A recent Royal Bank of Canada poll has found that a majority of Canadians are uncertain about the ideal moment to purchase a home, with 64% agreeing that the perfect time to buy does not exist. The survey, which interviewed 1,753 Canadians, also revealed a split in market perception: 27% believe it is a buyer's market, while 36% consider it a seller's market.
Economic Uncertainty Weighs on Homebuyers
According to the poll, nearly two-thirds of respondents cited economic uncertainty as their biggest challenge to buying a home. Rising costs have made saving more difficult for 76% of Canadians, and 56% said they have saved less for a home as a result. Janet Boyle, senior vice-president of home equity finance at RBC, noted, Today, Canadians are being asked to make one of the largest financial decisions of their lives with a lot of unknowns, and it's normal to feel overwhelmed by it.
Price and Interest Rate Expectations
Almost 60% of Canadians expect home prices to rise this year, while half anticipate similar increases in interest rates. Among those intending to purchase within two years, 53% believe they have only a small window to take advantage of lower prices. Brad Evjen, a senior mortgage specialist at RBC, commented, Many of my clients want to buy a home, but economic uncertainty is making it harder to feel confident about timing.
Financial Sacrifices and First-Time Buyers
The poll found that 76% of Canadians believe homeownership requires more sacrifices today than for previous generations. Common trade-offs include delaying major purchases, taking on a side hustle, overhauling spending habits, postponing vacations, and redirecting retirement savings. Despite these challenges, 46% of those planning to buy within two years think current conditions give first-time buyers a chance to enter the market. Additionally, 58% said lower prices will finally allow them to buy a home, and 54% said the same about interest rates.
Confidence Remains Low
Only 28% of Canadians feel confident making homebuying decisions in today's market. However, 74% of respondents said buyers experience some level of financial shock when purchasing their first home. Boyle emphasized, While the barriers to homeownership have always existed, how they look has shifted. What hasn't changed is the importance of knowing what's right for you.
