“A growing majority of Canadians do not intend to buy a house in the next two years, even with mortgage rates near record lows, according to a Royal Bank of Canada survey released on Thursday.
In RBC’s annual poll of Canadian homeowners, 73 per cent of respondents said they are unlikely to buy within the next two years, an increase of 2 per cent over the previous year’s survey.
However, 46 per cent of those polled expected mortgage rates to stay at ultra-low levels next year, up sharply from 30 per cent in 2011.”
- from ‘Despite low rates, many Canadians holding off home purchases: survey’, G&M, 5 Apr 2012
Coming soon, the sister article:
‘Despite falling prices, many Canadians holding off home purchases: survey’.
As has been discussed on these pages recently, despite very low rates, buyer limits will be reached.
And then prices will start declaring a downward direction.
And then the psychology changes completely.
- vreaa
46% up from 30%. Probably nothing.
Expected or are praying? Again, probably nothing.
It’s a survey of homeowners, so it’s measuring trade-up/trade-down intentions.
Maybe a population that’s become numb to house prices and monthly servicing costs is bucking at transaction fees. Who’s in such great shape that they can absorb $50k+ in after-tax transaction costs without a second thought? Yeah, I’m a dreamer…
Could someone please explain how transaction fees work in Canada – apologies: I left Canada when I was 15, and not so interested in real estate!
Many thanks -
Isn’t it ironic that when the credit crunch occured and rates dropped they were intended to increase business spending and provide more jobs, but it had the unintended effect of boosting consumer spending instead. So now instead of saving our economy it’s going to put it in the toilet. Great.
Flooding the market with cheap credit and very little control, is like throwing a massive booze filled party and giving everyone a set of car keys.
Raise mortgage rates.
(Hey Ray, this is for you.)
And I was about to skip it if it was any longer.
I’ll have to make it longer next time. Wouldn’t want to take time away from your regular duties of being an a-hole.