Canadians Remain Optimistic About Housing Market Despite Economic Challenges

Discover the latest insights from the 2024 Canadian Home Buyer Report, showing 49% of Canadians planning to purchase a home in the next five years.

A recent survey conducted by NerdWallet Canada has revealed that despite economic challenges, Canadians remain optimistic about the housing market. The 2024 Canadian Home Buyer Report indicates that 49 percent of Canadians are planning to purchase a home within the next five years. However, only 11 percent of respondents are looking to buy within the next 12 months, showing a willingness to wait out high interest rates.

The survey highlights that high real estate prices and interest rates are significant barriers to homeownership, with down payments also posing a challenge. Only 16 percent of Canadians planning to buy a home have started saving for a down payment. The report emphasizes the importance of increasing down payment savings, especially for those aged 18-34, where 21 percent have yet to begin saving.

In Canada, home purchases require a minimum five percent down payment, with homes priced over $500,000 requiring a higher percentage. For instance, the average home price in December was $657,145, necessitating a down payment of $40,715.

Interestingly, while many Canadians are looking to buy, a significant portion of homeowners are also planning to sell. The survey found that 42 percent of Canadian homeowners intend to sell within the next five years. This could potentially limit the options for prospective buyers, excluding new builds and immigration.

For those considering selling their homes, economic factors seem less concerning. Thirty-one percent plan to downsize, 24 percent are seeking a change of scenery, and 20 percent are looking to upsize.

The survey results indicate a strong interest in the Canadian housing market, despite the challenges posed by high prices and interest rates. Both buyers and sellers are actively participating in the market, with differing motivations driving their decisions.