- 36% of Quebecers likely to buy in the next two years, highest nationally
- Even with high home-buying intentions, 27% of non-homeowners say they will never own a home
- 43% of all Quebecers believe most people will be priced out of the housing market in the next decade
TORONTO, April 12, 2021 /CNW/ - Planning to move on or move in? While Quebecers have the highest intention of buying a home in the next few years amongst Canadians polled, many say they have given up on the dream of home ownership. According to the RBC Spring Housing Poll, just over a quarter of non-homeowners under 40 say they will never own a home while 43% of all Quebecers believe the majority of people will be priced out of the market in the next decade. For those likely to buy a home in the next two years, 70% say they are putting aside an average of $800 each month to save for their home purchase.
"The road to home ownership isn't always easy and the last year has created both challenges and opportunities for home buyers," says Pascal Berger, Mortgage Specialist, RBC. "Potential homebuyers need to look at their personal financial situation as well as the current economic environment as both can have a big impact on the ability to purchase a home."
When it comes to purchase intention, despite 59% of respondents saying it is a sellers' market (up 21%, highest year-over-year jump), Quebecers are the most likely to consider buying a home in the next two years (36% versus 30% nationally).
Many factors are impacting whether Quebecers feel it is better to buy now or buy later. According to the poll results, interest rates and rising home prices are key reasons why Quebecers are considering buying sooner. In fact, the majority of Quebecers polled (52%) are thinking about buying a home sooner because of low interest rates and 51% believe home values will only go up in the immediate future. Eighty-four per cent of respondents also continue to see housing as a good investment and the majority say it is better to buy than rent (57%). More than a quarter of Quebecers surveyed also say it will be more affordable to own a home in the future (27%, versus 19% nationally). The key drivers among those waiting to buy a home include uncertainty about the economy (47%), a belief that prices may come down (44%), not having the necessary down payment (25%) and job anxiety (23%).
"Historically low mortgage rates and continued economic uncertainty has created a lot of unknowns for home buyers," says Berger. "As we continue into year two of the pandemic, knowing how much flexibility you have in your finances has never been more important. In addition to evaluating what you can afford now, potential home buyers should put their finances through a stress test to see if they can continue to carry the cost of owning a home if interest rates increase or if they had an unexpected expense or income loss."
Saving and Budgeting for a Home
While 66% of Quebecers polled say they would not put themselves in a situation where they become "house poor"* (highest nationally), it might be easier said than done. While the average house price in
Quebec was $418,230 as of February 2021 ($76,841 increase over 2020, CREA), Quebecers say they have a budget of $298,972 on average to buy a home and 24% say their budget is under $250,000. For those who currently own a home, 14% of respondents consider themselves to be house poor now.
When considering a down payment, 90% of respondents who are likely to buy in the next two years have some money saved for a home purchase, with $40,000 in savings on average. Thirty-five per cent have less than $25,000 earmarked for their home purchase.
"Building up a down payment can often be the biggest barrier for buying a home, especially as prices continue to climb in then pandemic environment," says Berger. "While everyone's financial situation is different, many Quebecers have been taking advantage of reduced spending over the year to build up their savings and get closer to making their dream of owning a home a reality."
Berger adds that no matter when or where you are planning to buy, having access to the right information, resources and support can help you make the best choices for your financial situation and housing needs.
RBC has a number of digital tools and resources available to help Quebecers through every stage of the home buying process:
- RBC Mortgage Specialists are available to support Quebecers in their home buying journey when and where they need it, whether in branch, by phone or virtually.
- RBC True House Affordability tool provides a personalized estimate on how much potential home buyers may be able to afford.
- RBC Homebuyer Advantage provides step-by-step guides, tools, calculators and special offers to help Canadians through every step of the home buying experience.
- RBC Neighbourhood Explorer can help you quickly narrow down your search to find the best areas to live that are most suited to your lifestyle.
National and Regional Data Tables
Question | Total | B.C. | Alberta | SK/MB | Ontario | Quebec | Atlantic Canada |
Non-homeowners under 40: I have given up on the dream of home ownership. (Strongly/Somewhat Agree) | 36% | 41% (Western Canada) | 39% | 27% | N/A | ||
I believe that the majority of Canadians will be priced out of the housing market in the next decade. (Strongly/Somewhat Agree) | 62% | 71% | 65% | 53% | 71% | 43% | 63% |
Likely to buy a home in the next two years: Are you putting aside money monthly to save for a new home purchase? | 60% | 60% (Western Canada) | 54% | 70% | N/A | ||
Likely to buy a home in the next two years: On average, how much money do you put aside every month to save for a new home purchase? | $789 | $500 (Western Canada) | $1,000 | $800 | N/A | ||
I have been able to save more money during the pandemic than I was able to beforehand. (Strongly/Somewhat Agree) | 44% | 45% | 40% | 43% | 44% | 48% | 40% |
I believe that we are currently in a sellers' market | 54% | 62% | 13% | 35% | 64% | 59% | 50% |
How likely are you to purchase a home, or another home, within the next two years? (Very/Somewhat Likely) | 30% | 24% | 33% | 26% | 28% | 36% | 27% |
I am thinking about buying a home sooner because of lower interest rates . (Strongly Agree/Somewhat Agree) | 41% | 39% | 46% | 36% | 35% | 52% | 32% |
I believe that home values will only go up in the immediate future (Strongly Agree/Somewhat Agree) | 61% | 72% | 48% | 58% | 70% | 51% | 53% |
I feel that housing is a very good/good investment | 83% | 83% | 81% | 86% | 83% | 84% | 82% |
I think it makes more sense to buy than to rent right now (Strongly Agree/Somewhat Agree) | 56% | 56% | 57% | 59% | 53% | 57% | 55% |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to economic insecurity | 56% | 56% | 59% | N/A | 63% | 47% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to housing prices coming down | 41% | 45% | 31% | N/A | 42% | 44% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to affordability issues | 35% | 43% | 27% | N/A | 44% | 19% | N/A |
It makes more sense to wait until next year to buy a house/condo instead of buying one now due to job anxiety | 30% | 27% | 35% | N/A | 35% | 23% | N/A |
I would not put myself in the position of being house poor | 60% | 58% | 59% | 62% | 58% | 66% | 61% |
Among homeowners: I consider myself to be house poor now | 15% | 11% | 17% | 16% | 16% | 14% | 16% |
Likely to buy a home in the next two years: If I were to purchase a new home, my budget would realistically be <$500,000 | 48% | 48% (Western Canada) | 32% | 67% | N/A | ||
Likely to buy a home in the next two years: Have some money saved for a down payment | 86% | 84% (Western Canada) | 85% | 90% | N/A | ||
Likely to buy a home in the next two years: Avg. amount of money saved for down payment | $42,000 | $30,000 (Western Canada) | $50,000 | $40,000 | N/A | ||
Likely to buy a home in the next two years: I have less than $25,000 earmarked for a home purchase | 40% | 45% (Western Canada) | 36% | 35% | N/A | ||
*"House poor" is a term that describes a person who over-extends themselves and spends an unusually large proportion of their total income (roughly 30-40% or more) on home ownership, including mortgage payments, property taxes, maintenance and utilities. |
About The Survey
These are some of the findings of an Ipsos poll conducted between January 21 and 28, 2021 on behalf of RBC. For this survey, a sample of 2,000 Canadians aged 18+ was interviewed online. Quotas and weighting were employed to ensure that the sample's composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 2.5 percentage points, 19 times out of 20, had all Canadians aged 18+ been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
SOURCE RBC Royal Bank
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