Canadians want to be homeowners now more than ever, according to a new report released Wednesday by Mortgages Professionals Canada.
“This latest report, our first survey of 2021, continues to demonstrate that homeownership is the aspiration of an ever-greater percentage of non-owners,” said MPC President and CEO Paul Taylor.
The fifth instalment of the Rapidly Evolving Expectations in the Housing Industry survey was written by MPC’s Chief Economist Will Dunning. The report surveyed 1,000 Canadians, comprising a wide sample of home owners with mortgages, renters and others, including people who live with their parents. This survey occurred during January 14 to 25, 2021, said the organization.
“While prices are now rising rapidly in many communities across Canada, extremely low interest rates have more than offset the effects of higher prices. When I did the calculations, I was surprised to find that affordability has actually improved in the past few months. The consequence is that interest in buying is currently far in excess of the available supply, and the imbalance between demand and supply is resulting in very rapid price growth across Canada. Clearly, not everyone who wants to buy a home will be able to,” said Dunning.
Since this family of surveys was started roughly seven months ago, the desire of non-owners to buy a new home soon has almost quadrupled. In each of the five waves of this survey, the percentage of non-owners who expect to buy a home in the coming year has increased, and is sharply higher compared to the seven per cent figures seen pre-pandemic, at 14 per cent in the first wave of this survey, and 27 per cent in this current survey, said the report.
“The data from our survey provides an explanation for what’s happening in the housing market: Canadians in very large numbers are re-organizing their housing situations. It is possible, but far from being guaranteed, that this active process of re-organization could last for quite some time,” said Dunning.