The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
A compelling 89 per cent of Canadian homeowners and 79 per cent of Canadian renters believe a home is a good investment, while 26 per cent of all Canadians are likely to purchase one in the next two years, according to RBC Royal Bank's 11th Annual Homeownership Survey. One in ten Canadians (11 per cent) say they are very likely to purchase a home in the next two years (down two points from last year). Additionally, eight per cent of these expect to buy within the next six months, which is often a key indicator of how intense the hunt for a house will be in the market. "We believe that for a significant majority of Canadians, their home is as much an investment as it is a place to live," said Nancy Mitchell, national manager, Mortgages, RBC Royal Bank. "Low interest rates, flexible payment plans, and current economic market conditions all potentially play a role in defining the Canadian attitude towards home ownership. What we have seen year-over-year is an overwhelming belief in the long-term value of a home." The housing industry is a key economic driver in Canada with home building, buying and renovation expenditures representing an estimated record $154 billion in 2003. Based on potential homebuyers' intentions, 2004 should be another banner year, but with different players leading the charge. Canadians living in Alberta lead the nation as the most likely to buy a house within the next two years (36 per cent, up 2 points from last year). British Columbia comes in second with 35 per cent (up 11 points) planning to buy a home in the same time frame. Next in line are those in Saskatchewan/ Manitoba (26 per cent, down 3 points), Ontario (24 per cent, unchanged), Quebec (20 per cent, down one point), and residents of Atlantic Canada (19 per cent, down 2 points). Canadians aged 25-44 are the most likely to buy a home over the next two years. This is important to note since those fuelling the intention to purchase in the 2003 study were aged 18-24. Not so this year: Canadians aged 18-24 have dropped in terms of likelihood of buying from 40 per cent last year to 27 per cent. In the other age categories, those aged 25-34 (42 per cent, up 3 points over last year) planned to purchase a home. This is followed by 33 per cent of those aged 35-44 (up 7 points over last year), and 22 per cent of those aged 45-54 (steady over 2003). Finally, one in ten Canadians aged 55+ (12 per cent, up 2 points from 2003) also indicate they will purchase a home within the next two years. Over half (54 per cent) of all Canadian homeowners have a mortgage on their home; on average they still have $86,175 to pay off. Homeowners in British Columbia, with approximately $111,280 left to pay, have a higher mortgage on average than homeowners in Ontario ($104,139), Alberta ($91,854), Atlantic Canada ($61,221), Quebec ($54,125), and Saskatchewan /Manitoba ($53,348). For homeowners who are planning to purchase a new home, in the next two years, trading up is the prime reason given by most for their pending move. Almost half (47 per cent) say it will be a bigger home (down 9 points from 2003) than the one they live in now. Thirty-three per cent prefer a house of the same size (up 5 points from last year), and 20 per cent said they want a smaller house (up 4 points). The majority of people who plan to buy in the next two years (64 per cent) prefer resale homes to new. Detached and semi-detached homes still lead the pack in terms of popularity among those looking to buy. Three-quarters (75 per cent) are looking for a detached or semi-detached house while 10 per cent prefer a townhouse, nine per cent a condominium, four per cent an apartment, and one per cent a loft. "These survey results confirm Canadians are still high on housing," said Mitchell. "All 'yes' respondents may not follow through with an actual purchase. However, the positive numbers in this study point to another strong year for Canada's housing markets."
