Residential Market Commentary - New realities have home buyers adjusting
Canadian home buyers continue to accept and adjust to the new realities of the market, but that doesn’t mean they are happy about it.
A home ownership survey conducted earlier this year suggests nearly 40% of homeowners see themselves as being (or having been) “house poor”. That means they are spending more than 30% of their total income on housing; mortgage, taxes, utilities and maintenance. More than 90% of the respondents say that kind of money stress could have mental health effects. While 51% say they would not put themselves in that position, just about all of the other half, 47%, say it would be worth the sacrifice.
This represents an opportunity for brokers who can provide practical advice, tailored to the needs of their clients. Being available and providing information in real time goes a long way to easing anxiety and tensions for a home buyer.
The survey also shows signs that home buyers may be polarizing between those who believe they can go it alone and those who feel they are going to require financial help. The number of buyers who feel they can go solo is 32%. The number planning to get help from family is 28%. The traditional model of buying a home with a partner or spouse has seen a decline, down to 42% compared to 49% in 2017.
The survey finds a full two-thirds of Canadians believe it is better to own than to rent.