Zoocasa
Sold Prices
Mortgage Calculator
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
Home Affordability Reports

Despite Rate Hikes, 60% of Potential Buyers Are Still Planning to Buy: Survey

Patti Cosgarea by Patti Cosgarea
October 21, 2022
in Affordability Reports, Canada, Infographics, Zoocasa News
4 min read
Zoocasa House Hero
Share
Tweet
Share
0 Shares

Inventory and sales activity is down in many markets across the country. According to the Canadian Real Estate Association (CREA), 60% of local markets saw sales fall month-over-month in September, with some of the largest markets including Greater Vancouver, Calgary, and the Greater Toronto Area (GTA) experiencing the biggest dip in sales. So, where are all the buyers? We asked and you answered. According to a recent survey of more than 1800 Zoocasa readers, Canadians still want to buy, but not until spring or summer of next year. 

Interest Rates are Giving Buyers Cold Feet

Historically, Canadian markets do slow down in the fall and early winter, but in many cities, the year-over-year slowdown has been substantial. According to CREA, sales in Fraser Valley are down 52.3% year-over-year. London and St. Thomas, and the GTA aren’t far behind, with declines in sales of 40.6% and 44.3% respectively. Our survey results indicate that the interest rate hikes are giving buyers cold feet, with 35.8% of respondents strongly agreeing that the increase in rates has had a negative impact on their interest in the real estate market.

Demand Will Grow, Especially for Detached Suburban Homes

Aside from the rate hikes, those surveyed indicated that they do have plans to buy, and big ones! 60% of respondents said that they plan to buy a home in the near future, 61.8% of which are planning to buy a detached house and 40.3% of readers are looking to buy in the suburbs. It seems that the trend for larger homes outside of city centres hasn’t fully fizzled out since the pandemic. 35.3% of those surveyed are looking to buy a bigger house and they may be crossing their fingers that affordability will improve so they can secure their dream detached home. Detached properties have experienced some of the biggest price drops. In Toronto, average prices are down 11% year-over-year, currently hovering around $1,585,589. Detached homes in the GTA are following suit, with average prices declining 9.5% year-over-year to an average of $1,310,639. However, even though home prices are coming down in certain cities and experts are predicting they may continue to do so, increased rates will put downward pressure on buying power. Read more on that impact here. 

Despite rate hikes and historically high inflation numbers, the demand for housing continues at a rapid pace in Canada. Year-over-year rental prices have grown significantly in Canada’s major markets. Rent prices have grown by 21% year-over-year in Toronto and the GTA. Read more about the rental strain here. Canada has also set a target and aims to welcome over 1.3 million new immigrants to the country between 2022-2024, according to Statistics Canada. Most of these newcomers will need housing and push demand higher, especially in larger city centres. 

16.4% of readers said they were looking to buy a condo/apartment. In Toronto, condo apartments have seen the highest number of sales each month this year and are holding their value better than any other property type. Many other cities, including Edmonton, are seeing the same demand for condo apartments, ultimately being driven by the fact that this property type is generally more affordable than detached, semi-detached, or townhouses. 

If you’re dreaming about a detached home and considering entering the market next year, it’s a great time to secure a pre-approval now. If interest rates continue to rise, a pre-approval could ensure that you lock down a rate for next year’s market. Give us a call to discuss your home-buying plans and how to prepare now. 

Dreaming of a detached home?
Sign Up for a Free Buyer Consultation
Previous Post

Prices in These 3 Major Ontario Markets Have Flattened, Here’s by How Much

Next Post

Does Home Insurance Cover Roof Leaks?

Patti Cosgarea

Patti Cosgarea

Patti is Zoocasa's Public Relations and Content Marketing Manager. Passionate about marketing and digital communication, she creates content to support Canadians throughout their real estate journey. Outside of Zoocasa, Patti can be found renovating her townhouse in Kitchener and exploring Waterloo region by foot or paddle.

Related Posts

Zoocasa Vancouver Hero
British Columbia

The Highs and Lows of British Columbia’s Property Taxes

January 30, 2023
A house faded in the background, focus on a white sign that says, "The Most Expensive and Affordable Cities in 2022". Blog Hero.
Affordability Reports

The Most Expensive and Affordable Cities in 2022: INFOGRAPHIC

January 26, 2023
Affordability

New Year, Same Rate Hikes: The 8th Increase in 10 Months

January 25, 2023

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

A room undergoing renovations, stripped to the plaster. Supplies and ladders sit in one corner beside a window.

How to Duplex Your Home or Create a Legal In-Law Suite

February 1, 2023
A white picket cross with a hanging sign that says "SOLD" in red.

Most Expensive and Affordable Homes Sold in January 2023

January 31, 2023
Zoocasa Vancouver Hero

The Highs and Lows of British Columbia’s Property Taxes

January 30, 2023
Living Lavish in Toronto Luxury Listings, image of 6547 Wellington County Road 34 viewing the circular driveway and home.

Living Lavish in Toronto: Luxury Listings

January 27, 2023

Featured Listings (Updated Weekly)

Living Lavish in Toronto Luxury Listings, image of 6547 Wellington County Road 34 viewing the circular driveway and home.

Living Lavish in Toronto: Luxury Listings

January 27, 2023

Income Properties Available in Alberta Starting at $499,800

January 20, 2023
490 Drew St. Oshawa - Listed by: THE NOOK REALTY INC., BROKERAGE

The Cheapest Houses For Sale in the GTA For Under $650K

January 17, 2023

Income Properties Available in Ontario Now, Starting from $249,900

January 12, 2023
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Terms of Use | Privacy Policy | Careers | Sitemap | About Us

 

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

Stay Connected

1-844-683-4663 | [email protected] 

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.