you’re like our readers and are thinking about entering the market in the near future, give us a call! We can help you prepare and plan for your future real estate goals.
